$1.5T for Infrastructure in Proposed “Moving Forward” Act, Municipal-Friendly Elements Included
The U.S. House unveiled its H.R. 2, Moving Forward Act last Thursday. The text of the bill was finally uncovered today, June 22nd. The Moving Forward Act is a $1.5 trillion package that combines several infrastructure-related elements.
Some of the municipal bond market-friendly items will: seek to permanently reinstate a Build America Bond (BAB)-like infrastructure bond program that’s exempt from sequestration, permanently reinstate the use of tax-exempt bonds for advance refundings, permanently increase the bank-qualified limit to $30 million, and increase and expand issuance authority of private activity bonds. It also seeks to reinstate Qualified Zone Academy bonds and authorizes a new category of taxable school infrastructure bonds.
The U.S. House is expected to vote on the Moving Forward Act proposal before the July 4th holiday.
What is unclear is if the Moving Forward Act, including the municipal-friendly elements, has a realistic chance to become law by the November 2020 election. What is clear is that the inclusion of the municipal-friendly elements is a short-term success that can hopefully be built upon.