Uplifting Our Local Communities Act

Bill: 116-hr-7717
Sponsor: full_name: Rep. Tlaib, Rashida [D-MI-13]
Introduced: 2020-07-21
Policy area: Finance and Financial Sector
Subjects: Appropriations

Cardiovascular and respiratory health

Credit and credit markets

Economic performance and conditions

Emergency medical services and trauma care

Federal Reserve System

Infectious and parasitic diseases

Interest, dividends, interest rates

Securities

State and local finance

U.S. territories and protectorates
Latest action: action_date: 2020-07-21
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2020-07-21
action_desc: Introduced in House
text: <p><b>Uplifting Our Local Communities Act </b></p> <p>This bill allows the Federal Reserve Board in unusual and exigent circumstances to authorize Federal Reserve banks to buy and sell municipal bonds and other specified financial instruments issued by a state, the District of Columbia, a U.S. territory or possession, or a federally recognized Indian Tribe. </p> <p>The Federal Reserve Board must revise the terms of operation of the Municipal Liquidity Facility through which the board purchases state and municipal debt. Specifically, the board must </p> <ul> <li>extend the operation of the facility to December 31, 2021, </li> <li>extend the maturity of eligible debt from three years to ten, </li> <li>ensure that purchases are made at an interest rate equal to the federal funds rate, </li> <li>allow for the purchase of the debt of U.S. territories and possessions, and </li> <li>reduce the minimum eligible population size for a municipality to 50,000. </li> </ul> <p>The bill also establishes a long-term municipal borrowing facility to provide capital for the duration of the economic disruption caused by the COVID-19 (i.e., coronavirus disease 2019) pandemic. Additionally, the bill removes the prohibition on loan forgiveness for states and municipalities receiving specified COVID-19 aid. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7717 IN THE HOUSE OF REPRESENTATIVES July 21, 2020 Ms. Tlaib (for herself, Mr. Neguse , Mr. García of Illinois , Mr. Green of Texas , Mr. Hastings , Ms. Kaptur , Mrs. Carolyn B. Maloney of New York , Mr. Nadler , Ms. Norton , Ms. Ocasio-Cortez , Ms. Pressley , Mr. San Nicolas , Mr. Smith of Washington , Mr. Takano , Ms. Waters , and Mr. Huffman ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To authorize Federal reserve banks to purchase COVID–19 related municipal issuances, and for other purposes.

1. Short title This Act may be cited as the Uplifting Our Local Communities Act . 2. Emergency relief for State, territorial, Tribal, and local governments (a) Purchase of COVID–19 related municipal issuances (1) Amendment to authority to buy and sell bonds and notes Section 14(b) of the Federal Reserve Act ( 12 U.S.C. 355 ) is amended by adding at the end the following new paragraph: (3) Unusual and exigent circumstances Under unusual and exigent circumstances, to buy any bills, notes, revenue bonds, and warrants issued by any State, county, district, political subdivision, municipality, or entity that is a combination of any of the several States, the District of Columbia, or any of the territories and possessions of the United States. In this paragraph, the term State means each of the several States, the District of Columbia, each territory and possession of the United States, and each federally recognized Indian Tribe. . (2) Federal Reserve authorization to purchase COVID–19 related municipal issuances (A) Authority Within 7 days after the date of the enactment of this subsection, the Board of Governors of the Federal Reserve System shall modify the Municipal Liquidity Facility (established on April 9, 2020, pursuant to section 13(3) of the Federal Reserve Act ( 12 U.S.C. 343(3) )) to— (i) ensure such facility is operational until December 31, 2021; (ii) allow for the purchase of bills, notes, bonds, and warrants with maximum maturity of 10 years from the date of such purchase; (iii) ensure that any purchases made are at an interest rate equal to the discount window primary credit interest rate most recently published on the Federal Reserve Statistical Release on selected interest rates (daily or weekly), commonly referred to as the H.15 release or the Federal funds rate ; (iv) ensure that an eligible issuer does not need to attest to an inability to secure credit elsewhere; and (v) include in the list of eligible issuers for such purchases— (I) any of the territories and possessions of the United States; (II) a political subdivision of a State with a population of more than 50,000 residents; and (III) an entity that is a combination of any of the several States, the District of Columbia, or any of the territories and possessions of the United States. (b) Establishment of a long-Term municipal borrowing facility (1) In general Of amounts appropriated under section 4027(a) of the CARES Act ( Public Law 116–136 ) that remain unobligated or unexpended, the Board of Governors and the Secretary of the Treasury shall provide support for long-term municipal borrowing markets in addition to support provided for such markets through the Municipal Liquidity Facility. (2) Goal The purpose of support for long-term municipal borrowing markets shall be to ensure that each State, county, district, political subdivision, or municipality in the United States can access capital for long-term capital expenditures, infrastructure projects, and other long-term general obligations at low and stable prices for the entire duration of any economic disruption caused by the COVID–19 pandemic. (c) Applicability of the limitation on loan forgiveness Section 4003(d)(3) of the CARES Act ( Public Law 116–136 ) is amended by striking , State, or municipality .