Broad Coalition Promotes Advance Refunding with Congress
NACWA joined a broad coalition this week on a letter to Congress requesting support for municipal bonds as part of infrastructure investment, especially in the context of the upcoming budget reconciliation process. The letter notes the importance of municipal bonds in funding infrastructure projects around the country.
In particular, the letter asks Congress to reinstate the practice of advance refunding, which essentially allows municipal bond issuers to refinance their bonds to take advantage of lower interest rates. The practice, which was eliminated in the tax reform legislation of 2017, helped to save municipal issuers billions of dollars from 2007 to 2017. The letter also asks Congress to support small bond issuers and to restore and expand the use of direct of direct-pay bonds.