Rep. Steven Horsford, a Democrat from Nevada, is anticipated to fill the vacant seat on the Ways and Means committee following the passing of Rep. Bill Pascrell from New Jersey. This decision comes after Rep. Pascrell sadly passed away last month due to a respiratory illness at the age of 87. The National Association of Bond Lawyers expressed their grief over the loss of Rep. Pascrell, highlighting his dedication to public finance issues in Congress. Brian Egan, the director of government affairs at the association, mentioned that Rep. Horsford had previously served on the Ways and Means Committee for two terms before being removed when the Republicans gained control of the House. Currently, Rep. Horsford is a member of the House Financial Services Committee.
If Rep. Horsford is officially appointed to the Ways and Means Committee, it is expected that his background in state government will enable him to understand the significance of tax-exempt municipal bonds for communities in Nevada and nationwide. Notably, Rep. Horsford has been a proponent of the Infrastructure Investment and Jobs Act, which allocated $4 billion for Nevada to enhance infrastructure such as roads, public transportation, water systems, and internet connectivity. He has also been active in advocating for tax credits related to energy grid improvements. As the upcoming election approaches, polls suggest that Rep. Horsford is likely to secure re-election for Nevada’s fourth district, facing off against former Las Vegas Mayor John Lee.
The Ways and Means Committee is poised to play a critical role in determining the future of several provisions of the Tax Cuts and Jobs Act (TCJA) set to expire by the end of 2025. Former President Trump has expressed intentions to make the TCJA permanent, along with proposing further reductions to the corporate tax rate. The fate of the TCJA has significant implications for the municipal bond market, particularly due to the $10,000 cap imposed on state and local tax deductions and the elimination of advance refunding for tax-exempt bonds. The ongoing efforts to reverse these provisions have been met with challenges.
The post-election composition of the Ways and Means Committee will heavily influence the direction of the TCJA. If the Democrats regain control of the House, it is anticipated that Ranking Member Richard Neal from Massachusetts will assume the chair. Conversely, if the Republicans retain the majority, Chair Jason Smith is expected to continue leading the committee. The unexpected passing of Rep. Pascrell introduces additional uncertainty regarding the future decisions of the committee. Brett Bolton, the Senior Vice President of the Bond Dealers of America, emphasized the impact of losing a senior member of the tax-writing committee, underscoring the need for stability and foresight in addressing forthcoming challenges.
The potential appointment of Rep. Steven Horsford to the Ways and Means Committee signifies a new chapter in steering federal finance policies and initiatives. The legislative decisions made by the committee in the upcoming years will hold significant implications for the tax landscape and municipal bond market. As the political landscape evolves, it is essential for lawmakers to collaborate effectively to address the complex fiscal issues facing the nation.