Promoting and Defending the Municipal Bond Market
Mission
Municipal Bonds for America is THE coalition, led by the Bond Dealers of America, of municipal market leadership working together and in concert with issuer and state and local groups to promote, defend, and advance the municipal bond market in the context of Federal legislation and policy in Washington, DC.
Comprised of investors, underwriters, municipal advisors, insurers, and bond counsel, this coalition is committed to promoting and defending the municipal bond tax-exemption and advocating for the advancement of key legislative priorities in the context of infrastructure challenges faced nationwide.
Coalition Advocacy and Structure
- The MBFA is the only industry-led dedicated municipal market advocate in Washington, DC and provides a unique opportunity to work alongside industry peers advancing key municipal bond policies at the Federal level. By combining the buy-side and the sell-side, the MBFA utilizes unmatched municipal market expertise with extensive DC knowledge and connectivity in Washington, DC.
- The MBFA Steering Committee will be comprised of industry leaders from both the sell-side and buy-side—providing a wealth of knowledge and diverse perspectives and ensuring the MBFA is focusing on the most important issues for the municipal market.
- Presence, Focus, Proactive Advocacy. “Boots on the ground” advocacy throughout DC, delivering tangible, measurable results for the $4 trillion-dollar municipal bond market. This includes a 2025 partnership with renowned DC based lobbying firm BGR Group resulting in unmatched presence and access to key Members of Congress and policy makers within the Administration.
- In Concert with State and Local Officials. The MBFA will work to position itself as the “tip-of-the-spear” for industry advocacy to work in concert with our issuer friends in the Public Finance Network – including GFOA, the National League of Cities, the US Conference of Mayors and many more.
- The Need is Now. Federal tax reform is expected in 2025 with many provisions of the 2017 Tax Cuts and Jobs Act sunsetting. This rare scenario potentially puts the tax-exemption and PABs on the chopping block as significant “revenue raisers” while offering opportunity to advance key provisions such as advance refundings and bq debt.
- Staff Leadership. MBFA will be led by a steering committee balanced between sell and buy side municipal market leadership. Staffed full time by Brett Bolton, head of Federal legislative affairs at BDA, and the best-in-class resources at BGR Group.
Muni Policy Priorities:
Promote and Protect the Tax-Exemption
As the cornerstone of infrastructure financing, protection of the tax-exemption remains the top priority of our coalition.
Restore Tax Exempt Advance Refundings
Historically a bipartisan proposal, the MBFA calls on Congress to restore AR to the preTCJA form. 2025 brings a rare opportunity for Congress to retrospectively look at the TCJA and correct policy mistakes such as AR.
Advance and Expand Private Activity Bonds
Following near elimination in 2017, PABs remain endangered heading into the next round of tax-reform. It is vital to ensure the coalition of Senators that stood up for PABsfollowing House elimination remains steadfast in their support.
Raise the Bank Qualified Debt Limit
Current law includes an exception for bonds sold by issuers who issue $10 million or less per year, known as “bank qualified (BQ) bonds, a number last updated in the 1980’s. We call for Congress to and apply the new $30 million test at the level of the borrower, not the issuer and tie to inflation.
If you or your firm is interested in getting involved in the MBFA, please contact Brett Bolton at bbolton@bdamerica.org
