Issue Brief
Restore Advance Refundings
Allow our Communities to Once again Refinance

For decades, state and local governments were able to refinance outstanding debt by issuing a tax-exempt advance refunding bond to pay off another previously issued bond. Typically, the new refunding would allow the issuer to achieve a lower interest rate and generate savings to the issuer and taxpayer.
Why We Care
Between 2007 and 2017, issuers used advance refundings to save more than $18 billion.[1] While issuers can still use current refunding bonds within 90 days of the call date, permitting issuers to once again issue tax-exempt advance refunding bonds beyond that window would allow state and local governments to take advantage of favorable interest rate environments, save tax dollars, and reinvest savings in additional infrastructure.
NABL Stance
NABL currently supports the Investing in Our Communities Act (H.R. 1837) and the LOCAL Infrastructure Act (S. 1453), which would restore tax-exempt advance refunding bonds. To learn more about our advocacy on this issue or to learn more about how your office can cosponsor legislation to restore advance refundings, please email advocacy@nabl.org.
[1] GFOA. “Advance Refunding Myth Buster.” Web access: https://www.gfoa.org/advance-refunding-issuance
Take Action
Get Engaged
Bond lawyers are trusted voices on public finance issues in Congress, federal agencies, and partner organizations. Your voice carries the weight of that expertise. Speak up for advance refunding bonds with just a few clicks.

Latest on Advance Refundings

Q2 Advocacy Update
Recap of the latest from Washington, D.C. and insights into what may be on the horizon for the remainder of the year.

NABL Goes to Washington
A recap of the Board of Director’s advocacy meetings in Washington, D.C. on May 17 – 19.

Advance Refunding Bill Reintroduced
Representatives Kustoff and Ruppersberger reintroduced the Investing in Our Communities Act, which would restore tax-exempt advance refundings for municipal bonds.