Reinvest in Public Schools Act of 2026

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:

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,

(iii) this subsection shall be applied as this subsection was in effect on December 21, 2017.

An issue is described in this subparagraph if any bond (issued as part of such issue) is issued to advance refund another bond and a device is employed in connection with the issuance of such issue to obtain a material financial advantage (based on arbitrage) apart from savings attributable to lower interest rates.

Section 148(f)(4)(C) of such Code is amended by adding at the end the following new clause:

In the case of a bond described in section 149(d)(4)(A), for purposes of this subparagraph, the end of the initial temporary period shall be determined without regard to section 149(d)(3)(A)(iv) (as in effect on December 21, 2017).

The amendments made by this section shall apply to advance refunding bonds issued after the date of the enactment of this Act.