Congress·In Committee·S. 3935

Municipal Bond Market: Rulemaking Board Reform

Municipal Securities Rulemaking Board Reform Act of 2026

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This bill changes how the Municipal Securities Rulemaking Board (MSRB) is run. The MSRB is the group that sets rules for the $4 trillion municipal bond market, which is how cities and states borrow money for projects like building schools, fixing roads, and improving water systems.
The board will be set at 15 members, and the Securities and Exchange Commission (SEC) will now personally choose all of them, including the Chairperson. This gives the federal government more direct control over who is making the rules for local government borrowing.
The bill requires that a majority of the board members come from the financial industry, such as banks and investment advisors. The remaining members must be 'public' representatives who have not worked for a financial firm in the last five years, ensuring that people outside the industry have a seat at the table.
The SEC will gain the power to fire any board member at any time for any reason. Additionally, the SEC will set a strict limit on how much money these board members can be paid for their service.
To make financial information easier to understand and track, the bill requires the SEC to create new, consistent data standards for all reports sent to the board. This is intended to make the market more transparent for regular investors and the public.

2 milestones2 actions

Feb 26, 2026Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Feb 26, 2026

Introduced in Senate

Document Type

Congressional Bill

Official Title

Municipal Securities Rulemaking Board Reform Act of 2026

Bill NumberS 3935

Congress119th Congress

ChamberSenate

Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Congress.gov

Official legislative information

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