LOS ANGELES —Today, in a major step towards economic justice and fiscal responsibility, Councilmembers Eunisses Hernandez, Ysabel Jurado, and Hugo Soto-Martinez introduced a motion that will begin to fund the feasibility study for a Los Angeles public bank. The motion allocates $15,000 in AB1290 discretionary funds from each Council office.
In 2023, the Council voted 12-0 to approve $460,000 for HR&A Advisors to conduct a feasibility study. Funding for the feasibility study had been included in the FY 24-25 budget, but was swept during a Financial Status Report (FSR).
Supporters of the motion argue that the proposed public bank would allow Los Angeles to generate new public revenue without putting the burden on L.A. residents through new taxes or fees.
“For too long, our public dollars have propped up systems that deepen inequality and harm our communities,” said Councilmember Eunisses Hernandez. “A public bank would give us the power to reinvest in our neighborhoods without further squeezing working-class Angelenos. Los Angeles deserves a financial system that works for us, not against us.”
Today’s motion comes on the heels of the City Council approving a budget for FY 25-26—one of the most challenging fiscal years in recent history.
“Creating a public bank would be a bold step toward reinvesting our public dollars directly into our communities,” said Councilmember Ysabel Jurado. “Tough economic times give us an opportunity to look at ways we can uplift sustainable local economies."
Public banking has been implemented elsewhere with lasting results. The State of North Dakota, which created a public bank in 1919, has used it to weather multiple economic downturns and insulate itself from broader market collapses. For over a century, it has reinvested its own public funds locally, proving that public banking is both visionary and fiscally responsible.
“This $45,000 sends a clear signal: LA is ready to think big,” said Councilmember Hugo Soto-Martínez. “After a year of painful cuts, we can’t keep throwing money at the same broken systems and expecting change. A public bank lets us take control of our own dollars and invest in the future our communities deserve.”
Before introducing the motion, the Councilmembers joined community organizers, labor leaders, and movement partners on the steps of City Hall to rally with representatives from Public Bank LA, Move LA, SEIU 721, DSA-LA, Inclusive Action for the City, and ACCE. The coalition called for a public financial institution that could reinvest public dollars directly into the community.
“Los Angeles is losing millions to private banks while neighborhoods brace for essential service cuts and deepening crises,” said Trinity Tran, Executive Director of Public Bank LA. “A public bank gives us the power to take control. It leverages our own assets to fund housing, infrastructure, and the services our communities need. Today’s action by city leaders signals real commitment to a city that invests in its people, not Wall Street profits.”
“When the City of LA has a public bank, we’ll know exactly where our tax dollars are going,” said member of Alliance of Californians for Community Empowerment Abdullah Muhammad. “Instead of enriching private banks, those dollars can be invested in quality jobs, affordable housing to address the homelessness crisis, and green energy projects. Last year alone, LA paid over $1.4 billion in debt service, including hundreds of millions in interest and bank fees. Enough is enough. Let’s fully fund the feasibility study and start building a public bank for the people.”
"The creation of a Public Bank in Los Angeles is a powerful opportunity to support small businesses and entrepreneurs, helping to boost access to affordable credit and capital in the communities that need it most," said Luz Castro, Associate Director of Policy at Inclusive Action for the City. "We’re grateful to our City Council partners for taking the first step by securing seed funding for a feasibility study, which will bring us closer to closing the long-standing gaps in our financial system and making this vision a reality."
“We have big infrastructure needs in the City of Los Angeles—from publicly funded affordable and social housing to renewable power to clean port infrastructure,” said Eli Lipmen, Executive Director of Move LA. “A public bank will help us invest our limited resources more effectively and accelerate these important infrastructure needs. We cannot wait another moment on this important opportunity to re-invest in Los Angeles.”
In addition to leveraging their discretionary funding, Councilmembers Jurado, Hernandez, and Soto-Martinez’s motion directs the CLA to work with HR&A Advisors to confirm that their previously determined cost, scope and timeline remain accurate.
CLICK HERE for photos, b-roll, and a copy of motion.