WASHINGTON -- Municipal bond market participants and supporters told Congress yesterday that the federal tax code must be changed to ease the curbs on tax-exempt municipal bonds to stimulate new investment in the nation's infrastructure.

In testimony before the House Public Works and Transportation Committee's economic development subcommittee, issuers, underwriters, bond counsel, and congressional supporters of the tax-exempt market said easing the bond curbs represents one of the only viable ways to spur financing of infrastructure projects since the federal government cannot afford to pour massive amounts of money into direct grants.

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