Tax

Some bills seeking to restrain local government debt issuance are still alive as the Texas Legislature's 2025 session heads towards its home stretch.

The macroeconomic boost from U.S.-China's 90-day pause on tariffs is partial and could prove temporary, S&P Global Ratings analysts said.

The committee may take the bill up again as soon as Monday.

The agreement includes $12.6 billion in spending for the fiscal year that begins July 1 and an income tax cut estimated to cost $160 million.

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.

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.

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

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.

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

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.

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.

"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.

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

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.

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.