Dan Close, Nuveen, joins ‘The Exchange’ to discuss municipal bond markets.
cnbc.com
Fri, Mar 20 20262:09 PM EDT
Dan Close, Nuveen, joins ‘The Exchange’ to discuss municipal bond markets.
cnbc.com
Fri, Mar 20 20262:09 PM EDT
Municipal bonds may not be the most exciting fixed income category out here, but they do play an important role in portfolios. Frequently offering tax-exempt opportunities and a solid base of reliable issuers, such bonds are often a pillar of the 40% side of portfolios. Where historically, mutual funds had limited the possibilities in muni bonds, the rise of active ETFs has unlocked muni bonds to a next level of potential.
While ETFs have been around for decades, they exploded in number and arguably, popularity, since the ETF rule was implemented in 2019. It was a catalyst that streamlined the launch of strategies within the wrapper, boosting product innovation and bringing more competition to all kinds of segments.
Muni Bonds Riding the ETF Wrapper
While today’s innovative products frequently include muni bonds, one might question how they compare to mutual funds in terms of their disadvantages and the challenges of active management. The ETF wrapper gives them all the advantages of being more readily tradeable, often more transparent, and easier to use than mutual funds. Toggling their usage as a vehicle for tax exempt assets like muni bonds is another major benefit that makes things significantly less complicated.
etfdb.com
by Nick Peters-Golden
Mar 20, 2026
Fitch Ratings-Austin/New York/San Francisco-09 March 2026: U.S. public finance issuers face elevated cyber risk because of the Iran conflict, Fitch Ratings says. Previous geopolitically motivated attacks on U.S. public finance entities primarily have targeted health care and utilities. Increased broad-based retaliatory cyber intrusions also are likely.
The attacks launched by Israel and the U.S. on Iran on Feb. 28 may lead to escalated cyber reprisals against U.S. public finance entities by Iran and its proxies, compared with attacks in summer 2025. Iranian state-sponsored actors, hacktivist groups, and lone-wolf attackers will likely target U.S. public entities and critical infrastructure more frequently. Risks include distributed denial-of-service attacks, financially motivated campaigns, and attacks that seek to cause physical disruption or destruction. Attacks on infrastructure such as power or water systems can create downstream risks for other sectors.
Public finance issuers are targets given the essential services they provide, IT system vulnerabilities, and data collection. Smaller, resource-constrained public finance entities are particularly vulnerable, as federal cybersecurity resource reductions may hinder robust defense, coordination, and response.
Federal authorities have identified Iran-affiliated actors as responsible for a broad array of previous high-tech attacks targeting U.S. infrastructure, typically through networks and internet-connected devices. Federal authorities have also warned that the recent escalation in the Iran conflict could prompt retaliatory attacks by lone-wolf actors.
Following a cyber incident, Fitch assesses a public finance issuer’s ability to maintain operational continuity, the duration and scale of service delivery interruptions, impairments to cash flows, and reputational damage. Proactive risk management, including robust incident response planning, staff training, vendor oversight, and, if available, insurance, can mitigate threats and help preserve credit quality. Severe breaches that weaken credit metrics or reveal deficiencies in cyber risk management can lead to negative rating actions. Historically, most cyber incidents have not resulted in rating actions.
(Editor’s Note: S&P Global Ratings believes there is a high degree of unpredictability around the duration and scale of the Middle East war and its potential effect on commodity prices, supply chains, economies, and credit conditions. As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential shifts and reassess our guidance accordingly.)
This report does not constitute a rating action.
Key Takeaways
12-Mar-2026
Fitch Ratings-New York/Milan-16 March 2026: Fitch Ratings is reviewing feedback received on an exposure draft for Climate Vulnerability in U.S. Public Finance Rating Criteria and plans to publish the final criteria by end-1H26.
Fitch published the exposure draft on Dec. 23, 2025, and the feedback period ended on Feb. 1, 2026.
Climate Vulnerability Signals (Climate.VS) will be used in criteria as a screening tool to enhance Fitch’s ability to identify climate-related risks in U.S. Public Finance and subject those ratings to additional analysis and consideration in our rating reviews.
The report, “Exposure Draft: Climate Vulnerability in U.S. Public Finance Rating Criteria,” is available at www.fitchratings.com
NORWALK, Conn., March 13, 2026 (GLOBE NEWSWIRE) — CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for February 2026. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity over the next quarter, found a monthly decrease request volume for new corporate identifiers, while municipal issuance rose.
North American corporate CUSIP requests totaled 7,358 in February, which represents a 2.3% decline on a monthly basis. On an annualized basis, North American corporate requests were up 18.1% over February 2025 totals. Requests for new U.S. corporate equity identifiers rose 4.4% and requests for new U.S. corporate debt identifiers climbed 4.3% for the month of February. The overall monthly decline in volume was driven by a 6.6% slowdown in requests for Canadian corporate identifiers and a 25.2% decline in requests for new medium-term notes (MTNs).
The aggregate total of identifier requests for new municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – rose 14.2% versus January totals. On a year-over-year basis, overall municipal volumes were up 0.7% through the end of February. Texas led state-level municipal request volume with a total of 113 new CUSIP requests in February, followed by Illinois (71) and New York (71).
Data as of Feb. 28, 2026.
In this report we present rating actions at the debt type level (e.g., general obligation, sales tax, parking revenue, etc.) rather than at the issuer level. Therefore, an issuer may have multiple rating actions associated with it in different sectors in the tables and charts. Because we present the rating actions at the debt level, the metrics presented may not be comparable to other research published by S&P Global Ratings or by other S&P Global divisions.
This report does not constitute a rating action.
Key Takeaways
12-Mar-2026 | 14:56 EDT
On March 2, 2026, Sens. Tim Scott and Elizabeth Warren introduced the 21st Century ROAD to Housing Act, a bipartisan legislative package that combines key provisions from the Senate’s ROAD to Housing Act (S. 2651) with elements of the Housing for the 21st Century Act (H.R. 6644), which the House passed in February 2026.
One of the most significant provisions would limit how many single-family homes that REITs and institutional investors can own — and how long they can own them. The measure also opens many opportunities for developers and homebuilders, especially those focused on affordable housing.
The act represents the most significant federal housing reform effort since the 1990s, aiming to boost housing supply, modernize government housing programs, reduce regulatory barriers and unlock private capital for housing development. Given the breadth of the legislation — spanning nine titles — clients active in real estate development, investment and finance, including real estate investment trusts (REITs), multifamily and single-family rental developers, affordable housing sponsors and mortgage lenders, should carefully evaluate its provisions and potential implications.
by Christopher J. Thanner
March 13, 2026
© 2026 McGuireWoods. All rights reserved.
The financing landscape for sports stadiums and arenas has undergone a fundamental transformation over the past three decades. What was once a model dominated by public subsidies has evolved into a more balanced and sophisticated approach, with public-private partnerships emerging as the preferred structure for creating durable, diversified revenue streams and ensuring public support for large-scale projects. This shift reflects not only changing political attitudes toward stadium subsidies but also a recognition that well-structured partnerships can deliver mutual benefits to teams, municipalities and surrounding communities.
The Evolving Balance of Public and Private Investment
The most striking trend in stadium financing is the dramatic shift in how costs are allocated between public and private sources. According to the authors of Public Policy Toward Professional Sports Stadiums: A Review, the median share of stadium construction costs covered by public spending has fallen from approximately 70% during the 1990-2000 period to roughly 50% in the 2010s and to closer to 40% since 2020. Some of the decrease in the share of public spending can be attributed to a recent trend of private financing, which includes the construction of the $5.5 billion SoFi Stadium that opened in 2020.
However, this evolution should not be viewed as a retreat from public participation but rather as a rebalancing toward structures that align incentives more effectively. Public entities remain essential partners, but their contributions are increasingly structured to generate returns — whether through economic development or community amenities — rather than serving as outright subsidies. The result is a public-private partnership model in which both sides have meaningful skin in the game and shared interests in the facility’s long-term success.
March 16, 2026
© 2026 McGuireWoods. All rights reserved.
Fitch Ratings-New York-16 March 2026: U.S. public power and cooperative utilities face accelerating data center and AI-related load growth that is reshaping demand profiles and introducing concentration risk, Fitch Ratings says. The trend is not inherently negative for credit quality, but strategic, careful power supply planning, liquidity management and credit risk protection will be key to mitigating customer concentration risk and preserving ratings.
Data centers consumed roughly 4% of the U.S.’s total electricity in 2025 and demand could double by 2030, according to the Energy Information Administration. However, data center demand can account for a much greater share of individual utility revenue and is particularly challenging for smaller utilities due to the large, sustained power needs of each facility and growth in hyperscaler campuses. These loads have doubled revenue for a few smaller Fitch-rated systems, and account for more than 30% of total revenue at others. To date, these utilities have successfully limited concentration risks by isolating power supply costs, maintaining adequate liquidity and funding necessary capex through customer contributions.
A clear, achievable power supply plan is critical for systems serving, or planning to serve, large loads. Strategies that involve the construction of new resources pose the highest risk to credit quality, given sizable debt issuance to fund capex and the potential for stranded assets if loads don’t materialize. A reduction in planned data center growth or technological advancements that improve semiconductor efficiency may materially reduce data center power needs.
With oil prices spiking at a time when voters are focused on affordability, states could find it even harder to pay for transportation needs.
In Brief:
governing.com
March 13, 2026 • Jared Brey
The One Big Beautiful Bill Act (OBBBA) contains a plethora of tax alterations that advisors and clients should be aware of. The tax advantages offered by municipal bonds remain in place. However, some of the changes could also make municipal debt and ETFs such as the PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI B+) even more appealing. This is good news for income-seeking clients and retirees.
MUNI attempts to beat the Bloomberg 1-15 Year Municipal Bond Index with holdings that are primarily short- and intermediate-term bonds. Currently, it has 576 holdings with an average effective duration of 4.79 years. The $2.74 billion ETF debuted in 2009. Its status as an actively managed fund could be compelling the current tax climate.
“Municipal bonds as an asset class is a little bit of a funny class compared to other types of classes,” noted Devin Ekberg of PIMCO’s advisor education group. “There’s a lot of inefficiencies and dislocations, last year in particular. In 2025, there was a lot of structural issues, a lot of supply that met the market, and it caused a lot of disruption in price and so forth. Unfortunately, that’s a very difficult environment for passive bond managers to handle.”
etfdb.com
by Todd Shriber
Mar 11, 2026
Nicholos Venditti, CFA, Head of Municipal Fixed Income, Allspring speaks about the magic of munis at Bloomberg Invest 2026 in New York.
Mar 3rd, 2026
This research report explores evolving topics relating to sustainability. It reflects research conducted by and contributions from S&P Global Ratings’ sustainability research and sustainable finance teams as well as our credit rating analysts (where listed).
This report does not constitute a rating action.
Key Takeaways
02-Mar-2026 | 10:41 EST
KBRA releases research discussing the Trump Administration’s mass transit funding pause and the implications for infrastructure investment, including examinations of four major infrastructure projects that are affected.
In October 2025, the Trump Administration announced that it had paused funding for several major mass transit projects, citing a review of administrative contracting practices. In KBRA’s view, the unilateral pause in federal funding has significant implications for infrastructure investment across the municipal sector, as it raises questions regarding the stability of federal funding for transportation projects, particularly large, multiyear capital programs in which governments and other issuers rely on an uninterrupted flow of federal support. Issuers may now need to incorporate the possibility of litigation into capital planning to obtain funds that are due to them. What was historically considered inviolable is now appearing vulnerable.
With that backdrop in mind, this KBRA commentary examines the background of the following multibillion-dollar mass transit projects and discusses their current funding circumstances:
Key Takeaways
Click here to view the report.
