Tax-exempt municipal bonds have been a fundamental feature of the United States tax code since 1913. Municipal bonds remain the primary method used by states and local governments to finance public capital improvements and public infrastructure projects that are essential for creating jobs, sustaining economic growth and improving the quality of life for Americans in every corner of this country.
Ninety percent of infrastructure muni-bonds financing went to schools, hospitals, water and sewer facilities, public power utilities, roads and mass transit over the last 10 years. During that decade, $514 billion of primary and secondary schools were built with financing from tax exempt bonds; nearly $288 billion of financing went to general acute-care hospitals; nearly $258 billion to water and sewer facilities; nearly $178 billion to roads, highways, and streets; nearly $147 billion to public power projects; and $105.6 billion to mass transit.
NACo Associate Legislative Director
On November 19, U.S. Treasury Secretary Steven Mnuchin sent a letter to the Federal Reserve Chairman requesting that any unused funds from the Municipal Liquidity Facility (MLF) be returned to the U.S. Treasury.
On October 15, the Congressional Oversight Commission (COC) released its fifth report on the Municipal Liquidity Facility (MLF), which was established under the CARES Act, to help address local government budget challenges and support the national economy.