Increased Costs of Municipal Financing

Unintended Consequences of the Tax Cuts and Jobs Act

As you know, both corporate and individual tax rates were reduced in last year’s Tax Cuts and Jobs Act. Lower tax rates make tax-exempt vehicles like municipal bonds less attractive to both corporate and individual investors; with lower tax rates, they have less incentive to look for tax-exempt investments. Reduced demand for municipal bonds and other tax-exempt investment vehicles like private activity bonds (PABs) means that cities will have to increase the interest rates on new bond issues in order to attract investors.

Update on Municipal Bonds

HQLA; Tax Exempt Munis May Still Be At Risk

  • 23 March 2018
  • Author: Aindriu Colgan
  • Number of views: 717
  • 0 Comments
With the omnibus having been passed by Congress, substantive legislative work will wind down until after the elections in November. There are, however, a few outstanding tax/financial issues to note.

Online Sales Tax Update

Congress Remains Stalled

  • 22 March 2018
  • Author: Aindriu Colgan
  • Number of views: 589
  • 0 Comments
Despite a strong last minute effort, Rep. Kristi Noem (R-SD) did not succeed in getting her Remote Transactions Parity Act (RTP) into the omnibus package passed today by the House and expected to be passed by the Senate by Friday.

Tax Extenders Face Scrutiny at Ways and Means Hearing

  • 15 March 2018
  • Author: Aindriu Colgan
  • Number of views: 610
  • 0 Comments
Yesterday, the House Ways and Means Subcommittee on Tax Policy held a seven-hour, 4 panel hearing on the fate of tax extenders—temporary tax extenders like those for biofuels or short-line railroads. While they were just extended retroactively for 2017, they have again expired and currently are not available for 2018.

IRS Issues Additional Partnership Audit Guidance

  • 5 February 2018
  • Author: Aindriu Colgan
  • Number of views: 691
  • 0 Comments

As part of their ongoing implementation of the partnership audit system created by 2015's Balanced Budget Act, the IRS has again released guidance on how partnerships can pay adjustments after an audit.


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Overview

The Water Resources Development Act (WRDA) serves as the primary vehicle through which Congress authorizes U.S. Army Corps of Engineers civil works projects and establishes policy frameworks for water resource development nationwide. Enacted on a biennial schedule, WRDAs provide congressional authorization for USACE to conduct feasibility studies, construct flood risk reduction projects, improve navigation infrastructure, restore aquatic ecosystems, and assist with environmental infrastructure development.
Since the enactment of WRDA 1986, Congress has used these omnibus authorization bills to both create new USACE authorities and refine existing programs based on evolving national priorities and lessons learned from program implementation. Recent WRDAs have addressed critical issues including drought resilience, water supply development, infrastructure modernization, and support for economically disadvantaged communities.
The most recent legislation, the Water Resources Development Act of 2024 (WRDA 2024, P.L. 118-272), continued Congress's bipartisan commitment to strengthening America's water infrastructure by authorizing new construction projects, modifying existing authorities, and establishing updated policy guidance for USACE operations. WRDA 2024 also authorized five new regional environmental infrastructure programs, each incorporating flexible delivery mechanisms that allow federal assistance to be provided through grants or reimbursements to nonfederal sponsors.
Authorization through WRDA is typically a prerequisite for USACE activities to receive federal appropriations through the annual Energy and Water Development appropriations process. This two-step framework—authorization followed by appropriation—ensures congressional oversight of both program scope and funding levels.
Section 219 of WRDA 1992, as amended, represents one of USACE's most geographically expansive environmental infrastructure assistance authorities. Originally enacted to authorize design assistance for 18 specific projects, Section 219 has been amended by subsequent Congresses to authorize both design and construction assistance for water-related environmental infrastructure in hundreds of municipalities, counties, and states across the nation.
The Congressional Research Service has identified over 600 environmental infrastructure assistance authorities with cumulative authorizations of appropriations totaling approximately $18.1 billion. Section 219 authorities constitute the majority of these geographically specific project authorizations, covering at least 46 states, the District of Columbia, and four U.S. territories.
Section 219 projects address critical community needs including wastewater treatment facilities, water supply and distribution systems, stormwater management infrastructure, surface water protection, and environmental restoration. These projects support public health, environmental quality, and economic development in communities that have secured congressional authorization for USACE assistance.
Congress has continued to expand Section 219 in recent legislation. WRDA 2022 added 132 new Section 219 authorities and amended 24 existing authorities. WRDA 2024 authorized an additional 193 new Section 219 authorities and amended 53 existing authorities, providing a combined $5.4 billion increase in authorization of appropriations. WRDA 2024 also established a seven-year pilot program to increase the federal cost share from 75 percent to 90 percent for Section 219 projects benefiting economically disadvantaged communities.
Unlike traditional USACE water resource projects, Section 219 assistance does not require completion of the agency's standard feasibility study process. However, projects receiving Section 219 assistance must comply with applicable federal environmental laws, including the National Environmental Policy Act.
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TFG President and CEO Share Federal Funding Insights at California Water Resources Roundtables

