News Release

Trump Targets Sanctuary Cities — Public Banks a Solution?

Sanctuary CitiesThe Los Angeles Times reports: “President Trump is preparing to take executive action that would target funding for so-called sanctuary cities, part of a series of moves he is considering announcing this week on immigration and national security. Former House Speaker Newt Gingrich, a close ally of the new administration, telegraphed the sanctuary cities announcement during a speech Wednesday to the conservative Heritage Foundation. He called it a ‘common sense’ action that would ‘drive the left crazy.'”

MATT STANNARD, matt [at] commonomicsusa.org
Policy Director for Commonomics USA and lead researcher for the organization’s Public Banking Works project, Stannard is co-author, with Marc Armstrong, of “Public Banks Can Help Cities Honor Their Commitment to Give Sanctuary to Immigrants.”

Stannard and Armstrong said today: “Cities, counties, and states can build a firewall against the incoming administration’s threats, and create long-term fiscal stability in the chaotic years ahead, by opening public banks. By lending at low interest and paying that interest directly back to treasuries, public banks provide governments with both a source of financing and a regular source of revenue. A city-owned public bank could turn a profit for the city in its first year by using the bank to fund its infrastructure with public credit. Not only would the city avoid the costs of the municipal bond market and the risks of Wall Street losing its savings in a bad debt swap or other chicanery, but investment could target the services, economic sectors, or infrastructure upgrades the city needs most.

Even if public banks didn’t offset losses of federal funding dollar-for-dollar, they would help sanctuary cities build additional value-generating and budget-saving projects resulting in long-term immunity from federal fiscal blackmail.”