News and Information from Bond Buyer

State officials called the one-notch rating cut to Aa1 with a stable outlook "a Trump downgrade" due to the state's heightened exposure to presidential policies.

While April was a challenging month for muni performance, this summer will be a more supportive environment, said Mark Paris, chief investment officer and head of municipals at Invesco.

Chicago will host its annual investor conference on Thursday as Mayor Brandon Johnson's administration faces challenges including a $1.12 billion deficit.

The full legislative package could land on the House floor as soon as next week.

Since the attack, many in the industry have had conversations about how to better secure transfer of funds, Vivian Altman said.

Daniel Cohen hopes to leverage his decades of experience to grow Cabrera's brand. 

The muni market is recovering from tariff turmoil, and is more resilient than the day-to-day volatility suggests, Jamie Doffermyre of Truist Securities said.

The up to $385 million of sales and use tax revenue bonds will finance sewer projects to address sanitary system overflows under a federal consent decree.

Federal Reserve Vice Chair Philip Jefferson said in a speech Wednesday that elevated tariffs will likely lead to inflation, but time will tell how impactful that spike in prices might be.

May 6 brought disappointing results for two Midwest states with school bond referendums on ballots, as voters mostly rejected the issuances.

Even with Monday's U.S.-China tariff truce and Tuesday's inflation print, the market has felt better over the past several weeks, said Jamie Iselin, managing director and head of municipal fixed income at Neuberger Berman.

The Montana Facility Finance Authority can directly issue debt for a broader array of organizations following a legislative change.

Flight delays and safety concerns at Newark Airport has pushed FAA funding levels back into the headlines as the idea of issuing user fee supported bonds to provide a non-political revenue stream comes back to life.

The tax bill is far from a done deal, market participants said.

Bond Dealers of America's Brett Bolton and The Bond Buyer's Kyle Glazier discuss the outlook of federal tax legislation, and the impact of tariffs.

The $839.5 million Harris County Hospital District bond sale will tap $2.5 billion of voter-approved debt authorization for a $3.2 billion expansion project.

Student loan issuers are watching federal policy, from the Department of Education to the tax-exemption, to decide on the timing and size of their annual deals.

Munis yields followed UST yields higher Monday, rising one to four basis points, depending on the scale, but the asset class outperformed USTs.

The hotly anticipated bill from Ways and Means is the first detailed draft and could change as it moves through the legislative process.

California Gov. Gavin Newsom released an enforcement model in conjunction with $3.3 billion in grant funding from a bond measure.

Federal Reserve Gov. Adriana Kugler said in a speech in Dublin that trade barriers could soon affect prices and slow down growth while increasing uncertainty in 2025.

In April, WisdomTree launched two new exchange-traded funds, Nuveen debuted a high-income separately-managed account product and more.

Chicago released a request for qualifications for underwriting services on April 30, seeking to form new pools from which to choose firms to handle their bond sales.

The Ways and Means Committee is expected to release the full text, including revenue raisers, ahead of a Tuesday hearing.

The DASNY program allows the schools to "align their borrowing costs with the aid that they receive from the state," said CEO Robert J. Rodriguez. 

"In our view, the worst for munis is behind us, at least for now; tax-exempts might continue to outperform, but only to a degree as technicals will remain somewhat challenging," Barclays strategists said.

"I'm worried about rates," muni market strategist Vikram Rai said during a webinar Thursday.

The Chicago City Council passed Mayor Brandon Johnson's green affordable housing plan, to be seeded with $135 million from 2024's $1.25 billion bond ordinance.

Public power energy providers are moving forward with using elective pay to boost investment in nuclear energy while electrifying small town and rural areas.

The state's legislative analyst's office expects revenues for the fiscal 2025-26 budget year to be $7.8 billion lower than estimated in January.

The municipal bond market may soon get its first glimpse of hotly anticipated tax legislation.

Veteran muni banker Debra Saunders is working to help tribal governments access government financing and debt markets for energy projects.

Moody's Ratings cited low liquidity as a reason for the downgrade.

Federal threats to grants and the tax exemption continue to push universities to the bond market. This week, it was MIT, Yale, and Suffolk University's turn.

