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CDFA Advocates for Disaster Recovery Bonds

Join the CDFA Effort to Pass a Permanent Disaster Recovery Bonds Program

In the aftermath of Hurricanes Harvey, Irma, and Maria, the residents of Texas, Florida, the U.S. Virgin Islands, and Puerto Rico are in dire need of federal recovery assistance. CDFA is calling on Congress to create a permanent, special category of federal tax-exempt bonds, which can be used by states and municipalities to support recovery efforts in the areas affected by disasters, both natural and man-made.

There is ample precedent for Congress to take action. After the devastation of Hurricane Katrina in 2005, Congress responded with the order to provide Alabama, Louisiana, and Mississippi federal assistance to aid such states in recovery and promote economic development. Given the massive destruction caused by Hurricanes Harvey, Irma, and Maria, and the likelihood that similarly disastrous weather phenomena occur in the future, legislation is needed from Congress for the benefit of the states and territories affected by the hurricanes, and to prepare for future disasters.

Using the GO Zone Act as a guide, as well as the Heartland Disaster Tax Relief Act of 2008 that created Midwestern Disaster Area Bonds, CDFA supports the passage of legislation that would provide the following:

For additional information on the CDFA proposal, please review the following materials:

CDFA Press Release

CDFA Memorandum on Disaster Recovery Bonds

Overview from the Bond Buyer

Current Congressional Action

While CDFA continues to advocate for disaster recovery bonds, we are encouraged by recent Congressional action to assist the states and territories affected by the powerful hurricanes. On September 5, Representatives Tom Reed (R-NY) and Bill Pascrell (D-NJ) introduced the National Disaster Tax Relief Act of 2017. The National Disaster Tax Relief Act, or H.R. 3679, proposes the permanent creation of "qualified disaster area recovery bonds" that could be issued in the event of a federally declared disaster. The bill also includes several temporary tax relief measures for disasters that occurred in 2012, 2013, 2014, and 2015, as well as several permanent measures that can be triggered through the declaration of a state of emergency.

On September 22, 17 Congressional Democrats signed a letter to Committee on Ways and Means Chairman Kevin Brady and Ranking Member Richard Neal, asking them to offer legislative "assistance consistent with past disasters," making specific mention of the GO Zone Act of 2005 and the Heartland Disaster Tax Relief Act of 2008.

To read more about the current Congressional disaster relief efforts, as well as past disaster relief proposals referenced, see below:

National Disaster Tax Relief Act of 2017

Congressional Democrats' Letter to Ways & Means

GO Zone Act of 2005

Heartland Disaster Tax Relief Act of 2008

Hurricane Ike Bonds


To voice your support for our legislative efforts, please contact Tim Fisher at 614-705-1309.


CDFA National Sponsors

  • Alaska Industrial Development and Export Authority
  • Baker Tilly Virchow Krause
  • Ballard Spahr LLP
  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Frost Brown Todd, LLC
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • MB Financial Bank, NA
  • McCarter & English, LLP
  • McGuireWoods
  • Miles & Stockbridge P.C.
  • NW Financial Group, LLC
  • SB Friedman Development Advisors
  • Squire Patton Boggs
  • Stern Brothers & Co.
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Wilmington Trust
  • Z. The Bond Buyer
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