vox--2020-10-30--Exclusive: Rashida Tlaib and AOC have a proposal for a fairer financial system — public banking

A public option , but for banking .
That ’ s what Reps. Rashida Tlaib and Alexandria Ocasio-Cortez are proposing in a new bill unveiled on Friday .
The Public Banking Act , first shared with Vox , wouldn ’ t create those options by itself , but would foster the creation of public banks across the country by providing them a pathway to getting started , establishing an infrastructure for liquidity and credit facilities for them via the Federal Reserve , and setting up federal guidelines for them to regulated .
Essentially , it would make it easier for @ @ @ @ @ @ @ would give some of them grant money to get started .
While it sounds a little wonky , the basic idea is to make it possible for state and local governments , local businesses , and people to do business with public banks , which theoretically would be more motivated to do public good and invest in their communities , than private institutions , which are out for profit .
One public bank exists in North Dakota , and there is a growing movement to create more of them across the country .
@ @ @ @ @ @ @ and counties to create and sponsor public banks .
“ Economic stability is really , truly tied in with access to this type of banking , ” Tlaib said in an interview with Vox .
“ It ’ s to try to create stable neighborhoods and communities.
” The proposal lands in the midst of the Covid-19 pandemic , which has shed light on many inefficiencies in the American system , including banking .
Take the Paycheck Protection Program for example : It used the regular banking system as an intermediary , which @ @ @ @ @ @ @ with preexisting relationships with those banks were prioritized over others .
Some smaller businesses missed out , with many owners saying they were denied loans for even a few thousand dollars .
The discrepancy hit Black-owned businesses particularly hard .
“ Economic stability is really , truly tied in with access to this type of banking ” The intent of the proposal is to try to guarantee a more equitable recovery by providing an alternative to Wall Street banks for state and local governments , businesses , and ordinary people , and by @ @ @ @ @ @ @ excluded and marginalized groups .
The public banking bill also does double-duty as a climate bill : It would prohibit public banks from investing in or doing business with the fossil fuel industry .
“ Public banks are uniquely able to address the economic inequality and structural racism exacerbated by the banking industry ’ s discriminatory policies and predatory practices , ” Ocasio-Cortez said in a statement .
She said that she also believes public banks could facilitate the use of public resources to construct “ a myriad of public goods , ” @ @ @ @ @ @ @ projects .
“ Public banks empower states and municipalities to establish new channels of public investment to help solve systemic crises.
” Other countries have various forms of public banking in operation and have different regulatory schemes set up for them than commercial banks do , said Rohan Grey , a law professor at Willamette University .
But , he said , this proposal is particularly comprehensive and supportive .
Getting the bill passed , the regulatory scheme and grant program set up , and public banks chartered and operational in time to @ @ @ @ @ @ @ the pandemic may not be possible on a broad scale , timing-wise .
But the bill is a signal of what ’ s possibly to come .
If Democrats keep control of the House come 2021 and manage to flip the Senate and win the White House , they ’ ll be able to take some big legislative swings , including and perhaps especially on issues related to the economy .
It is worth noting that both Tlaib and Ocasio-Cortez sit on the powerful House Financial Services Committee , which is chaired by @ @ @ @ @ @ @ “ I look at economic justice and the issues around economy right now , that many of our working families , from farmers to the middle class to front-line essential workers , all of them know that , with the corporate bailouts , at some point it ’ s just hitting a wall where it doesn ’ t carry them along and they ’ re looking for options , ” said Tlaib , who represents Michigan ’ s 13th Congressional District , the third-poorest congressional district in the country .
“ So I @ @ @ @ @ @ @ as an option.
” To be clear , the Public Banking Act isn ’ t creating a federal public bank .
Instead , what it does is encourage and enable the creation of public banks across the US .
It provides legitimacy to those who are pushing for more public banking , and it also includes regulators as key stakeholders who can support and provide guidance for how those banks should operate .
“ It ’ s not that tomorrow you ’ re going to see a thousand of these across the country @ @ @ @ @ @ @ be a hill by hill , city by city battle , ” Grey said .
There is a spectrum of services public banks would offer ; many would be a lot like what commercial banks do , though different public banks would likely have different areas of emphasis .
At least at the outset , some banks could serve as depository institutions for state and local governments , meaning those governments would put their money in the local public bank , not JPMorgan .
Or , they might partner with community banks or @ @ @ @ @ @ @ and offer lower debt costs to the businesses and cities they lend to .
They could also facilitate easier access to funds for state and local governments from the federal government or Federal Reserve .
“ It ’ s basically a way to finance state and local investment that doesn ’ t go through Wall Street and doesn ’ t leave the community and turn into a windfall for shareholders , ” said Porter McConnell , the campaign director of advocacy group Take on Wall Street .
“ This is more about community @ @ @ @ @ @ @ banking as well .
The legislation creates a framework for public banks to interact with postal banking , where the Postal Service serves as a bank , or FedAccounts , where everyone gets an account with the Federal Reserve through which they could receive direct payments from the government , for example , during an economic crisis .
