CDFA Featured in The Bond Buyer: Mega Muni Bill Explored

In a recent interview with The Bond Buyer, CDFA President and CEO Toby Rittner discussed ongoing efforts to work with members of the Public Finance Network and other stakeholders to develop a broad municipal bond reform package aimed at expanding and modernizing development finance tools. The proposed “mega muni bill” would include a range of technical corrections and policy updates, including restoring advance refunding, increasing the bank-qualified debt limit, reforming manufacturing and agriculture bonds, reinstating the Federal Home Loan Bank letter of credit program, and making 501(c)(3) bonds bank qualified. CDFA and its partners view the current congressional environment as an opportunity to advance long-standing bond priorities that would strengthen issuers’ ability to finance infrastructure, community facilities, manufacturing, and economic development projects nationwide.

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Congress Advances Reconciliation 2.0 Process

On April 29, the U.S. House passed S. Con. Res. 33 by a vote of 215–211, completing adoption of the FY 2026 budget resolution and advancing the next phase of the reconciliation process. Current discussions surrounding “Reconciliation 2.0” are primarily focused on a targeted funding package exceeding $70 billion for US border security and immigration enforcement, specifically targeting U.S. Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) through the end of President Trump’s term. Congressional leadership is aiming to advance final legislation by Memorial Day using the budget reconciliation process, which would allow the Senate to bypass the 60-vote filibuster threshold and use a simple majority to secure funding for these agencies.

Read S. Con. Res. 33


Increasing Housing in OZs Act, Section 202 of ROAD to Housing Act

U.S. Representatives Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, and Josh Harder (D-CA) introduced the Increasing Housing in Opportunity Zones Act, bipartisan legislation that would authorize the U.S. Department of Housing and Urban Development (HUD) to give added consideration to competitive housing grant applications located in, or primarily serving, designated Opportunity Zones. The legislation is intended to better align federal housing resources with communities already targeted for long-term private investment through the Opportunity Zone incentive and support the construction, rehabilitation, and preservation of housing in underserved areas. The Increasing Housing in Opportunity Zones Act is included as Section 202 of the bipartisan 21st Century ROAD to Housing Act led by Senators Tim Scott (R-SC) and Elizabeth Warren (D-MA), a broader housing package aimed at increasing housing supply, reducing regulatory barriers, and expanding access to affordable housing across the country.

Learn More About the ROAD to Housing Act


Treasury Releases Guidance on OZ 2.0 Census Track Nomination Process

On April 6, the Department of the Treasury and the Internal Revenue Service issued guidance to the Chief Executive Officers of any State, the District of Columbia, and U.S. territories regarding the procedure for nominating population census tracts to be designated as qualified opportunity zones (QOZs) under the One, Big, Beautiful Bill. This highly anticipated guidance officially identifies eligible census tracts under Opportunity Zones 2.0, allowing states to move forward in the process of selecting which census tracts to nominate. States can begin submitting their nominations starting July 1. The Appendix within the attached document below includes a spreadsheet of all eligible census tracts. The Treasury Department and the IRS will continue rolling out online tools and resources to State CEOs in the coming months to ensure efficiency and accuracy of their nominations.

See Treasury’s Guidance on OZ 2.0 Census Track Nomination Process


The Municipal Investment and Neighborhood Transformation (MINT) Act Introduced in Congress

CDFA strongly supports the introduction of the Municipal Investment and Neighborhood Transformation (MINT) Act (H.R. 7769 / S. 3941) by Senators Cortez Masto (D-NV) and Young (R-IN), and Representatives McClain (R-MI) and Liccardo (D-CA). This bipartisan legislation would restore the authority of Federal Home Loan Banks (FHLBanks) to provide letters of credit for non-housing related tax-exempt bonds, an authority CDFA has long supported. By leveraging the FHLBanks’ strong credit ratings, the MINT Act would help reduce borrowing costs and expand access to credit enhancement, particularly for small and mid-sized issuers. During its temporary authorization from 2008 to 2010, this tool supported nearly $4 billion in financing across 129 projects. Restoring this authority would strengthen municipalities’ ability to finance critical infrastructure and community development projects including schools, healthcare facilities, water systems, and more. CDFA will continue advocating for passage of the MINT Act and will provide updates as the legislation advances.

Read the MINT Act


Maritime Prosperity Zones – SHIPS for America Act

In February, the Administration released America’s Maritime Action Plan (MAP). This plan outlines policies that modernize government procurement processes and regulations to accelerate shipbuilding and reduce costs. The MAP identifies four pillars and deregulatory actions to support the Administration’s Maritime priorities. As you’ll see, Maritime Prosperity Zones (MPZs) are identified on page six of the MAP. The purpose of MPZs is to catalyze shipbuilding investments and workforce growth to support America’s maritime supply chain entities, workforce development and educational institutions, and advanced manufacturing initiatives to strengthen industrial base capacity and readiness. The bipartisan SHIPS for America Act could serve as the vehicle that makes MPZs a reality. This Act conceptualizes MPZs in a similar setting as the existing Opportunity Zones tax incentives, but would also leverage capital gains tax exemptions to incentivize investments that support the MAP. Further guidance is needed to fully understand how MPZs and OZs can collaboratively support the United States’ maritime industry. CDFA is monitoring how MPZs and the SHIPS for America Act develop, and will share additional updates as they become available.

