Opponents say any such changes could drive up localitiesí borrowing costs by 1 percent to 2 percent because issuers will need to pay more interest to compete with other taxable investments.
Rattnerís group says it also could cut off a potential source of low-interest financing for communities affected by last monthís superstorm.
Although the Federal Emergency Management Agency will cover some recovery costs, which could reach as much as $50 billion, the development council will press for expanded authority so states and localities can issue bonds for private activities.
If Congress doesnít act, utilities such as Consolidated Edison could raise customer rates and agencies such as the New York Metropolitan Transportation Authority may issue their own bonds to help cover system repair bills.
Following the speeches from elected officials, the crowd stands at long tables as they dig into BBQ, brunswick stew, cadillac rice at the Law Enforcement Cookout at Wayne Dasher's pond house in Glennville, Ga., on Thursday, April 17, 2014.