[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7570 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7570

  To amend the Internal Revenue Code of 1986 to allow certain advance 
     refunding bonds for public school districts to be tax-exempt.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2026

    Mr. Bell (for himself and Ms. Kelly of Illinois) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow certain advance 
     refunding bonds for public school districts to be tax-exempt.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reinvest in Public Schools Act of 
2026''.

SEC. 2. CERTAIN ADVANCE REFUNDING BONDS FOR PUBLIC SCHOOL DISTRICTS 
              MADE TAX-EXEMPT.

    (a) In General.--Section 149(d) of the Internal Revenue Code of 
1986 is amended--
            (1) in paragraph (1), by striking ``Nothing'' and inserting 
        ``Except as provided in paragraph (4), nothing'', and
            (2) by adding at the end the following new paragraph:
            ``(4) Special rule for bonds for certain public school 
        bonds.--
                    ``(A) In general.--In the case of a bond that is--
                            ``(i) issued by a state or local 
                        government,
                            ``(ii) not described in subparagraph (B), 
                        and
                            ``(iii) 100 percent of the available 
                        project proceeds are used for--
                                    ``(I) the construction, 
                                rehabilitation, or repair of a public 
                                school facility, or
                                    ``(II) the acquisition of land on 
                                which the bond-financed facility is to 
                                be constructed,
                        this subsection shall be applied as this 
                        subsection was in effect on December 21, 2017.
                    ``(B) Abusive transactions prohibited.--An issue is 
                described in this subparagraph if any bond (issued as 
                part of such issue) is issued to advance refund another 
                bond and a device is employed in connection with the 
                issuance of such issue to obtain a material financial 
                advantage (based on arbitrage) apart from savings 
                attributable to lower interest rates.''.
    (b) Determination of Initial Temporary Period.--Section 
148(f)(4)(C) of such Code is amended by adding at the end the following 
new clause:
                            ``(xviii) Special rule for qualified school 
                        construction bonds.--In the case of a bond 
                        described in section 149(d)(4)(A), for purposes 
                        of this subparagraph, the end of the initial 
                        temporary period shall be determined without 
                        regard to section 149(d)(3)(A)(iv) (as in 
                        effect on December 21, 2017).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to advance refunding bonds issued after the date of the enactment 
of this Act.
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