• We revised our 2021 municipal issuance forecast up to $460 billion from $375 billion.
• The massive amount of fiscal policy enacted by Washington, D.C. lawmakers, especially the $650 billion of public finance-focused relief in the $1.9 trillion American Rescue Plan Act, is a key reason why we increased our expectations.
• Issuance from federal infrastructure-related programs are not included in our forecast revision. We do not think infrastructure legislation will materialize unless there is a political breakthrough before the end of the year. Lawmakers are still far apart from a bipartisan compromise despite the president’s announcement that a deal exists. Democrats are also far apart from getting something done through budget reconciliation. Our outlook on the possibility for infrastructure legislation to emerge may change if a breakthrough occurs, but we do not see one developing based on the current landscape.

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