MINT Act would restore tax-exempt status for bonds backed by federal home loan banks
In committeeH.R. 7769Latest action
Sponsor: Lisa C. McClain · Representative · MI
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Official title: MINT Act
119th Congress
Topics: Jobs & the economy
Introduced:
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HR 7769 would permanently exempt Federal Home Loan Bank letters of credit from the federal guarantee rule that strips municipal bond tax benefits.
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What does this do?
HR 7769, the MINT Act, would permanently clarify that a Federal Home Loan Bank letter of credit backing a state or local government bond does not constitute a federal guarantee under tax law. Under current rules, a federally guaranteed bond loses its tax-exempt status; this bill would restore an exception that existed before 2010 and make it permanent. The practical result is that state and local bonds backed by Federal Home Loan Bank letters of credit would retain their tax-exempt treatment.
Who does it affect?
State and local governments seeking to finance public projects and the Federal Home Loan Banks that issue letters of credit are directly affected. Investors who purchase tax-exempt municipal bonds, and indirectly the residents of communities served by locally funded projects, are also affected.
Why does it matter?
Retaining tax-exempt status makes municipal bonds more attractive to investors, which could lower borrowing costs for state and local governments. That shift in financing conditions could influence the scale or frequency of publicly funded projects such as housing, infrastructure, and community development.
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Where does it stand?
- IntroducedMar 3, 2026
- House committeeYou are here · Mar 3, 2026
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Ways and Means.