A Jan, 13 letter sent by 39 state and local associations in the Public Finance Network (PFN), including the American Public Power Association, to congressional leaders voices support for tax-exempt municipal bonds and a bond modernization agenda.
The letter was sent to House Speaker Mike Johnson (R-LA), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader John Thune (R-SD), and Senate Minority Leader Charles Schumer (D-NY).
The letter touts the benefits of tax-exempt financing and notes the “broad bipartisan support in Congress to enhance municipal bonds for state and local governments, thereby providing a more powerful, cost-effective way to drive further investment and economic growth.”
Specifically, the letter urges support for bipartisan proposals to:
• Restore the tax exemption for advance refunding municipal bonds;
• Increase the small issuer exception to encourage banks to lend to smaller borrowers; and
• Eliminate the sequestration of direct payment bond payments.
While the prospects for a major tax bill advancing in 2026 remain slim, the letter is part of an aggressive strategy to bolster support this year – and in years to come – for tax exempt bonds, APPA said.
