Reinvest in Public Schools Act of 2026

This bill amends the Internal Revenue Code of 1986 to restore the tax-exempt status for certain advance refunding bonds issued by state and local governments for public school districts. Specifically, it allows these bonds to be tax-exempt if 100% of the available project proceeds are dedicated to the construction, rehabilitation, or repair of public school facilities or the acquisition of land for such purposes. The legislation effectively reverts the tax treatment of these bonds to how it was prior to December 21, 2017, providing significant financial benefits to school districts. It also includes provisions to prevent abusive transactions that seek financial advantage through arbitrage apart from savings attributable to lower interest rates. These changes aim to reduce borrowing costs for public schools, enabling more investment in educational infrastructure.