Linda McMahon, the nominee for U.S. education secretary, is reported to have invested in numerous municipal bonds funding school projects nationwide. Her ethics disclosure forms indicate these investments support construction and other projects at school districts and public colleges across the United States.
According to an analysis by Chalkbeat, McMahon likely earns a minimum of $900,000 annually in interest from these bonds spread across two dozen states. This estimate is based on the minimum value of her holdings with an assumed conservative yield of 2.5%.
McMahon's background includes serving as a professional wrestling executive and leading the Small Business Administration during President Donald Trump's first term. However, she has limited experience in education.
Ruth Winecoff, an assistant professor at Rutgers University–New Brunswick who specializes in public finance, suggests that McMahon might not have selected specific school districts for investment herself. She may not have been aware of holding these particular bonds until filing her disclosure forms. Winecoff notes that it's possible her financial adviser made these investments through mutual or money market funds.
Winecoff also explains that municipal bonds are considered safe investments since local governments are unlikely to default on payments to investors. These bonds can help mitigate risks within a broader investment portfolio.
