While these are big developments for the municipal market, the BDA remains pessimistic on an infrastructure package passing both Chambers of Congress and being signed into law by President Trump in 2020. The BDA is also pessimistic for the provisions being passed in a stand-alone form or within any potential future stimulus package.
At this time, it seems highly likely that the Democrats will retain control of the House, and the Senate is treading towards the Democrats as well. While it is too early to predict the Presidential race, and one cannot underscore the power of incumbency, many believe that if the election was held today, Joe Biden would be President-elect tomorrow.
Regardless of election outcome, municipal market priorities such as the reinstatement of advance funding, and the raising of the BQ debt limit, have strong bi-partisan support in both chambers, and as policy makers turn from short term stimulus, to long term public works packages likely in 2021, there is a real opportunity these provisions to be enacted.
For more information, contact Brett Bolton | bbolton@bdamerica.org
Throughout the 116th Congress, there have been multiple "false starts" on infrastructure policy, and the COVID-19 outbreak has provided no relief from this pattern. As recently as mid-April, the House of Representatives was pressuring the White House to support infrastructure measures in the CARES Act, a sweeping $2 trillion stimulus package. While these efforts fell short, the sentiment for infrastructure investment via a public works stimulus package still remains and now has some Senate Republican backing.
The House Majority recently introduced and passed a robust infrastructure bill in the form of the Surface Transportation Reauthorization. The package includes many BDA provisions such as the reinstatement of advance refundings, raising the BQ debt limit, and expanding the usage of PABs, and new Build America Bonds program exempt from sequestration among many other bond provisions. This was followed by the Senate introducing a standalone advance refudings and BABs bill simultaneously.
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