Federal Action Alert: Tax Exempt Bonds

Date: March 27, 2025
Category: Federal Policy Updates

The National League of Cities (NLC) notified municipal leaders that the tax exemption on municipal bonds is at serious risk.  Economic advisors to the Trump Administration are describing the repeal of the exemption as “an easy way to save $250 billion.”  In Maine, municipal bonds have funded countless community projects, including essential infrastructure projects such as schools, roads, water systems, and public safety facilities. The tax-exempt status makes these bonds especially valuable, as it keeps borrowing costs low for municipalities and reduces the financial burdens placed on property taxpayers. Municipal officials who have benefited from the use of tax-exempt bonds are encouraged to reach out to members of Maine’s federal delegation and provide examples of projects supported by these bonds and resulting savings to property taxpayers.  A copy of the action alert can be found here.