Municipal debt hits record $500 billion as buyers flock to tax exempt bonds

State and local governments in the U.S. issued over $500 billion in municipal bonds last year, setting a new record. The funds are being used to finance critical infrastructure projects like airports, roads, and utilities, attracting investors with tax exempt benefits and relatively high returns. The municipal bond market now exceeds $4 trillion in value, comparable to the market cap of tech giant Nvidia, highlighting its significant role in everyday public services and infrastructure.