Tell big banks: Don't fund new prison construction!

Morgan Stanley, Citigroup, Bank of America, Stifel, Raymond James, Barclays, Goldman Sachs, Wells Fargo, Morgan Chase, and RBC Bank

In September 2021, elected officials in Alabama passed a bill to use $400 million in federal COVID relief “lost revenue” funds to build two new prisons.[1]  But thanks to our continued organizing with our amazing partners in Alabama and across the country, the Biden administration declared Alabama’s proposed use of COVID relief funds for prison construction INELIGIBLE.[2] Detained individuals face constant mental, physical, and sexual abuse within the mass incarceration apparatus. The money spent on detaining individuals should be invested in programs that uplift and support racial, social and environmental justice.[3]

Despite the ruling by the Biden administration, Alabama Governor Ivey continues to push for building two new men’s prisons that “will be larger than any current prisons” and future plans for a women’s prison. [4] But we can stop them. Only by ensuring that the state of Alabama cannot secure the $785 million dollars they plan on raising from investors can we stop these prison construction projects.

Following the signing of the law, the Alabama Corrections Institution Finance Authority issued a request for proposals (RFP) for underwriters, financial experts who assess lending risks, to identify potential investors to fund the project.[5] Last year, you joined us as we came together with our partners in Alabama and nationally with a common purpose –– to ensure no financial institution or corporation profits off of human cruelty. Thanks to our shared struggle we were able to stop Alabama’s proposed privately funded prison project.  

Once again, we need all hands on deck to now ensure investors reject financing new prison construction. By stopping this project in Alabama we send a clear message that mass incarceration is indeed extremely harmful and a waste of money.

Call on underwriting, banking and asset management teams from the financial sector to REFUSE to assist Alabama and any corporation, state, or municipality in its effort to raise money to support new prison construction. Support of prison construction perpetuates mass incarceration, disproportionately brutalizes Black, Brown, and Indigenous people.

Instead, aid should be allocated to explicitly center and uplift widespread economic prosperity, with a specific focus on historically-excluded Black, Brown and Indigenous communities.

References:

  1. Burkhalter, Eddie. “Alabama Gov. Kay Ivey signs bills approving prison construction into law.” Alabama Political Reporter. October 1, 2021.
  2. Burkhalter, Eddie. “U.S. Treasury issues final rule on use of COVID aid.” Alabama Reporter. January 7 2022.
  3. Thibault, Matthew. “Despite new federal ruling, Alabama proceeds with plans to build prisons with COVID-19 relief funds”. Construction Dive. Jan. 12, 2022.
  4. Cason, Mike. “Alabama seeks assurances that underwriters won’t back out of financing new prisons.” AL.com. December 23, 2021.
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To: Morgan Stanley, Citigroup, Bank of America, Stifel, Raymond James, Barclays, Goldman Sachs, Wells Fargo, Morgan Chase, and RBC Bank
From: [Your Name]

We are calling on you to explicitly refuse to assist Alabama and any corporation, state, or municipality in its effort to raise money to support prison construction.

Alabama Governor Kay Ivey signed a bill into law allowing the misuse of $400 million in federal COVID-19 relief and infrastructure funds to construct two new prisons, setting a dangerous precedent with national implications. Thanks to our continued organizing with our amazing partners in Alabama and across the country, in January 2022, the Biden Administration declared Alabama’s proposed use of COVID relief funds for prison construction INELIGIBLE.

Despite this ruling, Governor Ivey continues to push for building two new men’s prisons that “will be larger than any current prisons” and future plans for a women’s prison. But with your commitment we can ensure that the state of Alabama cannot secure the $785 million dollars they plan on raising from investors and stop these harmful new prison construction projects. Detained individuals face constant mental, physical, and sexual abuse within the mass incarceration apparatus. The money spent on detaining people should be invested in programs that uplift and support racial, social and environmental justice.

The Alabama Corrections Institution Finance Authority issued a request for proposals (RFP) for underwriters, like yourselves, to identify potential investors to fund the project. We urge you to refuse the public and private financing of the prison industrial complex –– including this proposed new prison construction project.

Funds must instead be reallocated into programs that support and uplift communities in Alabama. The State of Alabama is already squandering a once-in-a-generation opportunity to invest COVID-19 relief funds into productive infrastructure programs like K-12 and early childhood education, access to high quality and affordable healthcare, clean water and sanitation, as well as promoting a green economy through the transition to renewable energy sources.

The finance sector is strategically positioned to assume a leading role in raising capital to support racial, social and environmental justice –– not new prison construction.

Sincerely,

[your name]