SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. on the introduction of the Local Infrastructure Financing Tools (LIFT) Act:

“SIFMA commends Representative Sewell (D-AL) for her commitment to infrastructure investment, seen today with the introduction of the Local Infrastructure Financing Tools (LIFT) Act.  Our state and local governments have a critical need, especially this deep into the Covid-19 pandemic, to fund the repair and even new construction of the bridges, roads, schools, health care facilities, water and sewer facilities, transportation facilities our communities rely on.  This legislation would reinstate tax-exempt advance refunding, an important tool which allows state and local governments to save billions in interest costs by refinancing their outstanding debt to a lower interest rate. By reducing their debt service expenses, states and localities would free up their borrowing capacity for new investments in infrastructure and other important public projects, in turn boosting their local economies with the creation of new jobs and making public services more affordable.  The bill also reauthorizes direct pay bonds, and expands the use of bank-qualified debt, two other important tools to reduce the cost of funding for state and local bond issuers and in turn lead to additional bonding capacity to fund critical infrastructure, benefiting taxpayers and the local economy.”