Tax-Exempt Municipal Bonds receive Bipartisan Support, Changes Remain on the Table
As NACWA previously reported, a “Dear Colleague” letter has been circulating in the House of Representatives for members of Congress to sign onto in support of the municipal bond tax-exemption. The letter closed on March 3 after receiving well over 100 signatures, including at least 40 majority party (Republican) signatures. This outcome demonstrates a broad bipartisan engagement in Congress on this issue. The letter will be transmitted to Chairman Kevin Brady (R-CA) and Ranking Member Richard Neal (D-MA) from the Ways & Means Committee, which leads tax reform in Congress. The letter was organized by Reps. Randy Hultgren (R-IL) and C.A. Ruppersberger (D-MD), who lead the Municipal Finance Caucus. NACWA thanks them for their leadership!
NACWA staff continue to meet with congressional representatives to urge preservation of tax-exempt municipal bonds. While these tax-exempt bonds are receiving broad support, congressional staff also acknowledge that critical tax reform details are under consideration. So NACWA will continue to advocate for preserving this critical financing tool, and to communicate that, at a time of increased interest in funding and financing infrastructure, limiting or eliminating this fundamental tax-exemption would be counterproductive to the advancement of water infrastructure. We urge Association members to engage on this issue as well: Visit our Tax-Exempt Municipal Bond Advocacy Page today to learn more about what you can do. If you have any thoughts or questions, please contact Kristina Surfus, NACWA’s Legislative Affairs Manager.