Public Works: Ten U.S. Cities Most Likely to Face Fiscal Challenges in 2026

New York, Chicago, LA, DC, SF, Philly, Pittsburgh, Minneapolis, St. Paul, New Orleans top the list.

PHILADELPHIA, PA, UNITED STATES, December 22, 2025 /EINPresswire.com/ — Cities across the United States are heading into 2026 with mounting fiscal pressure as federal pandemic aid expires, revenue growth slows and the cost of core public services continues to rise.

A review by Public Works (www.public-works.org), based on publicly available budget documents, fiscal office reports and local news coverage, identifies 10 cities most likely to face significant budget gaps or structural deficits in 2026 (https://public-works.org/efficiency/). In many cases, city leaders are weighing tax increases, service cuts or reserve spending to close projected shortfalls. But Public Works President Eric Schnurer says that, in most cases, “these steps alone will not be enough, as state and city governments need to address fundamental shifts in federal funding for essential programs and services.”

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