5 Mar 2026 | New York
Fitch Ratings-Chicago/New York/Austin-05 March 2026: Public universities in the U.S. could face more pressure over the next few years if states reduce higher education funding to manage tighter budgets as they assume greater spending responsibilities due to federal funding shifts and other demands, according to Fitch Ratings. Lower state funding may exacerbate other higher education sector challenges, such as weakening demographics, and ratings could be affected for some institutions that lack the means to fully offset revenue losses. Reduced support for state-funded scholarship programs could also worsen enrollment challenges.
State government support for higher education continues to increase, but the pace has slowed considerably. The State Higher Education Executive Officers Association (SHEEO) Grapevine report indicates total state support for higher education is up 1% in fiscal 2026 budgets after averaging more than 6% in each of the prior five years.
Growth in state funding is slowing even as public institution enrollment rises in 2025-2026 from 2024-2025. According to the National Student Clearinghouse, community college enrollment increased 3.0% yoy, while public four-year college enrollment grew 1.4%. This contrasts with a 1.4% decline in private nonprofit institution undergraduate enrollment.
Sector View: Stable
03-Mar-2026
The U.S. homeland is out of range of military strikes, but state and local governments could see cyber attacks, cloud service disruptions and rising supply costs.
In Brief:
governing.com
by Jule Pattison-Gordon
March 6, 2026
In a recent essay, we advanced a proposal for sub-federal governments to sell municipal bonds to their own public banks. We took the city as our primary point of departure, but the same lessons are applicable to U.S. counties and states. Establishing a public bank that regularly purchases municipal debt, we argued, would not only significantly expand a city’s fiscal capacity to support its communities and environs, but also reclaim regional public finance from a parasitical and punishing bond market.
Since the publication of our essay, some commentators have criticized the proposal for involving city finance in so-called shadow banking, precisely because it places public credit creation outside traditional private capital markets. Such concerns are rooted in a legitimate wariness toward the unregulated and often fragile credit structures that trigger financial crises. However, this criticism fails to distinguish between speculative private ventures and institutionalized provisioning by the municipal public purse. Indeed, such a critique mistakes the absence of private middlemen for a lack of financial oversight and security. Our plan, by contrast, replaces the opaque and volatile shadows of private intermediation with a transparent, public-facing mechanism anchored in the enduring fiscal authority of the city government.
Monthly Review
By Scott Ferguson, Tyler Suksawat
Mar 05, 2026
A new strategy report published by the Aspen Institute in February provides a comprehensive roadmap for strengthening water security and resiliency across the United States.
The Aspen National Water Strategy, published by the Aspen Institute’s Energy & Environment Program, aims to ensure that communities, economies and ecosystems can thrive amid growing water-related challenges. The effort is being co-chaired by Martin Doyle of Duke University and Newsha Ajamiof the Lawrence Berkeley National Lab.
The strategy emphasizes that securing America’s water future goes far beyond managing shortages or surpluses. The report notes that effective security depends on well-functioning, trusted and affordable water systems. It also highlights how resilient communities able to withstand floods, droughts, and wildfires, and institutions capable of adapting to changing climates, economies and social conditions will be in a better position for success.
Water Finance & Management
by WFM Staff
February 23, 2026
Most people do not spend much time thinking about the wires and cables that run under or along the streets and public rights-of-way where we walk, drive our cars, and ride our bikes every day. But these rights-of-way are critical to the delivery of our broadband, video, and telecommunications services. Ensuring providers can deploy facilities to reach our homes and businesses is essential to our everyday lives and to achieving the goal of giving every American access to broadband service. I recently had a chance to lead a CLE exploring these issues and offer the following points to think about—whether you are in the business or simply curious about what is going on.
Federal and state funding initiatives are driving massive deployment efforts.
The goal of making broadband available to all Americans has bipartisan support and long predates the COVID-19 pandemic. But with the pandemic highlighting the difficulty for those without a broadband connection to work or attend school and supercharged efforts to close the gap. Congress and the FCC have made more than $70 billion in funds available this decade to address buildout to rural areas through the American Rescue Plan Act (ARPA), the Rural Digital Opportunity Fund (RDOF), and the Broadband Equity, Access, and Deployment (BEAD) program. Many states have kicked in, too, with their own grant programs.
Most broadband providers need access to public rights-of-way.
While it is possible to beam broadband service from space, most broadband service is still provided through facilities placed over or under public rights-of-way. Broadband providers include companies that started as telephone and cable providers, who have always put their facilities in the rights of way, but also include new players who are actively installing new fiber optic cable primarily—or entirely dedicated to—broadband use. Even wireless providers, who do not need to run wires to connect to the customers they serve, increasingly rely on “small cell” facilities placed in the rights of way. And those small cell facilities in turn connect to the providers’ distribution facilities by cables that are also in the right-of-way.
Mintz – Paul D. Abbott
March 5 2026
To help recruit and retain staff, more districts are stepping in to give them a break on rent — and even a leg up on home ownership.
As some teachers struggle to afford housing in their school communities, a growing number of districts are taking the matter into their own hands by offering affordable housing for their staff.
An analysis published last year by the National Council on Teacher Quality found that nationwide housing costs rose on average 47% to 51% between 2019 and 2025, while average beginning teacher salaries grew at a much slower rate — 24%.
The need for affordable solutions for educators has become more acute given skyrocketing housing costs, said Meredith Coffey, senior policy and operations associate at the Thomas B. Fordham Institute, an education reform think tank.
multifamilydive.com
by Anna Merod
March 3, 2026
Takeaways by Bloomberg AI
Bloomberg Markets
By Aashna Shah and Erin Hudson
March 3, 2026
Predictive Markets Will Revolutionize the Industry — MMA Founder Tom Doe
Prediction markets may revolutionize the industry by improving credit transparency, trading efficiencies, hedging strategies, and portfolio management. They may also incite policy action in regions exposed to the greatest infrastructure and energy risks.
In our inaugural podcast, MMA Founder, Tom Doe, and Bloomberg’s new Head of Municipal Research and Strategy, Matthew Gastall, discuss the markets’ possibilities and promise.
Bloomberg Intelligence
Mar 06, 2026
3 key takeaways:
People often hear claims such as ‘humans only use 10% of our brains’, we swallow spiders in our sleep’, or ‘that the liver can regenerate itself’, but most of these popular myths do not hold up to research. Of the examples above, only the liver’s ability to regenerate is true – so there is no need to lose sleep over spiders.1
BlackRock
By Chris Ryan, CFP®
Mar 09, 2026
The firm’s head of municipals says attractive valuations and improving flows point to further upside for the asset class.
Municipal bonds are drawing renewed attention from investors after a period of underperformance that has pushed yields and spreads to historically attractive levels.
Dan Close, Head of Municipals at Nuveen, tells InvestmentNews that the current environment resembles previous market dislocations that ultimately created compelling entry points for investors. He points to the scale of municipal underperformance relative to broader fixed income markets as a key factor behind the opportunity.
“The muni market underperformed the Bloomberg US Aggregate Bond Index, a broad-based benchmark for taxable fixed income, by more than 400 basis points during the first three quarters of 2025,” he says. “While performance improved in the third quarter, munis continue to lag the broader fixed income index by more than 200 basis points from the start of 2025 through February 2026.”
investmentnews.com
By Steve Randall
MAR 05, 2026
With tighter state budget conditions, heightened economic uncertainty, and declining federal funding, one topic getting increased attention lately is rainy day funds. After experiencing significant growth earlier this decade, rainy day funds stand at near all-time highs. Given states are expecting more limited resources and facing budget pressures, what is the outlook for rainy day funds? What factors might states consider when deciding whether to use these funds? Do all states have a rainy day fund and how do fund sizes vary by state? And how do rainy day funds differ from general fund ending balances? Read on to learn more about recent trends in rainy day funds, how these funds can be used, and more.
Fact #1 – Most states expect to increase their rainy day fund balance this year.
According to NASBO’s Fall 2025 Fiscal Survey, 32 states are projecting increases in their rainy day fund balance (in nominal dollars) in fiscal 2026 based on enacted budgets, while nine states reported no change and six states are projecting declines. This followed fiscal 2025, when 33 states reported increases to their rainy day funds, 14 states recorded decreases, and three states reported no change.
Despite most states increasing rainy day funds in fiscal 2025, the median rainy day fund balance as a percentage of general fund spending ticked down for the first time since the Great Recession, declining from an all-time high of 14.9 percent in fiscal 2024 to 13.1 percent in fiscal 2025. This decline is mainly due to general fund spending growing at a faster pace than the rainy day fund balance for a majority of states and does not reflect widespread use of rainy day funds by states. It should also be noted, with spending levels in fiscal 2025 still impacted by heightened one-time expenditures, the median rainy day fund balance would be greater if measured as a percentage of ongoing expenditures.
National Association of State Budget Officers
By Kathryn White posted 5 days ago
Overview
Through February 25th, governors from 43 states and territories have delivered a State of the State address. In their speeches, governors described the state of their state as strong, resilient, and well positioned for the future. Many highlighted economic growth, job creation, fiscal discipline, record reserves, sustained investment in core priorities, and efforts to increase opportunities and build a brighter future. At the same time, challenges with affordability and the cost of living emerged as a central focus across many governors’ addresses. Governors repeatedly cited rising housing, childcare, food, healthcare, and utility costs as top concerns for families.
Below are trends from State of the State speeches through January. To read individual summaries of State of the State addresses, please click here.
National Association of State Budget Officers
By Brian Sigritz
Fitch Ratings-New York/Austin-26 February 2026: Fitch Ratings has updated its criteria for rating U.S. public power systems and electric cooperatives. This criteria updates and replaces the criteria from February 2025.
Notable revisions include:
–Confirmation that nonrecourse debt, or instances in which collection and repayment risk have effectively been transferred to a third party, and nonpayment would not result in a cross default or cross acceleration to an issuer’s other outstanding debt may be excluded from the calculation of debt metrics and leverage for analytical purposes;
–Language specifying that alternate publicly monitored ratings may be used in place of Credit Opinions to assess purchaser credit quality.
The key elements in the updated criteria remain consistent with the prior version. The update has not resulted in any changes to outstanding ratings, and Fitch has not placed any credits Under Criteria Observation.
The updated criteria report is available at www.fitchratings.com.
Fitch Ratings-New York/San Francisco-02 March 2026: The U.S. Supreme Court’s Feb. 20 ruling curbing the president’s ability to unilaterally impose tariffs is generally positive for U.S. ports, Fitch Ratings says. Longer term, a lower overall tariff environment may help improve import demand and recovery in U.S.-bound ocean freight volumes, which would support port revenue and liquidity.
The Supreme Court’s ruling invalidated broad-based tariffs on imports from most countries imposed under the International Emergency Economic Powers Act (IEEPA). Even with the 10% blanket tariff that the administration announced following the ruling, authorized through Section 122 of the Trade Act of 1974, the U.S. effective tariff rate (ETR) has fallen to 9.4% from 12.7%. ETRs for most countries remain unchanged, while 26 of the US’s largest trading partners will see their ETR decline. No country’s ETR increased.
However, tariff-related uncertainty remains and may temper port volume recovery. Long-term contractual guarantees with shipping lines and port tenants provide ports with a level of revenue stability despite volume fluctuations from tariff volatility.
Key Takeaways
02-Mar-2026 | 10:41 EST
Sector View: Stable
24-Feb-2026 | 11:49 EST
Takeaways by Bloomberg AI
Bloomberg Markets
By Erin Hudson and Aashna Shah
March 2, 2026
Takeaways by Bloomberg AI
Bloomberg Markets
By Aashna Shah and Erin Hudson
March 3, 2026
As we shared on 2/24, BlackRock recently noted that municipal bonds appear poised for a solid year after trailing U.S. Treasuries in 2025. Their outlook calls for investment-grade municipals to potentially deliver mid- to upper-single-digit returns in 2026 as market conditions stabilize. We continue to believe the asset class has a favorable tailwind: rates appear steady to modestly lower, supply remains manageable, and capital is rotating away from more volatile sectors such as private equity. Our base case remains approximately 75 basis points of rate cuts over the course of this year.