The recent firmness in the market has been "much appreciated," said Shannon Rinehart, senior portfolio manager of municipal debt at Columbia Threadneedle Investments.

The Oversight Board will continue to "prepare for a more dire outcome but continue to hope for the best," said Chairman Arthur Gonzalez.

The Commercial Metals Company and the West Virginia Economic Development Authority took a chance by coming to market with a tax-exempt $150 million junk-rated private activity bond sale financing a scrap metal steel mill during uncertain times for the construction industry.

The bonds have not reacted to the most recent negative ratings actions, although one buysider said that may soon change.

Muni advocates are watching the SALT cap negotiations closely, as the outcome may be influence if other revenue raisers, like axing the muni tax exemption, come into play.

The third-most-populous Louisiana city is closing out a 2021 bond authorization, but has plenty left from a 2024 bond referendum.

The top five April bond financings totaled more than $8 billion.

The downgrade pushes $2.2 billion of private activity bonds issued for the passenger train startup though the Florida Development Finance Corp. to junk.

Charlotte will sell $330 million of bonds and Duke Health will offer $540 million.

Muni yields remain attractive, said Tom Kozlik, managing director, head of public policy and municipal strategy at HilltopSecurities.

"The threat of having both inflation and unemployment rising simultaneously continues to create a big headache for the Fed's interest policy," said Wells Fargo Investment Institute global fixed income strategist Luis Alvarado.

Lawsuits claiming the LADWP failed to keep a reservoir filled or maintain water equipment were cited in KBRA's downgrade of its water system's revenue bonds.

The outlook revision to positive from stable comes ahead of the airport's planned refunding and plans to issue bonds to help finance a $2.7 billion capital program.

Kullmann will head the firm's negotiated underwriting desk. 

Harvard University's ongoing legal battles and the return to market by Chicago's Regional Transportation Authority lead a host of municipal topics in April.

The Illinois Municipal Electric Agency plans to sell $600 million of refunding bonds in July, amid questions about member contracts after the bonds' maturity.

Following the Federal Reserve's meeting this week, where the Fed is expected to hold rates, Chairman Jerome Powell will try to serve up a "nothingburger," said Cooper Howard, a fixed income strategist at Charles Schwab.

Levy, a member of The Bond Buyer's Rising Stars Class of 2017, assumed the role of chair in late April.

Most of the Maryland Proton Treatment Center's debt hasn't traded hands for years.

Speakers discussing how the U.S. will fare in the world post-Trump trade war and anti-immigration policies were largely optimistic.

The spending plan for the fiscal year that begins July 1 was balanced through an ongoing reorganization of city government, according to Mayor John Whitmire.

The U.S. Department of Transportation rolls out $3.2 billion via 329 infrastructure grants that will fund more than 3,200 projects that the agency contends were tangled up in red tape and DEI requirements.

The law prohibits state and local government contracts worth $100,000 or more with companies that "discriminate" against the firearm industry.

The specter and economic implications of tariffs coupled with still above-target inflation and a healthy labor market will sideline policymakers at this week's meeting, analysts said, but not everyone agrees when the next rate cut will be.

Legislation would overhaul Dallas Area Rapid Transit's financial structure in a way that could impact outstanding debt and derail bonds for Austin light rail.

The bondholders say the failure to pay them net revenues since the 2017 bankruptcy start gives rise to their administrative expense claim.

Focus was on the primary market last week, with Birch Creek reporting that one dealer estimated that 90% of the focus earlier in the week was on new issues.

The SEC told the court it is leaving for later to settle financial terms with Jeffrey DeLaveaga.

Amid deep cuts to public K-12 schools, the proposed budget would boost charter school investment as the administration said "more local school options are needed."

Hilltop currently ranks 19th year-to-date among managing underwriters of municipal bonds, underwriting $1.2 billion in 53 issues.

Bessent explained why he thinks Trump's tariffs, tax cuts and deregulation will create fertile ground for investors in a speech at the Milken Institute's global conference.

Despite a downgrade by Moody's Ratings in April, Washington, D.C., went to market early and emerged with an oversubscribed revenue and refunding bond issuance of nearly $1.5 billion.

With a funding agreement in the state budget, the Metropolitan Transportation Authority is gearing up to start capital repairs — and find $3 billion of savings. 

