Reinvest in Public Schools Act of 2026

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7570 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7570 To amend the Internal Revenue Code of 1986 to allow certain advance refunding bonds for public school districts to be tax-exempt. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 13, 2026 Mr. Bell (for himself and Ms. Kelly of Illinois) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to allow certain advance refunding bonds for public school districts to be tax-exempt. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Reinvest in Public Schools Act of 2026''. SEC. 2. CERTAIN ADVANCE REFUNDING BONDS FOR PUBLIC SCHOOL DISTRICTS MADE TAX-EXEMPT. (a) In General.--Section 149(d) of the Internal Revenue Code of 1986 is amended-- (1) in paragraph (1), by striking ``Nothing'' and inserting ``Except as provided in paragraph (4), nothing'', and (2) by adding at the end the following new paragraph: ``(4) Special rule for bonds for certain public school bonds.-- ``(A) In general.--In the case of a bond that is-- ``(i) issued by a state or local government, ``(ii) not described in subparagraph (B), and ``(iii) 100 percent of the available project proceeds are used for-- ``(I) the construction, rehabilitation, or repair of a public school facility, or ``(II) the acquisition of land on which the bond-financed facility is to be constructed, this subsection shall be applied as this subsection was in effect on December 21, 2017. ``(B) Abusive transactions prohibited.--An issue is described in this subparagraph if any bond (issued as part of such issue) is issued to advance refund another bon