Reinvest in Public Schools Act of 2026

Lower borrowing costs for school districts

If enacted, the bill would let state and local governments treat certain advance refunding bonds for public school projects as tax-exempt under the rules in effect on December 21, 2017. To qualify, 100 percent of the available project proceeds must pay for construction, rehabilitation, or repair of a public school facility, or to buy the land for that facility. The special rule would not apply to abusive advance-refunding deals that use a device to get extra arbitrage profit beyond savings from lower interest rates. The bill would also set the end of the initial temporary period for these bonds without regard to section 149(d)(3)(A)(iv) as in effect on December 21, 2017. The rule would apply to advance refunding bonds issued after the date of enactment.