WASHINGTON, D.C. (Tuesday, Oct. 3, 2017) —– (RealEstateRama) — The U.S. House of Representatives today passed bipartisan legislation authored by Rep. Luke Messer (R-IN-06) to help Hoosier cities and towns save money on infrastructure projects.
H.R. 1624, which is co-sponsored by Rep. Carolyn Maloney (D-NY-12), rolls back an Obama-era banking regulation that discouraged financial institutions from holding municipal bonds, which many state and local governments – including in Indiana – rely on to finance infrastructure projects. Messer’s bill reverses this regulation, making it more affordable for municipalities to invest in roads, bridges, hospitals and schools.
“President Trump has made rebuilding our infrastructure a priority. This bipartisan bill paves the way for this type of investment by lowering the price tag for roads and bridges,” said Messer, who serves on the House Financial Services Committee. “This bill will make it easier for Hoosier communities to fund needed infrastructure projects, and it will save taxpayer dollars. I appreciate Congresswoman Maloney’s help in getting this common-sense bill passed, and thank Indiana State Treasurer Kelly Mitchell for her support.”
“We introduced this bill in order to level the playing field for our cities and states by ending the discrimination against municipal bonds in the banking regulators’ liquidity rules. Now that it has passed in the House, I look forward to working with the Senate to ensure it is signed into law. As a former City Council member in New York, I know first-hand the importance of municipal bonds as they allow states and cities to finance infrastructure, build schools, and pave roads. We should be in the business of promoting such projects and this commonsense way to finance them. I thank my good friend from Indiana, Mr. Messer, for his leadership on this issue,” said Rep. Carolyn Maloney (NY-12).
The bill is supported by key stakeholders, including the U.S. Conference of Mayors, the National League of Cities, the National Governors Association, the Independent Community Bankers of America, the National Association of State Treasurers and Indiana State Treasurer Kelly Mitchell.
“This bill allows banks to keep the costs of borrowing low for our communities which strengthens local governments’ ability to complete essential projects throughout our state,” TreasurerMitchell said. “I would like to thank Congressman Messer for his dedication and leadership on this important issue.”
H.R. 1624 bill would reclassify municipal bonds as high quality liquid assets to encourage banks to hold those assets, which will help ensure low-cost infrastructure financing remains available for state and local governments across the nation.
A full list of the bill’s supporters can be found here.
VIDEO of Rep. Messer speaking on the House floor about his legislation can be found below and here.