This morning, the House Committee on Ways and Means will host a hearing to “mark-up” or debate and amend the tax portion of the budget reconciliation package. This weekend, Chairman Richard Neal (D-MA) released the text for the revenue provisions, and the draft included a plethora of muni provisions, including ALL BDA, MBFA, and state and local muni priorities. Expected today is robust debate over how to pay for the package and a path forward on amending the current SALT cap.
The MBFA continues to advocate in favor of all muni provisions and is set to meet with the office of Senate Finance Committee Member Sen. Cortez-Masto this afternoon while continuing to communicate with key House staff simultaneously.
The draft legislation can be viewed here
The bond provisions can be viewed here.
This package includes:
- The reinstatement of tax-exempt advance refundings
- Raise the BQ debt limit to 30 million and tie it to inflation,
- Creation of a new direct-pay bond with a varied reimbursement rate from 35%-28% over its life span
- Expansion of PABs including for water and sewer, and first-time farmers, an
- Expand the definition of exempt facility bonds.
While we feel confident that these muni provisions will remain in the draft, many procedural and political hurdles remain for passage. The House continues to project that the package will pass prior to October 1, this remains a lofty goal. However, the real hurdles remain in the Senate where moderates continue to voice ample objections to the size and scope of the package.
The BDA and MBFA will continue to provide updates as more information becomes public.