Gov. Josh Stein wants to retain control over the majority of appointments to the North Carolina Utilities Commission.

Lawmakers are putting the final touches on the budget, and Gov. Kathy Hochul said there is broad agreement. Federal cuts may yet scramble everything.

"For munis, a strong jobs report should reverse recent credit spread widening, while a weak jobs report should keep credit spreads around current levels," said BofA strategists.

As cutting the federal budget resonates as a central theme in the Trump administration, the Department of Transportation is getting a boost in appropriation proposals.

The ratings agency changed its outlook on its BBB-minus rating to negative from stable Wednesday.

Part of the problem is lack of reimbursement from insurance companies, said the owner of one proton center.

Pew Charitable Trust outlined how governments can better prepare for natural disasters to alleviate budget pressures as these incidents have grown in frequency and severity.

"As we head into reconciliation and tax negotiations, I'm making it clear: I won't support a bill that doesn't lift the cap," Rep. Mike Lawler said.

KBRA downgraded Los Angeles GO bonds to AA from AA-plus in the city's second downgrade within a week. The city's lease revenue bonds were also cut.

The ratings agency is growing more pessimistic about the United States economy.

Long Beach has few, if any, peer credits for the $88 million of marina revenue refunding bonds it plans to price next week.

Ohio's governor is critical of a legislative plan to support a Cleveland Browns stadium in suburban Brook Park with $600 million of state bonds.

Following a volatile April, a few municipal bond analysts are optimistic about the near-term future.

The city, which faces a budget shortfall, would receive the lesser of 30% or $80 million of Harris County Toll Road Authority surplus toll revenue.

It's the latest in a series of legislative efforts to restore tax-exempt advance refunding of bonds.

Falling financial dominoes started by a continuing resolution passed by Congress is leading to budget delays and the threat of a lawsuit by City Council as Washington prepares for a nearly $1.5 billion bond issuance.

April's volume was revised upward to $45.825 billion in 727 issues, up 2% from $44.945 billion in 707 issues in the same period in 2024, according to revised LSEG data.

Republicans balked at a national car registration fee to support the insolvent Highway Trust Fund.

State officials say the long-term infrastructure service contracts Sustainability Partners signs with municipalites should be legally treated as long-term debt.

The top 10 saw some changes, with Gilmore & Bell and Squire Patton Boggs entering the top 10, while Troutman Pepper Locke and Ballard Spahr were bumped.

The muni market is coming out of oversold conditions, said David Litvack, a tax-exempt strategist at BofA.

Dan Aschenbach and Namsoo Lee created Municipal Financial Solutions Associates to help utilities manage the changing economic and regulatory landscape.

The "Golden Age of Public Finance," as it was called by industry pundits, is likely to face significant changes under the Trump administration.

Revisit each class of The Bond Buyer's Rising Stars, from 2016 through 2024, as nominations open for the 2025 honorees.

Compensation played a role in the departures, sources said.

Look back on all three previous classes of our Hall of Fame of municipal finance as we begin accepting nominations for a fourth.

The Bond Buyer will honor a fourth class of inductees into its Hall of Fame of municipal finance, alongside its 10th annual class of Rising Stars, at the close of its Infrastructure event in Boston on Sept. 30.

"FINRA has drifted far from its intended purpose," Rep. Lisa McClain said.

April's volume was $41.178 billion in 660 issues, down 8.4% from $44.945 billion in 707 issues in the same period in 2024, according to LSEG data. This is still above the 10-year average of $35.436 billion.

Attracting more private investment to the affordable housing sector is becoming more urgent with the reintroduction of a bill in the Senate that could spur the use of private activity bonds.

Fiscal 2026 general fund revenue for the city, which is considering a November bond election, is expected to be flat amid economic uncertainty fueled by tariffs.

The law Indiana Gov. Mike Braun signed earlier this month will make it harder for local governments and school districts to issue bonds.

The well-known muni strategist said he's pursuing "more market-related opportunities."

Some of the issuance stems from project finance largely "drying up" because of where rates are, said Jennifer Johnston, senior vice president and director of research, municipal bonds, for Franklin Templeton Fixed Income. 

The tax exemption is in the eye of a legislative storm to extend President Donald Trump's Tax Cuts and Jobs Act, but is it only the start of what's to come?