On the policy front, Lisa D. Cook cautioned that the Federal Reserve may face limitations in addressing rising unemployment if labor displacement from AI adoption accelerates. While AI is clearly enhancing productivity and supporting economic growth, it may also place pressure on the labor market over time. Some Fed members view this as a longer-term catalyst for easier monetary policy should job growth weaken into 2026–2027.
dividend.com
by David Loesch
Mar 02, 2026
Key Takeaways
18-Feb-2026 | 09:34 EST
Takeaways by Bloomberg AI
Bloomberg Green
By Gautam Naik
February 20, 2026
Financial advisers asked questions about President Donald Trump’s agenda and its impact on municipal budgets and bonds at Morgan Stanley’s “State of the States” webinar.
Elizabeth Rembert discussed their uncertainty on “Bloomberg Real Yield” with Scarlet Fu.
Feb 20th, 2026
Takeaways by Bloomberg AI
Bloomberg Markets
By Elizabeth Rembert
February 19, 2026
Fitch Ratings-Austin-17 February 2026: Fitch Ratings has revised its criteria for U.S. water and sewer utilities, updating and replacing the criteria from February 2025. The updated criteria report describes Fitch’s methodology for assigning new ratings and monitoring existing ratings for U.S. municipal and not-for-profit water and sewer utilities (including wastewater and stormwater). Notable revisions that Fitch has made include:
–Updated operating cost burden thresholds to adjust for rates of inflation and to ensure accurate comparative evaluation. Periodic updates to the thresholds to recognize changes in sector-wide costs are likely to continue going forward.
–Inclusion of language clarifying when capital planning and management may be more influential in the assessment of operating risk than operating cost burden.
–Confirmation that when factors suggest that an entity’s financial profile may be higher or lower than suggested by the Rating Positioning table, alternative operating, financial and liquidity metrics, along with attribute assessments, may be considered in determining the financial profile assessment and rating.
–Inclusion of secondary coverage metrics that may used as additional guidance when assessing the credit quality and financial profile of entities where debt balances and leverage metrics are, or are expected to be, temporarily distorted, including as a result of an entity’s capex profile and its position within the capital life cycle.
The key elements in the updated criteria remain consistent with the prior version. The update has not resulted in any changes to outstanding ratings, and Fitch has not placed any credits Under Criteria Observation.
The updated criteria report is available at www.fitchratings.com
Key Takeaways
19-Feb-2026 | 09:15 EST
U.S. power plant developers and operators plan to add 86 gigawatts (GW) of new utility-scale electric generating capacity to the U.S. power grid in 2026 in the Energy Information Administration’s latest Preliminary Monthly Electric Generator Inventory report, a record if realized.
Solar power makes up 51% of the planned 2026 capacity additions, followed by battery storage at 28% and wind at 14%.
In 2025, 53 GW of new capacity was added to the grid, the largest capacity installation in a single year since 2002.
publicpower.org
by Paul Ciampoli
February 22, 2026
A new report from Cleanview identifies 46 data centers with a combined capacity of 56 GW that plan to build their own power “behind-the-meter.”
That represents roughly 30% of all planned data center capacity in the United States, according to Cleanview’s project tracker.
“In the last year, this trend has gone from niche to mainstream. 90% of the projects we identified—representing approximately 50 GW—were announced in 2025 alone,” wrote Michael Thomas, CEO of Cleanview, in a summary of the report.
publicpower.org
by Paul Ciampoli
February 21, 2026
The funding landscape for infrastructure projects is complex and dynamic. Facing intensifying challenges from extreme weather to aging systems, cities, towns and villages must be strategic in their infrastructure planning, diversification and partnering approach. Those that plan holistically, build strong partnerships and maximize their funding opportunities will be in a position to meet their goals for resilience and growth.
Strong Systems, Strong Cities: Linking Financial Resilience to Infrastructure Resilience
Infrastructure is the backbone of public health, business development and economic vitality. Yet, as demand for reliable and affordable power and water intensifies, the U.S. faces a $3.7 trillion infrastructure investment gap, according to the American Society for Civil Engineers’ 2025 Report Card (PDF). Strictly in terms of disasters, from extreme storms to wildfires, the U.S. Chamber of Commerce notes that every $1 not invested in resilience can cost communities up to $33 in lost future economic activity. Especially with the uncertainty surrounding federal funding sources, the need is clear. Cities must fortify their financial resilience to build their infrastructure resilience.
Navigating the New Infrastructure Funding Landscape
See below for a look at how funding sources are evolving:
National League of Cities
Authored by Francesca McCann, Director of Alternative Funding, Financing and P3, Black & Veatch
February 17, 2026
Takeaways by Bloomberg AI
Bloomberg Markets
By Erin Hudson
February 23, 2026
State and local governments have been issuing record amounts of debt, mostly to maintain and expand infrastructure. Will the surge continue?
In Brief:
Municipal bonds are booming, with state and local governments issuing an unprecedented amount in the past two years.
governing.com
Jule Pattison-Gordon
Feb. 24, 2026
Eversource Energy raised $1.5 billion from selling its first hybrid bonds, as the New England utility operator looks to refinance debt.
The 30.5-year securities were offered in two $750 million parts, according to a person with knowledge of the matter. One of the bonds can’t be bought back for 5.25 years, and the other not for 10.5 years, said the person, who asked not to be identified as they’re not authorized to speak publicly.
The notes will respectively yield 6.1% and 6.35%, both about 0.4 percentage point less than initial price talk, the person added.
Hybrid bonds have features of both debt and equity. They’ve grown more popular in recent years, particularly among utility holding companies, after a change in policies from Moody’s Ratings made it easier for corporations to determine how much equity-like credit they would get for selling the securities.
Barclays Plc, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley and Mitsubishi UFJ Financial Group Inc. were bookrunners for the debt sale.
The deal was among 10 in the US investment-grade market on Monday — half of them from utilities.
Bloomberg Markets
By Davide Barbuscia
February 23, 2026 at 9:42 AM PST
It goes without saying that investors traditionally look to the market to accumulate more wealth, not the other way around.
However, once investors approach retirement age, the focus tends to shift to decumulation rather than accumulation. In other words, older clients often look to advisors for help distributing their wealth in a liquid and transparent manner, while also enabling lifestyle preservation.
Oftentimes, investors look to products like money market funds as a low-risk way to put their cash to work. However, money market funds face their own challenges, including shifting interest rates and reinvestment risk.
etfdb.com
by Nick Wodeshick
Feb 19, 2026
The municipal bond market demonstrated robust performance in 2025, with record issuance of USD 580. 4 billion, a 13% increase from 2024. The market experienced heightened volatility due to geopolitical tensions, tariffs, the fed rate cut cycle and the passage of the U.S. tax and spending bill, also known as the One Big Beautiful Bill Act.
The bill had both positive and negative impacts on the municipal bond market. It preserved and expanded the federal tax exemption to additional sectors, notably private activity bonds (PABs) for new issuance in infrastructure and energy-related projects. The act blunted higher education bonds by creating additional tiered taxation on university endowments over USD 750,000 per student. Practically, this limits a university’s ability to offer need-based scholarships and pushes students to apply for private loans. In terms of healthcare sector impact, the 2025 budget bill reduced Medicaid spending by USD 1 trillion over the next 10 years, with implications of increasing unpaid care for hospitals and health institutions.
The U.S. Federal Reserve continued the loosening of monetary policy in 2025, with a series of three rate cuts of 25 bps each, bringing the official federal funds rate to 3.50%-3.75% at the end of December. This set the stage for further rate reductions in 2026 and brought renewed interest to the USD 4.4 trillion municipal bond market.
Higher yields and credit quality along with strong issuer fundamentals set the stage for a strong 2025 finish. The S&P National AMT-Free Municipal Bond Index was up 3.77% for the year, with a tax equivalent yield (TEY) of 5.36%. In 2025, all indices within the National, Short, Intermediate and Long curve beat their 2024 performance.
Download Full Article (Free registration required.)
by Catalina Zota
Feb 13, 2026
Key Takeaways
New Funding Cuts Loom
In both Trump administrations, the federal government reduced, or threatened to reduce, revenue to LGs, frequently focusing on sanctuary cities. Proposals announced already in 2026 would cut federal funding to this cohort as well as the U.S. states where the cities are located that resist federal immigration enforcement.
S&P Global Ratings does not expect this issue will lead to rating changes–in isolation. This is due partly to the limited amount of federal revenues that make up LG budgets: on average, LGs receive less than 5% of their revenues from the federal government. However, a smaller magnitude does not necessarily preclude disruption to operations, especially if there are reductions to U.S. states’ federal funding since states receive more than 30% of their operating revenue from the federal government
Continue reading. (Free registration required.)
12-Feb-2026 | 12:52 EST
Overview
Governors in 31 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands will propose a new budget for fiscal 2027 for consideration during 2026 legislative sessions, while governors in three states (Kentucky, Virginia, and Wyoming) will propose biennial budgets for both fiscal 2027 and fiscal 2028. Last year, 15 states enacted biennial budgets for fiscal 2026 and fiscal 2027 while North Carolina enacted a partial budget; in some of these states the governor may propose a supplemental budget.
Forty-six states begin their fiscal year on July 1 (New York begins its fiscal year on April 1, Texas on September 1, and Alabama and Michigan on October 1). Puerto Rico begins its fiscal year on July 1, while the District of Columbia, Guam, and the U.S. Virgin Islands begin their fiscal year on October 1.
Hard-to-shake optimism and a scarcity of long-dated debt have helped drive spreads to historic lows
Quick Summary:
Investor demand for U.S. corporate, state and city bonds has driven spreads to multiyear lows despite market concerns.
A new AI borrowing frenzy and lingering fears about potential defaults haven’t deterred investors hungry for bonds from U.S. companies, states and cities.
The extra yield—or spread—that investors demand to hold highly rated corporate bonds instead of ultrasafe U.S. Treasurys hit a 27-year low in late January. Spreads on speculative-grade corporate bonds dropped to an 18-year low. In the $4 trillion municipal bond market, the spread between interest rates on triple-A and triple-B bonds is at one of its lowest points in two years.
Those tight spreads are the latest sign of how bonds remain stubbornly resistant to concerns rattling other markets.
The Wall Street Journal
By Heather Gillers and Sam Goldfarb
Feb. 12, 2026 5:30 am ET
Climate adaptation is increasingly a matter of financial resilience, not just physical protection. Across the US, climate risk is filtering into rising insurance costs, shifting property values and heavy reliance on property tax revenues, exposing some cities and counties to mounting fiscal strain and potential spillovers into municipal bond markets.
With climate exposure, tax dependence and access to federal aid varying sharply by location, risks are emerging unevenly across the country. So how are climate stresses reshaping municipal finances, and what should investors and policymakers be watching?
On today’s show, Tom Rowands-Rees is joined by Danya Liu, a BloombergNEF specialist in climate resilience and adaptation, to discuss findings from her note “Climate Risk and US Municipal Finances: Storm Ahead?”
Feb 11, 2026
12-Feb-2026 | 15:19 EST
13-Feb-2026 | 16:30 EST
It is the latest court ruling staving off deep cuts to social services that Democratic-led states say are politically motivated and would harm hundreds of thousands of people.
A federal judge in Illinois on Thursday blocked the Trump administration’s plan to claw back $600 million in public health funds from four states led by Democrats, amid a wider effort by the federal government to pull funding from blue states.
Judge Manish S. Shah of the Federal District Court in Northern Illinois wrote in a two-page order that the plaintiff states — California, Colorado, Illinois and Minnesota — had provided enough evidence that the cuts were “based on arbitrary, capricious or unconstitutional rationales” to halt what would have been deep cuts in federal public health funding that had already been allocated while legal arguments continue in the case.
