The Government Finance Officers Association’s Washington, D.C. team is gearing up for the aftermath of this fall’s national election by sowing the seeds of municipal market priorities during the summer months. With the anticipation of potential changes in Congress and even the administration, the GFOA is not shying away from its advocacy efforts. Federal liaison Emily Brock emphasized the importance of staying the course despite the uncertain future, urging the debt committee to remain committed to their objectives.
In an effort to bolster their lobbying efforts, the GFOA and the public finance industry have developed a “built by bonds” website to showcase bond-financed projects across the country. By providing tangible examples of the impact of municipal bonds, the GFOA aims to make their priorities more relatable to Congressional staffers and officials. This visual tool serves as a powerful advocacy tool, encouraging issuers to contribute photos of their own projects for display on the website.
The feedback from the Senate has been generally positive regarding municipal priorities such as restoring tax-exempt advance refunding and bank-qualified debt. These provisions, along with new direct-pay bonds, were featured in a bill introduced by Representative Terri Sewell of Alabama, a staunch advocate for municipal finance. However, with the impending resignation of key supporters like Maryland Democrat Rep. Dutch Ruppersberger, the GFOA is focused on identifying new champions to advance their agenda.
As the provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire in 2025, the municipal finance community is bracing for a contentious debate on tax policy changes. The elimination of tax-exempt advance refunding, a permanent provision of the TCJA, remains a top priority for the market. With the cost of extending TCJA provisions estimated at $4 trillion through 2034, there are concerns about potential budget cuts to fund these extensions. The GFOA is gearing up for a robust advocacy effort as the tax act takes center stage in the coming year.
In the event that municipal priorities do not progress this year, the GFOA is prepared to reintroduce them in the next Congress. By laying the groundwork through education and outreach efforts, they hope to achieve greater success in advancing their agenda in the future. The upcoming annual meeting in Washington, D.C. will serve as a platform for increased advocacy efforts and engagement with policymakers as the municipal finance community navigates a shifting political landscape.