The trio of Home Democrats who will lead the occasion subsequent yr convey backgrounds in state and native politics to Congress, although it is unclear whether or not that — or something— will translate right into a direct profit for the municipal market agenda.
The Home of Representatives will see new management within the wake of midterms that gave Republicans a slight majority and Democratic Home Speaker Nancy Pelosi’s choice to step down.
Nationwide Affiliation of State Treasurers
On the Republican facet, California Rep. Kevin McCarthy was nominated earlier this month to be speaker however it stays unclear if he could have ample help to win the occasion’s Jan. 3 ground election for speaker. Louisiana Rep. Steve Scalise is ready to be incoming Home majority chief.
On the Democratic facet, New York Rep. Hakeem Jeffries will take over Pelosi’s high spot within the Home as the following minority chief. Massachusetts Rep. Katherine Clark will change into minority whip and California Rep. Pete Aguilar will change into the brand new Democratic caucus chair, and majority chief if the Democrats win again a majority in 2024.
Jeffries and Clark had been each state lawmakers of their pre-Congress careers. Aguilar served because the mayor of Redlands, California from 2010 to 2014 and was the president of the Inland Empire Division of the League of California Cities.
“State expertise is all the time useful and with Aguilar on the crew, you’ve got obtained the native affect that [shows] as a former mayor, he does get it,” mentioned Emily Brock, federal liaison for the Authorities Finance Officers Affiliation.
The State of New York, one of many muni market’s largest issuers, takes heart stage with the election of Jeffries, who represents sections of New York Metropolis, coupled with longtime Senate chief Chuck Schumer. That could be useful for proponents of eliminating or lifting the state and native tax deduction cap.
Expertise with state and native management is mostly thought-about a constructive for the muni business, however the expertise would not all the time stick on the federal degree, advocates mentioned.
“As soon as they get into Congress, they give attention to higher-profile points, whether or not or not it’s worldwide or home,” mentioned Charles Samuels of Mintz Levin and counsel to the Nationwide Affiliation of Well being & Instructional Amenities Finance Authorities.
“That’s the reason the municipal finance caucus, for instance, is vital as a result of we do discover some members who’re keen to place time into public finance points and we have to help their vital efforts.
The Home Municipal Finance Caucus is anticipated to proceed to be led by founder and Democratic co-chair Maryland Democrat Rep. Dutch Ruppersberger. The previous Republican co-chair, Jackie Walorski of Indiana, died in an August automobile crash. No alternative has but been named.
Kentucky Republican Rep. Andy Barr, who sits on the Home Monetary Companies Committee, is present co-vice chair, and it stays to be seen if he’ll ascend to co-chair.
Public finance lobbyists usually view their political agenda as solidly bipartisan and say they’re agnostic on occasion management.
“All of our points are bipartisan points,” mentioned Dillon Gibbons, coverage director for the Nationwide Affiliation of State Treasurers. Amongst different issues, NAST advocates for conventional muni objects just like the restoration of tax-exempt advance refunding and the preservation of the tax exemption.
NAST will maintain a legislative convention in February, when lots of its members will go to with key lawmakers and workers on the Hill, Gibbons mentioned.
“Treasurers can function a useful resource to of us making vital selections on public finance,” he mentioned. A divided Congress might “present a possibility for larger give attention to bipartisan points like ours.”
The rollout of the Infrastructure Funding and Jobs Act will likely be a serious focus within the subsequent Congress, mentioned Brock. Because the federal funds enter the second yr of distribution, the GFOA will keep centered on its “funding versus financing” message, she mentioned.
“There’s vested curiosity in each events for the profitable rollout of the IIJA,” she mentioned. “Our technique will likely be that this $560 billion [of new money] within the IIJA is a shot of adrenaline for infrastructure within the U.S., however on the identical time we want a supporting market to underpin the 15-, 20- and 30-year life cycle of the infrastructure,” Brock mentioned. “We’ll be having that dialog with each side.”
The present Congress’ passage of main stimulus packages that despatched cash on to cities in addition to infrastructure and local weather change legal guidelines is one thing that native leaders will likely be “endlessly grateful” for, mentioned Irma Esparza Diggs, the Nationwide League of Cities’ senior government and director of federal advocacy.
“As we enter the 118th Congress, it’s vital to construct on these previous successes by persevering with to raise bipartisan, intergovernmental options over partisan politics,” Esparza Diggs mentioned.
