Congressman Steven Horsford, a Democrat from Nevada, is poised to fill the vacated seat on the Ways and Means committee following the passing of Representative Bill Pascrell from New Jersey. This position became available after Pascrell’s unfortunate demise at the age of 87 due to a respiratory illness. Horsford previously held a seat on the Ways and Means Committee for two terms, from 2019 to 2023, before being removed when the Republicans gained control of the House. Currently serving on the House Financial Services Committee, Horsford will need to be nominated by his party’s Steering and Policy Committee and subsequently approved by the caucus in order to officially join the Ways and Means Committee.
Brian Egan, Director of Government Affairs at the National Association of Bond Lawyers, expressed optimism in working with Horsford if he returns to the Ways and Means Committee. Noting Horsford’s background in state government, Egan highlighted the congressman’s familiarity with the significance of tax-exempt municipal bonds for communities in Nevada and across the nation. Horsford has been an advocate for various initiatives, including the Infrastructure Investment and Jobs Act, which allocated $4 billion to Nevada for enhancing infrastructure such as roads, public transportation, water systems, and internet connectivity. Additionally, he has been actively involved in promoting energy-related projects by advocating for tax credits to improve the energy grid.
Recent polls suggest that Horsford is poised to win re-election in Nevada’s fourth district, where he is facing former Las Vegas Mayor John Lee. Despite endorsements from former President Trump and Nevada’s Republican Governor, Joe Lombardo, Horsford’s track record and support from constituents present a favorable outlook for his re-election. As the first Black lawmaker to represent Nevada, Horsford’s tenure in the House has been marked by a commitment to serving his community, leading to his appointment as Chair of the Congressional Black Caucus.
Implications for Municipal Bond Market and Tax Legislation
The Ways and Means Committee holds significant influence over the fate of provisions within the Tax Cuts and Jobs Act, scheduled to expire by the end of 2025. Former President Trump has pledged to make the legislation permanent and further reduce the corporate tax rate, setting the stage for potential tax reforms. The impact of the Tax Cuts and Jobs Act on the municipal bond market, particularly regarding the $10,000 cap on state and local tax deductions and the elimination of advance refunding of tax-exempt bonds, continues to be a point of contention for bond issuers. The post-election composition of the Ways and Means Committee, with scenarios of Democrats regaining control under Ranking Member Richard Neal or Republicans maintaining leadership with Chair Jason Smith, will shape the future legislative landscape.
Uncertainty Following Pascrell’s Passing
The passing of Rep. Pascrell has introduced new uncertainties regarding the future direction of tax policy and legislative priorities within the committee. As a senior member of the tax-writing committee, Pascrell’s absence leaves a void that may impact decision-making and strategic planning moving forward. The implications of this loss on future tax legislation and its implications for the municipal bond market remain to be seen as the Ways and Means Committee navigates through this transition period.