SAN FRANCISCO — San Francisco supervisors have voted 9-2 legislation to place a charter amendment on the November ballot that would establish the governance structure for a proposed municipal financial corporation, or what would be the nation’s first city-owned public bank.
The measure would create the framework for a municipal bank focused on financing affordable housing, green energy projects and small businesses. Supporters say the proposal comes as federal funding reductions have strained city finances and as local officials seek new ways to address housing affordability and economic recovery, according to KQED.
If approved by voters, San Francisco would become the first U.S. municipality to operate its own public bank, although publicly owned banking institutions already exist at the state level, including in North Dakota, KQED reported.
‘Open the Doors to Build an Engine’
“A public bank would open the doors to build an engine for affordable housing, a lifeline for struggling small businesses and the financial backbone for our climate goals,” Supervisor Chyanne Chen said, according to KQED. “Let us use every tool at our disposal to keep the city affordable and to drive an economic recovery that leaves no one behind.”
The legislation would establish the bank’s mission and governance while specifying that it would not lend to fossil fuel companies or weapons manufacturers. It also outlines appointment authority for the institution’s governing body, giving roles to the mayor, Board of Supervisors, city attorney, controller, treasurer and tax collector.
Supervisor Jackie Fielder, a longtime advocate for the proposal, said the governance model is intended to balance financial expertise with public accountability.
‘Real Bankers, Public Priorities’
“This ensures we have an institution run by real bankers that is accountable, nevertheless, to public priorities and public policy priorities,” Fielder told KQED. “San Franciscans right now are really asking for affordability in a city that is becoming increasingly out of reach for even middle-class families.”
The ballot measure would not appropriate funding for the bank. Instead, supporters say it is designed to preserve the city’s ability to move forward while California law authorizing municipalities to establish public banks remains in effect. That state authorization is scheduled to expire in 2028.
“We really want to take advantage of this; otherwise, we will not have the legal context to allow San Francisco to make this legislation,” Chen told KQED. “If the state law expires, then we have to work on a new state law before we can have this conversation again.”
What Advocates Say
Advocates argue a public bank could help finance thousands of approved affordable housing units that have yet to secure funding, while also providing low- or no-cost loans for climate initiatives and small businesses.
“I really see the public bank as a tool for the city to have infrastructure in the future to support more affordable housing and support our small businesses to be more resilient,” Chen told the news outlet.
Supporters also argue that a public bank could help address lending gaps they say have persisted under traditional banking models. Melgar cited disparities in lending affecting women, undocumented borrowers and other underserved groups during last week’s Board of Supervisors meeting.
Voters Indicate Support
“We still see great disparities in lending for no financial business reason against women, against people who don’t have proper documentation, against all sorts of human beings that could be thriving economic actors in our society,” Melgar said, according to KQED.
KQED reported that a 2025 poll commissioned by the San Francisco Public Bank Coalition found that 67% of likely San Francisco voters support creating a public bank. The November ballot measure will determine whether the city moves forward with establishing the institution.
