House Financial Services Chairman French Hill (R-AR) and Committee leadership sent a letter to House Ways and Means Chairman Jason Smith (R-MO) fully supporting maintaining the tax-exempt status of municipal bonds in the face of proposals to end or limit this tax exemption to pay for provisions of the reconciliation tax bill currently under development in Congress. In the letter, the lawmakers note that “any effort to eliminate or significantly curtail” the tax-exempt status of muni bonds “risks increasing borrowing costs, delaying or downsizing critical projects, and weakening the ability of local communities to respond to the unique needs of their residents.”
