While Pennsylvania taxpayers back debt taken out by local governments to build hospitals, airports and schools, their new U.S. senator is putting his own money behind some of those same public projects — and getting a hefty tax write-off in return.
Sen. Dave McCormick and his wife, Dina Powell McCormick, collected between $137,000 and $363,000 in income from municipal bonds issued by local governments and public agencies across the state since early last year, according to an analysis of the senator’s financial disclosure forms.
These municipal bonds — issued by public agencies to fund infrastructure projects — are often favored by wealthy investors due to their low risk and the significant tax incentives that come with them.
The interest investors earn on “munis” is typically exempt from federal income tax, and in many cases, also exempt from state and local taxes when the bonds
Combined, the McCormicks held between $11.6 million and $27 million in Pennsylvania-based munis since the beginning of 2024. Their portfolio includes an additional $3.5 million to $9.5 million invested in munis issued in other states.
McCormick’s office did not respond to questions about the senators’ investment strategy. Instead, the office issued a statement saying his financial disclosure paperwork is “completely transparent and in line with Senate ethics rules.”
That may be true. But McCormick’s dual identity as a multi-millionaire and an elected official grants the public a rare glimpse into the details of a high-income earner’s finances.
The McCormicks’ buying of munis is nothing out of the ordinary for a family of their financial status, according to municipal bond researcher Daniel Garrett at the University of Pennsylvania.
“It’s really high tax people or really high income people who also want some safety,” Garrett said, noting that local taxing authorities back many munis, which ensures they rarely default.
McCormick, a Republican who won his seat last year, is among the wealthiest members of Congress, in part due to his tenure as chief executive at international hedge fund Bridgewater Associates. He reported in his 2024 disclosure that he and his wife own total assets – including munis, stocks and real estate – valued between $82 million and $262 million.
Exactly how much the McCormicks have saved on taxes by buying munis is unclear. The statement of financial interests forms that senators and representatives submit annually don’t require lawmakers to disclose specific values for their assets. Instead, they must describe assets’ values as falling within broad ranges.
Many other wealthy members of Congress have reported purchasing municipal bonds within their states. Among them are Oklahoma Republican Sen. Markwayne Mullin, Virginia Democratic Sen. Mark Warner and Washington Democratic Rep. Suzan DelBene.
McCormick’s counterpart from Pennsylvania, Democratic Sen. John Fetterman, did not disclose owning any municipal bonds, though he reported stock and corporate bond trades under his children’s names.
McCormick’s portfolio
About three-quarters of the McCormicks’ total investment in munis are in bonds issued by public agencies in Pennsylvania, spanning more than 200 individual purchases that range in value.
For example, this year they acquired a bond on Jan. 14 valued between $50,000 and $100,000 from East Hempfield Township Industrial Authority to fund the construction and furnishing of a new student housing facility at Millersville University.
Sometime last year, they also bought into Cumberland County’s upgrade to public safety digital radio communication lines, an investment valued between $1,000 and $15,000.
“Trading them is expensive,” Garrett said. “So they’re not like stocks, where you can go and you can get a Robin Hood account and you can buy a few dollars of a stock or something. You really have to buy them in large increments.”
Garrett, whose research focused on how to improve munis’ affordability, said the bonds typically are only bought in $5,000-increments.
Samantha Krepps, communications director for Cumberland County, said her office does not sell munis directly to individual investors. They’re sold to a brokerage investment company, which then sells them off to interested buyers.
“If an individual purchases a bond, that does not give them influence on the project that it funds or local government,” Krepps said.
As of early 2025, there were more than $120.4 billion-worth of active tax-exempt municipal bonds in Pennsylvania, according to a University of Chicago study.
The McCormicks also own munis issued by governments in other states, including California, Wisconsin and Indiana. Included in their portfolio are bonds worth $1.3 million to $2.5 million issued by agencies in Connecticut, where McCormick lived while working in finance.
But the majority of the McCormicks’ investments are within Pennsylvania, which somewhat cushions him from any potential jabs the Democratic Party could take about a rich politician getting tax breaks on investments based outside of his home state, according to political scientist Chris Borick of Muhlenberg College.
And, Borick said, bond buying carries far less of a negative public perception when compared to something that faces much more scrutiny, like stock trading.
Trading up
Members of Congress have faced public scrutiny for years over trading on the stock market, with those advocating for a ban on the practice arguing that lawmakers could benefit from insider information on major policy initiatives.
The pressure to ban stock trading on Capitol Hill is growing. A bipartisan group introduced such legislation earlier this month. There has been little to no chatter about banning bond buying.
Under current federal law, passed as the STOCK Act in 2012, lawmakers have 30 days to disclose any bond or stock trades over $1,000, or face a $200 fine.
Representatives from multiple government ethics groups agreed the McCormicks’ purchases of municipal bonds present no red flags. At worst, maybe a “yellow flag,” Christina Hartman, board chair of Common Cause Pennsylvania, said, noting his activity is still something to watch.
Kedric Payne, ethics specialist at Campaign Legal Center, said McCormick’s investments in munis are highly unlikely to pose any sort of conflict.
“When you’re trying to determine a conflict of interest, the question is whether the official duty of that member could possibly benefit that holding in a municipal bond,” said. “And typically there is no clear evidence that’s what’s going on.”