Reinvest in Public Schools Act of 2026
Summary
What This Bill Does
This bill amends Internal Revenue Code section 149(d) so certain public school bonds are treated under the advance refunding rules that existed on December 21, 2017. The special rule applies when a state or local government issues a bond and 100 percent of available project proceeds are used to construct, rehabilitate, or repair a public school facility, or to acquire land for the bond-financed school facility. The rule does not apply when a bond issue advance refunds another bond using a device to obtain material financial advantage based on arbitrage apart from savings attributable to lower interest rates. The bill also adds a qualified school construction bond rule for the initial temporary period under section 148(f)(4)(C), with changes applying to obligations issued after enactment.
Who Benefits and How
Public school districts, state governments, local governments, school construction bond issuers, municipal bond investors, and students in aging school facilities benefit from tax-exempt advance refunding access that can lower financing costs for school construction and repair.
Who Bears the Burden and How
The Internal Revenue Service, municipal bond counsel, federal taxpayers, arbitrage compliance advisors, and school bond issuers must apply the 100 percent proceeds test, anti-abuse rule, and temporary-period rule.
Key Provisions
- Restores tax-exempt advance refunding treatment for qualifying public school bonds issued by state or local governments.
- Requires 100 percent of available project proceeds to fund public school construction, rehabilitation, repair, or school land acquisition.
- Bars abusive advance refundings that use arbitrage devices for material financial advantage beyond lower-interest savings.
- Adds a qualified school construction bond rule for the section 148 initial temporary period.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Restores tax-exempt advance refunding treatment for state or local bonds whose proceeds are fully used for public school construction, rehabilitation, repair, or land acquisition, while barring abusive arbitrage-driven refundings.
Key Policy Areas
Tax, Education, Municipal Finance
Primary Purpose
Restores tax-exempt advance refunding treatment for state or local bonds whose proceeds are fully used for public school construction, rehabilitation, repair, or land acquisition, while barring abusive arbitrage-driven refundings.
Policy Domains
Bill-wide scope
Identified Gains
- Public school districts
- State governments
- Local governments
- School construction bond issuers
- Municipal bond investors
- Students in aging school facilities
Identified Costs
- Internal Revenue Service
- Municipal bond counsel
- Federal taxpayers
- Arbitrage compliance advisors
- School bond issuers
Sponsors
Legislative Progress
In CommitteeReferred to the House Committee on Ways and Means.
Introduced in House
Mr. Bell (for himself and Ms. Kelly of Illinois) introduced …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Municipal bond investors, School construction bond issuers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "primary_beneficiaries"
- → Public school districts, State governments, Local governments, School construction bond issuers, Municipal bond investors, Students in aging school facilities
- "primary_burden_bearers"
- → Internal Revenue Service, Municipal bond counsel, Federal taxpayers, Arbitrage compliance advisors, School bond issuers
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology