WASHINGTON— Today, Representatives Lisa McClain (R-Mich.) and Sam Liccardo (D-Calif.), alongside Senators Todd Young (R-Ind.) and Catherine Cortez Masto (D-Nev.), introduced bipartisan legislation to expand access to low-cost financing for critical community projects across the country.
The Municipal Investment and Neighborhood Transformation (MINT) Act restores and makes permanent authority for Federal Home Loan Banks to support tax-exempt municipal bonds used to finance essential housing-related infrastructure projects such as water systems, sewer upgrades, hospitals, and schools. This authority previously existed from 2008 to 2010 and helped finance nearly $4 billion in local projects before expiring.
“Communities shouldn’t have to pay higher borrowing costs simply because they lack access to Wall Street financing,” Rep. McClain said. “This bill levels the playing field by giving local lenders the tools they need to help their communities invest in infrastructure, health care, and economic development without putting taxpayers on the hook for higher interest rates. It will help unlock investment where it’s needed most.”
“As Mayor of San José, I saw firsthand how bonds help cities put more shovels in the ground on critical infrastructure,” Rep. Liccardo said. “The MINT Act cuts red tape and gives local communities a green light on projects that expand hospitals, rebuild crumbling bridges, and improve our children’s schools. I look forward to working with colleagues in both houses and both parties to pass this bill, and help deliver the resources our cities need to thrive.”
“The Federal Home Loan Banks play a critical role in providing reliable liquidity to financial institutions to make local economic projects possible. Our bill will restore a proven financing tool to help lower costs for community development projects in towns across America. Bureaucratic red tape should not stand in the way of local communities accessing affordable financing,” Senator Young said.
“For too long, communities across the country have had a hard time raising the funds they need to make improvements to sewer and water systems, hospitals, schools, and more,” Senator Cortez Masto said. “Our legislation unlocks more options for these communities that were previously unavailable to them and empowers the Federal Home Loan Bank system to better fulfill its mission to support community development.”
“The Federal Home Loan Banks appreciate Representative McClain’s leadership on this important legislation,” said Ryan Donovan, President and CEO of the Council of Federal Home Loan Banks. “The MINT Act permanently restores letters of credit supporting non-housing tax-exempt bonds as a proven tool that empowers local communities to finance critical infrastructure – including schools, healthcare facilities, water systems, and other essential projects – more affordably. For more than 90 years, the FHLBanks, through their more than 6,400 members, have been a critical financial partner to municipalities across the country and this legislation improves market access for community-based lenders, promotes private investment, and eases pressure on local taxpayers.”
The MINT Act allows community banks to partner with their regional Federal Home Loan Bank (FHLBank) to obtain a standby letter of credit backing municipal bonds. Because FHLBanks maintain strong credit ratings, this backing lowers borrowing costs for local governments. Importantly, FHLBanks are privately capitalized cooperatives, and the legislation does not create a federal guarantee or taxpayer liability.
Representatives Claudia Tenney (R-N.Y.), Darin LaHood (R-Ill.), Steven Horsford (D-Nev.), and Marie Gluesenkamp-Perez (D-Wash.) are original cosponsors of the legislation.
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