Congress is considering authorizing the Federal Reserve to purchase municipal bonds as one of the ways to support local and state efforts to address the coronavirus pandemic.
A memo circulated Wednesday by House Financial Service Committee Chairwoman Maxine Waters, D-Calif., suggests that the next wave of federal legislation authorize the Fed to support state, territory, and local debt issuance in response to the coronavirus outbreak.
The Waters memo also suggests a blanket waiver for state or local governments to provide a local contribution as a requirement for receiving certain federal grants.
President Trump on Wednesday signed the second emergency bill to address the coronavirus following its passage by the Senate earlier in the day. The second bill includes expanded eligibility for unemployment benefits and paid sick leave.
(Read more: The Bond Buyer)
