The staff of the Joint Committee on Taxation (JCT) expects that some of the funds authorized to be appropriated under S. 914 for grants to state revolving funds would be used by state and local governments to leverage additional funds. Those governments would issue tax-exempt bonds that JCT estimates would reduce federal revenues by about $1 billion over the 2021-2031 period.
CBO estimates that enacting the Amendment in the Nature of a Substitute to S. 914 would not affect direct spending.
