U.S. Senators Todd Young (R-Ind.) and Catherine Cortez Masto (D-Nev.) have introduced the Municipal Investment and Neighborhood Transformation (MINT) Act, aimed at supporting community development projects nationwide. The proposed legislation would enable Federal Home Loan Bank (FHLBank) member institutions to provide credit enhancement for tax-exempt bonds used in non-housing related community development efforts.
Senator Young said, “Our bill will restore a proven financing tool to help lower costs for community development projects in towns across America. Bureaucratic red tape should not stand in the way of local communities accessing affordable financing.”
Senator Cortez Masto added, “For too long, communities across the country have had a hard time raising the funds they need to make improvements to sewer and water systems, hospitals, schools, and more. Our legislation unlocks more options for these communities that were previously unavailable to them and empowers the Federal Home Loan Bank system to better fulfill its mission to support community development.”
Representative Lisa McClain commented on the bill’s potential impact: “Communities shouldn’t have to pay higher borrowing costs simply because they lack access to Wall Street financing. This bill levels the playing field by giving local lenders the tools they need to help their communities invest in infrastructure, health care, and economic development without putting taxpayers on the hook for higher interest rates. It will help unlock investment where it’s needed most.”
Brendan McGrath, President and CEO of FHLBank Indianapolis, stated, “This legislation is another way the Federal Home Loan Banks can work with our member financial institutions to make a meaningful difference in communities around the nation.”
Currently, FHLBank member institutions are permitted only to support municipalities when issuing housing-related tax-exempt bonds. They cannot extend this support for other types of community development projects such as infrastructure upgrades or new health care facilities. The new legislation would expand eligibility so that Letters of Credit from FHLBank members could also back tax-exempt bonds for non-housing projects like transportation centers or schools—a practice allowed between 2008 and 2010.
The House version of this bill was introduced by Representatives Lisa McClain (R-MI-09) and Sam Liccardo (D-CA-16).
Senator Young has addressed various issues impacting American communities including affordable housing and veterans’ support according to his official website. He has focused on conservative policies spanning national security, economic growth, housing affordability initiatives, veterans’ affairs, and artificial intelligence (source). His committee service includes roles on Finance; Commerce; Science and Transportation; Small Business and Entrepreneurship; as well as Intelligence panels (source). Young holds degrees from several universities including the U.S. Naval Academy (source), serves Indiana through multiple offices statewide (source), and has championed legislative efforts such as the CHIPS and Science Act supporting U.S. semiconductor manufacturing (source).
The full text of the MINT Act is available online.
