Many communities across the country are in need of investment. But financing major capital projects, such as schools, hospitals, housing, and recreational facilities, can be challenging for many communities. The multitrillion dollar municipal bond market offers a significant source of private investor capital for states, localities, school districts, and public authorities looking to make meaningful investments in their communities. At the same time, the bond market is increasingly focused on environmental, social, and governance indicators that focus not just on what’s getting built, but on the expected impacts of the funded projects across a number of dimensions. However, evaluating the benefits and distribution of these benefits from issuances, particularly in terms of racial and social equity, remains a challenge.

The Municipal Bond Racial and Social Equity Scorecard (the “scorecard”) helps issuers and borrowers document, self-assess, and summarize the potential racial equity and social impacts of proposed bond issuances. The scorecard’s results can encourage issuances that promote racial and social equity, strengthen communities, and benefit residents. The scorecard is a part of the broader Municipal Bond Markets and Racial Equity project led by the Public Finance Initiative.