It is the latest court ruling staving off deep federal cuts to Democratic-led states, which say they are politically motivated.
The New York Times
By Chris Cameron
Feb. 12, 2026
Feb 11 (Reuters) – Four Democratic-led states filed a lawsuit on Wednesday that seeks to block the Trump administration from terminating $600 million in public health funding.
In a complaint, opens new tab filed in federal court in Chicago, the states — California, Colorado, Illinois, and Minnesota — said they were being unlawfully subjected to “devastating funding cuts to basic public health infrastructure based on political animus and disagreements about unrelated topics such as federal immigration enforcement.”
A spokesperson for the U.S. Department of Health and Human Services said on Monday that the grants are being terminated because they do not reflect the agency’s priorities. HHS did not immediately respond to a request for comment on the lawsuit.
reuters.com
By Jan Wolfe
February 11, 2026
Average daily notional volumes (ADNV) in US municipal bond trading was up 13.9% year-on-year (YoY) in 2025, according to a Coalition Greenwich report, reaching a record US$14.9 billion.
Trade count was up 22.1% YoY to 70,243. However, customers’ average trade sizes fell 5.2% to US$289 thousand – and interdealer average trade sizes dropped 8.3% to US$96 thousand.
A contributing factor to this is an increase in e-trading adoption, Coalition Greenwich states, although use of the practice rose just 0.6 percentage points over the year to take 18.7% of the total market. Growth of electronic protocols has been driven in part by wider use of separately managed accounts, the report suggests, which necessitate more automated processes.
“We hope and expect to see more of auto-ex, portfolio trading [and] periodic auctions in the years ahead, but the muni market is always focused on the marathon and not the sprint,” report authors Kevin McPartland and Neha Jain said.
Moving forward, the pair expect greater retail activity to push up automated trading levels. On the institutional side, “While market participants want to maintain their relationships, they also must grapple with higher volumes and shrinking trading desks—to which the only answer is automation,” they conclude.
On a trading venue basis, Bloomberg has retained its long-term top spot with 44.1% of the market. Both ICE and Tradeweb saw slightly increased market shares YoY, up 1.3 percentage points to 16.4% and up 1.6 percentage points to 17.3% respectively.
fi-desk.com
By Lucy Carter
February 13, 2026537
Holding out for perfect clarity could mean a missed chance, municipal bonds director tells InvestmentNews.
With municipal yields sitting at elevated levels, advisors face the challenge of how to guide clients who remained underinvested through 2025 without falling into the temptation to wait for perfect clarity.
According to Ben Barber, director of the Municipal Bond Department at Franklin Templeton, the current setup itself argues against inaction.
“Municipal bonds continue to exhibit appealing yields compared to recent historical levels,” Barber told InvestmentNews, adding that “their relative underperformance against other fixed income sectors in 2025 has led to improved relative valuations,” two factors he believes advisors should weigh carefully when considering entry points for clients.
Together, Barber noted, yield levels and relative value help frame today’s opportunity set and reduce the risk of waiting too long for certainty that may never arrive.
investmentnews.com
By Steve Randall
FEB 12, 2026
Tom Kozlik, HilltopSecurities, joins ‘The Exchange’ to discuss the action in bond markets, why it’ll be a good year for municipal bonds and much more.
cnbc.com
These twists on munis offer rewards for those who understand the risk.
Takeaways by Bloomberg AI
A complicated kind of debt deal is electrifying the muni market these days: prepaid energy bonds.
Last year investors bought $31.4 billion worth, three times as much as in 2022. If you buy a municipal debt index fund, energy bonds currently make up from 5% to 25% of your investment.
Here’s how they differ from regular munis. In a plain-vanilla general obligation bond, investors lend money to a government and rely on its taxing authority to pay it back. Or, in revenue bonds, investors get repaid through the money generated by an important project, such as a toll road, a hospital or a subway. Munis are attractive to wealthy individuals because the interest is generally exempt from federal income tax and, if the government is in their own state, local taxes as well.
Bloomberg Markets
By Erin Hudson and Elizabeth Rembert
February 3, 2026
04-Feb-2026
This is the U.S. Public Finance Rating Action Report 2026 Year to Date (January 1, 2026 to February 6, 2026).
Mon 09 Feb, 2026 – 2:47 AM ET
Fitch Ratings-New York/Austin/San Francisco-09 February 2026: The U.S. airport sector has remained resilient through economic and airline industry challenges. This resilience is reflected in strong median financial metrics for general airport revenue bonds (GARB), highlighted in Fitch Ratings’ latest peer review, which have outperformed pre-pandemic fiscal 2019 levels. Improved leverage, revenue generation, and liquidity have led to multiple rating upgrades and Outlook revisions across all Federal Aviation Administration (FAA) hub sizes in Fitch’s rated portfolio over the last two years.
Fitch’s primary rating metric for U.S. municipal airports, leverage, improved on a point-in-time basis. Net debt to cash flow available for debt service fell to 3.7x in fiscal 2024 from 4.0x in fiscal 2019. Leverage also improved on a forward-looking year-five basis, to 2.4x from 3.6x. Leverage declined across all hub sizes, with the large hub point-in-time metric dropping the most, to 5.2x from 6.7x. Airports have benefited from continued amortization of outstanding debt, more time to complete volume-driven projects, lower infrastructure wear and tear, and operating efficiencies from completing typically disruptive maintenance projects during the pandemic travel lull. Together with stronger revenue, airline use and lease agreements (AULs), and liquidity, these factors have helped alleviate post-pandemic and inflationary pressures on capital plans.
Portfolio-wide, the fiscal 2024 median for enplanements is slightly below the fiscal 2019 median. However, this reflects shifts in Fitch’s rated public finance portfolio. The median for large hubs rose to nearly 26 million enplanements in fiscal 2024 from almost 24 million in fiscal 2019. The median for medium hubs rose to 5.2 million from 5.0 million, while the median for small hubs was largely flat. Small hubs are generally more vulnerable to airlines’ scheduling and route changes and tend to be more regionally focused, with greater exposure to low-cost and ultra-low-cost carriers compared with large hubs. Large hubs typically serve primary markets with higher wealth and strong origin/destination demand which underpins higher airline yields. Large hubs can also support aircraft upgauging to funnel more passengers through fewer flights, and some may serve as connecting airports, boosting demand.
2026 will be the last year of the Infrastructure Investment and Jobs Act (IIJA). It was a historic law, and there will be a big debate over its inevitable post-mortem. That debate, and the negotiations over the surface transportation legislation to follow (see Poole, this edition), are two topics that Public Works Financing will be covering in earnest this year. However, while federal spending will continue to be the most powerful force in American transportation finance, there are a few trends outside the D.C. beltway that PWF plans to cover in 2026 as well.
Two of biggest trends in the overlap between American transport megaprojects and private financing are the following: first, the American high-speed rail sector is on the ropes, and several privately financed projects or procurements may determine whether the sector rebounds or implodes in 2026. Second, the priced managed lanes industry is poised to continue its boom from 2025, and 2026 could be its biggest year yet.
These are the transportation finance trends that PWF will be keeping an eye out for going into 2026. Are we missing anything? If there are other topics, trends or projects that you think we should pay attention to this year, then let us know at contact@publicworksfin.com.
Public Works Financing
by Michael Bennon
December 2025
Priced managed lanes are having their moment. For decades after their mid-20th-century conception, only a handful of projects reached operation, and most were regarded as risky bets. They were difficult to forecast, dependent on government subsidies, and met with skepticism from both investors and the public. Over the past fifteen years, the narrative has shifted. Today, procuring and operating a public-private partnership (P3) priced managed lane (PML) on the right corridor is approaching routine.
Recent developments illustrate this transformation. Georgia’s 15-mile-long SR-400 Express Lanes recently closed with the winning consortium covering the $4.7 billion construction cost and a $3.8 billion upfront payment. These figures would have seemed impossible a decade ago. Rating agencies, once skeptical, are now upgrading the credit of operational assets, recognizing their sustained performance through COVID-19’s disruptions. P3 PML projects have routinely exceeded revenue expectations and investor appetite for managed lane debt is robust.
Three developments explain why priced managed lanes have become viable and attractive to both owners and investors. First, familiarity breeds acceptance. With dozens of facilities now operating, priced managed lanes are becoming normalized. The public accepts, if not always enthusiastically, that reliable mobility comes at a price.
Public Works Financing
by John Brady, Jonathan Startin, and Noah Jolley
December 2025
Overview
S&P Global Ratings took 19 rating actions, made 32 outlook revisions, and placed three ratings on CreditWatch within the U.S. municipal water and sewer utilities sector in fourth-quarter 2025. We also affirmed 88 ratings with no outlook revisions.
05-Feb-2026 | 13:02 EST
06-Feb-2026
Actively managed municipal bond funds continue to attract strong investor interest, with active mutual funds taking in over $24 billion and active muni ETFs seeing over $22 billion in net flows last year. In this episode of Inside Active, host David Cohne, mutual fund and active management analyst at Bloomberg Intelligence, speaks with Alex Petrone, head of fixed income and head of distribution for the Americas at Rockefeller Capital Management, about the advantages of active management in the municipal bond market. They discuss why the steep municipal yield curve presents compelling investment opportunities, how active managers can exploit inefficiencies in a highly fragment market and why municipal bonds have historically shown resilience during economic downturns. The conversation also explores how technology is reshaping municipal credit research and portfolio construction. The podcast was recorded on January 27th.
Bloomberg
Feb 03, 2026
Matthew Gastall, head of municipal strategy and research for Bloomberg Intelligence, joins “Bloomberg Real Yield”. A new Fed chair has sweeping implications for markets, especially municipals. The dichotomy between continued policy accommodation and a potential push for balance-sheet reduction has reignited debate over the yield curve’s trajectory.
Bloomberg Intelligence
Feb 6th, 2026
Demand for tailor-made investments is fueling a surge in personalized portfolios of municipal bonds.
Separately managed accounts that invest in muni assets now hold an estimated $1.3 trillion across 180 managers, according to JPMorgan Chase & Co. That’s up 6% from a year ago.
Once designed for only the wealthiest investors, so-called SMAs have become popular with a broader range of clients as account minimums decrease. These portfolios are run by a professional money manager, but each client owns the securities directly instead of in a pool with other investors, like with mutual funds. That allows for a greater degree of personalization and enhanced tax-loss harvesting.
Bloomberg Markets
By Aashna Shah
February 9, 2026
Municipal debt issuance surpassed $500 billion last year, a record that’s found a deep pool of buyers.
Across America, state and local governments have been selling bonds at a record clip to finance projects like airports, roads and utilities.
They have found a deep pool of buyers keen on realizing the tax-exemption benefits from holding this municipal debt, which also provides relatively high returns.
Borrowing in the municipal bond market surpassed $500 billion last year, breaking the $498 billion record set in 2024. The “muni market” is now worth well over $4 trillion, roughly equivalent to the market capitalization of Nvidia, the chip maker that has soared on the artificial intelligence boom, driving stocks to record highs.
“People really don’t understand how big this market is and how it impacts a lot of things that everybody does every day,” said Mike Bartolotta, an executive managing director and co-head of public finance at Hilltop Securities, a firm that specializes in municipal sales. “You drive to work, you go to school, you flush the toilet, you drink water? You’re likely going to use something that’s been touched by municipal securities.”
