If I were a Congressman, I would propose this bill: Public Banking Act
A federal law to transform the U.S. banking system from private to public ownership, while maintaining individual freedoms, competition, and democratic accountability.
Here is what the bill would look like:
(this isn’t as crazy as it may sound, Germany, Japan, China, and India all have public banking systems, and historically, public banking systems have done very well)
There’s simply no reason that every-day Americans around the country cannot and should not participate in the distribution (loans) of America’s wealth. The banking system should be a core democratically managed system, not run by a small group of private citizens who often enter into banking as heirs or through Ivy league university legacy pathways.
Central Banks are private bankers. They argue that bonds serve important functions to help prevent inflation by charging interest and slowing the velocity of money through the economy. However, there are other ways to prevent inflation. The federal government could print money, deposit it into public banks with no bonds (IOUs) and no interest payments to private banks. Instead, the money would be used as needed for goods and services as well as loans to the private sector. Instead of American citizens paying interest to private banks, private corporations would pay interest on loans to the US Government. These interest payments could be used to pay for other goods and services, such as affordable healthcare.
117th CONGRESS 1st Session
H. R. ____
To establish a public banking system in the United States, to nationalize systemically important financial institutions, and to transfer the power of money creation to the public domain.
IN THE HOUSE OF REPRESENTATIVES
[Date of Introduction]
Ms./Mr. [Sponsor's Name] introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To establish a public banking system in the United States, to nationalize systemically important financial institutions, and to transfer the power of money creation to the public domain.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Public Banking Act of 2025."
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS. Congress finds that: (1) The private banking sector exercises disproportionate control over money creation and allocation, contrary to public interest. (2) The issuance of currency and the extension of credit are sovereign functions which should be administered democratically. (3) A publicly owned banking infrastructure will promote equitable access to capital, economic stability, and sustainable growth.
(b) PURPOSE. The purpose of this Act is to: (1) Establish the United States Public Bank (USPB); (2) Transfer the authority of money creation to the public domain; (3) Nationalize systemically important financial institutions; (4) Prohibit private money creation through fractional reserve lending; (5) Create a framework for democratic monetary governance.
SEC. 3. ESTABLISHMENT OF THE UNITED STATES PUBLIC BANK.
(a) IN GENERAL. There is hereby established a federally owned financial institution to be known as the United States Public Bank (USPB).
(b) FUNCTIONS. The USPB shall: (1) Serve as the depository for all federal government funds; (2) Extend credit to federal, state, and municipal governments, public enterprises, and individuals, consistent with the public interest; (3) Issue loans for infrastructure, education, health, housing, and environmental sustainability; (4) Operate under strict transparency and public oversight.
(c) GOVERNANCE. The USPB shall be governed by a Board of Public Governors, appointed by the President and confirmed by the Senate, representing each region of the United States and subject to term limits.
SEC. 4. NATIONALIZATION OF SYSTEMICALLY IMPORTANT FINANCIAL INSTITUTIONS.
(a) IDENTIFICATION. The Secretary of the Treasury shall identify all banking institutions with total consolidated assets in excess of $10 billion as of the enactment date.
(b) TRANSFER OF OWNERSHIP. The identified institutions shall be acquired by the United States government under terms of fair market compensation through the issuance of Treasury bonds.
(c) TRANSITION. All acquired institutions shall be integrated into the USPB framework within thirty-six months of enactment.
SEC. 5. PROHIBITION OF PRIVATE MONEY CREATION.
(a) PROHIBITION. No private financial institution shall engage in the practice of money creation via fractional reserve lending or any similar mechanism.
(b) LENDING REQUIREMENTS. All loans extended by private institutions must be fully backed by existing, verified capital reserves.
(c) PENALTIES. Violations of this section shall be subject to civil and criminal penalties as determined by the Attorney General and the Secretary of the Treasury.
SEC. 6. MONETARY SOVEREIGNTY AND CENTRAL BANK INTEGRATION.
(a) PUBLIC MONEY CREATION. The exclusive authority to issue U.S. currency and credit shall reside with the U.S. Treasury in coordination with the Federal Reserve, now acting as the Monetary Authority of the USPB.
(b) POLICY MANDATE. The Monetary Authority shall be tasked with maintaining price stability, full employment, and the democratic allocation of newly created money.
(c) PROHIBITION ON SECONDARY MARKET BOND PURCHASES. The Federal Reserve shall cease open market operations involving the purchase of existing government bonds.
SEC. 7. CITIZEN DIVIDEND AND PUBLIC CREDIT ALLOCATION.
(a) CITIZEN DIVIDEND. Congress may authorize the direct distribution of newly created money to citizens in the form of a universal basic income.
(b) CREDIT GUIDANCE. Public credit shall be directed toward democratically prioritized sectors such as healthcare, education, renewable energy, and infrastructure.
SEC. 8. LOCAL AND REGIONAL PUBLIC BANKS.
(a) INCENTIVES. State and municipal governments are encouraged to establish local public banks under USPB standards.
(b) PARTNERSHIP. The USPB shall provide technical, legal, and financial support to local public banks.
SEC. 9. SEVERABILITY.
If any provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.
SEC. 10. EFFECTIVE DATE.
This Act shall take effect on January 1, 2026. The implementation of Sections 3, 4, and 5 shall occur within a transitional period not to exceed thirty-six months from the effective date.