Public finance law includes state and federal laws and regulations governing the financing of public organizations and projects. For example, public finance laws and regulations govern the sale and purchase of bonds to build or improve schools, parks, roads, airports, cultural facilities, recreational facilities, entertainment venues (sports arenas), and other public works projects.

Bonds are debts issued by governments (the debtor), for example, to purchasers of the bonds (the creditors), with a promise to pay the bondholder interest (a coupon) and repay the principal amount upon a certain date (maturity date)—similar to an IOU or loan agreement. Bonds are securities that can often be traded (bought and sold) to and from others on the secondary market.

In Nebraska, public finance law is governed by both state statutes and federal regulations. These laws oversee the issuance and management of bonds by state and local governments for the purpose of funding public projects such as schools, parks, roads, and other infrastructure developments. The Nebraska Public Funds Investment and Deposit Security Act, for example, provides guidelines for the investment of public funds, including the purchase of bonds. The state also has regulations that dictate the procedures for issuing bonds, including voter approval for certain types of bonds, disclosure requirements, and the responsibilities of public officials in managing bond proceeds. At the federal level, the Internal Revenue Service (IRS) sets forth regulations that affect the tax-exempt status of municipal bonds, which is a significant aspect of public finance. The Securities and Exchange Commission (SEC) also plays a role in regulating the trading of bonds in the secondary market, ensuring transparency and fairness in transactions. It is important for entities involved in public finance to comply with both state and federal regulations to maintain the legality and integrity of their financial activities.