ASA Encourages Senate Banking Committee to Focus on Municipal Bonds

Muni Bonds Key to America’s Infrastructure Modernization

WASHINGTON, D.C. – Today, the American Securities Association (ASA) issued a statement regarding the U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing entitled “Local Views on Public Transportation, Transit Infrastructure and Operations, and Federal Transit Programs.”

“We strongly encourage Congress to do no harm to the municipal bond tax exemption so state and local governments can continue to use this important tool to invest in infrastructure projects that will support the local economy and bolster job creation,” ASA CEO Chris Iacovella said. “Private activity bonds, direct pay bonds, bank-qualified bonds, and tax-exempt advance refunding bonds (prior to their elimination in the 2017 Tax Cuts and Jobs Act) are just a few of the tried-and-true tools used by state and local governments to modernize local communities.”

Iacovella added a cautionary statement about legislating a federal infrastructure bank stating, “Large infrastructure projects that cross state lines require partnerships between federal, state, and local governments rather than a politicized bureaucracy centralized in Washington, far from the decision-makers in our local communities.”

For years, ASA has been a longstanding partner to Congress in advocating for strong infrastructure policy. In 2021, ASA unveiled its Infrastructure Modernization Agenda and CEO Chris Iacovella penned an op-ed for the Bond Buyer calling for municipal bonds to act as the foundation for continued investment in our communities.

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