The National Association of State Treasurers (NAST) is urging the White House and Congress to pass a two-year extension of the Transaction Account Guarantee (TAG) program because it significantly benefits state and local governments, NAST officials said last week.
“The TAG program helps ensure the safety of public funds [and] … we believe it would be imprudent to abruptly terminate this program without providing a proper time period for transition,” said NAST President Kate Marshall, who is also the Nevada state treasurer.
NAST officials added that state and local governments, many large corporations, medium and small businesses, universities, charities and hospitals rely on the security of such federally insured accounts to ensure that their funds are not subject to market instability and will be available.
A two-year TAG extension “would not only allow states and localities without effective collateralization requirements sufficient time to develop such policies … but would protect public funds from market volatility and the instability related to the ‘fiscal cliff’ resolution … and the upcoming debt ceiling debate,” they said.
Read the NAST press release.