Rothfus, Moore, and Stivers Introduce Bipartisan Bill to Help Municipalities Access Low-Cost Capital
Washington, D.C. – Congressman Keith Rothfus [PA-12], Congresswoman Gwen Moore [WI-04], and Congressman Steve Stivers [OH-15] today introduced the Consumer Financial Choice and Capital Markets Protection Act (H.R. 2319) to restore money market funds for all investors and to help municipalities, schools, and hospitals, once again access low-cost capital for publicly-beneficial investments.
“Recent rule changes have had the unintended consequence of driving over $1 trillion from prime and municipal money market funds,” said Congressman Rothfus. “This has caused short-term borrowing costs for state and local governments, as well as schools, hospitals, and American companies to increase significantly. That means fewer jobs, less infrastructure development, and more strain on local governments.”
“Our bipartisan bill will reverse the damaging effects of this rule, allowing capital to return to prime and municipal funds while safeguarding the stability, safety, and soundness of our financial system,” Rothfus added.
This legislation is supported by university administrators, state and local leaders, labor groups, and healthcare providers, among others.
"The current SEC rule increases project costs and could delay the implementation of future capital plans at campuses throughout Pennsylvania. This legislation will enable the University to provide modern classrooms and state-of-the-art research facilities that employ and educate some of the brightest minds in the Commonwealth,” said David J. Gray, Senior Vice President for Finance and Business and Treasurer of Penn State University.
"This legislation is important to members of the Building Trades because it keeps folks working,” said Dorsey Hager, Executive Secretary and Treasurer, Columbus/Central Ohio Building and Construction Trades Council.
“We are deeply concerned that hospitals will lose a significant cash management tool if Money Market Funds are not permitted to retain a fixed net asset value,” added Tracy Carter, Vice President of Government Relations, MetroHealth.