Public Banking Act of 2023

Bill: 118-hr-6775
Sponsor: Rep. Tlaib, Rashida [D-MI-12]
Introduced: 2023-12-13 in the House
Policy area: Finance and Financial Sector
Subjects: Air quality
Bank accounts, deposits, capital
Business expenses
Business records
Civil actions and liability
Climate change and greenhouse gases
Consumer credit
Corporate finance and management
Credit and credit markets
Currency
Digital media
Federal Reserve System
Financial services and investments
Government corporations and government-sponsored enterprises
Housing and community development funding
Insurance industry and regulation
Interest, dividends, interest rates
Licensing and registrations
Oil and gas
Securities
U.S. Postal Service
User charges and fees
Wages and earnings

Summary:
action_date: 2023-12-13
text: 

Public Banking Act of 2023

This bill allows for the federal charter of public banks (i.e., banks that are wholly owned and controlled by a state, tribe, or local government).

Under the bill, the Board of Governors of the Federal Reserve System must charter public banks or recognize non-federally chartered banks if they meet certain criteria. These public banks are eligible for membership in the Federal Reserve System. The Federal Reserve must offer specified services to member public member banks, including grants, payment accounts, digital dollar services, and facilities for credit, loans, and liquidity.

These public banks must have a democratic governance structure, establish an environmental policy, and comply with certain lending policies. For example, these public banks must require that loan recipients do not oppose or resist unionization efforts involving projects that utilize public funds. Public banks under the bill are also prohibited from providing financial services to certain companies, including those that (1) support specified industries such as gun manufacturers or fossil fuel producers; (2) have unfair or unsafe labor practices; or (3) have a history of tax avoidance. 

The bill also requires the establishment of a regulatory framework for the federal recognition of securities issued by public banks.

The Federal Deposit Insurance Corporation must provide unlimited deposit insurance to federally recognized public banks.

The United States Postal Service must partner with these public banks to provide account and payment services at post offices.
 

Legislative actions:
action_date: 2023-12-15
text: Referred to the Subcommittee on Energy, Climate and Grid Security.
action_date: 2023-12-13
text: Referred to the Committee on Financial Services, and in addition to the Committees on Oversight and Accountability, Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2023-12-13
text: Referred to the Committee on Financial Services, and in addition to the Committees on Oversight and Accountability, Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2023-12-13
text: Referred to the Committee on Financial Services, and in addition to the Committees on Oversight and Accountability, Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2023-12-13
text: Referred to the Committee on Financial Services, and in addition to the Committees on Oversight and Accountability, Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2023-12-13
text: Sponsor introductory remarks on measure. (CR H6865)
action_date: 2023-12-13
text: Introduced in House
action_date: 2023-12-13
text: Introduced in House