With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today during our fall member drive.
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.
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
A tort claim obtained by LAist via a public records request alleges the Anaheim procurement department lacks basic contracting procedures and oversight. -
Flauta, taquito, tacos dorados? Whatever they’re called, they’re golden, crispy and delicious. -
If California redistricts, the conservative beach town that banned LGBTQ Pride flags on city property would get a gay, progressive Democrat in Congress. -
Most survivors of January's fires face a massive gap in the money they need to rebuild, and funding to help is moving too slowly or nonexistent. -
Kevin Lacy has an obsession with documenting California’s forgotten and decaying places. -
Restaurants share resources in the food hall in West Adams as Los Angeles reckons with increasing restaurant closures.
Best of LAist