# U.S. Midterms Put at Least $123.9 Billion in Muni Bond Proposals Before Voters

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/45857
Published: 2026-11-01T12:44:09.000Z
Updated: 2026-11-01T12:44:09.000Z
Section: Regulation

> The tally spans more than 600 ballot measures. Approval would authorize borrowing, but issuers may sell bonds over several years.

Voters in Tuesday’s U.S. midterms will weigh at least $123.9 billion in municipal bond proposals and tax measures that could alter state and local revenues supporting public debt.

The tally covers more than 600 ballot measures and is a compilation, not an official nationwide total or a prediction that all the proposed debt will be issued. Approval would authorize borrowing, but issuers could sell bonds over several years. The amount authorized is separate from the debt that reaches the market and from whether an issuer’s revenue can support its obligations.

California voters will consider Proposition 1, which would authorize $11.25 billion for housing programs, and Proposition 38, which would authorize $8.4 billion for immunology research. Each measure carries estimated annual state repayment costs of $500 million to $600 million: for about 25 years for Proposition 1 and about 20 years for Proposition 38.

California’s Proposition 3 would keep the current higher income-tax rates for individuals earning over $371,000; that threshold rises annually with inflation. The measure is estimated to preserve $5 billion to $15 billion in annual state income-tax revenue rather than allow the increase to expire in 2031.

Under Proposition 40, eligible taxpayers and trusts with more than $1 billion in covered assets would face a one-time 5% tax. The measure could generate tens of billions over several years, but annual income-tax collections could later fall by less than $1 billion.

Florida Amendment 3 would increase the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028. Miami-Dade County projects a revenue loss of about $385.8 million starting in October 2027 and $696.7 million in October 2028, assuming current property-tax rates. Those estimates apply to Miami-Dade County, not Florida as a whole.

Washington’s Initiative 645 would undo the new 9.9% tax on individual income exceeding $1 million a year and limit future state and local income taxes. The enacted tax is scheduled to begin in 2028.

Municipal bond issuance reached $473.8 billion through September. Interest on qualifying state and local bonds is generally exempt from federal income tax, with exceptions, making tax policy relevant to the market. Mark Paris, head of municipal strategies at Invesco Fixed Income, said he expected “a limited impact.”

Voters will decide the measures Tuesday, Nov. 3.