“ This bill is saying whatever you come up with , there ’ s a place for that to be recognized and be plugged in at the federal level , ” Frey said .
Tlaib @ @ @ @ @ @ @ $ 1,200 coronavirus stimulus checks went out this spring — people waiting days and weeks for direct deposits , or getting a check in the mail only to lose a substantial portion of it cashing it at the store down the street .
“ I ’ d rather them have access to a bank that ’ s for them , that ’ s not focused on for-profit schemes , ” she said .
The Public Banking Act allows the Federal Reserve to charter and grant membership to public banks and creates a grant @ @ @ @ @ @ @ seed money for public banks to be formed , capitalized , and developed .
It also instructs the Fed to establish an incubator program for those who want to create a public bank , and it instructs the Securities and Exchange Commission ( SEC ) and Federal Deposit Insurance Corporation ( FDIC ) to establish regulatory schemes around them .
One other important element , McConnell explained , is how the legislation would change the FDIC ’ s reticent approach to public banks .
Public banks need the FDIC to provide assurances that @ @ @ @ @ @ @ the bond rating of the city or state they represent .
For example , Los Angeles is a large municipality and has typically maintained a strong bond rating .
McConnell said that the FDIC issuing guidance that it recognizes the city ’ s — and the state ’ s — public banks as an AAA rating would send a clear direction to the state financial regulators that the public bank is considered low risk .
“ The FDIC needs to be convinced not to discriminate against public banks , and they need to @ @ @ @ @ @ @ given the same facilities , the same rights , as private banks , ” she said .
The bill would also provide a roadmap for the FDIC , which insures bank deposits of up to $ 250,000 , to insure deposits for public banks , so people feel assured they won ’ t lose all their money by choosing to open an account with their state bank instead of , say , Wells Fargo .
The legislation has multiple cosponsors in the House , including Reps. Chuy Garcia ( D-IL ) , Pramila @ @ @ @ @ @ @ ( D-MA ) , Bennie Thompson ( D-MS ) , and Ilhan Omar ( D-MN ) .
This isn ’ t a panacea for fixing banking in America , and whether this is the right approach can be debated .
The government isn ’ t always perfect at providing services ( see : the unemployment system , or Flint , Michigan ) .
Columbia University law professor Katharina Pistor noted for Worth in 2019 that “ the global and historical experience with public banking suggests that , just as in the private sector @ @ @ @ @ @ @ their goals most of the time , while others will underperform or even fail.
” She also points out that there is a question of whether in the long run , public banks will be able to stay on mission .
Aaron Klein , an economic fellow at the Brookings Institution and former Treasury Department aide in the Obama administration , noted in an email to Vox that the Office of the Comptroller of the Currency ( OCC ) has historically been charged with chartering national banks in the US , not the @ @ @ @ @ @ @ novel idea .
He also noted what he saw as a misguided part of the bill : It prohibits the Fed and Treasury from considering the financial health of an entity when making grant-making decisions .
“ Banks that are failing should fail .
Public or private , ” he said .
Still , he commended the message at the heart of the proposal : “ The problem that the bill responds to is sound — banking is too expensive for working people.
” When the public sector competes with the private sector @ @ @ @ @ @ @ So here is the thing about private companies , including , yes , banks : the point of them is to make money , and that drives their decisions .
It ’ s not necessarily evil ( though sometimes it kind of is ) , but it ’ s just how they work .
For example , many people in America don ’ t have access to affordable internet because it ’ s not lucrative for telecom companies to get it to them .
The idea behind public banking isn ’ t that @ @ @ @ @ @ @ Morgan Stanley go away , it ’ s that they have to compete with a government-owned entity — and one that ’ s a little fairer and more ethical in how it does business .
“ The potential around taking private ownership out of banking , even just a little bit , is huge considering that we are depositors and we deposit $ 15 trillion in the commercial banking industry , and we get what ?
Redlined ?
Ethical violations in Malaysia ?
Fraud ?
Coal ?
Fossil fuels ?
All of these @ @ @ @ @ @ @ , ” said Emma Guttman-Slater , director of policy advocacy and field building at the Beneficial State Foundation , a nonprofit focused on making the banking system more equitable .
“ The potential around taking private ownership out of banking , even just a little bit , is huge considering that we are depositors and we deposit $ 15 trillion in the commercial banking industry , and we get what ?
” Public banks , as imagined in the Tlaib-Ocasio-Cortez proposal , would provide loans to small businesses and governments with lower interest @ @ @ @ @ @ @ potentially be better at avoiding the short-term thinking private institutions tend toward and be more willing to lend to projects with a slightly longer time horizon .
“ There ’ s a disinclination to believe you can make money without making money hand over fist , ” McConnell said .
“ A lot of this gets at market failures.
” In the US , North Dakota is the only state to have a public bank , which it established more than a century ago .
And it works pretty well , as Will @ @ @ @ @ @ @ The bank — which isn ’ t FDIC insured — initially was supposed to protect the state ’ s farmers , but now it ’ s good for a lot of people : If this bill were to become law , it would open up a lot of doorways in public banking .
