WASHINGTON — State and local governments will face higher debt-issuance costs if regulators require money market funds to move to floating net-asset values, issuer groups warned Thursday.

The two-page letter, signed by 12 groups representing state and local governments, was addressed to Rep. Scott Garrett, R-N.J., who chairs the House Financial Service Committee’s capital markets panel, and Rep. Maxine Waters of California, the panel’s top Democrat.

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