President Biden Hits the Road (and Rail) to Tout Infrastructure Plan Muni Legislation Continues to Gain Steam
As Congress steps away from Washington for a two-week recess, President Biden continues to travel the country touting his Administrations Build Back Better plan, which includes a robust 2+ trillion-dollar infrastructure component.
Following a late-week stop at a Philadelphia Amtrack station, the Biden Administration reiterated their current stance of working to strike a deal with Congressional Republicans, however, Democrats have begun to cry foul on their counterparts’ 600 billion dollar counteroffer. His offensive will continue today, including visits to local schools in the Hampton Roads, VA area, pressing the need for further investment into education and educational facilities.
While the BDA and MBFA remain bullish on infrastructure legislation that includes a municipal bond financing competent passing this year, we believe the final package will be more narrow than currently stated, and will likely pass on a narrow party-line vote early this fall.
Muni Legislation Gains Traction
In both the House and Senate, recently introduced legislation to expand the use of municipal bond financing has gained traction in recent days.
Follow the introduction of the Lift Act, a bill that 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.
**This week, the MBFA is kicking off its “virtual fly-in” for Steering Committee members starting this Friday. 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.
If you would like to get more involved with the MBFA, please contact Brett Bolton at firstname.lastname@example.org