Muni Funds See Record Cash Haul on Biden Rescue, Tax-Hike Plans

Investors are pouring cash into the municipal-bond market this year at the fastest pace in at least two decades as President Joe Biden extends a massive rescue to states and cities and backs raising taxes on the highest earners.

Mutual and exchange-traded funds focused on municipal bonds have raked in $30.7 billion since the beginning of January, marking the strongest start to a year since at least 2000, according to Refinitiv Lipper US Fund Flows data.

Biden’s policies have given a boost to the $3.9 trillion market, a haven dominated by Americans looking for tax-free income.

The president’s rescue ...