The New York Times
By Talmon Joseph Smith
Jan. 28, 2026
Takeaways by Bloomberg AI
Bloomberg Markets
By Maxwell Adler and Elizabeth Rembert
January 28, 2026
Key Takeaways
Following the winter storm, frigid temperatures and potential credit pressures remain beyond the damage that caused power outages of varying severity, particularly in Tennessee and Mississippi. NES experienced the highest percentage of customer outages of any of our rated not-for-profit electric utilities. As the extreme cold temperatures linger across the nation, particularly in the Electricity Reliability Council of Texas (ERCOT), PJM Interconnection LLC (PJM), and Midcontinent Independent System Operator (MISO) independent system operator (ISO) regions, S&P Global Ratings will monitor the size of unbudgeted storm-recovery, fuel, and power-procurement costs facing our rated public power and electric cooperative utilities. Even utilities that did not experience storm-related infrastructure damage could face credit pressures because of elevated and unbudgeted fuel- and power-procurement costs during extremely cold weather.
29-Jan-2026
Fitch Ratings-New York-02 February 2026: Despite the expansive winter storm and subfreezing temperatures that affected large portions of the Midwest, South, and Eastern U.S. last week, U.S. public power systems largely avoided systemic power outages and material operational impacts that could weaken utility finances and credit quality, Fitch Ratings says.
Ahead of the storm, regional grid operators and federal agencies took steps to preserve reliability. The U.S. Department of Energy issued emergency orders to expand dispatch flexibility and enable use of backup generation at large loads.
Grid operators in affected regions reported periods of elevated market prices. They cited demand spikes from frigid temperatures and power plant outages relating to tight natural gas supplies in parts of the country. However, available resource capacity broadly exceeded demand, and overall grid reliability was more robust than during Winter Storm Uri in 2021 and Winter Storm Elliot in 2022. The recent storm was less severe in terms of duration and frigid conditions across the South than those events. Improved reliability may also reflect winterization investments in natural gas infrastructure in Electric Reliability Council of Texas (ERCOT) and other markets.
Grid operators have also taken steps to bolster reliability. For example, the Southwest Power Pool increased its winter planning reserve margin to 36% for the 2026/2027 season. Planning reserve margins represent the amount of back-up power utilities must have to protect against unplanned conditions or events on the regional power grid.
News reports indicate significant loss of life and damage from the storm system, with at least 140 confirmed fatalities and over a million utility customers who lost power. Localized damage largely due ice accumulation and downed trees drove most outages, particularly in the South.
In the hard-hit mid-south region, the Tennessee Valley Authority (AA+/Stable) restored transmission service to all local power companies. Nashville Electric Service (AA+/Stable) outages peaked at about 230,000, and the utility is working to restore power to about 25,000 customers. Extensive mutual aid agreements among utilities provide a framework for assistance and cooperation to get power restored as quicky and safely as possible. However, crews will need time to fully address all damage.
Fitch-rated municipally owned systems typically maintain robust liquidity balances that they can use for emergency infrastructure repairs. The majority of systems reported an excess of 225 days cash on hand at fiscal YE 2024. Many also maintain additional liquidity facilities to bridge timing gaps between restoration costs and available cost reimbursement by the U.S. Federal Emergency Management Agency (FEMA). FEMA typically reimburses around 75% of restoration costs. President Trump approved federal emergency disaster declarations for 12 states, mostly in the South, allowing these states to access FEMA support.
Forecast temperatures remain well below seasonal averages across the Midwest and East. Spot prices for natural gas and wholesale power remain above normal ranges. Retail customers may see higher monthly bills as utilities pass through some costs from this period, but Fitch does not expect these alone to materially affect credit quality. Fitch-rated public power utilities typically protect against price volatility through hedges and other mitigation strategies that reduce risks to operating costs from unfavorable market prices, which further insulates credit quality.
Congress took enormous steps forward last summer to increase the nation’s supply of affordable rental housing by expanding and enhancing the low-income housing tax credit (LIHTC) in the One Big Beautiful Bill Act (OBBBA). Now it’s time to further encourage preservation of the existing stock with an affordable rental housing tax incentive targeted to a largely untapped investor market: individuals.
A proposed tax incentive–expected to be introduced in Congress early this year–would pave the way for nonprofit owners of affordable rental housing to syndicate tax losses to individuals to help facilitate the rehabilitation of existing homes. Novogradac estimates that the proposed incentive could renovate and preserve 250,000 to 333,000 affordable rental homes over 10 years.
The proposal comes at a time when a significant number of existing properties need rehabilitation funding and are approaching the end of their agreed-to affordability period.
Novogradac
by Michael J. Novogradac, CPA
Fitch Ratings-New York/Chicago/San Francisco-28 January 2026: Fitch Ratings has updated its “Affordable Housing Rating Criteria.” The update consolidates the existing “U.S. Affordable Housing Rating Criteria” (published March 2022) and “U.S. Military Housing Rating Criteria” (published June 2022) into a combined, sector-specific criteria report. It covers affordable, mixed-income, military, workforce, senior, student and other types of affordable housing. Fitch does not expect any outstanding ratings to be affected by the criteria changes.
Fitch published an exposure draft of the criteria report on Oct. 15, 2025. We received one external written feedback response and one informal verbal comment in response to Fitch’s proposed criteria revisions. The key changes to the consolidated criteria include:
–Expansion of the scope of the criteria to encompass additional property segments (e.g., mixed-income housing), subsectors (e.g., federally enhanced multifamily mortgage loans) and additional forms of underlying collateral (e.g., residual cash flows and discrete income streams), and to add new analytical guidance related to the expanded scope;
–Enhancement of the current guidance for assessing various risks and attributes that are common across sectors (e.g., refinance risk) by incorporating existing analytical frameworks or by referencing other relevant Fitch criteria that can be used to analyze these features;
–Consolidation of the key rating driver (KRD) tables for affordable housing and military housing projects, providing ‘aa’ through ‘b’ attribute guidance for all KRDs across housing types.
In response to the feedback and further internal review and validation, Fitch made revisions and clarifying edits to the criteria. A feedback report published with the updated criteria summarizes these changes. Both reports are available at www.fitchratings.com.
Read the Fitch Feedback Report.
Wed 28 Jan, 2026 – 4:30 PM ET
Overview
In 2025, S&P Global Ratings lowered almost twice (29) the number of ratings than that it raised (15) across its rated universe of U.S. charter schools. Similarly, the number of charter school issuers for which we revised the outlook to negative (15) outpaced the number of outlook revisions to both stable (11) and positive (10) taken across our rated sector.
28-Jan-2026 | 14:26 EST
In 2025, S&P Global Ratings assigned 11 ratings, raised 12 ratings, and lowered 30 ratings on U.S. colleges and universities. While we revised our 2026 higher education sector outlook to negative from bifurcated, our rating actions during 2025 demonstrated a widening in credit quality for a fourth consecutive year, as the majority of the downgrades occurred at the lower end of the ratings distribution. With threatened cuts to research funding and uncertainty on federal policies, strong institutions maintained their market position, healthy balance sheets, and fundraising, while struggling institutions faced enrollment challenges resulting in operational pressure and liquidity issues.
27-Jan-2026 | 13:21 EST
KBRA expects an increase in uncompensated care across the health care ecosystem following the expiration of enhanced premium tax credits at the end of 2025, although the magnitude of the impact remains uncertain. This trend has negative credit implications for hospitals and creates knock-on pressures for states already facing budgetary constraints stemming from the One Big Beautiful Bill Act (OBBBA).
While there are proposals in Congress to address the expiration of the enhanced premium tax credits, none represent a long-term solution, and enactment remains uncertain. In KBRA’s view, the risk of rising uncompensated care and mounting financial pressures at the state and local levels will remain ongoing credit concerns.
Key Takeaways
Background
An enhanced premium tax credit is a refundable credit that helps offset the cost of health insurance premiums for individuals purchasing coverage through the Affordable Care Act (ACA) marketplace. To qualify, a household must not be eligible for employer-sponsored insurance, Medicare, or Medicaid, and household income must not exceed 400% of the federal poverty level (FPL).
Premium tax credits were temporarily enhanced under the American Rescue Plan Act (ARPA) through removing the FPL income cap, increasing the value of the credit, and capping premiums as a percentage of income. These enhancements were subsequently extended through the Inflation Reduction Act (IRA). As of the end of 2025, the enhanced premium tax credits expired, effectively reverting eligibility and benefit levels to their pre-pandemic framework, including the reinstatement of the 400% FPL income cap. In KBRA’s view, the absence of these enhancements is likely to result in a decline in the covered population and a meaningful increase in net premiums for those who maintain coverage, developments that could have negative credit implications across several sectors.
Various projections have outlined the possible effects of the expired enhanced premium tax credit on the insured population.2 , 3 For example, the Congressional Budget Office (CBO) estimated that letting the enhanced premium tax credits expire at the end of 2025 would increase the number of uninsured Americans by about 4.2 million by 2034 relative to a permanent extension of the credits. KBRA notes that most projections to date have overstated actual enrollment declines. The Centers for Medicare and Medicaid Services (CMS) reports4 that for states using the HealthCare.gov platform and state-based exchanges, approximately 22.8 million individuals enrolled in or were automatically renewed for coverage during the 2026 open enrollment period, a decline of 830,000 from approximately 23.6 million people at the same time last year.
KFF notes that enrollment declines have been less pronounced than projected, partly because reported figures reflect early plan selections rather than confirmed, paid coverage; as a result, final enrollment data will be necessary to fully assess the true impact on the covered population.
What Is the Effect of Uncompensated Care on Hospitals?
Uncompensated care places direct financial pressure on hospitals, but its reverberations extend beyond the health care sector, increasingly shifting the burden of addressing coverage gaps to the public sector.
How Is Uncompensated Care Addressed and How Are States Responding?
The burden of uncompensated care is expected to fall disproportionately on safety-net hospitals, providers in Medicaid non-expansion states, and rural hospitals. There is no single funding mechanism for uncompensated care; instead, costs are addressed through a patchwork of the following public programs and health care provider strategies:
Some states have expanded their health care subsidies to partially offset higher premiums. However, most states did not fully bridge the gap between insurance costs prior to the expiration of the enhanced premium tax credits and costs in the absence of those credits.
Cumulative Pressure on States: The Knock-on Effects
As outlined in KBRA’s previous research on the OBBBA and the Federal Emergency Management Agency (FEMA) (see Related Publications section), policy changes in Washington are transferring greater responsibility for funding certain federal programs—particularly indigent care—to state and local governments. Given constrained governmental resources and current gloomy consumer sentiment, these shifts effectively represent a zero-sum game.
Conclusion
KBRA has previously commented on the transfer of responsibility for certain federal programs to state and local governments. In an environment of constrained resources, these governments face difficult decisions around funding critical social welfare programs. KBRA will continue to monitor congressional legislative efforts related to the expired ACA enhanced premium tax credits, their implications for the nonprofit health care sector, and the broader set of countervailing pressures buffeting states.
Kroll Bond Rating Agency
28 Jan 2026
A historic, widespread, and long-lasting winter storm is in progress, bringing destructive ice and heavy snow from the Plains to the Midwest and Northeast. Forecasts indicate dangerous travel conditions for days, and parts of the South are seeing catastrophic ice accumulations with significant power outages and tree damage. On the heels of Winter Storm Fern is another quickly developing major winter event expected to hit the coastal South.
These events, and more, come at a time when there remains significant uncertainty about the current status and future of the Federal Emergency Management Agency (FEMA). As of January 25, FEMA has issued 12 emergency declarations but next steps remain uncertain. Even with the competing priorities and preferences, all seem to agree that the assistance provided by FEMA will be more restrictive going forward. As such, it is more important than ever to be diligent in these early days and do as much as possible to protect eligibility for funding assistance in the event that a federal major disaster declaration is issued.
