Latest Updates: Related to Inflation

Mostly Constructive News for Public Finance in Ways and Means’ Build Back Better Markup, However the Path for Passage Remains Challenging

09/13/2021
  • The Ways and Means Committee’s $3.5 trillion Build Back Better markup includes several public finance friendly elements such as the reinstatement of advance refundings with tax-exempt bonds, a direct pay taxable bond program (similar to, but not exactly the same as BABs), an increase in the bank-qualified limit, and several other elements.
  • Issuers are still not likely to see this direct-pay bond program as entirely advantageous despite the sequestration-proof language included in the proposal, because many of them were burned by BABs the first time around. We are also concerned the Davis Bacon Act requirement may add a level of complication and expense as well.
  • Frankly, what really matters is that the passage for either the $3.5 trillion of $1 trillion infrastructure packages, at least currently, remains unlikely unless the political landscape significantly shifts. Just this weekend Senator Manchin said he is a “hard-no,” on the $3.5 trillion plan. Last week he described in the Wall Street Journal Why I Won’t Support Spending Another $3.5 Trillion.

 

Download the full article

Read more Municipal Commentary

Learn More From HilltopSecurities

Lawmakers Introduced LIFT Act, U.S. Treasury Releases Pre-Guidance for State and Local Aid

Economic Impact from Hurricane Ida Expected to be Modest, Municipal Credit Impact Likely to be Minimal

Thank you for visiting the HilltopSecurities website.
For best viewing experience, we recommend using Chrome, Firefox, Safari, or Microsoft Edge.