It would make life a lot easier for those working on forming public banks in California after the state gave the rubber stamp allowing it in late 2019 .
In New York City , advocates have long been pushing for @ @ @ @ @ @ @ investments , foster growth and prosperity in the local community , and be more transparent about where money is going .
If Democrats take power , there could be a lot more where this came from Beyond the ins and outs of this specific piece of legislation , there is a broader message : Democrats have a lot of ideas , and if they take power come January 2021 , there ’ s a lot they can do .
Democrats have a lot of ideas , and if they take power come January @ @ @ @ @ @ @ they can do Tlaib , for example , is a proponent of universal basic income and has proposed multiple pieces of related legislation .
In response to the pandemic , she and Rep. Pramila Jayapal ( D-WA ) proposed the Automatic BOOST to Communities ( ABC Act ) , which would provide a $ 2,000 payment to every American during the Covid-19 crisis , plus one year in $ 1,000 monthly payments for a year after the outbreak ends .
“ I hope we have a serious conversation about the [ ABC Act @ @ @ @ @ @ @ ” Tlaib said .
“ Right now , people need us to put them first and to have a people ’ s bailout , and so I hope that we ’ re looking at reoccurring payments at the beginning of next year .
I think there ’ s going to be a door to having a conversation about it , because right now , there ’ s a wall around the White House.
” The Public Banking Act is meant to be complementary to ideas such as the ABC Act and postal banking @ @ @ @ @ @ @ ’ s linked to the Green New Deal , not only because it would bar public banks from financing things that hurt the environment , but also because the idea is that public banks would play a major role in financing Green New Deal and climate-friendly projects .
There ’ s no guarantee moderates will get on board , but there are a plethora of ideas for making the American economy and people ’ s financial lives better .
Klein pointed to proposed legislation from Sens .
Chris Van Hollen ( D-MD ) @ @ @ @ @ @ @ Reps. Ayanna Pressley ( D-MA ) and Chuy Garcia ( D-IL ) proposed in 2019 that would authorize the Fed to build a real-time payments system to get people money safely and fast .
How likely some of these proposals are to make it into law is an open question — and much of it hinges on Tuesday ’ s election .
If former Vice President Joe Biden wins the White House and Democrats control both the House and the Senate come 2021 , the talk around these ideas becomes a lot more @ @ @ @ @ @ @ free for all ?
The United States is in the middle of one of the most consequential presidential elections of our lifetimes .
It ’ s essential that all Americans are able to access clear , concise information on what the outcome of the election could mean for their lives , and the lives of their families and communities .
That is our mission at Vox .
But our distinctive brand of explanatory journalism takes resources .
Even when the economy and the news advertising market recovers , your support will be a @ @ @ @ @ @ @ .
If you have already contributed , thank you .
If you haven ’ t , please consider helping everyone understand this presidential election : Contribute today from as little as $ 3 .

A public option, but for banking. That’s what Reps. Rashida Tlaib and Alexandria Ocasio-Cortez are proposing in a new bill unveiled on Friday.
The Public Banking Act, first shared with Vox, wouldn’t create those options by itself, but would foster the creation of public banks across the country by providing them a pathway to getting started, establishing an infrastructure for liquidity and credit facilities for them via the Federal Reserve, and setting up federal guidelines for them to be regulated. Essentially, it would make it easier for public banks to exist, and it would give some of them grant money to get started.
While it sounds a little wonky, the basic idea is to make it possible for state and local governments, local businesses, and people to do business with public banks, which theoretically would be more motivated to do public good and invest in their communities than private institutions, which are out for profit. One public bank exists in North Dakota, and there is a growing movement to create more of them across the country. California recently passed a law allowing cities and counties to create and sponsor public banks.
“Economic stability is really, truly tied in with access to this type of banking,” Tlaib said in an interview with Vox. “It’s to try to create stable neighborhoods and communities.”
The proposal lands in the midst of the Covid-19 pandemic, which has shed light on many inefficiencies in the American system, including banking. Take the Paycheck Protection Program, for example: It used the regular banking system as an intermediary, which ultimately meant that bigger businesses and those with preexisting relationships with those banks were prioritized over others. Some smaller businesses missed out, with many owners saying they were denied loans for even a few thousand dollars. The discrepancy hit Black-owned businesses particularly hard.
“Economic stability is really, truly tied in with access to this type of banking”
The intent of the proposal is to try to guarantee a more equitable recovery by providing an alternative to Wall Street banks for state and local governments, businesses, and ordinary people, and by ensuring such banks provide services to historically excluded and marginalized groups. The public banking bill also does double duty as a climate bill: It would prohibit public banks from investing in or doing business with the fossil fuel industry.
“Public banks are uniquely able to address the economic inequality and structural racism exacerbated by the banking industry’s discriminatory policies and predatory practices,” Ocasio-Cortez said in a statement. She said that she also believes public banks could facilitate the use of public resources to construct “a myriad of public goods,” including affordable housing and local renewable energy projects. “Public banks empower states and municipalities to establish new channels of public investment to help solve systemic crises.”
