Washington, D.C. Update - January, 2016

Lend Your Support to Preserve the Tax Exemption on Municipal Bond Interest

As Congress and the White House return to discussions on comprehensive federal tax reform in 2016, GFOA is urging our members to help us engage federal lawmakers regarding the need to preserve the tax exemption on municipal bond interest. In addition to the resources already available for your use on our Federal Government Relations page, GFOA is urging members to sign their jurisdictions onto this letter to the leaders of the House and Senate tax writing committees, expressing support for the tax exemption. Beyond GFOA’s membership, the letter is also being distributed by our colleagues at the National League of Cities, the U.S. Conference of Mayors, the National Association of Counties, and the National Association of State Treasurers. Our aim is to secure the support of hundreds of jurisdictions on this letter to demonstrate to Congress the immense support for this provision of the tax code. Jurisdictions that are interested in signing on should contact Emma Heydlauff by February 15.


Tell Congress to Classify Municipal Securities as High Quality Liquid Assets!

In early February the House is expected to vote on HR 2209, bipartisan legislation that would require federal regulators to classify all investment-grade, liquid and readily marketable municipal securities as High Quality Liquid Assets (HQLA).  This important legislation is necessary to amend the 2014 Liquidity Coverage Ratio rule, which classifies foreign sovereign debt securities as HQLA while excluding investment grade municipal securities in any of the acceptable investment categories for banks to meet new liquidity standards!

As the bill makes its way to the floor, the GFOA is urging our members to send letters to their House members asking them to sign on as cosponsors of the bill.  A draft letter has been developed for your use which is available here.  Letters should be sent by February 5.  We hope you can join us in urging Congress to pass this important legislation!

Additional information on this advocacy campaign is available on GFOA’s Federal Government Relations page.