With all the House of Representative races now called, Republicans will retain a razor-thin majority, sealing their control of the Senate, House and White House, while jockeying has begun for appointments to the House Ways and Means and Senate Finance committees that are important to the municipal bond market.
The Senate, where the GOP won a 53-seat majority on Wednesday, elected South Dakota Sen. John Thune as its new leader. In the first Trump administration, Thune was chair of the Senate Commerce, Science and Transportation Committee and played a key role in the negotiation of the Tax Cuts and Jobs Act. An early version of the TCJA eliminated the tax exemption for private activity bonds, and after the provision was stripped out
As Congress organizes itself into committees and
Current Ways and Means Chair Rep. Jason Smith, R-Mo.,
Smith in April
Rep. Richard Neal, D-Mass, who is considered a friend of public finance, is expected to remain as Ways and Means Ranking Member.
Rep. Rudy Yakym, R-Ind.,
Bond Dealers of America,
That includes Rep. David Kustoff, R-Tenn., who has co-sponsored a bill to restore tax-exempt advance refunding; Rep. Mike Kelly, R-Pa., who chaired the Community Development Tax Writing Team that covered municipal finance; and Reps. Brian Fitzpatrick, R-Pa. and Claudia Tenney, R-N.Y., both of whom were sponsors on Kustoff's advance-refunding bills.
Lawmakers who are leaving the committee that have sponsored municipal market-related bills include Reps.
All four Republican incumbents who lost their bids on Nov. 6 sat on the House Transportation and Infrastructure Committee. Current Chair Sam Graves, R-Mo.,
The committee will tackle the new surface transportation reauthorization bill. Spending for the Highway Trust Fund will run out on Sept. 30, 2026, as will advance appropriations for the IIJA.
Current Ranking Member Sen. Mike Crapo, R-Idaho, will likely become chairman of the Senate Finance Committee, with all the Republicans currently on the committee staying put.
Sen. Ron Wyden, D-Ore., is expected to become ranking member. During a July committee hearing,
BDA notes that Sen. John Cornyn, R-Texas, is expected to remain a senior committee leader and "was the loudest voice in the Senate in defense of PABs." Sen. John Barrasso, R-Wyo., who will also remain on the committee, sponsored the LOCAL Infrastructure Act that would restore tax-exempt advance refunding, BDA noted.
Republican leaders are expected to rely on the budget reconciliation process, which will allow them to pass revenue legislation with a simple majority, to raise the debt limit and address the expiring Tax Cuts and Jobs Act.