As the infrastructure debate continues and Congress moves towards taking its first legislative steps, the Biden Administration is signaling its willingness to compromise and strike a deal with Congressional Republicans. This week, the President is expected to host Leadership from Congress, both Republican and Democrat, in an effort to find common ground and a path forward to bipartisan legislation addressing the national infrastructure deficit.
While the Administration works towards a possible compromise, policymakers on Capitol Hill continue to take concrete steps towards drafting an eventual infrastructure bill–bipartisan or not. At this point, it appears Congressional Leadership is giving the Administration space, waiting for their FY 2021 budget to be released likely by the end of the month before taking action.
We remain confident that bonds will play a role in the eventual draft, and continue to advocate for that inclusion.
**This week, the MBFA is hosting a “virtual fly-in” for Steering Committee members. As infrastructure continues to move on Capitol Hill, members will have the opportunity to discuss these key muni priorities with DC decision-makers in the House, Senate, and in the Administration.
The MBFA will focus on recently introduced legislation to expand the use of municipal bond financing has gained traction in recent days, the LIFT Act.
LIFT Act would:
- Restoration of tax-exempt advance refundings;
- Raise the BQ debt limit; and
- Reinstatement of direct-pay bonds.
The legislation was introduced in the Senate that would create a new direct pay bond program similar to the House bill, however, the Senate version would be exempt from sequestration, and have a flat 28% reimbursement rate.
The BDA and MBFA continue to press our friends on the Hill and in the Administration to include these provisions in the eventual infrastructure legislation.
If you would like to get more involved with the MBFA, please contact Brett Bolton at brettbolton@munibondsforamerica.org
