Yesterday, President Biden spoke on his Administrations’s initial outline of a $2.2 trillion dollar infrastructure plan, laying the groundwork for the second major initiative of the Administrations Build Back Better plan following the recent passage of a $1.9 trillion dollar COVID relief package. While the plan did not discuss financing in great detail, including bond financing, the outline provides many opportunities for bonds to be included as Congress begins to work on the plan in earnest.
The fact sheet can be viewed here.
The MBFA statement can be viewed here
Some additional funding details provided in the outline include:
- Raising the corporate tax rate from 21% to 28%;
- $621 billion into transportation infrastructures such as bridges, roads, public transit, ports, airports, and electric vehicle development;
- Direct $400 billion to care for elderly and disabled Americans;
- $300 billion into improving drinking-water infrastructure, expanding broadband access, and upgrading electric grids;
- $300 billion into building and retrofitting affordable housing, along with constructing and upgrading schools; and
- $580 billion in American manufacturing, research and development, and job training efforts.
The BDA and MBFA continue to advocate for key muni priorities to be included in this robust infrastructure package.
These priorities include:
- Restoration of tax-exempt advance refundings;
- Expansion of PABs including for ESG uses;
- Raising the BQ debt limit; and
- Creation of direct-pay bonds exempt from sequestration.
We will continue to provide updates as they become available.