Takeaways by Bloomberg AI
- American public schools issued about $82 billion in muni bonds in 2025, a nearly 42% jump from 2024 and the most since at least 2013.
- The proceeds from the bond sales will go toward upgrading or building facilities, as schools grapple with dipping enrollment and elevated inflation that strain districts’ budgets.
- Financial stress is growing for districts as inflationary pressures boost expenses while schools’ revenue stagnates or falls, with more districts dipping into rainy-day funds and potential fiscal challenges ahead.
American public schools went on a borrowing binge in 2025, marking the sector’s biggest year for municipal debt sales in over a decade as dipping enrollment and elevated inflation strain districts’ budgets.
School systems around the US issued about $82 billion in muni bonds last year, a nearly 42% jump from 2024 and the most since at least 2013, data compiled by Bloomberg show. That pace of growth outstripped the broader tax-exempt debt market, which saw issuance climb about 15% to a historic high of nearly $568 billion.
Bloomberg Markets
By Erin Hudson
January 6, 2026