Lawmakers are expected to meet in a lame-duck session next week to draft a small fiscal stimulus bill that will narrowly focus on unemployment benefits and food stamps, but is not expected to include measures related to the municipal bond market, congressional sources said this week.

If the pared down stimulus bill passes Congress and is signed into law, it is expected to be followed early next year by a much larger stimulus measure. The larger measure could include aid to states for infrastructure projects as well as tax-related provisions that aim to loosen restrictions in the 1986 Tax Reform Act, which decreased the amount of tax-exempt income banks and corporations could report and also had unintended consequences on governments and nonprofit issuers.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.