Presumptive Democratic presidential nominee Joe Biden said Tuesday that, if elected, he will push plans to use Community Development Financial Institutions to help close the racial wealth gap.
A draft of the 2020 national Democratic platform calls for an “up-dated and modernized version” of the Glass-Steagall Act and for an examination of postal banking.
The draft document, which the Democratic National Committee is scheduled to consider on Monday, said the party will push for “a new economic contract that provides access for all to reliable and affordable banking and financial services.”
It also calls for beefing up the Consumer Financial Protection Bureau and doubling funding for the Community Development Financial Institutions program.
Democratic House Appropriators this week jumped on the postal banking bandwagon, calling for a pilot program to test the concept.
In the report accompanying its FY21 spending measure, Democrats on the House Financial Services Appropriations Subcommittee said that post offices could play a crucial role in providing banking services. The subcommittee did not provide any funding for the pilot, but simply gave directions for the Postal Service to test the concept.
A Democratic “unity” task force designed by supporters of presumptive Democratic presidential nominee Joe Biden and Sen. Bernie Sanders (I-Vt.) is recommending that post offices provide banking services to improve access to financial services.