Roger Gwinn and Mark Limbaugh discussed federal funding available for western water priorities at the annual ACWA Conference and Virtual Roundtable.

SACRAMENTO, CA. – Roger Gwinn, The Ferguson Group (TFG) CEO, and Mark Limbaugh, TFG President, presented at the Association of Water Administrators (ACWA) roundtables: in May, the 2022 Spring Conference “Accessing Federal Funding” and in June, the Virtual Roundtable Discussion on Federal Funding. Mr. Gwinn and President Limbaugh shared key insights with water and waste water providers on federal funding opportunities available through the U.S. Department of Agriculture (USDA) and Department of the Interior – Bureau of Reclamation. Additionally, they provided information on funding available to stakeholders in the Bipartisan Infrastructure Law (or Infrastructure Investment and Jobs Act of 2021) and best practices to access these programs.

“I was pleased to join this year’s federal funding roundtable discussions to discuss USDA water programs and other available federal funding opportunities,” said Roger Gwinn. “The federal investment in drinking, waste, and habitat water resources is vital to strengthen communities across California and the Western United States. The knowledge participants gained from these roundtables will make them more competitive applicants for the federal resources they need to achieve their communities’ water goals.”

“These roundtables couldn’t have come at a better time with California entering its third year of drought,” said Mark Limbaugh. “I enjoyed discussing available federal funding from the Department of the Interior – Bureau of Reclamation Programs with participants. There are billions of dollars available in the Bipartisan Infrastructure Law alone to improve water efficiency efforts that could have a lasting positive impact in California.”

The ACWA Spring Conference and Exhibition brings together a wide array of California water stakeholders to learn about a variety of local, statewide, and federal water issues and to connect with fellow members of the California water community for insights into best practices. Due to the event’s popularity, the “Accessing Federal Funding” roundtable was added to build upon lessons learned during the Conference.

Mr. Gwinn and Mr. Limbaugh each have over two decades of water resources and federal funding experience. Mr. Gwinn leads the TFG’s representation of large-scale, regional water resources, environmental protection, and economic development initiatives. Mr. Limbaugh specializes in strategic policy and legislative guidance to clients on water, irrigation, energy, and natural resource management issues. He previously served as Assistant Secretary for Water and Science at the Department of the Interior. Mark also served more than three years as Deputy Commissioner for External and Intergovernmental Affairs at the Bureau of Reclamation.

For more information about TFG, please visit our website at www.thefergusongroup.com.

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A Message from Roger Gwinn on the Passing of Congressman Doug LaMalfa 7 January 2026

A Message from Roger Gwinn on the Passing of Congressman Doug LaMalfa

WASHINGTON, D.C. – TFG CEO, Roger Gwinn, released the following statement regarding the passing of Congressman Doug LaMalfa.

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