Congress Returns to DC as Fiscal Cliff Looms – MBFA Continues Advocating for Key Muni Provisions in Infrastructure Legislation
Both chambers of Congress this week return to DC after an extended August recess to face a growing number of potential crises prior to continued work to advance duel infrastructure spending packages. At the top of the Congressional priority list is avoiding a government shutdown with the federal government set to run out of funding in the next week, and a potential federal default with the debt ceiling expected to be reached by mid-October and no bipartisan deal in sight.
While the September 27th infrastructure deadline agreed upon by House Leadership and Democratic moderates is likely to be missed, we remain optimistic that Congress will advance key infrastructure legislation. However, we expect these bills to take a backseat as Congress works to avert a self-imposed financial crisis elongating the infrastructure debate throughout the fall.
MBFA Advocacy for Muni Provisions
The MBFA continues to meet with key staff in both the House and Senate. Yesterday, the MBFA met with the Office of Senator Bennet(D-CO) co-author of the Senate direct-pay bond legislation, the American Infrastructure Bond Act, and original co-sponsor of the LOCAL Infrastructure Act that would fully reinstate tax-exempt advance refundings. While staff acknowledged that changes will be made from the House Ways and Means reconciliation draft once it arrives in the Senate, Senate Finance Chair Wyden remains an adamant supporter of munis and has signaled support for these key provisions.
The MBFA will continue to provide updates as they become available.