Alabama Democrat Seeks Return of BAB, Advance Refunding Bonds

An Alabama Congresswoman is trying to restore two once-popular financing vehicles for municipalities — advanced refundings and subsidized infrastructure securities similar to the Build America Bond program championed by former President Barack Obama.

Rep. Terri Sewell, a Democrat representing Alabama’s seventh congressional district, reintroduced legislation to “lower borrowing costs” for municipalities in her state and nationwide.

Her proposed bill would restore advanced refunding of municipal bonds and authorize the use of so-called American infrastructure bonds, according to a Tuesday press release. The proposal also would expand the use of so-called bank-qualified debt, a help to small bond ...