Bipartisan Advance Refunding Legislation Introduced in Congress
(March 3, 2021) – Last week, a broad group of bipartisan Senators, led by Sen. Roger Wicker (R-MS) and Sen. Debbie Stabenow (D-MI), reintroduced the Lifting Our Communities Through Advance Liquidity for Infrastructure (LOCAL Infrastructure) Act. This bill would restore state and local governments’ ability to advance refund tax exempt municipal bonds. NACWA joined with a large group of government, public sector finance and infrastructure stakeholders in supporting the legislation.
Prior to its prohibition under the 2017 Tax Cuts and Jobs Act, the ability to advance refund municipal bonds was a key financial tool which clean water utilities could leverage to help reduce the costs of infrastructure projects. The Senate bill introduced last week would effectively repeal the 2017 prohibition.
Reinstating advance refunding has had bipartisan support since passage of the 2017 tax law. The renewed attention to infrastructure investment this Congress may increase the likelihood that this legislation is advanced. Please contact Kristina Surfus to discuss further.