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Municipal bonds continue to be the <br />most effective financial tool for public <br />power communities and local entities <br />everywhere—bonds build three- <br />quarters of all public infrastructure in <br />the country. <br />Congress took a critical step towards <br />modernizing public financing when it <br />authorized various new energy-related <br />tax credits for municipal electric <br />utilities in the IRA, but more action <br />is needed, including reinstating the <br />ability to issue advance refunding <br />bonds and expanding the power of <br />small local banks to issue bonds in <br />excess of $10 million while retaining <br />small issuer status. In addition, <br />sequestration continues to restrict full <br />use of our public bonds—Congress <br />needs to repeal such provisions. <br />MMUA asks Congress to consider: <br />• Complete the modernization of public finance tools by restoring the ability to <br />use tax-exempt advanced refunding bonds. This is a critical financial tool for <br />all state and local entities, including municipal utilities. Advance refunding can <br />only occur once a year, and only when market conditions allow, but it can save <br />communities millions of dollars. Support bipartisan legislation. <br />• The small issuer exception is outdated. Congress should increase the value of <br />bonds a bank may issue and remain a small provider from $10 million to $30 <br />million. <br />• Sequestration needs to end. Public power communities continue to be burdened <br />by sequestration of public bonds. <br />2023 Federal Legislative Priorities <br />PUBLIC FINANCE <br />229