After a tightly contested presidential election, Joe Biden has been chosen as the President-Elect of the United States. While still waiting for authorization from the Trump Administration to begin the official transition process, his team has been assembling a transition team that helps paint a clearer picture of what his Administration may focus on. What does this mean for the municipal bond market and industry? Can real progress finally be made on infrastructure? Is the 2017 Tax Cuts and Jobs Act in jeopardy of being repealed in full or partially?

Optimism is running high throughout the public finance world. After a record-setting year of issuance in 2020, hope remains that 2021 can take the numbers even higher following likely additional stimulus, an infrastructure spending plan, and continued low-interest rates. But will continued political animus stymie this optimism?

Washington, DC appears to be headed towards at least two more years of divided government, which may slow down the legislative progress of BDA priorities such as the reinstatement of advance refundings, raising the cap on bank qualified debt and expanding the usage of private activity bonds amongst other provisions (Of note, we have included both Republican and Democrat priorities in Senate leadership due to the ongoing runoffs in Georgia that will decide the balance of power in the Upper Chamber).