Municipal Capital Assistance Act of 1979

Municipal Capital Assistance Act of 1979 - Authorizes the Secretary of the Treasury to enter into annual contribution contracts with local governments to pay a stated portion of total interest and principal of specific bond issues to finance restoration work on water and sewer systems, roads, and bridges.

Directs the Secretary to select projects based on the urgency of the need for restoration, the money to be saved, the contribution to the economic development or the reduction of the economic decline of the area, and the number of persons who will benefit from the completion of the project.

Specifies that the total amount of each such contract shall equal 25 percent of the debt service for the long-term debt involved.

Allows the suspension of the issuance of annual contribution contracts if the Secretary finds that there is congestion in the municipal bond market. States that such a suspension shall be based upon a determination that yields on tax-exempt securities have risen substantially relative to yields on taxable bonds of comparable maturity and credit rating.

Authorizes the Secretary to enter into such contracts on $5,000,000,000 principal amounts for fiscal years 1980 through 1984. Prohibits the Secretary from entering into such contracts in the principal amount of more than $5,000,000,000 during any fiscal year. States that all amounts appropriated for a fiscal year during which the Secretary has suspended the issuance of such contracts shall remain available until expended.