Congressman Kustoff Introduces the Investing in Our Communities Act
WASHINGTON, D.C. — Reps. David Kustoff (R-TN), Rudy Yakym (R-IN), Gwen Moore (D-WI), and Jimmy Panetta (D-CA) recently introduced the Investing in Our Communities Act in the House of Representatives. This bipartisan legislation will restore tax-exempt advance refunding for municipal bonds so state and local governments can more efficiently invest in projects throughout their communities.
"I am proud to introduce the Investing in Our Communities Act. This bill will give state and local governments a critical financing tool to stimulate economic development, create jobs, and save taxpayer dollars,” said Congressman Kustoff. “I urge my colleagues to support this important legislation that will help make our communities a better place to live, work, and raise a family.”
“With government entities facing higher borrowing costs amid inflation, I am proud to co-lead Rep. Kustoff’s Investing in Our Communities Act” said Congressman Yakym. “This bipartisan legislation will help our local and state governments by providing them with the option to refinance debt. This will lower borrowing costs and free up valuable resources to ensure our communities can continue to develop projects that advance economic growth.”
“I have always believed that the municipal bond market is a fabulous tool for state and local governments to access capital markets to build critical infrastructure, like roads, schools, water treatment, and affordable housing. I am glad to be co-leading legislation to restore advance refunding of tax-exempt municipal bonds so state and local governments can refinance municipal bonds to take advantage of lower interest rates. This will allow municipalities to use their savings to spur more investments in their communities,” said Congresswoman Moore.
"Right now, states and local governments are facing higher borrowing costs because they can’t advance refund bonds to take advantage of lower interest rates,” said Congressman Panetta. “The bipartisan Investing in Our Communities Act would fix this by restoring their ability to refinance debt, just like homeowners do with their mortgages. By lowering borrowing costs, we can free up resources for critical infrastructure projects and give our communities the financial flexibility they need to grow.”
The Investing in Our Communities Act is endorsed by the Large Public Power Council (LPPC), National Association of State Treasurers (NAST), Airports Council International - North America (ACI-NA), Bond Dealers of America (BDA), Securities Industry and Financial Markets Association (SIFMA), National Association of Health and Educational Facility Finance Authorities (NAHEFFA), Association of Metropolitan Water Agencies (AMWA), National Association of Counties (NACo), American Public Power Association (APPA), American Securities Association (ASA), American Society of Civil Engineers (ASCE), and Government Finance Officers Association (GFOA).
“Meeting America’s energy needs and driving economic growth starts with ensuring public power has access to affordable financing to build critical infrastructure projects. Restoring tax-exempt advance refunding will lower borrowing costs, fund new projects, and help keep electricity reliable and affordable for American families and businesses. LPPC thanks Representative Kustoff for reintroducing the Investing in Our Communities Act and urges Congress to pass this important bill,” said the Large Public Power Council.
"Reinstating tax-exempt advance refunding bonds will allow state and local governments to finance infrastructure projects more affordably, saving taxpayers money and supporting community investment. The National Association of State Treasurers applauds Congressman Kustoff’s efforts to provide governments with the financial tools they need to build strong, resilient communities,” said NAST President Thomas Beadle, North Dakota State Treasurer.
“Advance refunding is an important tool which permits state and local governments to save billions of dollars in interest costs by refinancing their outstanding debt to a lower interest rate. Our nation benefits by allowing for a robust capital market to flourish, which in turn helps local communities build affordable infrastructure specifically related to their needs. Reinstating the prior tax-exemption for advance refunding bonds is essential to making that happen and the Investing in Our Communities Act does just that,” said SIFMA President Kenneth E. Bentsen, Jr.
"The overwhelming majority of our nation's critical infrastructure is built at the local level, making access to the municipal bond market essential. By reintroducing the Investing in Our Communities Act, Representative Kustoff is leading the way so that our communities can once again access this vital cost saving tool and bolster the resources needed to continue building and maintaining libraries, schools, clean water systems, and roads,” said GFOA Chair of the Public Finance Network Emily Brock.
Background:
The ability to refinance existing debt through tax-exempt advance refunding is an important cost-saving tool for state and local governments. Advanced refunding allows issuing governments to take advantage of favorable market conditions to reduce their borrowing costs and free up resources for new projects.
The Investing in Our Communities Act would restore the tax-exemption for advance refunding bonds so state and local governments can grow their communities, more efficiently manage their financial obligations, and save taxpayer dollars.
Click here to read a full text of the bill.
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