The California Public Banking Alliance (CPBA) is a coalition of public banking advocates working to establish socially and environmentally responsible public banks in California. In 2019, CPBA members from various regions were successful in passing the California Public Banking Act (AB 857), which made California the first state in the country to formally allow the creation of municipal public ban
ks. Since the passage of the California Public Banking Act, several local governments have passed legislation to establish public banks in their areas, including Los Angeles, San Francisco, the East Bay, and the Central Coast. The CPBA is dedicated to creating a new alternative banking system through locally-controlled, socially and environmentally responsible public banks. This will allow cities and counties to reclaim public dollars and have more control over the financing of their communities. In addition to supporting the development of public banks, the CPBA is also working to provide financial services to nearly 10 million unbanked or underbanked Californians. In October 2021, Governor Newsom signed the Public Banking Option Act (AB 1177), also known as CalAccount, into law. This legislation enables the offering of fee-free and penalty-free debit cards to all Californians, providing access to basic financial services such as check cashing, deposits, and bill paying. CalAccount aims to improve financial inclusion and address the challenges faced by those who lack access to traditional banking services.