Read the SHIPS for America Act


CDFA's Modernizing Agricultural and Manufacturing Bonds Act (MAMBA) Introduced in U.S. Senate (S.2100)

CDFA's is pleased to announce that Senators Ernst (R-IA) and Warner (D-VA) have introduced the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA) in the U.S. Senate as S.2100. MAMBA, CDFA’s signature piece of policy, will modernize the IRC rules as they relate to small issue bonds, specifically the private activity bond rules for manufacturing bonds and first-time farmers. MAMBA represents the most comprehensive reform to manufacturing and agricultural bonds since the 1980s. This piece of legislation will help drive U.S. global competitiveness, grow small manufacturers and drive growth in American communities. CDFA expects bi-partisan introduction in the U.S. House of Representative shortly and will the begin to push this legislation through Congress for full passage.

Learn About MAMBA


CDFA Administration Transition Paper

The recommendations outlined in this paper provide a strategic roadmap for the Trump Administration and the 119th Congress to introduce development finance solutions to address our nation’s most pressing issue. These proposals have been carefully designed to tackle the complex and interrelated challenges confronting the U.S. economy. In addition, these policy ideas can be easily achieved by both administrative action by the White House and legislative action by Congress. These ideas are all geared towards engaging more private sector investment and driving capital in our communities. Nearly all of these ideas can be achieved in the first 100 days of the Trump Administration and the 119th Congress.

Read CDFA Administration Transition Paper


Development finance agencies are encouraged to let their voices be heard on Capitol Hill. To get engaged, contact CDFA.

Overview

CDFA is committed to fulfilling numerous development finance policy objectives in the 119th Congress (2025-2026), including the improvement of tax-exempt bonds, reinstatement of the brownfields redevelopment tax incentive, and continued support for critical federal financing programs. This agenda is borne out of CDFA’s four decades as a national leader in the development finance industry and is crafted to address market-based access to capital challenges. CDFA is prepared to assist Congress with implementation of the following policy priorities:

• INTRODUCED: Priority 1: Reform Manufacturing and Agricultural Bonds - Passing the Modernizing Agricultural and Manufacturing Bonds Act will update the tax code's private activity bond rules for Industrial Development Bonds and Agricultural Bonds.


• Priority 2: Create Permanent Disaster Recovery Bonds - Create a permanent bond financing tool that can be accessed immediately after disaster strikes, and that can leverage private investment for longer-term redevelopment of essential infrastructure.


• ACHIEVED: Priority 3: - Preserving and Protecting Tax-Exempt Bonds - It is imperative that the Administration and Congress preserve and protect tax-exempt bonds as part of any update to the federal tax code. Proposals to restrict, cap, and/or eliminate the tax-exemption status of municipal and private activity bonds should be opposed, while the tax exemption itself should be strengthened where possible.


• Priority 4: Strengthening the State Small Business Credit Initiative - The State Small Business Credit Initiative (SSBCI) is a practical, pragmatic, and proven program that is helping America’s small businesses access lower-cost capital, thereby creating high-quality jobs – especially in underserved communities. An opportunity exists to bolster SSBCI by expediting Treasury’s review of applications and disbursement of funds for this program. In addition, additional funding for the SSBCI program would go a long way toward ensuring an evergreen state presence in supporting small business development.


• ACHIEVED: Priority 5: Revitalizing Opportunity Zones - Opportunity Zones, created by the Tax Cuts and Jobs Act in 2017, were established to spur economic development and job creation in stressed or rural parts of the country. While the program has been a success, key provisions of the program have already sunset, and the entire program is set to expire in 2026. Numerous proposals exist to extend and reform the program, and passage of a new Opportunity Zones 2.0 should be a major policy effort by the Administration and the 119th Congress.


• Priority 6: Expanding Affordable Housing Inventory - Affordable housing development must be a critical focus of the Administration and the 119th Congress. In 2024, bipartisan, thoughtful legislation known as the Revitalizing Downtowns and Main Streets Act was introduced and would create a temporary federal tax credit to encourage the conversion of vacant and underutilized commercial properties into residential housing.


• ACHIEVED: Priority 7: Permanently Authorizing New Markets Tax Credit - The New Markets Tax Credit (NMTC) program, created in 2000 to incentivize community development and economic growth in under-resourced neighborhoods, will expire in 2025. Making the NMTC program permanent would catalyze a long-term vision for community investment and give private sector investors a great ability to drive capital where it is most needed.

There are indications that Congress and the new Administration are taking steps to curtail or potentially eliminate all Tax-Exempt Bonds. Losing Tax-Exempt Bonds would devastate American communities and set economic development efforts back decades.

Help Us Preserve & Protect Tax-Exempt Bonds

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