U.S. Senators Roger Wicker from Mississippi and Michael Bennet from Colorado have put forward the LOCAL Infrastructure Act of 2025. This bill aims to amend the federal tax code to allow for advance refunding, enabling state and local governments to manage their bond debt more effectively and reduce borrowing expenses for public infrastructure projects.
Senator Wicker stated, “The LOCAL Infrastructure Act would amend the federal tax code to give more financial flexibility to state and local governments. Restoring advance refunding would help community leaders manage their existing debts and allow for more investment to improve their existing infrastructure. Local leaders know what their states need best, and it’s important to give them the resources to ensure their community’s success.”
Senator Bennet added, “As state and local governments work to improve their communities and plan for the future, our bipartisan bills will support their efforts to revitalize infrastructure, create jobs, and improve quality of life for all Coloradans. From improving our roads and bridges to modernizing our hospitals and schools, this legislation will help create stronger and more resilient communities.”
The Securities Industry and Financial Markets Association (SIFMA) President Kenneth E. Bentsen, Jr., praised the senators’ initiative. He stated, “SIFMA would like to thank Senator Roger Wicker (R-MS) and Senator Michael Bennet (D-CO) for their continued leadership on municipal bonds. Advance refunding is an important tool which permits state and local governments to save billions of dollars in interest costs by refinancing their outstanding debt to a lower interest rate.”
Matthew Chase, Executive Director of the National Association of Counties, emphasized the importance of the bill for counties. “Tax-exempt municipal bonds are a critical tool enabling counties to finance infrastructure projects for our communities,” he said. “The LOCAL Infrastructure Act would restore the tax-exemption of advance refunding bonds and give counties the flexibility to respond to market conditions and lower borrowing costs for residents.”
Advance refunding allows governments to refinance municipal bonds at lower interest rates, thus saving money and reinvesting in infrastructure, education, health care, or other projects. Since 2017, this option has not been available, but the LOCAL Infrastructure Act seeks to change that.
