• Imminent Threat to Municipal Bond Tax-Exemption: The House Committee on Ways and Means is considering a full repeal of tax-exempt interest for municipal bonds.
• Urgent Call for Advocacy: Public entities and state and local leaders have a limited window in January and February 2025 to advocate for the preservation of the municipal bond tax-exemption. The report emphasizes that education and advocacy efforts are currently way behind in tempo compared to the legislative process.
• Significant Financial Impact: Eliminating the municipal bond tax-exemption could raise borrowing costs by $824 billion over the next ten years, translating to an additional financial burden of approximately $6,554.67 per American household. This change would hinder the ability of state and local governments to fund critical infrastructure projects, impacting public services and economic growth.

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