Reinvest in Public Schools Act of 2026

Key Points

• This bill would allow public school districts to use tax-exempt bonds to refinance their existing debt. This is similar to a homeowner refinancing a mortgage to get a lower interest rate, but it applies to the money schools borrow for big building projects.
• Local school districts are the primary group affected. By making these refinancing bonds tax-exempt, the bill allows districts to pay lower interest rates to investors, which saves the schools money on their long-term debt.
• The savings must be used for specific purposes: building new schools, repairing old ones, or buying land for school facilities. This helps districts update crumbling infrastructure or expand for growing student populations without needing as much new tax money.
• This change would reverse a 2017 tax rule that made this type of refinancing more expensive for local governments. The goal is to make it cheaper for communities to maintain safe and modern school buildings.
• The bill includes safeguards to prevent financial abuse. It bans districts from using these bonds just to make a profit on interest rate differences, ensuring the benefit is only used to lower the actual cost of school construction.

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Related Bills

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