Kustoff, Ruppersberger Introduce the Bipartisan, Investing in Our Communities Act
WASHINGTON, D.C. — Congressmen David Kustoff (R-TN) and Dutch Ruppersberger (D-MD) today 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.
"It is crucial that every state and local government has the ability to invest in their future and make their communities a better place to live and raise a family," said Congressman Kustoff. "I am proud to introduce the Investing in Our Communities Act, with Congressman Ruppersberger, that will give state and local governments a critical financing tool to stimulate economic development, create jobs, and save taxpayer dollars. I urge my colleagues to support this important legislation that will help grow our nation and carry us further into the 21st century."
"This is a complicated finance issue that has a simple end result – saving American taxpayers money," said Congressman Ruppersberger, who co-founded the bipartisan House Municipal Finance Caucus. "By empowering local governments to refinance outstanding bonds for projects such as new roads, schools, hospitals and fire stations, we reduce their borrowing costs and free up resources for other community improvements. We create even more jobs and, ultimately, reduce the need to raise taxes."
“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 Securities Industry and Financial Markets Association (SIFMA) President Kenneth E. Bentsen, Jr.
"Realizing our nation’s infrastructure goals requires access to capital for state and local governments. Saving on the cost of issuance helps to support public services in communities across the country. By introducing the Investing in Our Communities Act, Representatives Kustoff and Ruppersberger are leading the way so that our communities have the tools they need to continue building and maintaining schools, libraries, clean water and roads," said Emily Brock, Federal Liaison, Government Finance Officers Association (GFOA), Chair of the Public Finance Network.
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 restores 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.
The Investing in Our Communities Act was cosponsored by: Reps. Andy Barr (R-KY), Brian Fitzpatrick (R-PA), Andrew Garbarino (R-NY) Dan Kildee (D-MI), Derek Kilmer (D-WA), and Gwen Moore (D-WI).
The Investing in Our Communities Act has been endorsed by: American Hospital Association, American Public Gas Association, Government Finance Officers Association, American Public Power Association, American Public Works Association, American Society of Civil Engineers, Association of Metropolitan Water Agencies, Association of Public and Land-grant Universities, Association of School Business Officials International, American Securities Association, Bond Dealers of America, Council of Infrastructure Financing Authorities, Council of State Governments, International City/County Management Association, Large Public Power Council, National Association of Bond Lawyers, National Association of Clean Water Agencies, National Association of College and University Business Officers, National Association of Counties, National Association of Health and Educational Facilities Finance Authorities, National Association of Regional Councils, National Association of State Auditors, Comptrollers and Treasurers, National Association of State Treasurers, National Association of Towns and Townships, National Council of State Housing Agencies, National League of Cities, National Special Districts Coalition, Securities Industry and Financial Markets Association, and the United States Conference of Mayors.
Click here to read a full text of the bill.
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