WASHINGTON — State and local government groups are launching campaigns to protect the tax-exempt interest for municipal bonds against cost-cutting efforts in Congress.

Lobbyists representing states, cities, development banks, and other muni issuers are eyeing an upcoming debt-ceiling resolution as a possible showdown in which tax expenditures could be threatened. These issuer groups are also watching the fiscal 2012 budget proceedings as an avenue for lawmakers to cut tax expenditures as a way to rein in the federal deficit.

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