The House of Representatives is expected this week to take up H.R. 2, the Moving Forward Act, legislation to reauthorize and enhance infrastructure finance. Today a coalition of 25 municipal-focused organizations including BDA sent a letter to all members of Congress supporting HR 2 and urging congressional approval. The bill includes a number of municipal bond-related initiatives, including:
- Reinstatement of direct pay bonds with reimbursement rates starting at 42% in 2020-2024 and declining to 30% in 2027 and thereafter
- Reinstatement of advance refundings;
- Expansion of bank qualified bonds
- Increase in the private activity bond annual state volume caps
- Enhancements to small issue industrial development bonds for small manufacturing companies and first time farmers;
- Private activity bond financing for electric vehicle charging stations; and
- Exempt private activity water and sewer bonds from requiring volume cap allocation; and
- Raise the national volume cap for private activity highway bonds.
We are monitoring developments on HR 2 closely and we will keep you apprised of any developments.
Bond Dealers of America
July 1, 2020