Last night (March 22, 2020), the robust, $1.6 trillion dollar Senate stimulus package failed 47-47 on a procedural vote in an effort to advance the package to open debate. A procedural vote on an amended draft is expected by 1:00pm(ET) in the Senate today.
The House continues simultaneous discussions on a separate stimulus package, however no timeline has been discussed regarding procedures with their package. The draft is expected to be released today.
While the initial Senate draft did not include language from the Menendez/Purude Municipal Bonds Emergency Relief Act, discussions are ongoing for amendments to add municipal bond protections.
The BDA, along with state and local groups, continues to advocate tirelessly for the addition of these provisions in both Chambers proposals.
The provisions would, under extreme circumstances through January 1,2021, allow the Fed to:
Following a vote by the Federal Reserve Open Market Committee, the Fed would be able to:
- Buy and sell municipal investment grade bills, notes, and bonds with a maturity of greater than 6 months.
- State, county, district, political subdivision, instrumentality of a political subdivision, territory, possession, or municipality in the United States, including irrigation, drainage, reclamation districts.
- Also includes corporation, company, or similar separate legal entity
The BDA will continue to provide updates as they become available.