A competitive auction for a municipal-bond deal sold by a Texas school district marks a major step for the bank after it paused most public-finance work in the state because of a new Republican law.
The school district awarded a $13 million bond to the bank on Tuesday.
Although it has handled deals by entities that are unaffected by the gun law, such as a health system, the data shows that JP Morgan hasn't underwritten any municipal obligations sold by the state or its schools, cities or counties. Texas is a lucrative market for public finance.
Last week, the biggest US bank published a letter stating its interest in underwriting municipal securities for the state and its many issuers. The bank stated in the letter that it doesn't "boycott energy companies" or have a "practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association."
The bank takes a formal step to resume the business.
In September of 2021, the gun law took effect. Texas governments can't work with companies if they don't "discriminate" against firearms entities Companies that make military-style weapons for civilians don't get financing from JP Morgan.
It has been argued that it can comply with the firearms law. The legal risk from the "ambiguous" law prevented it from bidding on most business with Texas public entities.
The school district didn't respond to a request for comment. The bank wouldn't comment.
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