Bill > HR2288

This bill aims to reinstate advance refunding bonds, which allow state and local governments to refinance outstanding bonds at lower interest rates. The key provisions include: 1. Allowing advance refunding of certain private activity bonds and other bonds, as long as certain conditions are met, such as limiting the number of advance refundings and ensuring the refunding results in present value debt service savings. 2. Prohibiting the use of advance refunding bonds in abusive transactions designed solely to obtain financial advantages through arbitrage rather than interest rate savings. 3. Providing special rules for determining the initial temporary period for the use of bond proceeds, which affects the arbitrage restrictions. The bill is intended to provide state and local governments with more flexibility to refinance outstanding debt at lower interest rates, potentially saving taxpayers money.

Budget and Finance

https://www.congress.gov/bill/117th-congress/house-bill/2288/all-info