Rep. Luke Messer (R-IN-06) and Rep. Carolyn Maloney (D-NY-12) today introduced bipartisan legislation that encourages investment in local communities by rolling back a burdensome federal banking regulation.
This Obama-era regulation discourages financial institutions from holding municipal bonds, which many state and local governments – including in Indiana – rely on to help finance infrastructure projects. The regulation makes it more difficult and costly for municipalities to borrow money, which is ultimately passed on to Hoosier taxpayers.
Messer’s bill, H.R. 1624, would revise this regulation to encourage banks to hold municipal bonds, making it more affordable for cities and towns to invest in infrastructure projects.
“This senseless federal regulation is hurting Hoosiers by making it more difficult and costly to build new schools, hospitals, bridges and roads,” Messer said. “This bipartisan bill will ensure the federal government isn’t standing in the way of local investment and growth.”
Indiana State Treasurer Kelly Mitchell said Messer’s bill will help support needed infrastructure improvements in Indiana.
“This bill allows banks to keep the costs of borrowing low for our communities which strengthens local governments’ ability to complete essential projects throughout our state,” Mitchell said. “I would like to thank Congressman Messer for his dedication and leadership on this important issue.”
H.R. 1624 would require banking regulators to classify municipal bonds as high quality liquid assets so that financial institutions may hold them as part of their liquidity set-asides.