To amend the Internal Revenue Code of 1986 to allow bonds guaranteed by the Federal home loan banks to be treated as tax exempt bonds.

H.R. 5177 would change federal tax law to allow state and local government bonds guaranteed by Federal Home Loan Banks to qualify for tax-exempt status. Under current law, most bonds backed by federal guarantees lose their tax-exempt status, making them less attractive to investors. By removing this restriction, the bill aims to lower borrowing costs for local governments, potentially making it more affordable for communities to fund public projects like infrastructure, schools, and affordable housing.