Finance, investment and tax-related legislation

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.

Transportation and transit projects would be eligible uses of ARPA funds under the bill, which also extends the deadline to spend the funds.

The fast pace of the Democratic negotiations may act in muni market's favor.

Congress has until Halloween to reach not only a deal on a bipartisan infrastructure bill, but also a reconciliation deal. Without both, key muni priorities could vanish, says GFOA lobbyist.

The hires come as Congress is expected to pass a massive infrastructure bill that includes P3 provisions.

States so far have taken the lead in mileage-based user fee programs, which would now be taken up on the federal level for the first time.

A fresh debate on the debt ceiling could come as soon as December, as Congress also faces deadlines on surface transportation and stopgap government funding.

A deal to lift the debt ceiling through November would buy Congress time to hammer out Democratic agreement on the Build Back Better plan.