WASHINGTON — The House Financial Services Committee Thursday evening released four draft bills that members are poised to introduce authorizing the federal government to include the municipal market in its economic recovery programs. The bills are to be considered during a committee hearing scheduled to be held on May 21 and led by chairman Barney Frank, D-Mass.
One of the bills authorizes the Treasury Department to reinsure up to $50 billion of credit-enhanced municipal securities in each of fiscal years 2011 through 2015. The program would be run by a new Office of Public Finance led by an official appointed by the Treasury secretary. Fiscal year 2011 begins Oct. 1, 2010.