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US SB3941

Bill

Status

Introduced

2/26/2026

Primary Sponsor

Catherine Cortez Masto

Click for details

Origin

Senate

119th Congress

AI Summary

  • 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

  • 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

  • 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

  • Applies to all guarantees made after the date of enactment

  • 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

Committee Referrals

Finance2/26/2026

Full Bill Text

No bill text available