Reinvest in Public Schools Act of 2026

The Reinvest in Public Schools Act of 2026 (HR7570) was introduced in the House of Representatives on February 13, 2026, and subsequently referred to the House Committee on Ways and Means. This bill is in the early stages of the legislative process, with only one cosponsor, Rep. Kelly of Illinois. This legislation does not authorize or appropriate any direct funding. Instead, it proposes a change to the Internal Revenue Code of 1986, specifically Section 149(d), to allow certain advance refunding bonds for public school districts to be tax-exempt. This change would revert the tax treatment of these bonds to how it was prior to December 21, 2017. The mechanism is a tax incentive, which effectively lowers the cost of borrowing for state and local governments when issuing bonds for public school construction, rehabilitation, repair, or land acquisition. The financial benefit would accrue to public school districts through reduced interest expenses, potentially freeing up funds for other educational priorities. Structural beneficiaries of this bill, if enacted, would primarily be state and local governments that issue bonds for public school infrastructure. Financial institutions involved in underwriting and trading municipal bonds could see increased activity in this specific segment. Companies involved in school construction, rehabilitation, and related services could also see an indirect benefit from potentially increased project volumes due to lower financing costs. No specific publicly traded companies are directly named or targeted by this legislation, and therefore no specific tickers can be identified as direct beneficiaries. As of April 7, 2026, the bill remains with the House Committee on Ways and Means. For the bill to advance, it would need to be considered and approved by this committee, then passed by the full House, subsequently passed by the Senate, and finally signed into law by the President. The current status indicates it is at the very beginning of this process.