MSRB's goal is to address the public comments it received and to file a new rate card with the SEC before the end of the year, a spokesperson said.

Congress has not authorized a fresh revenue source for the Highway Trust Fund in three decades.

The bill would create a not-for-profit corporation modeled after California's IBank, but with more flexibility to handle large-scale projects, backers say.

Industry leaders at The Bond Buyer's Texas Public Finance event discuss how tax policy threats, tariffs, and federal budget cuts could create a new paradigm for muni borrowing costs and credit resilience.

The bond trustee filed notice of a settlement that would extend the maturity of the Industrial Development Authority of Platte County Zona Rosa bonds 30 years.

State lawmakers gave final approval to a bill that bans state and local government contracts with companies that "discriminate" against the firearm industry.

The $350 million revenue bond issue will refund bonds sold in 2015 and finance improvements to the airline's primary maintenance facility in Tulsa, Oklahoma.

The $500 million deal was delayed after the tariff announcement rocked the markets. It has priced, but offering documents include new trade war disclosures.

The mayor of Washington and the managing partner of the Washington Commanders laid out a plan for bringing a $3.7 billion stadium to the city via a mixed use development financed by a combination of private and public money.

S&P noted volume growth and solid operating margins at the large Florida-based healthcare system.

The order comes as the question of whether the administration has the authority to withhold federal funds plays out in court.

Bills have been introduced to eliminate the May election option for local bond and tax propositions, forcing them onto the November general election ballot.

The market has seen seven consecutive weeks of outflows. "This is not surprising given that retail investors tend to follow performance," said Daryl Clements of AllianceBernstein.

As the various demand components of the market have evolved

New Britain is reaping a rating reward from higher revenues and stronger budgetary practices, including full actuarial funding of its pensions.

Washington lawmakers delivered a balanced budget after tweaking program cuts and tax increase plans multiple times.

The coming fiscal year will have more than 10 times the state bonding as the current fiscal year.

Committees will begin Tuesday to mark up their pieces of the sweeping tax bill, with the key Ways and Means committee session tentatively set for May 12.

S&P revised the outlook for the Maryland Transportation Authority's outstanding revenue bonds to negative from stable due to the timing of the federal funding needed to rebuild the Francis Scott Key Bridge that was damaged by a cargo freighter in March 2024.

The Democratic states sued a day after schools were required to certify the elimination of DEI programs or risk losing federal funding.

Fresh off the heels of its rebrand from Lifespan, Brown University Health is prepared to add to the size of its planned borrowing if rates are favorable.

S&P Global Ratings dropped Los Angeles' ratings and assigned a negative outlook, citing a "weakening financial position and an emerging structural imbalance."

Baker Tilly is preparing a $7 billion merger with Moss Adams, another advisory firm. The deal will close in early June.

"Easing tariffs, a slowing economy and an improved supply/demand outlook for munis in May and onward should drive muni market pricing going forward," BofA strategists said.

Tariffs imposed by the Trump administration are already affecting port operations as Moody's has revised the U.S. ports sector to a negative outlook reflecting an expected 7%-12% decline in volume.

The state plans to price $626 million in GOs, in part, to fund the I-5 bridge replacement

Losing its 501(c)(3) status could cost Harvard $500 million annually.

MSRB appreciates "the robust stakeholder engagement and response" to its requests for feedback on both the rate card and a municipal fund securities concept release, Board Chair Bo Daniels said.

"Federal grants come with a clear obligation to adhere to federal laws," said Transportation Secretary Sean Duffy.

The city of Los Angeles and its Department of Water and Power face Palisades Fire-driven lawsuits from some 776 plaintiffs, according to the offering document.

The top 10 issuers accounted for $22.12 billion of the total issuance for the year, or 18.7%

Join market leaders as they share their views on the state's economic picture

Investors pulled $397.4 million from municipal bond mutual funds in the week ended Wednesday, following $1.258 billion of outflows the prior week.

The lawsuit contends that only Congress has the power to set tariffs that the president has unilaterally increased.

Muni advocates resist some of the arguments for eliminating the tax-exempt status of municipal bonds espoused in a new book by infamous Wall Street whistleblower Michael Lissack.

