New Jersey

New Jersey Considers Setting Up Nation's Second Public Bank

What to Know

  • Democratic Gov. Phil Murphy has signed an executive order aimed at making New Jersey the second state to establish a publicly run bank
  • Murphy signed the order Wednesday alongside labor and other advocates in Newark; North Dakota is the only other state with a public bank
  • The administration says the bank could provide capital to worthwhile projects like financing low-income housing and student loans

Democratic Gov. Phil Murphy has signed an executive order aimed at making New Jersey the second state to establish a publicly run bank.

Murphy signed the order Wednesday alongside labor and other advocates in Newark. The first-term former Goldman Sachs executive called for the creation of a state bank during the 2017 campaign, but the effort has largely stalled since taking office.

The order creates a 14-member panel that must hold its first meeting within 30 days and issue a report in a year.

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The administration says the bank could provide capital to worthwhile projects like financing low-income housing and student loans. The bank's deposits would come in part from state funds already held by private banks.

North Dakota is the only other state with a public bank.

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