Last week, Reps. David Kustoff (R-Tenn.), Rudy Yakym (R-Ind.), Gwen Moore (D-Wis.), and Jimmy Panetta (D-Calif.) introduced AMWA-endorsed legislation, H.R. 1255, the Investing in Our Communities Act.
The bipartisan legislation would restore tax-exempt advance refunding for municipal bonds, so that state and local governments, including publicly owned water utilities, can save money on lower interest rates. To refinance a municipal bond means that an entity issues new bonds to pay off an existing municipal bond to take advantage of lower interest rates in the current market. This mechanism was eliminated in the 2017 Tax Cuts and Jobs Act, resulting in higher costs to local governments when paying off bonds and completing projects, such as water treatment and water infrastructure upgrades.
"I am proud to introduce the Investing in Our Communities Act. This bill will give state and local governments a critical financing tool to stimulate economic development, create jobs, and save taxpayer dollars,” said Congressman Kustoff in a press release highlighting AMWA’s support for the bill. “I urge my colleagues to support this important legislation that will help make our communities a better place to live, work, and raise a family.”
The Investing in Our Communities Act would benefit water utilities and communities directly by freeing up funding for capital improvements so that utilities can develop projects that advance economic growth and public health improvements. AMWA is joined by other institutions such as the National Association of Counties (NACo) and the Government Finance Officers Association (GFOA) in supporting this legislation.