Snow and Winter Storm Declarations Under FEMA’s Public Assistance Program
First, it is important to understand what is likely to be declared and what the corresponding eligibility might include. Historically, FEMA’s approval of funding related to snow events has been more limited than other natural disaster events. FEMA’s guidance specifically provides that, for eligibility to be considered, the impacted state must request and be issued a major disaster declaration that must include a request for snow assistance as part of that declaration. However, the difficulty in getting such a declaration cannot be over-stated – snow-related activities, including snow removal, de-icing, salting, snow dumps, and sanding of roads and other eligible facilities, is only an eligible emergency protective measure when a winter storm results in record or near-record snowfall.
by Wendy Huff Ellard and Danielle M. Aymond
January 26, 2026
©2026 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
January 26, 2026
Key Points
cnbc.com
by Sam Meredith
Mon, Feb 2 2026
This is the U.S. Public Finance Rating Action Report 2026 Year to Date (January 1, 2026 to January 30, 2026).
Mon 02 Feb, 2026 – 3:02 AM ET
Fitch Ratings’ U.S. Local Government Data Comparator contains ratings and Local Government Rating Model (LGRM) data for issuer ratings supported by use of the Local Government Rating Model.
Fri 30 Jan, 2026 – 9:43 AM ET
Thu 29 Jan, 2026 – 11:00 AM ET
Fitch Ratings-Paris-29 January 2026: Fitch Ratings has published Fitch General ESG Approach, a report which details Fitch Rating’s approach to addressing environmental, social and governance (ESG) considerations in its credit ratings.
Fitch’s credit analysis factors in ESG considerations to the extent they are relevant and material to a credit rating decision. The report discusses Fitch’s approach to assessing and disclosing the relevance and materiality of ESG considerations to Fitch’s credit rating decisions for global public international-scale ratings across different sectors: corporates, financial institutions, structured finance, covered bonds, sovereigns, supranationals, public finance, and global infrastructure.
For different sectors or sub-sectors, Fitch maps the specific issues that may drive its assessment of the relevance and materiality of ESG general issues to the credit rating decision to the relevant rating drivers, rating factors, or analytical considerations addressed in our applicable criteria. An overview of this mapping is detailed in our accompanying report, Fitch ESG Sector Mapping Compendium.
Fitch discloses the relevance and materiality of ESG considerations to individual credit rating decisions through its ESG relevance scores (ESG.RS). ESG.RS are not an input into the credit rating process but provide transparency on ESG-related credit risks that influenced the determination of credit ratings.
Tribes can face higher expenses for public bond offerings than they face for private placements
Municipal bonds are a basic tool of public finance. Local and state governments rely on these debt obligations to pay for an array of capital projects, like roads, schools, and water systems. For tribal governments, however, use of municipal bonds is a different story. For example, as explored in previous Center for Indian Country Development (CICD) research, tribal governments have fewer allowable uses for their tax-exempt bonding than local and state governments have.
Recently, we explored another limitation on tribal bonding: tribes are likely to face higher costs for issuing bonds in the public market than other governments in the United States face. When we ran hypothetical scenarios of different tribal bond placements, we found that if a specific legal exemption that other governments receive applied to tribes, tribal public bond offerings could be more cost-effective. Our work to better understand tribal bonding is part of CICD’s mission to advance economic self-determination and prosperity in Indian Country through actionable data and research that inform public policy discussions. This work aligns with the Federal Reserve Bank of Minneapolis’ broader mission to pursue an economy that works for all of us.
Public offerings vs. private placements
When offering bonds to potential investors, issuers choose between public offerings or private placements. A public offering means an issuer is choosing to sell bonds in the public market, made up of all interested investors. A private placement means an issuer is choosing to sell bonds to select investors or a class of investors.
Federal Reserve Bank of Minneapolis
Authors
Andy Huff
Senior Policy and Legal Advisor, Center for Indian Country Development
Vanessa Palmer
Division Data Director, Community Development and Engagement
January 30, 2026
Legal barriers may contribute to tribal governments’ lower usage of tax-exempt bonds
Article Highlights
Tax-exempt municipal1 bonds play an important role in financing the construction of public purpose projects and supporting private development across the country. For a given level of risk, tax-exempt debt can offer a lower cost of capital than financing the same project using taxable debt.2 Tribal governments, however, face both legal and debt service barriers to using this important financing mechanism available to state and local governments. These barriers can create challenges for tribes seeking to access the half-trillion-dollar annual tax-exempt municipal bond market for low-cost capital financing.
Federal Reserve Bank of Minneapolis
Authors
Matthew Gregg
Senior Economist, Center for Indian Country Development
John Morseau
Senior Policy Analyst, Center for Indian Country Development (former)
April 25, 2024
NORWALK, Conn., Jan. 21, 2026 (GLOBE NEWSWIRE) — CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for December 2025. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity over the next quarter, found sharp monthly decreases in request volume for new corporate and municipal identifiers. On an annualized basis, total identifier request volume surged in 2025 versus 2024 totals.
North American corporate CUSIP requests totaled 6,723 in December, which is down 21.6% on a monthly basis. On an annualized basis, however, North American corporate requests were up 7.1% over December 2024 totals. Requests for new U.S. corporate equity identifiers fell 3.9% and requests for new U.S. corporate debt identifiers declined 37.7% for the month of December.
The aggregate total of identifier requests for new municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – fell 20.2% versus November totals. On a year-over-year basis, overall municipal volumes were up 14.6% through the end of December. Texas led state-level municipal request volume with a total of 105 new CUSIP requests in December, followed by New York (81) and California (60).
“Monthly CUSIP request volume may have dropped off significantly in December, but when we take a look back at 2025 in total, we see a significant increase in new issuance activity across most major asset classes, including corporate debt and equity and municipal securities,” said Gerard Faulkner, Director of Operations for CGS. “As we head into the New Year, with uncertainty over interest rates and the broader economy still looming, the first few months of request volume in 2026 will provide valuable insight into how issuers are thinking about the markets.”
Requests for international equity CUSIPs fell 1.3% in December and international debt CUSIP requests fell 15.8%. On an annualized basis, international equity CUSIP requests were up 12.4% and international debt CUSIP requests were up 10.6%.
To view the full CUSIP Issuance Trends report for December, please click here.
Following is a breakdown of new CUSIP Identifier requests by asset class year-to-date through December 2025:
Overview
Governors in 31 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands will propose a new budget for fiscal 2027 for consideration during 2026 legislative sessions, while governors in three states (Kentucky, Virginia, and Wyoming) will propose biennial budgets for both fiscal 2027 and fiscal 2028. Last year, 15 states enacted biennial budgets for fiscal 2026 and fiscal 2027 while North Carolina enacted a partial budget; in some of these states the governor may propose a supplemental budget.
Forty-six states begin their fiscal year on July 1 (New York begins its fiscal year on April 1, Texas on September 1, and Alabama and Michigan on October 1). Puerto Rico begins its fiscal year on July 1, while the District of Columbia, Guam, and the U.S. Virgin Islands begin their fiscal year on October 1.
This is the U.S. Public Finance Rating Action Report 2025 Year to Date (January 1, 2026 to January 16, 2026).
Mon 19 Jan, 2026 – 4:10 AM ET
The U.S. credit outlook for 2026 is broadly benign, supported by AI-led capex, policy support, and easing monetary policy. However, rising concentration risk in AI investments raises bubble concerns and potential spillovers to credit markets.
Tue 20 Jan, 2026 – 11:55 AM ET
Key Takeaways
21-Jan-2026 | 08:29 EST
Key takeaways
21-Jan-2026 | 08:04 EST
Takeaways by Bloomberg AI
Bloomberg
By Jessica Nix
January 24, 2026
Jan 24 (Reuters) – The U.S. Department of Health and Human Services (HHS) restored about $5 billion in public health grants to states just hours after it sent notices pausing such grants, Bloomberg News reported on Saturday.
A spokesperson for the agency said that states would be notified that the pause had been lifted, the report added.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
HHS did not immediately respond to a Reuters request for comment.
“The temporary pause is for HHS to implement a new review process and to ensure funds are used for their intended purposes,” the HHS spokesperson earlier told Bloomberg.
Reuters
by Jamie Gumbrecht, Brenda Goodman, Deidre McPhillips,
Sat, January 24, 2026
Public officials can make the greatest difference when they focus on their communities’ housing, transportation and utility costs.
The concept of “affordability” keeps gaining ground as a mantra for public officials and political candidates across the political spectrum. New York City Mayor Zohran Mamdani centered his campaign almost exclusively on the issue, which was also a centerpiece in the campaigns of the new Democratic governors of New Jersey and Virginia. In Georgia, Republican Secretary of State and gubernatorial candidate Brad Raffensperger has accused his legislative critics of “tomfoolery” for demanding that his office release sensitive voter data to the U.S. Department of Justice — arguing that lawmakers should instead focus on pressing issues like affordability.
The word is being swatted around like a pickleball, but too few public officials have stopped to seriously consider what “affordability” actually means for local governments and the people they serve, and what those governments can do to make a difference.
I served for nearly two decades as a public official in both the legislative and executive branches of local government, followed by six years as a state college president. Across every leadership role I held, my primary focus was creating affordability for individuals and communities. From that experience and the prevailing research, I have concluded that there are three areas where local officials can make the greatest difference.
governing.com
OPINION | Jan. 23, 2026 • Jabari Simama
Takeaways by Bloomberg AI
Bloomberg Markets
By Elizabeth Rembert and Aashna Shah
January 20, 2026
From Bracing to Building
Investors are looking for and finding positive signs. The tone has shifted in a more constructive direction to begin 2026, relative to the last couple times the calendar turned, for several reasons.
advisorhub.com
by Tom Kozlik, HilltopSecurities
January 12, 2026
The muni market’s outperformance streak likely has little room left to run, according to Barclays Plc strategists.
State and local government debt posted a 0.6% gain this month — even while Treasuries swung to a small loss — as the market was buoyed by the reinvestment of bond payments and a continuing influx into mutual funds.
But that may mean there’s little upside left: The advance has pushed 10-year tax-exempt bond yields the deepest below those on Treasuries since May 2024. That measure, a closely watched gauge of valuations, indicates munis are already trading at lofty levels.
Bloomberg Markets
By Amanda Albright
January 23, 2026
Key Points
Led by Texas and New Hampshire, U.S. states across the national map, both red and blue in political stripes, are developing bitcoin strategic reserves and bringing cryptocurrencies onto their books through additional state finance and budgeting measures.
cnbc.com
by Trevor Laurence Jockims
Jan 17 2026
15-Jan-2026 | 17:08 EST
With tensions already high in Minnesota after an Immigration and Customs Enforcement officer killed Renee Macklin Good, the Trump administration is ramping up the pressure on cities and states to cooperate with its immigration crackdown.
The administration had already surged federal agents — sometimes accompanied by military troops — to Los Angeles, Portland, Chicago, Charlotte, Memphis, Washington D.C. and New Orleans.
Now the White House is threatening to cut funding for sanctuary cities. Here’s a brief explanation of how local governments interact with federal immigration enforcement, and what the White House can and can’t require from them.
boisestatepublicradio.org
By Joel Rose
January 17, 2026
Takeaways by Bloomberg AI
Bloomberg Markets
By Michelle Kaske
January 16, 2026
In response to the Trump administration’s slowdown of loan processing at the Water Infrastructure Finance and Innovation Act (WIFIA) program, four water advocacy groups sent a letter to EPA Administrator Zeldin in October last year asking for normal processing to resume. In December, a group of Democrat senators sent a similar letter requesting the same thing. The pressure worked – five loans totaling more than $500 million were rapidly approved and closed at the end of 2025.
Such lobbying and political efforts can be quite effective, as they were in this case, when executive branch slow walking cannot be credibly justified. Invited WIFIA loan applications are invariably of very high quality. All five recently closed loans had high investment grade credit ratings and financed low-risk, essential water infrastructure. WIFIA’s statutory framework has not been amended under Trump 2.0, nor has program funding run out. There have been no apparent issues whatsoever in program operation or portfolio credit performance. The WIFIA loan applicants had every right to expect that the new administration would execute their loans as expeditiously as had been consistently done since 2018. There was simply no excuse for further delay.