The state hopes bonds and associated incentives will help to address a state-wide housing shortage.

Moody's Ratings cut the issuer rating for the District of Columbia to Aa1 with a negative outlook, which the city CFO blames on federal workforce reductions and weakness in the commercial real estate market.

The Federal Reserve governor remains optimistic about tariffs being a one-time shock to prices, but the central bank still needs more clarity about what the policies will look like.

The escalating dispute between the prestigious issuer and the White House is spooking some bond holders and creating opportunities for others.

A mix of pay-as-you-go, bond proceeds and federal grants bolster the infrastructure of Mobile, Alabama, which is getting a new arena, air terminal and bridge.

The commission also approved converting a GO bond sale from competitive to negotiated.

The market is still in a negative technical period, said Chris Eustance, a portfolio manager at Morgan Stanley Investment Management.

Chicago's Regional Transportation Authority plans to return to market next Monday with $130 million of Series 2025A general obligation bonds.

Droughts, floods, storms, tornadoes, wildfires

As housing costs in Texas place more burden on the state's growing population

Our panel of experts will provide an overview of the most pertinent legislative and regulatory developments impacting the Texas' muni industry.

Accusations are flying between the Republican state treasurer and attorney general, adding fuel to a battle that started last year.

How is the sector's access to capital? Are there ratings pressures?

With the state's population and business expansion, transportation infrastructure

Drought and aging water infrastructure are among the factors that make it that much harder to accommodate Texas' burgeoning economic development.

Cyber attacks are going strong and the recent water systems cyber events in 3 small towns in Texas are making sure the state

High insurance premiums for the average Texas home are approaching crisis levels.

From AI to machine learning, the municipal industry is adapting to technological change

Our panel of issuers will share their insights into Texas' economic

Increased use of AI and cryptocurrency operations are expected to

The View from Washington: Legislative Outlook

Vouchers, charter schools, increased homestead tax exemption, among others,

Working in the public interest was "very satisfying," the longtime SEC lawyer said.

In the coming year, we'll find out if public pension disclosure and transparency have improved enough to protect municipal bond investors.

Federal Reserve Gov. Adriana Kugler said tighter monetary policy has proved to be less impactful on nonbank lenders during the post-pandemic era.

Four teams of University of Chicago public policy students presented their answer to the challenge: What can the city do to create a thriving downtown?

The top 10 advisors accounted for $59.412 billion of par.

Construction problems and cost overruns for a bond-backed project pushed the company into a pre-negotiated Chapter 11 bankruptcy. 

Muni yields may "continue to stay elevated due to supply and demand factors," rather than concerns over credit quality, said Cooper Howard, a fixed income strategist at Charles Schwab.

To close a $1 billion budget hole, Mayor Karen Bass would merge some departments and lay off more than 1,600 city workers.

FINRA fined three individuals a total of $40,000, a settlement document shows

As the municipal bond community rallies around protecting the tax-exempt status of munis, alternative viewpoints emerge for why it should be eliminated.

The International Monetary Fund lowered its economic growth projections for 2025, citing policy uncertainty. It also urged central banks to stand ready to use macroprudential tools to facilitate lending in a potential recession.

The FHWA said it would start withholding project funds from Manhattan next month and later expand to other areas if the state refuses to halt its tolling program.

Legislation signed into law will place $500 million of general obligation bonds and a constitutional amendment for economic development districts on the ballot.

Mays led Holland & Knight's public finance practice for more than 30 years.

The Port Authority of Kansas City will decide whether to authorize $10 billion of taxable revenue bonds on behalf of a data center project with Google links.

Unrated Colorado Educational and Cultural Facilities Authority bonds will finance the purchase of the hotel that inspired Stephen King to write 'The Shining.'

The Boston-based Nixon Peabody added seasoned municipal finance expert Michael Melzer as a partner, while Barclays lost three professionals.

Monday saw a reversal from the past week as muni yields rose three to 10 basis points, depending on the curve. Despite this, Monday's losses were not enough to erase last week's gains as yields are still lower than they were two weeks ago.

Fourteen percent of the state bills would create an electric vehicle fee, and Republicans in Congress have floated their own national EV fee to shore up the Highway Trust Fund.

