After 5 days of Committee debate on tax and revenue provisions for the massive infrastructure-focused budget reconciliation package, yesterday afternoon Ways and Means advanced their portion of the package. In a press release following the Committee work, Chairman Neal touted the package and promoted the municipal bond provisions included in the bill as a key provision.
Of note, there was one Democratic defection Rep. Stephanie Murphy (D-FL). The Congresswoman voted against the package, not in opposition to the legislation, but in opposition to the process claiming that Leadership should have “pre-conferenced” the bill with the Senate, avoiding wasting time on certain controversial tax hikes that may not become law.
The draft legislation can be viewed here
The bond provisions can be viewed here.
This package includes:
- The reinstatement of tax-exempt advance refundings
- Raise the BQ debt limit to 30 million and tie it to inflation,
- Creation of a new direct-pay bond with a varied reimbursement rate from 35%-28% over its life span
- Expansion of PABs including for water and sewer, and first-time farmers, an
- Expand the definition of exempt facility bonds.
Next Steps
The House continues to project that the package will pass prior by October 1, however, this remains a lofty goal. Ongoing debates surrounding funding the government and raising the debt ceiling easily can imperil this effort, not to mention the Leadership promise that the bipartisan infrastructure package will receive a vote in the House on or prior to September 27th, a date that is rapidly approaching. As the House returns from August recess next week, the procedural picture should become much more clear.
However, the real hurdles remain in the Senate where moderates continue to voice ample objections to the size and scope of the package, not to mention continued progressive pushback. At this time it is unclear when the Senate will take up the House package and if the Senate plans to mark up the House package, or fully craft their own.
The BDA and MBFA will continue to provide updates as more information becomes public.
