As Congress considers changes to the tax code in 2025, there have been discussions about the elimination of the tax exemption for municipal bonds.
Municipalities of all sizes rely on tax-exempt municipal bonds as a critical tool to finance infrastructure projects and essential public services. These bonds help fund everything from hospitals to roads, to schools and utilities. These projects are vital to the well-being of communities across the country.
The League’s federal partner, the National League of Cities (NLC) has partnered with the national Government Finance Officers of America (GFOA) and is asking municipalities to share local projects that benefited from municipal tax-exempt bonds through its Built By Bonds campaign. They plan to highlight the projects when speaking to members of Congress. Please review the GFOA map for the types of projects that have been highlighted in other states.
The League has repeatedly supported the federal tax exemption on municipal bonds when Congress considered repeals, with Conference resolutions in 2017, 2016, 2013, and 2012.
Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.