In a bipartisan fashion, the co-chairs of the Municipal Finance Caucus introduced a bill in the House of Representatives to restore the tax-exemption for the advance refundings of municipal bonds. U.S. Representatives Dutch Ruppersberger (D-MD) and Steve Stivers (R-OH) introduced the Investing in Our Communities Act on May 15, 2019. The 2017 Tax Cuts and Jobs Act eliminated the opportunity for these tax-exempt advance refundings to occur, which makes it more difficult for state and local governments to refinance their debt when interest rates are favorable, thus saving taxpayers money. NAST supports this bill and encourages action to promote its passage.
To assist, NAST is providing an Advocacy and Outreach Toolkit to reach out to Congress and the media.
For a summary, background, and FAQs, read the Investing in Our Communities Act Backgrounder (posted May, 2019).
Click here to read a copy of the letter that NAST leadership sent to the House and the Senate supporting this initiative. (February, 2018)
For a copy of the bill and Congressional sponsorship information from the 116th Congress: H.R. 2772 .
For an overview of Advance Refundings, please view this video.
Contact Your Representatives
Whether you are a State Treasurer, program administrator, or other advocate, NAST encourages you to contact your Congressional delegation asking them to support the bill. (Please thank your member if they are already supporting it.) For U.S. Senators, ask them to introduce and support the bill.
Here is a sample letter to use as you draft your letter, then follow up with an email, and a telephone call. Please send a copy to NAST so we can also follow up.
To assist with your call, here is a list of Congressional staff to contact by state and office by House and Senate.
Once done, your office may want to send a press release stating your support for the bill’s passage. Here is a sample of a release you may wish to review when drafting your own.
NAST encourages you to submit an op-ed to your largest state’s newspaper. Here is a sample op-ed done by SDMN Chair, Tim Schaefer. Here are some tips on how to write one for print or online submission. Send us a link once published and we’ll post it here.
For additional assistance, please contact Preston Weyland, Associate Director, State Debt Management Network at firstname.lastname@example.org