Senate committee hears data showing Latinos drive California growth but face steep wealth and capital gaps

State Senator Susan Rubio, chair of the California State Senate Select Committee on Minority Economic Development, convened a hearing in Room 2100 to examine economic opportunity for Latino Californians. Researchers and advocates told the committee that Latinos now account for more than $1 trillion in direct economic activity in California, but face persistent barriers to wealth building and business growth.

The committee heard research from the Latino GDP project and other studies showing Latinos’ outsized contribution to the state economy. Matthew Finup, a researcher with the Latino GDP initiative, said, “Latinos are drivers of growth, a tremendous source of resilience.” Finup and Dr. David Hayes Bautista of UCLA told the committee the Latino component of California’s labor force has grown much faster than the non‑Latino labor force and that Latino economic activity underpins recent gains in the state’s overall GDP.

Why the hearing matters: Committee members framed the testimony as a basis for policy steps to expand homeownership, improve financial inclusion, scale Latino‑owned firms and ensure Latino communities share in large state contracts and future economic opportunities such as the 2028 Olympics. Orson Aguilar, president and CEO of Latino Prosperity, summarized the policy imperative: “Closing the Latino wealth gap will require bold equity standards,” and outlined forthcoming reports with targeted recommendations.

Key findings presented

- Scale of the Latino economy: Finup said the direct economic contribution of Latinos living in California passed $1,000,000,000,000 in 2023 and Latino consumption in the state…