Tax-exempt bonds

New Senate Majority Leader John Thune, who played a key role in negotiations of the Tax Cuts and Jobs Act, noted at the time the "fierce support in both chambers" for tax-exempt private activity bonds.

Trump's proposed corporate tax cut, if enacted, would further concentrate the buyer base and increase the chance of volatility, said Wells Fargo head of municipal strategy Vikram Rai.

Numerous vital issues are on the docket for the new Trump administration.

Despite studies showing questionable financials, municipalities continue to build

The higher-ed sector, already facing internal pressures, could face scrutiny over its tax-exempt status during tax reform next year.

Advocates hope to use the data to persuade lawmakers of the usefulness of tax-exempt bonds as Congress tackles tax policy next year.

Two former Congressional staffers offered insight into how the debate may play out, but said the industry needs to be vocal and educate lawmakers how bonds help their district.

The triple-tax-exempt bonds should be in demand, especially the non-AMT series, analysts said.

Issuers in five Far West states increased their borrowing the first half of the year, while four saw sizable decreases.

Lawmakers could take a scalpel to certain bonds and sectors to penalize issuers for unrelated policies, like school vouchers or campus protests.