Joe Biden

Two major pieces of President Joe Biden's domestic agenda, which carry implications for the municipal bond market, advanced in the House Friday.

The municipal bond market is closely watching proposals from the House and the Senate to overhaul the SALT federal deduction cap.

Key institutional players like banks and insurance companies may have less incentive to buy tax-exempt munis if the provision becomes law.

The lack of inclusion of the muni market's priorities in the reconciliation framework sends a strong signal they're unlikely to be included in the final legislation.

State and local government groups want the focus on reinstating tax-exempt advance refunding bonds and expanding the current financing tools.

President Joe Biden celebrated his tentative deal with a group of Democratic and Republican senators on a $579 billion infrastructure plan, saying it would create millions of jobs while fulfilling a major piece of his economic agenda.

The California treasurer also suggests adding flexibility to federal rail grants ,which are typically reserved for government projects, to include jointly undertaken public-private partnerships.

If Congress does not act on the island’s Medicaid funding by the end of September, the funding shortfall would force officials to drop an estimated 800,000 people from the rolls.

The administration also wants to enhance the Low-Income Housing Tax Credit that is often used for bond-financed multifamily housing projects.

U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley described the proposal as “a good faith offer and a significant step in the right direction.”

The $304.5 billion highway section might pave the way for further bipartisan agreement on a wide-ranging infrastructure package.

President Biden met Wednesday with top Republican and Democratic congressional leaders to discuss a bipartisan way forward on this issue.

The White House and a bipartisan cadre of lawmakers appear committed to getting infrastructure, including top muni market lobbying goals, achieved.

Public finance groups hope that the Biden administration will show the same support for tax-exempt bonds that House Democrats do.

America simply cannot compete globally, especially with China, without an infrastructure-driven advanced manufacturing and inventive base.

Recent one-time funds from the American Rescue Plan Act and higher-than-projected revenues for many states are in many cases being put into infrastructure.

The current prohibition against tax-exempt advance refunding was used as a minor pay-for in the GOP’s Tax Cuts and Jobs Act that cut personal and corporate tax rates.

Municipal bond provisions were not mentioned, but stakeholders expect those details to be hashed out in what is likely to be a protracted battle in Congress.

The bill comes days before the Biden administration will reveal its infrastructure plan. Sources have said municipal bond provisions are likely to be included in an infrastructure package.

Lt. Gov. Dan McKee succeeds her on a day state voters approved seven bond measures totaling $400 million.