Other countries have various forms of public banking in operation and have different regulatory schemes set up for them than commercial banks do, said Rohan Grey, a law professor at Willamette University. But, he said, this proposal is particularly comprehensive and supportive.
Getting the bill passed, the regulatory scheme and grant program set up, and public banks chartered and operational in time to actually shape America’s recovery from the pandemic may not be possible on a broad scale, timing-wise. But the bill is a signal of what’s possibly to come.
If Democrats keep control of the House come 2021 and manage to flip the Senate and win the White House, they’ll be able to take some big legislative swings, including and perhaps especially on issues related to the economy. It is worth noting that both Tlaib and Ocasio-Cortez sit on the powerful House Financial Services Committee, which is chaired by Rep. Maxine Waters (D-CA).
“I look at economic justice and the issues around economy right now, that many of our working families, from farmers to the middle class to front-line essential workers, all of them know that, with the corporate bailouts, at some point it’s just hitting a wall where it doesn’t carry them along and they’re looking for options,” said Tlaib, who represents Michigan’s 13th Congressional District, the third-poorest congressional district in the country. “So I’m putting this on the table as an option.”
The Public Banking Act, briefly explained
To be clear, the Public Banking Act isn’t creating a federal public bank.
Instead, what it does is encourage and enable the creation of public banks across the US. It provides legitimacy to those who are pushing for more public banking, and it also includes regulators as key stakeholders who can support and provide guidance for how those banks should operate.
“It’s not that tomorrow you’re going to see 1,000 of these across the country; it’s still going to be a hill-by-hill, city-by-city battle,” Grey said.
There is a spectrum of services public banks would offer; many would be a lot like what commercial banks do, though different public banks would likely have different areas of emphasis. At least at the outset, some banks could serve as depository institutions for state and local governments, meaning those governments would put their money in the local public bank, not JPMorgan. Or they might partner with community banks or other institutions to help boost lending capacity and offer lower debt costs to the businesses and cities they lend to. They could also facilitate easier access to funds for state and local governments from the federal government or Federal Reserve.
“It’s basically a way to finance state and local investment that doesn’t go through Wall Street and doesn’t leave the community and turn into a windfall for shareholders,” said Porter McConnell, the campaign director of advocacy group Take On Wall Street. “This is more about community development.”
They could engage in retail banking as well. The legislation creates a framework for public banks to interact with postal banking, where the Postal Service serves as a bank, or FedAccounts, where everyone gets an account with the Federal Reserve through which they could receive direct payments from the government, for example, during an economic crisis.
“This bill is saying whatever you come up with, there’s a place for that to be recognized and be plugged in at the federal level,” Grey said.
Tlaib recalled hearing from her constituents when the $1,200 coronavirus stimulus checks went out this spring — people waiting days and weeks for direct deposits, or getting a check in the mail only to lose a substantial portion of it cashing it at the store down the street. “I’d rather them have access to a bank that’s for them, that’s not focused on for-profit schemes,” she said.
The Public Banking Act allows the Federal Reserve to charter and grant membership to public banks and creates a grant program for the Treasury secretary to provide seed money for public banks to be formed, capitalized, and developed. It also instructs the Fed to establish an incubator program for those who want to create a public bank, and it instructs the Securities and Exchange Commission (SEC) and Federal Deposit Insurance Corporation (FDIC) to establish regulatory schemes around them.
One other important element, McConnell explained, is how the legislation would change the FDIC’s reticent approach to public banks. Public banks need the FDIC to provide assurances that it will recognize them in accordance with the bond rating of the city or state they represent. For example, Los Angeles is a large municipality and has typically maintained a strong bond rating. McConnell said the FDIC issuing guidance that it recognizes the city’s — and the state’s — public banks as an AAA rating would send a clear direction to the state financial regulators that the public bank is considered low risk.
“The FDIC needs to be convinced not to discriminate against public banks, and they need to be convinced legislatively that they should be given the same facilities, the same rights, as private banks,” she said.
The bill would also provide a road map for the FDIC, which insures bank deposits of up to $250,000, to insure deposits for public banks, so people feel assured they won’t lose all their money by choosing to open an account with their state bank instead of, say, Wells Fargo.
The legislation has multiple co-sponsors in the House, including Reps. Chuy Garcia (D-IL), Pramila Jayapal (D-WA), Ayanna Pressley (D-MA), Bennie Thompson (D-MS), and Ilhan Omar (D-MN).
This isn’t a panacea for fixing banking in America, and whether this is the right approach can be debated. The government isn’t always perfect at providing services (see: the unemployment system, or Flint, Michigan). Columbia University law professor Katharina Pistor noted for Worth in 2019 that “the global and historical experience with public banking suggests that, just as in the private sector some public banks will achieve most of their goals most of the time, while others will underperform or even fail.” She also points out that there is a question of whether in the long run, public banks will be able to stay on mission.
Aaron Klein, an economic fellow at the Brookings Institution and former Treasury Department aide in the Obama administration, noted in an email to Vox that the Office of the Comptroller of the Currency (OCC) has historically been charged with chartering national banks in the US, not the Fed, meaning this is a fairly novel idea. He also noted what he saw as a potentially thorny part of the bill: It prohibits the Fed and Treasury from considering the financial health of an entity that controls or owns a bank in grant-making decisions.
