Dozens of House Republicans have introduced legislation that would prohibit the use of tax-exempt bonds to finance the building of abortion clinics.
Rep. Robert Pittenger, R-N.C., introduced the No Abortion Bonds Act on Wednesday. The legislation would prohibit local governments from issuing bonds that are exempt from federal taxes to generate funds that go to abortion providers to build new clinics.
Pittenger noted that in the last decade, authorities in several states issued millions of dollars worth of tax-exempt bonds to finance the construction of Planned Parenthood clinics.
State and local governments can issue both tax-exempt bonds and non-tax-exempt bonds. Pittenger argues that tax-exempt bonds convey a direct benefit to Planned Parenthood, since it acts as a less expensive loan for the group to pay back. He said these bonds therefore act as a federal subsidy to Planned Parenthood that is inconsistent with current federal law, which prohibits the use of taxpayer funds for abortion or abortion services.
“These tax-free bonds are intended to finance schools, hospitals, and infrastructure, not abortion clinics,” Pittenger said Wednesday. “This legislation applies the spirit of the Hyde Amendment to the tax code, by preventing tax-free bonds from going to abortion providers.”
Under his bill, bonds issued to construct a facility that provides abortion services could not be tax-exempt. But his office said the bill includes a “common sense” exemption for hospitals and would also exempt clinics that only perform abortions after rape or incest, or when the life of the mother is in danger.