However, what if a required approval was outside of WIFIA’s statutory framework and, although frequently granted in the past, might now be characterized by the Trump administration as potentially having negative effects? Slow walking – or simply denying – such an approval by the administration might be much harder to counter. Unfortunately, I think there is a risk of this scenario for future approvals of WIFIA’s popular interest rate management feature, resetting an undrawn loan commitment to a lower interest rate.
Water Finance & Management
January 8, 2026
by Contributing Author
After a few difficult years, fixed income may be getting its groove back in 2026.
The inflation shocks from the COVID-19 era are in the rearview, and the positive correlation that occurred between fixed income and equities turned negative last year. That’s good news for diversified portfolios. Plus, the Federal Reserve may be in easing mode for monetary policy, but interest rates aren’t likely to return to pre-COVID levels where they were near zero, said Eric Sterner, chief investment officer of Apollon Wealth Management. “We think there’s going to be a lot more value to those fixed-income allocations moving forward, which is music to our ears — and I’m sure all investors,” he said.
So advisors are going all in on fixed income, but of course, tailoring their guidance; portfolio construction is always client-specific. There is a general theme several advisors are following this year, however: Stick to quality. “You don’t have to stretch much to get good income,” said Brian Schaefer, portfolio manager at Johnson Financial Group.
thedailyupside.com
by Debbie Carlson
Takeaways by Bloomberg AI
Bloomberg Markets
By Amanda Albright
January 13, 2026
Related Content: Exposure Draft: U.S. Public Finance Dedicated Tax and Revenue Bond Rating Criteria
Fitch Ratings-New York/San Francisco-08 January 2026: Fitch Ratings has published an exposure draft detailing a proposed revision to its rating criteria for dedicated tax and revenue bonds (DTRBs) for U.S. state and local governments and territories. DTRBs are payable from specific pledged taxes, fees, charges, or other governmental revenues and are not covered by a full faith and credit pledge.
This exposure draft will be published as a new rating criteria report following the conclusion of the comment period. The proposed criteria will apply to the assignment of new ratings and the monitoring of existing ratings.
During the consultation period, Fitch will continue to apply the Dedicated Tax Bonds sections of the “U.S. Public Finance Local Government Rating Criteria” and the “U.S. Public Finance State Governments and Territories Rating Criteria” to existing and new ratings. The Dedicated Tax Bonds sections from these criteria will be removed concurrent with the publication of the finalized “U.S. Public Finance Dedicated Tax and Revenue Bond Rating Criteria.”
The proposed methodology broadly retains the existing analytical and assessment framework for rating DTRBs, with some modifications:
–Enhance the transparency and clarity of the resilience analysis by introducing standardized and category-specific revenue stress guidance;
–Replace the “Growth Prospects for Revenues” and “Sensitivity and Resilience” Key Rating Drivers with “Revenue Risk” and “Resilience”;
–Enhance the guidance for assessing the performance of the pledged revenue stream over time (Revenue Risk) to include assessments of the pledged revenue type and revenue volatility in addition to revenue growth prospects;
–Measure Resilience based on the coverage of Maximum Annual Debt Service from stressed pledged revenues rather than the level of the coverage cushion as a multiple of the FAST revenue stress and largest cumulative revenue decline history;
–Eliminate the use of the Fitch Analytical Stress Test (FAST) model;
–Extend descriptions of non-investment-grade attributes to ‘b’ or lower for each KRD;
–Replace the Asymmetric Additional Risk Considerations, which were limited to only below standard or negative rating considerations, with the Additional Credit Factors, which may have a positive or negative effect on the final rating;
–Simplify the analysis of exposure to related government operations by explaining the limited circumstances in which Fitch will take recovery prospects into account, rather than strictly assessing probability of default, and in which various structural protections obviate the need to analyze pledged revenue risk and resilience.
Fitch estimates that approximately 20% of covered security ratings could be affected, with slightly more upgrades than downgrades expected. Most rating changes are expected to be within a range of one to three notches.
We invite feedback on the proposed criteria. Comments should be sent to criteria.feedback@fitchratings.com by Feb. 15, 2026.
Fitch will publish in full any written responses it receives on its website, including the names and addresses of the respondents unless the response is clearly marked as confidential.
Key Takeaways
12-Jan-2026 | 13:06 EST
Takeaways by Bloomberg AI
Bloomberg Industries
By Aashna Shah
January 8, 2026
With some communities pushing back against proposed data centers over concerns tied to water use, data center developers and others are working to tap technologies that will help to minimize the use of water to cool data center facilities.
A medium-sized data center can consume up to roughly 110 million gallons of water per year for cooling purposes, equivalent to the annual water usage of approximately 1,000 households, the Environmental and Energy Institute noted in June.
A report from Data Center Watch said that $64 billion in U.S. data center projects “have been blocked or delayed by a growing wave of local, bipartisan opposition.” The research timeline was May 2024-March 2025.
publicpower.org
by Paul Ciampoli
January 11, 2026
During this year’s annual City Summit, local leaders from across the country spoke during the Financing the Future: Strategies for Local Investment session, sharing their unique challenges and solutions to paying for projects their residents urgently needed — without leaning heavily on their municipality’s general funds or traditional federal grants.
Moderator Council President Blaine Griffin from the City of Cleveland, Ohio (pop. 365,379) led the session, giving each panelist the opportunity to share how local investment involves myriad of choices, from figuring out which projects get funded first to deciding between one-time dollars versus long-term investment.
Building Federal Relationships to Support Residents
Speaking on behalf of the City of Dublin, Calif. (pop. 70,544) Council Member Jean Josey described her community as a fast-growing suburb in the Bay Area. During the pandemic, Dublin and its neighboring cities of Pleasanton and Livermore saw their residents in crisis increasingly rely on emergency rooms when they couldn’t access behavioral health care — even when they had insurance.
National League of Cities
by Samantha Pedrosa
January 7, 2026
Takeaways by Bloomberg AI
Bloomberg Markets
By Michelle Kaske and Shruti Singh
January 8, 2026
Willdan Group, Inc. WLDN has completed the previously disclosed acquisition of Compass Municipal Advisors, LLC (officially announced on Nov. 21, 2025), through its subsidiary, Willdan Financial Services.
Compass Municipal Advisors is a registered independent municipal advisory firm headquartered in the Southeastern United States. Through this strategic move, Willdan expects to expand its municipal financial consulting platform and geographic reach across the Southeastern United States. By combining Compass Municipal Advisors’ specialized municipal advisory capabilities with Willdan’s broader financial and technical expertise, WLDN is better positioned to deliver comprehensive, data-driven solutions to a wider range of government clients.
Following the news, shares of WLDN gained 2.3% during after-hours on Friday.
Zacks Equity Research
Mon, January 5, 2026
As U.S. cities face increased exposure to climate-driven physical risks, Kestrel, the leader in Sustainability Intelligence™, today released its Resilience Taxonomy for U.S. Infrastructure. This framework provides the first standardized “best practices” for benchmarking resilience in the $4.3 trillion municipal bond market.
A Confluence of Risk and Opportunity
The release comes at a critical economic juncture defined by three intersecting trends. First, U.S. infrastructure faces climate-driven physical risks that threaten asset valuations. Second, municipal bond issuance to finance infrastructure is projected to reach record levels in 2026, with roughly $600 billion in new bonds. Finally, research from the World Resources Institute indicates every $1 invested in climate resilience can yield up to $10 in economic benefits. Kestrel’s taxonomy provides essential information to navigate this high-stakes environment, ensuring capital is directed toward infrastructure designed for long-term resilience.
Provided by Business Wire
Jan 5, 2026, 3:32:00 PM
Key Takeaways
Coupons Matter, More So When They Are Tax-Exempt
A steady focus on tax-free income and active management of yield curve positioning will help municipal (muni) investors navigate the potential choppy waters of the year ahead.
Elevated Supply, Here to Stay
Primary market supply is expected to deliver another record year, with Covid-19 federal funding reserves running low and costly infrastructure projects continuing their need for funding across most muni sectors.
Municipal Credit Selectivity Will Matter More
While the recent increases in new issue supply have raised questions around the impact on muni credit, healthy reserves levels and strong recent economic performance have muni credit well positioned to withstand the increased supply.
January 7, 2026
US state and local debt with long maturities offer “compelling” value in this less crowded corner of the market, according to the municipal investment arm of MacKay Shields.
So-called separately managed accounts, major players in the muni space that offer customized portfolios to retail investors, tend to prefer securities that come due in a decade or less. That leaves long-dated bonds looking attractive, especially bonds maturing in 12 to 22 years, according to a report by MacKay Municipal Managers.
“The structural constraints of these investment vehicles ultimately cap their ability to extend further, leaving the most compelling relative value firmly in the hands of flexible, unconstrained managers operating in less crowded portions of the curve,” the group said in a report released Monday.
Bloomberg Markets
By Amanda Albright
January 12, 2026
The outlook for affordable housing at the end of 2025 was neutral, but the sector “faces a complex landscape” in 2026, according to a December report from Fitch Ratings.
The ratings agency noted that 2025 saw no downgrades and two upgrades to sector entity ratings. As of Dec. 1, approximately 93% of Community Development & Social Lending ratings had stable rating outlooks, 2% had negative rating outlooks and 5% had positive outlooks, the company said.
This year will be “marked by significant federal policy shifts, economic headwinds and evolving funding dynamics,” wrote Senior Director Karen Fitzgerald, CFA. “These changes present opportunities to expand affordable housing supply and stimulate private investment, especially if paired with effective gap financing at the state and local levels.”
McKnights Senior Living
by Kathleen Steele Gaivin
January 5, 2026
Takeaways by Bloomberg AI
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
Fitch Ratings upgraded Indianapolis Airport Authority to ‘A+’ and Rhode Island Airport Corporation to ‘A’. Port of Portland and Niagara Frontier Transportation Authority had their outlooks revised to Positive from Stable.
Tue 30 Dec, 2025 – 2:06 PM ET
Fitch Ratings’ 2025 U.S. Airports Data Comparator contains financial data for 60 publicly rated issuers. This tool enables clients to compare indicators across different attributes, rating categories, and years. The current edition offers a snapshot of the financial status of entities as of December 15, 2025.
Tue 30 Dec, 2025 – 3:03 PM ET
Key Takeaways
Free registration required.
06-Jan-2026 | 09:51 EST
Fitch Ratings-New York/San Francisco/Chicago-22 December 2025: Fitch Ratings published an exposure draft for proposed revisions to its “U.S. Affordable Housing Project Rating Criteria” on Oct. 15, 2025. The comment period for feedback on the draft criteria ended on Nov. 21, 2025.
Fitch is reviewing feedback received on the draft criteria. We expect to address the comments and publish the final criteria early in 2026. Fitch will publish all written responses received during the comment period, including the respondent’s name, unless the response was clearly marked as confidential.
The exposure draft outlines proposed changes to Fitch’s methodology for rating U.S. affordable housing projects. The updated criteria will consolidate the existing “U.S. Affordable Housing Rating Criteria” (published March 2022) and “U.S. Military Housing Rating Criteria” (published June 2022) into a combined, sector-specific criteria report, which will cover affordable, mixed-income, military, workforce, senior, student and other types of affordable housing. The proposed revisions will also broaden the scope of the criteria to include additional property segments, subsectors and additional forms of underlying collateral in response to recent trends and market developments.
Fitch Ratings-New York/Milan-23 December 2025: Fitch Ratings has published an exposure draft that proposes to introduce Climate Vulnerability Signals (Climate.VS) into relevant rating criteria as a screening tool to enhance its ability to identify climate-related risks in U.S. Public Finance (USPF) and subject those ratings to additional analysis and consideration in our rating reviews.
Fitch does not expect the introduction of Climate.VS to have an impact on any USPF ratings because climate-related risks are already considered in the ratings where relevant. Climate.VS will be used as a screener rather than a direct input into ratings and provide transparency to the current approach.