“The lack of matching funds for federal grants and the specific prohibition against considering the financial health of the bank owner are also major changes. It has been a bad idea to give money or regulatory forbearance to failing banks,” he said.
Still, he commended the message at the heart of the proposal: “The problem that the bill responds to is sound — banking is too expensive for working people.”
Tlaib’s office clarified that the goal of the bill is to prevent the Fed and Treasury from discriminating against or rejecting public bank applications because the controlling entity — say a city or a state — has budget problems, not to force them to prop up banks that are failing. It is also worth noting that part of the point of proposal is to reach communities, specifically, that might not have the resources for matching funds, which would act as a barrier to entry.
When the public sector competes with the private sector, it’s a good thing
So here is the thing about private companies, including, yes, banks: The point of them is to make money, and that drives their decisions. It’s not necessarily evil (though sometimes it kind of is), but it’s just how they work. For example, many people in America don’t have access to affordable internet because it’s not lucrative for telecom companies to get it to them.
The idea behind public banking isn’t that Goldman Sachs, Wells Fargo, and Morgan Stanley go away; it’s that they have to compete with a government-owned entity — and one that’s a little fairer and more ethical in how it does business.
“The potential around taking private ownership out of banking, even just a little bit, is huge considering that we are depositors and we deposit $15 trillion in the commercial banking industry, and we get what? Redlined? Ethical violations in Malaysia? Fraud? Coal? Fossil fuels? All of these things that are driving us toward catastrophe,” said Emma Guttman-Slater, director of policy advocacy and field building at the Beneficial State Foundation, a nonprofit focused on making the banking system more equitable.
“The potential around taking private ownership out of banking, even just a little bit, is huge considering that we are depositors and we deposit $15 trillion in the commercial banking industry, and we get what?”
Public banks, as imagined in the Tlaib/Ocasio-Cortez proposal, would provide loans to small businesses and governments with lower interest rates and lower fees. They would potentially be better at avoiding the short-term thinking private institutions tend toward and be more willing to lend to projects with a slightly longer time horizon.
“There’s a disinclination to believe you can make money without making money hand over fist,” McConnell said. “A lot of this gets at market failures.”
In the US, North Dakota is the only state to have a public bank, which it established more than a century ago. And it works pretty well, as Will Peischel explained for Vox in 2019. The bank — which isn’t FDIC-insured — initially was supposed to protect the state’s farmers, but now it’s good for a lot of people:
Student loans are facilitated directly with BND, but other loans, called participation loans, go through a local financial institution — often with BND support. For example, if someone wants to take out a business loan for $20,000 with a local bank, BND would lend half of the money, $10,000, and minimize the risk for that bank. The result: The individual and local bank or credit union are supported by BND through a single transaction. According to a study on public banks, BND had some $2 billion in active participation loans in 2014. BND can grant larger loans at a lower risk, which fosters a healthy financial ecosystem populated by a cluster of small North Dakota banks. The benefits of these loans are kept local, and the banks are protected from risk with BND support.
If this bill were to become law, it would open up a lot of doorways in public banking. It would make life a lot easier for those working on forming public banks in California after the state gave the rubber stamp allowing it in late 2019. In New York City, advocates have long been pushing for a public bank that would make equitable investments, foster growth and prosperity in the local community, and be more transparent about where money is going.
If Democrats take power, there could be a lot more where this came from
Beyond the ins and outs of this specific piece of legislation, there is a broader message: Democrats have a lot of ideas, and if they take power come January 2021, there’s a lot they can do.
Democrats have a lot of ideas, and if they take power come January 2021, there’s a lot they can do
Tlaib, for example, is a proponent of universal basic income and has proposed multiple pieces of related legislation. In response to the pandemic, she and Rep. Pramila Jayapal (D-WA) proposed the Automatic BOOST to Communities (ABC Act), which would provide a $2,000 payment to every American during the Covid-19 crisis, plus $1,000 monthly payments for a year after the outbreak ends.
“I hope we have a serious conversation about the [ABC Act] … that’s important,” Tlaib said. “Right now, people need us to put them first and to have a people’s bailout, and so I hope that we’re looking at reoccurring payments at the beginning of next year. I think there’s going to be a door to having a conversation about it, because right now, there’s a wall around the White House.”
The Public Banking Act is meant to complement ideas such as the ABC Act and postal banking. And, of course, it’s linked to the Green New Deal, not only because it would bar public banks from financing things that hurt the environment, but also because the idea is that public banks would play a major role in financing Green New Deal and climate-friendly projects.
There’s no guarantee moderates will get on board, but there’s a plethora of ideas for making the American economy and people’s financial lives better. Klein pointed to proposed legislation from Sens. Chris Van Hollen (D-MD) and Elizabeth Warren (D-MA) and Reps. Pressley and Garcia proposed in 2019 that would authorize the Fed to build a real-time payments system to get people money safely and fast.
