Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
A Bank Without Penalties And Fees? An Assembly Bill Aims To Help Low-Income Californians
(Courtesy of Shutterstock)
()
Millions of low-income Californians might be able to bank free of penalties and fees if state lawmakers approve the latest attempt to create public banking.
AB 1177 would form a state-supported public bank board, which would partner with private banks to offer the free accounts. The program would be called "BankCal."
"If a rich person earns money, that money makes money," said State Assemblymember Miguel Santiago (D-LA), the bill's author. "When a poor person earns money, that money is gouged from every corner you could possibly get it. You get gouged when you go to payday lendings, you get gouged at the banks. You get gouged on every transaction and every fee."
The California Public Banking Alliance sponsored the measure. Co-founder Trinity Tran said the bill would help bridge the racial wealth in underserved communities:
Support for LAist comes from
"Because when poor folks have to pay for their financial services, that means they have fewer opportunities to grow credit, they're rejected for loans, and that all amounts to a real disadvantage for millions of families."
Correction: A previous version of this article stated that previous California bills allowing public banking option failed. Actually, Newsom signed a bill years ago to allow independent municipalities to create their own public banks.
Our news is free on LAist. To make sure you get our coverage: Sign up for our daily newsletters. To support our non-profit public service journalism: Donate Now.
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
People moving to Los Angeles are regularly baffled by the region’s refrigerator-less apartments. They’ll soon be a thing of the past. -
Experts say students shouldn't readily forgo federal aid. But a California-only program may be a good alternative in some cases. -
The program is for customers in communities that may not be able to afford turf removal or water-saving upgrades. -
More than half of sales through September have been to corporate developers. Grassroots community efforts continue to work to combat the trend. -
The bill would increase penalties for metal recyclers who possess or purchase metal used in public infrastructure. -
The new ordinance applies to certain grocers operating in the city and has led to some self-checkout lanes to shutter.
Best of LAist