NW Tennessee News

Reps. David Kustoff, Rudy Yakym, Gwen Moore, and Jimmy Panetta have introduced the Investing in Our Communities Act in the House of Representatives. This bipartisan bill aims to restore tax-exempt advance refunding for municipal bonds, enabling state and local governments to invest more efficiently in community projects.

"I am proud to introduce the Investing in Our Communities Act. This bill will give state and local governments a critical financing tool to stimulate economic development, create jobs, and save taxpayer dollars," said Congressman Kustoff. "I urge my colleagues to support this important legislation that will help make our communities a better place to live, work, and raise a family."

Congressman Yakym expressed his support by stating, "With government entities facing higher borrowing costs amid inflation, I am proud to co-lead Rep. Kustoff’s Investing in Our Communities Act. This bipartisan legislation will help our local and state governments by providing them with the option to refinance debt. This will lower borrowing costs and free up valuable resources to ensure our communities can continue to develop projects that advance economic growth."

Congresswoman Moore highlighted the importance of municipal bonds: "I have always believed that the municipal bond market is a fabulous tool for state and local governments to access capital markets to build critical infrastructure, like roads, schools, water treatment, and affordable housing." She added her support for restoring advance refunding of tax-exempt municipal bonds.

Congressman Panetta noted current challenges faced by states: "Right now, states and local governments are facing higher borrowing costs because they can’t advance refund bonds to take advantage of lower interest rates." He explained how the act would address this issue by allowing refinancing similar to homeowner mortgages.

The act has garnered endorsements from various organizations including the Large Public Power Council (LPPC), National Association of State Treasurers (NAST), Airports Council International - North America (ACI-NA), Bond Dealers of America (BDA), Securities Industry and Financial Markets Association (SIFMA), among others.

The LPPC emphasized the importance of affordable financing for public power: “Meeting America’s energy needs and driving economic growth starts with ensuring public power has access to affordable financing... LPPC thanks Representative Kustoff for reintroducing the Investing in Our Communities Act.”

Thomas Beadle from NAST praised Congressman Kustoff's efforts: "Reinstating tax-exempt advance refunding bonds will allow state and local governments to finance infrastructure projects more affordably..."

Kenneth E. Bentsen Jr., SIFMA President remarked on cost savings: “Advance refunding is an important tool which permits state and local governments to save billions of dollars in interest costs..."

Emily Brock from GFOA underscored the significance at a local level: "The overwhelming majority of our nation's critical infrastructure is built at the local level... By reintroducing the Investing in Our Communities Act..."

The proposed legislation seeks to restore tax exemptions on advance refunding bonds which could reduce borrowing costs significantly while freeing up resources for new initiatives.