A $300 million bond and a planned monkey breeding facility's fate are at stake in a legal struggle in Georgia.

Congress has hit the pause on Washington, D.C.'s budget process as a framework for transforming the RFK Stadium site into a viable $3.2 billion NFL venue emerges including the possibility of tapping $856 million in public funds.

The airport hopes the terminal will be "a new front door for Pittsburgh."

Siebert Williams Shank was the only new entrant into the top 10, knocking Piper Sandler out.

Just as the economy could become topsy turvy, so could the municipal market.

The Ohio House's proposed cap on school districts' carryover balances at 30% of their annual operating costs has drawn praise and criticism.

Responses to an MSRB request for comment indicated broad support for an option designed to modernize delivery of municipal fund securities disclosure documents, but there was less unanimity regarding the need for a stand-alone time of trade disclosure rule.

Bond parties say the board's failure to settle the PREPA bankruptcy has contributed to the system's unreliability.

The lawsuit argues the International Emergency Economic Powers Act that Trump invoked to impose tariffs does not grant the president the ability to unilaterally adopt tariffs on goods imported to the U.S.

Investors pulled $1.258 billion from municipal bond mutual funds in the week ending Wednesday, following $3.302 billion of outflows the prior week, according to LSEG Lipper data.

With the threat to tax exempt municipal bonds looming in a Congress searching for pay-fors, private activity bonds supporting hospitals and higher education are high on the list of potential first targets.

Texas investor John Kleinheinz now controls Texas Central, which has spent more than a decade trying to build the Dallas-to-Houston high speed train.

Photos from The Bond Buyer's Texas Public Finance conference.

Anna Paulson, executive vice president and director of research at the Federal Reserve Bank of Chicago, will replace outgoing Philadelphia Fed President Patrick Harker.

In a post on his social media platform Thursday morning, the president criticized the Federal Reserve's reluctance to lower rates and said the chair's departure "could not come soon enough."

The Osceola School District sales tax revenue bonds got strong ratings despite the county's economy facing headwinds from a weakening tourism sector.

Federal Reserve Chair Jerome Powell warned that actions that undermine the apparent stability of the U.S. economy could have lasting effects on its status as a global safe haven.

The Investment Company Institute reported larger outflows for the week ending April 9 of $3.714 billion, following $1.15 billion of outflows the previous week.

The MSRB's rate card RFI and municipal fund securities will be among agenda topics at next week's quarterly board meeting.

S&P Global Ratings cited longer-term concerns on Palisades wildfire-related liabilities in shifting its CreditWatch on Los Angeles Department of Water and Power to a negative outlook.

The effects could hit island economies, like those of Puerto Rico and the U.S. Virgin Islands, whose bonds are speculative grade partly because of fiscal concerns.

Citi's exit may have aggravated illiquidity last week, but even the traditional leader in times of stress wouldn't have been able to calm the wild market moves.

Mayor John Whitmire said phased-in funding under an agreement with plaintiffs who successfully sued the city will help address a budget shortfall.

Housing advocates concerned about the fate of private activity bonds are working on strategies for getting PABs and tax-exempt munis off the table while Congress searches for ways to pay for tax cut extensions.

The Chicago Public Schools budget hangs in the balance as Trump's Department of Education targets diversity, equity and inclusion programming.

If the muni market "stays here at these new relationships, we'll find its footing," said John Flahive, head of fixed income at BNY Wealth.

Both states' governors said they will appeal the FEMA denials, which comes amid concern the Trump adminstration is hobbling the emergency response agency.

"Settlor's remorse" is no justification for upsetting a settled order, SEC says.

The state, which lost its positive S&P outlook due in part to previous tax cuts, could have further reductions under a bill that survived the governor's veto.

Rep. French Hill and committee leaders urged House Ways and Means to protect tax-exempt municipal bonds as Congress gears up to tackle tax policy.

Jason Appleson of PGIM Fixed Income chats with Caitlin Devitt to break down the biggest factors shaping the muni market today, and how institutional investors are preparing for what's next.

The Senate's move to rely on an untested accounting method for the reconciliation bill contributes to the lack of clarity around future deficits, the ratings agency said.

Issuers in Texas are wary of potential changes at the federal and state level that could impact their finances and ability to sell debt.