Inclusive Economy
We’re advocating to transform our economic and financial systems to actually work for working people.
So many communities are locked out of opportunity and disconnected from traditional financial systems. These gaps disproportionately hurt low income households and communities of color, deepening inequality and making it harder for our communities to build wealth.
We know an inclusive economy is possible – and we’re fighting to ensure every community member can fully access, participate in, and benefit from financial systems.
Community Reinvestment Act
The federal Community Reinvestment Act (CRA), passed into law in 1977, encourages banks to meet the needs of the communities in which they operate, including low- and moderate-income neighborhoods. The CRA was enacted in response to concerns that financial institutions were not adequately providing credit to these communities, often resulting in disinvestment and redlining.
A state CRA here in California would set standards for how financial institutions in our state invest and conduct business. It would set clear standards for financial institutions to address racial and wealth disparities, and expand affordable housing, homeownership, and small business development. It would also increase transparency in the state’s financial services market, ensuring equal access to credit and services for all Californians.
As a part of our state legislative agenda, Inclusive Action is proud to co-sponsor the California Community Reinvestment Act (Assembly Bill 801), authored by Assemblymember Mia Bonta and also co-sponsored by Rise Economy, SEIU California, and California Housing Partnership. The bill will create a CRA in California to set standards for financial institutions to meet the lending needs of our communities.
Public Bank LA
As a part of the Public Bank LA coalition, Inclusive Action is advocating for the creation of a public bank in the city of Los Angeles. A public bank is a financial institution owned by the people of Los Angeles. It would use taxes and fees collected from the residents of the city and reinvest them into what communities actually need: supporting affordable housing, small businesses, climate infrastructure, and more. This bank would be driven by a mission to serve the people, not profits – and it would be transparent, equitable, and accountable. Creating a local public bank is made possible by the passage of the California Public Banking Act (Assembly Bill 857), which allows local governments to apply for licenses to operate banks that benefit their communities.
Read more about the Public Bank LA coalition and what we’re pushing for.