Legislation passed by Congress last week will allow the Treasury Department to keep open through February its window for state and local government series securities, which municipal issuers purchase for refunding escrows to avoid earning arbitrage.

Just before the Senate broke for the holiday break on Dec. 24, it approved a bill that would expand the current $12.1 trillion federal debt limit by $290 billion, which is expected to fund government operations for two more months. The vote was 60 to 39, largely along party lines, owing to the Democratic majority.

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