23 March 2018

Update on Municipal Bonds

HQLA; Tax Exempt Munis May Still Be At Risk

With the omnibus having been passed by Congress, substantive legislative work will wind down until after the elections in November. There are, however, a few outstanding tax/financial issues to note.

First, as you may know, there are ongoing efforts in Congress to reclassify municipal bonds as high quality liquid assets (HQLA). Regulations mandating that banks hold a minimum amount of HQLA neglected to include municipal bonds in that category, even though they have a lower default rate than private sector bonds. The House passed legislation to reclassify municipal bonds as HQLA both last Congress and this Congress, but until recently the Senate had not. On March 14, the Senate passed a Dodd Frank relief bill, S. 2155, that included a provision to reclassify municipal bonds as HQLA. This is the first time that both chambers have passed HQLA language. Unfortunately, House Financial Services Chairman Jeb Hensarling (R-TX) at this point opposes the Senate Dodd-Frank relief bill; he believes it does not go far enough. What does that mean for muni bonds? It means that right now, they are caught in the House and Senate maneuvering on Dodd-Frank. Until those disagreements are resolved (either through a Conference Committee or by the House passing the Senate legislation), the HQLA legislation is on hold.

Second, the omnibus did include a solution to the so-called “grain glitch”, but only by including an expansion of the Low Income Housing Credit for Democrats. This agreement sets an informal precedent: fixes to the GOP tax law will only get Democrat support by including corresponding Democrat priorities. (Because of procedural rules in the Senate, fixes will need Democrat votes.) This could provide opportunities for Democrats to secure longer term extensions for renewable energy tax incentives like those for hydro- or geothermal power. But it also increases the cost of any fixes to the tax law, so tax-writers will have to find even more revenue to offset these fixes. This means that tax exempt municipal bonds could be back on the table—at the very least a haircut for top earners like Chairman Dave Camp or President Obama proposed.

TFG will continue to monitor this and other municipal bond developments.  If you would like more information, please contact our team. 

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Grant Due: FY 2024 Vehicle Technologies Office Batteries Funding

FY 2024 Vehicle Technologies Office Batteries Funding

WHAT DOES IT FUND? This program advances research, development, demonstration, and deployment (RD&D) in several areas critical to achieving net-zero greenhouse gas (GHG) emissions by 2050, including: development of innovative battery chemistries and component materials, reduction of cascading battery fires, and battery electrode, cell, and pack manufacturing cost reduction. Click here for more information.

WHO'S ELIGIBLE? State and local governments, nonprofits, for-profits, institutions of higher education, and Indian Tribes 

TOTAL FUNDING AMOUNT? $42.9 million

WHEN'S IT DUE? October 30, 2024 (Full Application) 

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Grant Due: FY 2024 Healthy Communities Grant Program (Region 1, New England)

FY 2024 Healthy Communities Grant Program (Region 1, New England)

WHAT DOES IT FUND? The purpose of this program is to fund direct work with communities to reduce environmental risks, protect and improve human health and improve quality of life. Click here for more information.

WHO'S ELIGIBLE? State and local governments, nonprofits, federally recognized Indian Tribal governments, K-12 schools or school districts, all which do not need to be within EPA Region 1 but must propose projects within that area

TOTAL FUNDING AMOUNT? $500,000

WHEN'S IT DUE? November 1, 2024

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Grant Due: FY 2024 Offshore Wind National and Regional Research and Development

FY 2024 Offshore Wind National and Regional Research and Development

WHAT DOES IT FUND? The purpose of this program is to apply basic research, education/outreach, and feasibility study activities to be funded under this program will support the government-wide approach to the climate crisis by driving the innovation that can lead to the deployment of clean energy technologies. Click here for more information.

WHO'S ELIGIBLE? State and local governments, institutions of higher education, nonprofits, forprofit entities, and federally recognized Indian Tribes 

TOTAL FUNDING AMOUNT? $48.6 million

WHEN'S IT DUE? November 7, 2024 (Full Applications)

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Grant Due: FY 2025 Service Area Competition (Third Solicitation)

FY 2025 Service Area Competition (Third Solicitation)

WHAT DOES IT FUND? This program ensures continuity of care in the communities and populations currently served by the Health Center Program. Click here for more information.

WHO'S ELIGIBLE? Special district governments, city or township governments, state governments, county governments, Native American tribal governments and organizations, urban Indian organizations, nonprofit organizations, and independent school districts

TOTAL FUNDING AMOUNT? $244.4 million

WHEN'S IT DUE? November 14, 2024 (EHBs)

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Grant Due: FY 2024 Continuum of Care (CoC) Builds

FY 2024 Continuum of Care (CoC) Builds

WHAT DOES IT FUND? The purpose of this program is to target efforts within Continuum of Care (CoC) geographic areas to address and reduce persons experiencing homelessness by adding new units of permanent supportive housing (PSH) through new construction, acquisition, or rehabilitation through one-time awards under this program. Click here for more information.

WHO'S ELIGIBLE? State governments, county governments, city or township governments, special district governments, federally recognized Native American tribal governments, public housing authorities (PHAs)/Indian housing authorities, Native American tribal organizations (other than federally recognized tribal governments), and nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, and faith-based organizations

TOTAL FUNDING AMOUNT? $175 million

WHEN'S IT DUE? November 21, 2024

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US Congressional Calendar

27 November 2023

TFG Presents 2024 Congressional Calendar

The Ferguson Group (TFG) compiled a 2024 Congressional Calendar with session and recess dates for the U.S. House of Representatives and U.S. Senate 118th congressional session. 

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Kristen H. Long Promoted to Grants Principal at TFG 24 July 2024

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COLUMBIA, S.C. – The TFG Grants Division is pleased to announce the promotion of Kristen H. Long to Grants Principal. Kristen has been an integral part of the TFG Grants Division since 2022.

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