This week, a bipartisan pair of House members - Reps. Randy Hultgren (R-Ill.) and Dutch Ruppersberger (D-Md.) - announced the formation of the "Municipal Finance Caucus." giving state and local governments a set of advocates for their interests on Capitol Hill. The caucus will be made up of House members from both political parties who will fight to protect the tax-exempt status of municipal bonds and ensure that there is a robust market for municipal securities.

The  representatives  did not provide a list of the members who have been recruited to join the caucus, but both have a storng record of rallying support around municipal finance issues. Nearly 120 representatives joined them in signing a 2015 letter opposing a proposed cap on the municipal bond tax exemption.

The formation of the Municipal Finance Caucus comes as President Obama's proposed budget again calls for a cap on the value of the municipal bond tax exemption at 28 percent. This proposal has been fought fiercely by state and local governments because it would likely lead to higher interest rates, increasing the costs needed to fund infrastructure projects.