California’s State Bank Act (AB 2243) passed two Assembly committees and is gaining momentum in the Legislature! The Observer covers the growing movement for public banking in California and the voices helping move this work forward including lead author Assemblymember Matt Haney, Asm. Ash Kalra, Trinity Tran, Michael Tubbs, Max Vargas, Dr. Flojuane Cofer, and coalition leaders across the state.

“Lawmakers, economic justice advocates, and community leaders gathered April 22 at the state Capitol to launch Assembly Bill 2243, a proposal supporters said could fundamentally change how California finances its public needs.

The bill, led by assemblymembers Matt Haney and Ash Kalra, would create a State Bank Commission to study and develop a plan for a publicly owned state bank.

Speaking at the rally, Kalra framed the effort as a response to widening inequality in one of the world’s largest economies.”

California pays billions in interest to private lenders while communities struggle with housing, infrastructure, and rising costs. AB 2243 creates a pathway to evaluate how the state can keep more public dollars working locally for Californians.

Assemblymember Matt Haney, AB 2243 author: “We have a cost-of-living crisis, a housing crisis; everywhere you look, people are struggling. If people in our state are working hard and paying taxes, they should be able to expect that those dollars are invested back into their communities.”

Assemblymember Ash Kalra, CA State Bank Act AB 2243 joint author: “California currently borrows from private banks. We pay their fees, and they benefit from the interest. When we borrow, we end up paying double, and taxpayers are the ones who bear that cost.”

Trinity Tran, Executive Director of the California Public Banking Alliance: “California generates roughly $300 billion in public revenue each year, yet we still pay private banks to finance our own projects. That means billions of dollars are leaving our state year after year.”

Michael Tubbs, former Stockton mayor and founder of End Poverty in California (EPIC): “There are different visions for California, different ideas about who this economy should work for. If we believe that public money should be used for the public good, then we need to organize and fight for it.”

Max Vargas, CEO of The Greenlining Institute: “We have a need of over 1.5 million units of affordable rental housing in California,” Vargas said. “That’s just one example of where this financing gap is hurting communities. Public dollars should go further, supporting affordability for all Californians, especially those facing the greatest pressures.”

Dr. Flojuane Cofer, SacACT and Sacramento Climate Coalition leader: “A public bank can help finance what actually keeps people healthy: affordable housing, clean energy, safe water systems and good jobs. This is about whether we have the courage to align our money with our values.”

The bill already has drawn support from more than 100 organizations statewide, showing a growing coalition pushing for alternatives to traditional banking systems.

Read the full article: California Lawmakers Propose Public Bank To Address Economic Inequality.