One of the nation’s few Black-owned banks is rolling out a new debit card designed to support single mothers living in government-subsidized housing as they work to move out of poverty.
Redemption Bank said its Bank King Card will launch Friday in recognition of Juneteenth. For every new account opened, the bank plans to make a donation to nonprofits that will direct the funding to families in need.
“Bank King Card represents a new regenerative banking model that starts with investing in mothers who are a few hopeful dollars away from breaking out of poverty, and opening up America’s vaults of opportunity that have been closed to too many for too long,” said Ashley Bell, chair and chief executive of Redemption Holding Co.
A 2026 report from the Urban Institute and the Jeremiah Program found that households headed by single mothers face significant financial strain and caregiving challenges.
Holladay, Utah-based Redemption Bank said the donations tied to new Bank King Card accounts will be set at a fixed amount. The figure will be decided each year by the bank’s board and will not depend on how much cardholders spend, the bank said.
Nonprofits offering direct cash assistance will be able to seek grants through a foundation created to help ensure the money reaches the people who need it most.
“What we’ve seen is these guaranteed income programs have been a jolt out of poverty for women around the country, including many women of color,” Bell said.
Every dollar helps
Money given directly to needy mothers and children is overwhelmingly spent to cover necessary goods or services, according to Chastity Lord, president and chief executive of the Jeremiah Program, which works to improve economic mobility for single mothers.
But it also does so much more, she said.
“It provides dignity,” Lord continued. “It ensures summer learning, not leaving kids at home. It increases nutrition. It allows the mom to make powerful decisions that benefit their children and their families instead of making decisions to just get by.”
A pilot program through the Ohio Mother’s Trust funneled $500 each month for a year to 32 single mothers in the Columbus, Ohio, area.
For Juanita Amakor of Columbus, the cash she received through the Ohio Mother’s Trust allowed her to catch up on bills and pay rent.
“It’s the breathing room it gives you, knowing there is something extra coming in. It relieves a lot of anxiety,” said Amakor, 36, who has a 7-year-old daughter. “This help goes a long way, even if it was for something as little as being able to take my child to the grocery store, to the clothing store.”
In Michigan, Rx Kids gives women a one-time allocation of $1,500 during pregnancy, followed by $500 per month throughout the child’s first months. The $1,500 can be used on food, prenatal care, rent, cribs or other needs. The $500 monthly stipend can be spent on formula, diapers or childcare.
Kinea Wright and her family received funding through the Rx Kids program in Flint. It helped with some bills, diapers for her newborn daughter and other needs, especially after her husband was injured in a forklift accident.
“Initially, (the money) was put up for a rainy day,” said Wright, 46. “I didn’t know the rainy day would come sooner than we thought. It was a blessing in disguise.”
Juneteenth connection
A year ago, Redemption Holding Co. completed its acquisition of Utah-based Holladay Bank & Trust, making it the first time a bank has been owned by a Black-led investment group in the Western U.S.
At the time, Redemption Bank had roughly $65 million in assets. It primarily focuses on commercial lending and small business loans. Bernice A. King, the youngest child of the Rev. Martin Luther King Jr., is a co-founder and senior vice president of the bank.
“Economic opportunity must be practical, accessible and rooted in the needs of families,” King said. “Bank King Card is an innovative way to support that work. It creates a practical opportunity for people to align their financial choices with their values while supporting mothers, children and families working toward long-term stability.”
A Bank King Card credit card is expected to be introduced later with interest rates capped at 12%.
The announcement of the Bank King Card coincides with Juneteenth, which also is the one-year anniversary of Redemption’s acquisition of Holladay Bank & Trust.
Juneteenth — which combines “June” and “nineteenth” — represents the date in 1865 when enslaved people in Galveston, Texas, learned they had been freed. It came two years after President Abraham Lincoln’s Emancipation Proclamation. In 2021, President Joe Biden designated it a federal holiday.
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Corey Williams is a member of AP’s Race & Ethnicity team.
