The Government Finance Officers Association (GFOA) based in Washington, D.C. is setting the stage for the upcoming major tax policy debate by planting the seeds of municipal market priorities. With the high-stakes national election looming ahead, the GFOA aims to influence key decision-makers and ensure that their agenda is at the forefront of discussions.
Emily Brock, the federal liaison of the GFOA, highlighted the potential changes in Congressional composition and the administration post-election. This uncertainty prompts the GFOA to remain steadfast in their advocacy efforts despite any potential shifts in the political landscape. The focus remains on promoting the interests of the public finance industry and emphasizing the significance of bond-financed projects in driving economic growth and development.
One of the key strategies employed by the GFOA is the creation of a “built by bonds” website to showcase various projects funded through bonds. This visual tool aims to provide tangible examples to Congressional staffers and officials, making the impact of bond-financed initiatives more apparent. By encouraging issuers to contribute images of projects in their districts, the GFOA hopes to make a compelling case for the continuation of tax-exempt advance refunding and bank-qualified debt.
Advocacy Goals
Jarron Brady, a federal policy analyst at the GFOA, emphasized the importance of securing support for muni priorities such as the restoration of tax-exempt advance refunding and bank-qualified debt. The departure of key advocates like Rep. Dutch Ruppersberger underscores the need to identify new champions within Congress to further the cause of municipal finance. Strengthening the House Municipal Finance Caucus will be a crucial objective as the GFOA gears up for significant policy debates in the coming years.
As the provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire in 2025, the municipal finance community must prepare for a robust debate on the extension of these provisions and potential tax reforms. The permanent elimination of tax-exempt advance refunding presents a major hurdle that the GFOA is actively seeking to address. Brock emphasized the need for proactive advocacy efforts as the impending tax discussions evolve, with a focus on both offensive and defensive strategies to safeguard muni interests.
Looking ahead, Brady highlighted the importance of continued education and engagement to ensure that muni priorities are effectively represented in future legislation. The groundwork laid in the current Congress sets the stage for future successes in advancing the interests of the municipal market. By fostering relationships with key stakeholders and leveraging grassroots support, the GFOA aims to secure favorable outcomes for the muni community in the years to come.
The Government Finance Officers Association’s proactive approach to promoting municipal market priorities reflects a commitment to advocating for the interests of issuers and investors alike. As the political landscape evolves and new challenges arise, the GFOA remains steadfast in its mission to shape policy decisions that positively impact the public finance industry. With a focus on collaboration, innovation, and advocacy, the GFOA continues to pave the way for a more resilient and prosperous municipal market.