U.S. Bankers Lobby Congress To Maintain Tax-Free State And Local Debt

Bankers descended upon Capitol Hill to advocate for preserving the tax-exempt status of state and local government debt—an essential pillar of the municipal bond market, Bloomberg News reported.

The potential loss of tax exemption would not only impact Wall Street bankers and lawyers but would also increase borrowing costs for infrastructure projects nationwide

The potential loss of tax exemption would not only impact Wall Street bankers and lawyers but would also increase borrowing costs for infrastructure projects nationwide, including schools, roads, and airport terminals.

This debate comes as state and local governments are still grappling with the aftermath of the Trump administration’s since-rescinded and judicially blocked push to halt all federal loans and grants previously authorized by Congress.

The uncertainty has left officials struggling to plan their budgets and secure necessary funding.