Public Bank Los Angeles (PBLA) is a volunteer-led initiative founded in 2017 with the goal of establishing a socially and environmentally responsible municipal bank for the City of Los Angeles. PBLA grew out of the Divest LA movement, which was inspired by the #DefundDAPL campaign to redirect funding from the Dakota Access Pipeline and by the broader fight against unethical banking practices that harm vulnerable communities. In 2018, Divest LA successfully pushed the City of Los Angeles to disqualify Wells Fargo from its commercial banking services over its ‘Needs to Improve’ CRA rating. With over 38,000 supporters signing the Change.org petition, the campaign showed the power of grassroots organizing. Even though the city later returned to Wells Fargo, the campaign made it clear there’s a need for more permanent solutions, like a public bank, to keep banking accountable.

In 2018, Public Bank LA led Measure B, the nation’s first voter referendum on a public bank, which gained national attention from congressional candidate Representative Alexandria Ocasio-Cortez. The Los Angeles ballot initiative sought to amend the city charter and take the first steps toward creating a municipal public bank. With only four months to organize and less than 1/10 of the average budget needed to win a city-wide initiative, the measure did not pass but received 44% of votes in approval, with over 430,000 Angelenos supporting the ballot. The campaign also helped ignite the modern public banking movement.

In 2019, Public Bank LA, a founding member of the California Public Banking Alliance (CPBA), passed the California Public Banking Act (Assembly Bill 857), which empowers California cities, counties, and regions to form public banks. AB 857 was signed into law by Governor Gavin Newsom on October 2, 2019, legalizing public banking in California for the first time in history. This was the first legislation in the nation authorizing municipalities to set up their own public banks.

The California Public Banking Act was signed into law by Governor Newsom, praised nationally by Rep. AOC, uplifted by Senator Bernie Sanders, and finalized with state regulations in 2022. 

During the COVID-19 pandemic of 2020, Public Bank LA and the California Public Banking Alliance collaborated on a State Public Bank bill to expand the existing California Infrastructure and Economic Development Bank (IBank) and increase its capacity for recovery lending for small businesses and community development infrastructure.

In 2021 and 2022, PBLA led the advocacy efforts for the Los Angeles City Council’s unanimous vote to take the next steps toward establishing a Los Angeles public bank. As a result of this vote, the council issued a Request for Proposal (RFP) to hire consultants to write the bank’s viability study and business plan. The City selected consultants in 2024. The Public Bank LA Coalition is currently working to fund the feasibility study.

In addition to working on municipal public banking, PBLA helped pass the California Public Banking Option Act (AB 1177), in collaboration with co-sponsor SEIU California. AB 1177, also known as CalAccount, was signed into law by Governor Newsom in October 2021 and will begin the process of offering fee-free and penalty-free debit cards to all Californians, providing basic financial services such as check cashing, deposits, and bill paying. The program aims to provide affordable financial services and fuel economic growth in California by providing greater access to financial services for Californians, particularly unbanked and underbanked populations. Once implemented, CalAccount will be the nation’s first universal banking services account.

PBLA and the CPBA have shaped legislation on the national level, advising Congresswoman Rashida Tlaib and Congresswoman Alexandria Ocasio-Cortez on the Public Banking Act of 2020 and the Public Banking Act of 2023, federal bills designed to make it easier for states and cities to create public banks.