San Francisco Approves Public Finance Corporation

Voters passed Proposition B to create a city-owned lender that could one day become a full public bank.

Updated on Nov. 9, 2026 in City Hall

Isometric editorial illustration of modest rectilinear civic blocks on a shared base, one set apart, suggesting a new institution forming beside an existing one. — San Francisco voters approved Proposition B on Tuesday, creating a city-owned lender that could one day become the first full public bank in the United States, while rejecting Proposition I. AI Illustration. Upload story photo >

Live Poll

Do you support San Francisco creating a city-owned public bank?

San Francisco voters approved Proposition B, establishing a city-owned municipal finance corporation that can make loans but cannot take deposits. Voters also rejected Proposition I, which would have required half of high-end transfer tax revenue to fund affordable housing.

Why it matters

If regulators approve, the bank would be the first city-run public bank in the United States, a model supporters say could fund public projects cheaply. Opponents fear it will lose money and leave taxpayers with the bill, and Mayor Daniel Lurie opposed Proposition I as a threat to police and firefighter resources.

Proposition B creates a municipal finance corporation that may apply for full public bank status after three to five years of profitability. The transfer tax on sales above $25 million is 6%, while the measure's future profitability and regulatory approval remain unresolved.

The players

Daniel Lurie

Daniel Lurie is the mayor of San Francisco, who opposed Proposition I and argued it would create a slush fund that diverts resources from police and firefighters.

Michael Moritz

Michael Moritz is a venture capitalist who donated $200,000 to the No on I campaign against the housing transfer tax measure.

Jackie Fielder

Jackie Fielder is a San Francisco activist who started the SF Public Bank Coalition in 2017 to push for a city-run public bank.

The details

Proposition B lets the city-owned corporation make loans but bars it from taking deposits, and it can seek full public bank status after turning a profit. Proposition I, which would have directed half of transfer tax revenue on property sales above $10 million to affordable housing, was rejected, with transfer tax revenue from the 2020 measure having gone to the general fund instead.

2017: Activist Jackie Fielder started the SF Public Bank Coalition.
2020: A ballot measure doubled the transfer tax on high-end sales.
November 5, 2026: Election day, when Proposition B trailed.
The Thursday after the election: Proposition B pulled ahead as late ballots were counted.
Three to five years after launch: The municipal finance corporation could apply for full public bank status.

Political Context

San Francisco's proposal would follow North Dakota's Bank of North Dakota, the only existing state-run public bank in the country, but at the city level. Berkeley's regional public bank measure appears headed for defeat, showing the model's uncertain path beyond a single jurisdiction.

Residents will not see direct changes from Proposition B until the municipal finance corporation is established and begins making loans. Transfer tax rates on high-end sales remain at 5.5% and 6% for sales above $10 million and $25 million, respectively, unless future measures change them.

The takeaway

Voter decisions on revenue and public banking in San Francisco show residents are willing to test new financial models while protecting existing city budget priorities. Watch how regulators respond to the proposed municipal finance corporation as it moves toward profitability.