How likely some of these proposals are to make it into law is an open question — and much of it hinges on Tuesday’s election. If former Vice President Joe Biden wins the White House and Democrats control both the House and the Senate come 2021, the talk around these ideas becomes a lot more serious.
Clarification, October 30: This article has been updated to clarify that under the Public Banking Act proposal, the Fed and Treasury are barred from considering the financial health of the entity that owns or controls a public bank, not the financial health of the bank itself.


vox--2020-10-30--The 3 biggest governor races to watch in 2020

As much change as the 2020 election might bring on a national level , it ’ s unlikely to shake up many states ’ leadership : Of the 11 states with governor races in 2020 , nine have incumbents running for reelection , many of whom are expected to coast to victory .
That makes Montana , where current Democratic Gov .
Steve Bullock is leaving the seat open to run for US Senate , one of the cycle ’ s most interesting gubernatorial races — and the only one that 270towin.com rates as a true toss-up .
Bullock ’ @ @ @ @ @ @ @ running against the current US House member in Montana ’ s at-large congressional district , Republican Greg Gianforte .
The race is interesting on its own merits .
The two men represent sharply different political styles : Cooney is a longtime state official who embraces retail politics and classic Montanan issues ; Gianforte , a conservative who ’ s aligned himself with President Donald Trump , is perhaps best remembered for the night in 2017 before he won his special election , when he body-slammed a reporter from the Guardian and was charged @ @ @ @ @ @ @ , isn ’ t the only race worth keeping an eye on .
North Carolina is one of three states where the governor and lieutenant governor belong to different parties .
The race there is between Democratic incumbent Roy Cooper and his Republican lieutenant Dan Forest .
Most polls show Cooper in the lead , but an upset is certainly possible , especially if Trump and Republican Sen. Thom Tillis perform well .
Missouri , meanwhile , is sort of the opposite of North Carolina : There ’ s a Republican incumbent — @ @ @ @ @ @ @ 2020 — but unlike many of his peers , Mike Parson is in for a tougher-than-expected fight .
Parson took office in 2018 after Eric Greitens resigned , so this is his first true election .
His opponent , Nicole Galloway , is the state auditor , the only woman and the only Democrat currently holding statewide office in Missouri .
Trump is expected to carry Missouri comfortably , but Parson might not have the same luck , due in large part to his botched response to the Covid-19 pandemic .
Eight other @ @ @ @ @ @ @ but few hold surprises .
Republicans hold a 26-24 edge in control of governors ’ mansions around the country , and many of their six incumbents up for reelection this year are expected to win .
Hillary Clinton won Vermont by 27 points in 2016 , but Republican incumbent Gov .
Phil Scott is a heavy favorite .
A similar situation is playing out in New Hampshire , where Republican Chris Sununu is comfortably leading in the polls .
Republicans are expected to easily hold seats in Utah , North Dakota , West @ @ @ @ @ @ @ in Washington and Delaware are also safe .
Here are the governor races to watch .
A lot of money has gone into this race — the Republican Governors Association , seeing Missouri as a must-hold , has given $ 11 million to a pro-Parson PAC , while the Democratic Governors Association has spent $ 4.35 million on the race , according to the St. Louis Post-Dispatch .
Parson is leading in the polls , but by a significantly narrower margin than the nearly 19-point margin Trump carried the state in 2016 .
@ @ @ @ @ @ @ run an inspired campaign — Christina Amestoy , a spokesperson for the DGA , told The 19th* that “ you could write down a dream candidate on paper , and Nicole Galloway would still be better.
” Parson was among the last governors to institute a lockdown in the spring due to the Covid-19 pandemic , and among the first to reopen .
Missouri never had a mask mandate , and Parson and his wife tested positive for Covid-19 in September .
His campaign did not respond to a request for comment .
@ @ @ @ @ @ @ hands-off approach to dealing with this pandemic , ” a spokesperson for Galloway ’ s campaign told Vox .
“ Most governors have looked at this crisis and taken action and put in place a mask mandate , and used their bully pulpit to lead .
Parson has been very reluctant to do that.
” Missouri ’ s Covid-19 situation has worsened significantly since the summer .
On July 1 , the state saw 320 new cases , but by July 31 , that number skyrocketed to 1,403 .
Despite occasional periods of @ @ @ @ @ @ @ : As Vox ’ s Dylan Scott wrote earlier this week , “ hospitals in Kansas City , Missouri , are reportedly turning away ambulances because they don ’ t have any beds available.
” Galloway has outlined a detailed plan for combating Covid-19 — she would implement a statewide mask mandate , cooperate with other states to purchase rapid testing supplies , use a data-driven approach to reopening schools , and form an emergency medical task force .
At the presidential level , Montana consistently votes Republican .
But down-ballot races can @ @ @ @ @ @ @ a Montana pollster and a professor at the University of Montana , told Vox the state is strongly independent .
“ I often categorize Montana as purple , ” Rinfret said .
“ We don ’ t register for party in this state , so during the primary , you get both ballots and you pick which one you want to vote for .
People vote depending on what ’ s going on at the time.
