Ways and Means Committee member shake up

Rep. Steven Horsford, D–Nev., is expected to fill the Ways and Means committee seat vacated when Rep. Bill Pascrell, D- N.J., died last month at the age of 87 while being treated for a respiratory illness. 

“We were all saddened by the loss of Rep. Pascrell who had long championed public finance issues in Congress,” said Brian Egan, director of government affairs, National Association of Bond Lawyers.

Horsford held a seat on the Ways and Means Committee for two terms from 2019 – 2023 but was jettisoned after the Republicans took control of the House. Horsford currently serves on the House Financial Services Committee.

To make things official, Horsford will need to be nominated by his party’s Steering and Policy Committee and approved by the caucus. 

“We look forward to working with Rep. Horsford if he returns to the Ways and Means Committee,” said Egan. “Given his prior experience in state government, he likely knows well the importance of tax-exempt municipal bonds to communities in Nevada and around the country.”

Horsford has been a supporter of the Infrastructure Investment and Jobs Act which funneled $4 billion of funding into Nevada to improve roads, public transportation, water infrastructure and internet access.  He’s also active in energy related initiatives including pushing for tax credits for energy grid improvements. 

According to recent polls Horsford is expected to win re-election to Nevada’s fourth district as he runs against former Las Vegas Mayor John Lee. Lee has been endorsed by former President Trump and Nevada’s Republican Governor, Joe Lombardo.

Horsford was first elected to the House in 2013 as the first Black lawmaker to represent the Silver State. He lost his first re-election but won the seat back in the 2018 midterms. He’s also the Chair of the Congressional Black Caucus.    

The Ways and Means Committee figures to play a major role in what happens to various provisions of the Tax Cuts and Jobs Act which are set to expire at the end of 2025. Former President Trump has already pledged to make the legislation permanent along with further reductions to the corporate tax rate. 

The future of TCJA remains a flashpoint for the municipal bond market as it included putting a $10,000 cap on the state and local tax deduction. Bond issuers maintain the cap infringes on their ability to levy future taxes. 

The TCJA also eliminated the advance refunding of tax-exempt bonds, a move that muni enthusiasts have been trying to reverse ever since. 

The future of the TCJA will be affected by the post-election make-up of Ways and Means. If the Democrats re-take the House, Ranking Member Richard Neal D – Mass., is expected to take over the chair. If the Republicans remain in the majority, Chair Jason Smith is expected to remain at the controls.    

The loss of Pascrell adds another question mark to the future. “Losing a senior member of the tax-writing committee always brings a lot of unknowns into the fold,” said Brett Bolton SVP Bond Dealers of America. “Rep. Pascrell was an ally who repeatedly co-sponsored legislation to raise the bank qualified limit throughout the years and was a steady hand in the all-powerful Ways and Means Committee.”