WASHINGTON — Municipal bond market participants said the two-year budget agreement announced Tuesday evening by House and Senate Budget Committee leaders would extend by two years the cuts to the federal subsidy payments issuers receive for Build America Bonds and other direct-pay bond programs.

The deal, called the Bipartisan Budget Act of 2013, was negotiated ahead of the budget conference committee’s Dec. 13 deadline by House Budget Committee chairman Paul Ryan, R-Wis. and Senate Budget Committee chairman Patty Murray, D-Wash.

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