Local Infrastructure Financing Tools (LIFT) Act
Legislation reintroduced by US Rep. Terri Sewell (D-AL) has the potential to significantly expand the use of tax-exempt municipal bonds while creating a new “direct pay” bond. The Local Infrastructure Financing Tools (LIFT) Act calls for policy changes and types of bonds that could be used by governments and nonprofits nationwide for a range of public infrastructure and capital improvement projects, such as libraries, schools (including nonprofit higher education institutions), roads and road improvements, water systems, mass transit, affordable housing, public and nonprofit hospitals, and other government-owned facilities.
Expanding the Use of Bonds
The LIFT Act was first introduced by Rep. Sewell, a senior member of the US House Committee on Ways and Means and a former bond lawyer, in the previous Congress. The reintroduced legislation would:
- Restore the ability to advance refund municipal bonds.
- Enhance small borrower rules for bank qualified bonds.
- Create a new taxable direct pay bond known as the American Infrastructure Bond.
By R. Neal Martin, Charles A. Samuels, Matthew O. Page, Christie L. Martin, Meghan B. Burke, Poonam Patidar
May 15, 2024
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo,