The State Treasurer’s Investment Division manages the Pooled Money Investment Account (PMIA) under statutory authority granted by Government Code sections 16430 and 16480 et. seq. All state money held by the State Treasurer in treasury trust accounts, and all money in the State Treasury, is appropriated for the purpose of investment and deposit.
Through the PMIA, the State Treasurer invests taxpayers’ money to help manage the State’s cash flow, as well as provide an investment option for local governments through the Local Agency Investment Fund (LAIF). The PMIA’s primary investment objectives are safety, liquidity and yield.
The PMIA has three primary sources of funds: the State General Fund; special funds held by State agencies; and moneys deposited by cities, counties, and other local agencies into the LAIF.
The Pooled Money Investment Board (PMIB) governs the PMIA. The State Treasurer chairs the PMIB, which also includes the State Controller and the Director of Finance.
At the end of February 2026, the PMIA portfolio totaled approximately $164.6 billion. The daily investment activity in February 2026 averaged $3.034 billion.
PMIA funds are invested in a wide range of securities, using more than 100 brokers, dealers, banks and direct issuers of commercial paper and corporate debt. By law, PMIA moneys can be invested in the following categories: U.S. government securities, securities of federally-sponsored and supranational agencies, domestic corporate bonds, foreign government bonds, money market mutual funds, interest-bearing time deposits in California banks, savings and loan associations and credit unions, commercial paper, repurchase and reverse repurchase agreements, banker's acceptances, negotiable certificates of deposit and loans to various bond funds.
Through the PMIA, the Investment Division manages two programs: the LAIF and time deposits.
The LAIF allows cities, counties and special districts to place money in a major portfolio and, at no additional costs to taxpayers, use the expertise of Investment Division staff. Participating agencies can withdraw their funds from the LAIF at any time. At the end of February 2026, the LAIF had 2,335 participating agencies and a balance of $27.4 billion.
Under the time deposit program, the PMIA provides money to community banks at competitive rates. Eligible institutions are commercial banks, savings banks and credit unions that are federally insured and licensed to accept deposits in the State of California. Banks which receive time deposit funds can use the money to expand economic opportunity and create jobs in the communities they serve. At the end of February 2026, the PMIA had 150 time deposits totaling $5.5 billion in 53 institutions.