” Case in point : Montana has had a Democratic governor , Steve Bullock , for the @ @ @ @ @ @ @ US senator , Jon Tester , since 2007 .
Bullock is now running for the other US Senate seat , against incumbent Republican Steve Daines , leaving an opening in the governor ’ s mansion .
According to Rinfret , Lt. Gov .
Mike Cooney and US Rep. Greg Gianforte are in a dead heat .
Gianforte was elected to Congress in a 2017 special election — the night after he body-slammed a reporter .
Trump praised him for doing so , saying at a 2018 rally in Montana that “ any guy @ @ @ @ @ @ @ he is my type !
” Cooney , a fourth-generation Montanan whose children all live in the state , has worked to paint Gianforte , a multimillionaire who was born in San Diego and lived for several years in New Jersey , as not sufficiently Montanan .
The Gianforte campaign could not be reached for comment .
As Kathleen McLaughlin wrote for the Washington Post , the race could have big implications for a state where “ political attitudes often vary starkly by location ” : The presidential and Senate races in North @ @ @ @ @ @ @ , and the governor ’ s race , where incumbent Democrat Roy Cooper is fighting off a challenge from his own second-in-command , should be close , too .
Director of Emerson polling Spencer Kimball said their most recent survey of the state shows Cooper leading Dan Forest by 4 points , down from eight in a previous poll .
Cooper received positive reviews for his response to Covid-19 .
He closed restaurants and bars on March 17 and has generally provided solid leadership .
Forest , meanwhile , has been holding in-person @ @ @ @ @ @ @ many of them indoors with few masks and little or no social distancing .
“ There ’ s well over 50 [ campaign ] events at this point , ” a spokesperson for Cooper ’ s campaign told Vox .
“ Just a total lack of regard for any safety measures at all , and it ’ s been really sort of reckless and crazy to see .
That is totally his campaign strategy — pretend like the pandemic doesn ’ t exist.
” Forest ’ s campaign did not respond to a @ @ @ @ @ @ @ said he will prioritize getting North Carolinians back to work , reopening schools , and supporting law enforcement .
North Carolina has a divided government , with Republicans in control of both houses of the state legislature .
Both US senators are also Republicans , as are nine of 13 US House members ( one district is currently vacant ) .
President Trump and former Vice President Joe Biden have both campaigned extensively in North Carolina , and with an important Senate race between incumbent Republican Sen. Thom Tillis and Democrat Cal Cunningham @ @ @ @ @ @ @ high , which could help Cooper maintain his post .
Will you help keep Vox free for all ?
The United States is in the middle of one of the most consequential presidential elections of our lifetimes .
It ’ s essential that all Americans are able to access clear , concise information on what the outcome of the election could mean for their lives , and the lives of their families and communities .
That is our mission at Vox .
But our distinctive brand of explanatory journalism takes resources .
Even @ @ @ @ @ @ @ market recovers , your support will be a critical part of sustaining our resource-intensive work .
If you have already contributed , thank you .
If you haven ’ t , please consider helping everyone understand this presidential election : Contribute today from as little as $ 3 .

As much change as the 2020 election might bring on a national level, it’s unlikely to shake up many states’ leadership: Of the 11 states with governor races in 2020, nine have incumbents running for reelection, many of whom are expected to coast to victory.
That makes Montana, where current Democratic Gov. Steve Bullock is leaving the seat open to run for US Senate, one of the cycle’s most contested gubernatorial races. Bullock’s lieutenant, Mike Cooney, is running against the current US House member in Montana’s at-large congressional district, Republican Greg Gianforte.
The race is interesting on its own merits. The two men represent sharply different political styles: Cooney is a longtime state official who embraces retail politics and classic Montanan issues; Gianforte, a conservative who’s aligned himself with President Donald Trump, is perhaps best remembered for the night in 2017 before he won his special election, when he body-slammed a reporter from the Guardian and was charged with misdemeanor assault.
Montana, however, isn’t the only race worth keeping an eye on.
North Carolina is one of three states where the governor and lieutenant governor belong to different parties. The race there is between Democratic incumbent Roy Cooper and his Republican lieutenant Dan Forest. Most polls show Cooper in the lead, but an upset is certainly possible, especially if Trump and Republican Sen. Thom Tillis perform well.
Missouri, meanwhile, is sort of the opposite of North Carolina: There’s a Republican incumbent — one of six running for reelection in 2020 — but unlike many of his peers, Mike Parson is in for a tougher-than-expected fight. Parson took office in 2018 after Eric Greitens resigned, so this is his first true election. His opponent, Nicole Galloway, is the state auditor, the only woman and the only Democrat currently holding statewide office in Missouri. Trump is expected to carry Missouri comfortably, but Parson might not have the same luck, due in large part to his botched response to the Covid-19 pandemic.
