NACo endorsed advanced refunding bills reintroduced in the 119th Congress
Author

Paige Mellerio

Emma Conover
Upcoming Events
Related News

Key Takeaways
On April 30, Senators Roger Wicher (R-Miss.), and Michael Bennet (D-Colo.) introduced the Lifting our Communities through Advance Liquidity for Infrastructure (LOCAL Infrastructure) Act of 2025 (S. 1481). This is the second bill introduced in Congress to restore the tax-exempt status of advance refunding bonds, which allows counties to refinance their bonds at lower interest rates.
This comes after the introduction of the Investing in Our Communities Act (H.R. 1255), which was introduced on February 13 by Reps. David Kustoff (R-Tenn.), Rudy Yakym (R-Ind.), Gwen Moore (D-Wisc.) and Jimmy Panetta (D-Calif.). This bipartisan legislation would restore tax-exempt status of advance refunding bonds, allowing counties to refinance their bonds at lower interest rates. NACo endorsed this bill and supports counties’ ability to issue tax-exempt advance refunding bonds, which can save taxpayers millions of dollars.
About the Bills
NACo endorses both the Investing in Our Communities Act and the LOCAL Infrastructure Act, which would restore the tax-exempt status of advance refunding bonds. Before the 2017 Tax Cuts and Jobs Act, the interest on bonds issued to advance refund were tax-exempt, allowing counties to respond to market conditions and refinance municipal bonds once during the bond's lifespan. When tax-exempt, advance refunding bonds help state and local governments reduce borrowing costs and benefit from better interest rates, freeing up resources for other capital projects and minimizing costs on taxpayers.
Impact on counties
Counties would benefit from the ability to refinance bonds at lower interest rates made possible through this legislation. NACo has endorsed the Invest in our Communities Act and the LOCAL Infrastructure and will continue to work to advocate for passage of this legislation. View NACo’s tax priorities for the 119th Congress here.
Related News

What Counties Need to Know: ARPA reporting requirements for program income
On May 20, the U.S. Department of Treasury (Treasury) distributed a memo to counties that received American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund (SLFRF) dollars who had program income or reported $0 obligated on their recent program & expenditure reports.

County Countdown – May 19, 2025
Every other week, NACo's County Countdown reviews top federal policy advocacy items with an eye towards counties and the intergovernmental partnership. This week features reconciliation bill advancement, a FEMA reform proposal and more.
Counties talk about tax-exempt municipal bonds during 2025 Infrastructure Week
On May 13, during the 13th Annual Infrastructure Week, NACo hosted a working group discussion titled “The Case for Tax-Exempt Municipal Bonds” with Commissioner Eileen Higgins of Miami-Dade County, Fla.