State & Local Government Policy, Business and Technology

As Trump Eyes Infrastructure, State and Local Leaders Defend Tax-Exempt 'Muni Bonds'

Statteline: Jonathan Sherer of the Columbia, South Carolina, water department shows off a pump paid for with a $100 million municipal bond issue. Cities and states are wary of federal budget proposals that might curb the tax-free bonds. COLUMBIA, S.C. — Structures built with municipal bonds stand out in this city. There is the Columbia Metropolitan Convention Center, and new parking garages for a revitalized restaurant and apartment district. Sleek, futuristic water towers loom on the edge of town and new modern pumps hum at the water plant where the oldest structures date to 1906. Nationwide, the “muni bond” market has funded $1.65 trillion worth of projects for cities and other governments over the past decade. The borrowed money has paid for schools, roads, water and sewer systems, airports, bridges and other vital infrastructure.

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