Eight other states have gubernatorial elections this year, but few hold surprises. Republicans hold a 26-24 edge in control of governors’ mansions around the country, and many of their six incumbents up for reelection this year are expected to win. Hillary Clinton won Vermont by 27 points in 2016, but Republican incumbent Gov. Phil Scott is a heavy favorite. A similar situation is playing out in New Hampshire, where Republican Chris Sununu is comfortably leading in the polls. Republicans are expected to easily hold seats in Utah, North Dakota, West Virginia, and Indiana; Democratic incumbents in Washington and Delaware are also safe.
Here are the governor races to watch.
Missouri: Mike Parson (R) vs. Nicole Galloway (D)
A lot of money has gone into this race — the Republican Governors Association, seeing Missouri as a must-hold, has given $11 million to a pro-Parson PAC, while the Democratic Governors Association has spent $4.35 million on the race, according to the St. Louis Post-Dispatch. Parson is leading in the polls, but by a significantly narrower margin than the nearly 19-point margin Trump carried the state in 2016. Galloway, the state auditor, has run an inspired campaign — Christina Amestoy, a spokesperson for the DGA, told The 19th* that “you could write down a dream candidate on paper, and Nicole Galloway would still be better.”
Parson was among the last governors to institute a lockdown in the spring due to the Covid-19 pandemic, and among the first to reopen. Missouri never had a mask mandate, and Parson and his wife tested positive for Covid-19 in September. His campaign did not respond to a request for comment.
“The governor has taken a very hands-off approach to dealing with this pandemic,” a spokesperson for Galloway’s campaign told Vox. “Most governors have looked at this crisis and taken action and put in place a mask mandate, and used their bully pulpit to lead. Parson has been very reluctant to do that.”
Missouri’s Covid-19 situation has worsened significantly since the summer. On July 1, the state saw 320 new cases, but by July 31, that number skyrocketed to 1,403. Despite occasional periods of improvement, the situation has only deteriorated: As Vox’s Dylan Scott wrote earlier this week, “hospitals in Kansas City, Missouri, are reportedly turning away ambulances because they don’t have any beds available.”
Galloway has outlined a detailed plan for combating Covid-19 — she would implement a statewide mask mandate, cooperate with other states to purchase rapid testing supplies, use a data-driven approach to reopening schools, and form an emergency medical task force.
Montana: Mike Cooney (D) vs. Greg Gianforte (R)
At the presidential level, Montana consistently votes Republican. But down-ballot races can be more competitive; Sara Rinfret, a Montana pollster and a professor at the University of Montana, told Vox the state is strongly independent.
“I often categorize Montana as purple,” Rinfret said. “We don’t register for party in this state, so during the primary, you get both ballots and you pick which one you want to vote for. People vote depending on what’s going on at the time.”
Case in point: Montana has had a Democratic governor, Steve Bullock, for the past eight years, and a Democratic US senator, Jon Tester, since 2007. Bullock is now running for the other US Senate seat, against incumbent Republican Steve Daines, leaving an opening in the governor’s mansion.
According to Rinfret, Lt. Gov. Mike Cooney and US Rep. Greg Gianforte are in a dead heat. Gianforte was elected to Congress in a 2017 special election — the night after he body-slammed a reporter. Trump praised him for doing so, saying at a 2018 rally in Montana that “any guy who can do a body slam, he is my type!”
Cooney, a fourth-generation Montanan whose children all live in the state, has worked to paint Gianforte, a multimillionaire who was born in San Diego and lived for several years in New Jersey, as not sufficiently Montanan. The Gianforte campaign could not be reached for comment.
As Kathleen McLaughlin wrote for the Washington Post, the race could have big implications for a state where “political attitudes often vary starkly by location”:
Democrats have occupied the governor’s office for the past 16 years, yet with a Republican-controlled legislature likely to hold, a Republican governor could undo more moderate policies on health care, public schools funding and labor protections.
North Carolina: Roy Cooper (D) vs. Dan Forest (R)
The presidential and Senate races in North Carolina are both expected to be tight, and the governor’s race, where incumbent Democrat Roy Cooper is fighting off a challenge from his own second-in-command, should be close, too. Director of Emerson polling Spencer Kimball said their most recent survey of the state shows Cooper leading Dan Forest by 4 points, down from eight in a previous poll.
Cooper received positive reviews for his response to Covid-19. He closed restaurants and bars on March 17 and has generally provided solid leadership. Forest, meanwhile, has been holding in-person events for much of the year, many of them indoors with few masks and little or no social distancing.
“There’s well over 50 [campaign] events at this point,” a spokesperson for Cooper’s campaign told Vox. “Just a total lack of regard for any safety measures at all, and it’s been really sort of reckless and crazy to see. That is totally his campaign strategy — pretend like the pandemic doesn’t exist.”
Forest’s campaign did not respond to a request for comment, but he has said he will prioritize getting North Carolinians back to work, reopening schools, and supporting law enforcement.
North Carolina has a divided government, with Republicans in control of both houses of the state legislature. Both US senators are also Republicans, as are nine of 13 US House members (one district is currently vacant). President Trump and former Vice President Joe Biden have both campaigned extensively in North Carolina, and with an important Senate race between incumbent Republican Sen. Thom Tillis and Democrat Cal Cunningham, voter turnout is expected to be high, which could help Cooper maintain his post.