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US SB3941
Bill
Status
2/26/2026
Primary Sponsor
Catherine Cortez Masto
Click for details
AI Summary
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Removes the December 31, 2010 expiration date for the tax-exempt treatment of state and local bonds guaranteed by Federal Home Loan Banks, making this provision permanent
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Amends Section 149(b)(3) of the Internal Revenue Code to ensure Federal Home Loan Bank letters of credit on municipal bonds do not disqualify the bonds from tax-exempt status
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Transfers authority for setting safety and soundness requirements for these guarantees to the Director of the Federal Housing Finance Agency, who may update standards over time
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Applies to all guarantees made after the date of enactment
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Introduced by Senators Cortez Masto, Young, and Justice on February 26, 2026, and referred to the Senate Finance Committee
Legislative Description
A bill to amend the Internal Revenue Code of 1986 to restore treatment of State and local bonds which are guaranteed by a Federal home loan bank as not federally guaranteed for purposes of determining their tax-exempt status.
Last Action
Read twice and referred to the Committee on Finance.
2/26/2026