We support sensible policies that enable our state and local governments to tap into the $4 trillion municipal market and finance critical infrastructure that builds strong, healthy, economically vibrant communities.

Above All Else…

Congress and the administration should defend affordable finance options for our communities and reject efforts to eliminate or reduce the federal tax exemption on municipal bond interest. Holders do not pay federal income taxes on interest paid on qualified municipal bonds, which reduces the interest costs for state and local borrowers. Limiting or eliminating the tax-exemption on bonds would amount to a federal takeover of local decision-making and rip money from the communities that know their infrastructure needs best. More importantly, any effort to reduce or eliminate the tax exemption would result in increased borrowing costs, forcing state and local governments to either cut back infrastructure investment or raise taxes and rates on American households.

Three Ways to Support Municipal Finance

Since the first issues in the early 1800s, municipal bonds have had a proven track record as an effective tool for state and local governments to finance critical infrastructure. Here are three ways in which federal policymakers can furthers trengthen community finance.

More Resources

• Need the Basics? Our Bond Basics series provides the public with plain-English explanations of hundreds of concepts relating to municipal bonds. www.nabl.org/basics
• Looking for Deeper Dives? Our resource hub features over 350 documents, including reports, comment letters, and issue briefs on topics relating to bond law. www.nabl.org/resources
• Support the Municipal Market? Our advocacy center tracks federal policy issues of importance to the municipal market as well as provides deeper explanations of policy initiatives to support financing tools for our communities. www.nabl.org/advocacy

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