The scope of the proposed criteria addition would be cross-sector. We would apply the criteria to new ratings and the surveillance of ratings across USPF under our U.S. Housing Finance Agency Loan Program Rating Criteria, U.S. Public Sector, Revenue-Supported Entities Rating Criteria, U.S. Public Finance Local Governments Rating Criteria and U.S. Public Finance State Governments and Territories Rating Criteria. This exposure draft will be included as a separate appendix in the master criteria upon finalization.
We invite feedback on the proposed criteria. Comments should be sent to criteria.feedback@fitchratings.com by Jan. 23, 2026. Fitch will publish on its website any written responses it receives in full, including the names and addresses of the respondents unless the response is clearly marked as confidential.
Fitch Ratings upgraded Indianapolis Airport Authority to ‘A+’ and Rhode Island Airport Corporation to ‘A’. Port of Portland and Niagara Frontier Transportation Authority had their outlooks revised to Positive from Stable.
Tue 30 Dec, 2025 – 2:06 PM ET
Fitch Ratings’ 2025 U.S. Airports Data Comparator contains financial data for 60 publicly rated issuers. This tool enables clients to compare indicators across different attributes, rating categories, and years. The current edition offers a snapshot of the financial status of entities as of December 15, 2025.
Tue 30 Dec, 2025 – 3:03 PM ET
Fitch Ratings’ U.S. Local Government Data Comparator contains ratings and Local Government Rating Model (LGRM) data for issuer ratings supported by use of the Local Government Rating Model.
Wed 31 Dec, 2025 – 11:21 AM ET
Abstract
The US $4.2 trillion US municipal debt market finances over 70% of essential infrastructure, but escalating physical climate risks, such as flooding and wildfires, are exposing the market’s emerging vulnerabilities. Rising disaster costs and insurance retreat threaten property values, and hence municipal tax bases that secure debt repayment. Despite these signals, municipal bond prices have been slow to reflect climate risk adequately. Well-resourced municipalities may use bonds for adaptation, but those facing constrained credit access may struggle to access capital. This US-focused Review identifies three challenges: (1) climate risk is underpriced in municipal bonds; (2) abrupt repricing could affect high-risk and under-resourced cities most by increasing borrowing costs and limiting capital access; (3) misalignment between adaptation planning and municipal finance weakens long-term resilience and affects creditworthiness. Together, these challenges contribute to a climate-debt doom loop that can be triggered by climate shocks. This synthesis offers actionable strategies for cities’ adaptation plans and governance frameworks to disrupt this loop and strengthen municipalities’ financial resilience.
05 January 2026
Willdan Group, Inc. (NASDAQ: WLDN) announced today that it has completed the previously announced acquisition of Compass Municipal Advisors, LLC (“Compass”) by its subsidiary, Willdan Financial Services. Compass is an independent municipal advisory firm headquartered in the Southeastern U.S. The terms of this transaction were not disclosed. Willdan expects the acquisition of Compass to expand its geographic footprint and enhance its municipal advisory and public finance capabilities for clients.
About Willdan
Willdan is a nationwide provider of professional technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, energy policy planning and advisory, engineering and planning, and municipal financial consulting. For additional information, visit Willdan’s website at www.willdan.com or follow Willdan on LinkedIn and Facebook.
Provided by Business Wire
Jan 2, 2026, 7:00:00 AM
Takeaways by Bloomberg AI
Bloomberg Markets
By Martin Z Braun
January 5, 2026
We believe that tax-free municipal bonds continue to be well positioned in the current market environment. Their characteristics warrant a place in most retail investors’ investment portfolios, and not just due to their appeal of relatively high taxable equivalent yields (TEYs). This subsector of fixed income is generally of very high-credit quality with significantly lower default levels relative to other sectors. Historically, it has acted as an important diversifier particularly for equity allocations, and after two straight years of record issuance levels, the technical picture looks solid.
Taxable-equivalent yields (TEYs) remain robust
In most instances, the income from municipal bonds is not subject to federal income tax and can also be exempt from state income tax for investors holding bonds in the state in which they reside. It is essential for comparison purposes to consider this feature when comparing municipal bonds to other subsectors of fixed income which are fully taxable, to get a true apples-to-apples comparison. This can be accomplished through the lens of taxable equivalent yield (TEY), which puts tax-free and taxable securities on an equal playing field.1 As Exhibit 1 shows, TEYs for the municipal bond sector are attractive across the yield curve relative to both US Treasuries and US investment-grade corporate bonds. As of the end of November 2025, the yield advantage continued to be most pronounced for the intermediate to long end of the curve, as it has steepened.
etftrends.com
by Rick Polsinello of Franklin Templeton
12/30/25
Investors and advisors have numerous goals to meet with their portfolios. Some investors full send their portfolios to produce as much capital appreciation as possible. Others, especially those at or near retirement age, look for current income and ballast to steady their financial ships. Almost all investors, however, can benefit from adding tax-exempt munis to their holdings. Tax-exempt ETF options like TAXE, for example, can prove a shrewd addition, especially as one year turns to another.
The T. Rowe Price Intermediate Municipal Income ETF (TAXE) charges just 24 basis points for its active approach. The strategy launched in 2024 and brings T. Rowe Price’s fundamental research capabilities to the tax-exempt muni space, targeting debt securities across a range of credit qualities in the intermediate maturity area.
That active approach assesses issuers for metrics like prices and yields, while also considering junk bonds where prudent. Together, that has helped the active tax exempt ETF return 5.8% YTD according to ETF Database data. As of November 30, the strategy provided a 3.9% yield to maturity and a 3.16% 30-day SEC Standardized Yield according to T. Rowe Price data.
etftrends.com
By Nick Peters-Golden
January 2, 2026
For a portion of 2025, municipal bonds scuffled amid concerns about the state of the U.S. economy, a spate of new issuances and lack of clarity from the Federal Reserve on interest rates.
Skeptics may assert those issues haven’t been fully resolved. However, it is clear that municipal bonds ended last year with some momentum. That could pave the way for 2026 upside for the asset class and ETFs such as the ALPS Intermediate Municipal Bond ETF (MNBD).
With advisors and investors seemingly renewing their affinity for tax-advantaged income-generating assets, the actively managed MNBD could be in style this year. An increasingly alluring fundamental picture for municipal bonds supports that thesis.
etftrends.com
by Todd Shriber
January 5, 2026
As states and cities navigated crisis, reform and political change, these were the stories readers turned to most in 2025 — from emergency management and public safety to housing, transit and federal policy.
Today’s Governing Daily brings together some of our best and most-read reporting and commentary—from in-depth features on how states and cities are navigating policy, politics and innovation to sharp opinion pieces shaping the national debate.
Top 10 Governing Feature Stories of 2025
1. How Colorado Built a Bustling Intercity Bus Service
Colorado’s Bustang service provides links between big cities and small rural communities. Approaching its 10th birthday, it has expanded service frequencies and grown its ridership.
governing.com
Dec. 23, 2025
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.”
In City of San José v. Howard Jarvis Taxpayers Association (December 18, 2025), the California Supreme Court unanimously upheld the City of San José’s (the “City”) authorization of the issuance of up to approximately $3.48 billion in pension obligation bonds (“POBs”) to refund the City’s unfunded actuarial pension liability (“UAL”), holding that—even if the bonds constitute “new” debt—the issuance falls within the exception to the constitutional debt limitation for an “obligation imposed by law” and therefore does not require two‑thirds voter approval under Article XVI, section 18(a) of the California Constitution. The Court concluded that state law and the City’s voter‑enacted charter obligate the City to maintain its retirement plans on a sound actuarial basis and that the UAL is therefore an obligation imposed by law. Therefore, the Court decided, the constitutional debt limit does not constrain the City’s discretion over how to address such obligation, including by choosing to issue POBs without a vote.
Orrick, Herrington & Sutcliffe LLP served as counsel for amici curiae the League of California Cities and the California State Association of Counties, filing an amicus brief urging the Court to hold that the obligation imposed by law exception encompasses local governments’ use of POBs to address legally mandated pension‑funding obligations. The Court’s opinion expressly cites amici’s point that the City relied on the Retirement Boards’ actuarial calculations and did not usurp the Retirement Boards’ fiduciary role, as the Court ultimately adopted the obligation imposed by law rationale in affirming the validity of the City’s POBs.
Orrick, Herrington & Sutcliffe LLP.
December.23.2025
On December 18, 2025 the California Supreme Court provided an early Christmas present to California municipalities in a unanimous decision affirming that the issuance of pension obligation bonds does not violate California’s Constitutional debt limit. In doing so, the Supreme Court upheld trial court and appellate court rulings in favor of the City of San José. In the decision, the Supreme Court held that unfunded pension liability is an obligation imposed by law and that municipalities have discretion in determining how to address that obligation, including through the issuance of pension obligation bonds. The City of San José had argued that the issuance of pension obligation bonds does not create a new debt at all (but merely repackages an existing unfunded pension liability). The Supreme Court did not find it necessary to delve deeply into that argument, holding that, even if it accepted the argument of challengers (led by the Howard Jarvis Taxpayers Association) that pension obligation bonds represent a new debt, the debt can be issued without voter approval under the “obligation imposed by law” exception to the Constitutional debt limit.
The Taxpayers Association argued that pension obligation bonds do not meet the “obligation imposed by law” exception because no law requires the issuance of bonds to address unfunded pension liability. But the Supreme Court turned down this argument, holding that municipalities have discretion to determine how to manage obligations that are imposed by law.
The City of San José is a charter city whose voter-approved charter requires the City to fund pension benefits for employees in an actuarially sound manner. The City’s position that it was compelled to fund its unfunded pension liability was understandably focused on the language of its charter. It remains to be seen whether the Supreme Court will accept the argument that the obligation of non-charter cities and other public agencies to fund their unfunded pension liabilities constitutes an “obligation imposed by law” for Constitutional debt limit purposes even if their pension plans were voluntarily created. Two such pension obligation bond cases (for the cities of Oxnard and Escondido) are currently pending before the Supreme Court, with both cities also having bested the Taxpayers Association at trial and on appeal. Certain Government Code provisions support the argument that pension plans, once created, must be maintained in an actuarially sound manner. The Oxnard and Escondido cases were stayed pending the San José decision. Watch this space for resolution of those cases by the California Supreme Court in 2026 now that San José has been decided.
Kutak Rock LLP’s public finance group has served on numerous occasions as bond and disclosure counsel to public agencies throughout California and nationwide on pension obligation bond issuances. Please contact Cyrus Torabi in Kutak Rock’s Irvine office for further information about the City of San José ruling or pension obligation bonds generally.
Kutak Rock LLP
December 22, 2025
Cryptocurrency is creeping into the municipal market. This is an unusual development for a market known for its prudent fiscal practices. It is actually quite astonishing.
This article will describe the ways cryptocurrency has entered the municipal market, the general risks associated with utilizing cryptocurrency, and the risks this creates for market participants.
The Crypto Creep
A number of states have permitted state funds to be invested in cryptocurrencies. In New Hampshire, the state may invest 5% of its public funds in precious metals and digital assets as long as the asset has a market capitalization of over $500 billion. Bitcoin is presently the only cryptocurrency that qualifies. Texas has passed a very similar law. Arizona establishes a process for the state to seize digital assets which qualify as abandoned property. A number of other states, including Massachusetts, Michigan, North Carolina, and Ohio, have introduced laws similar to New Hampshire’s, some of which would allow up to 10% of public funds to be invested in cryptocurrency.
In addition, the New Hampshire Business Finance Authority is seeking to issue $100 million of taxable bonds secured by bitcoin, $150 million of which will be put in a statutory trust to both pay debt service on and secure the bonds. If the value of the bitcoin goes below a specified level, the trust will liquidate to redeem the bonds and mitigate loss. If the bitcoin appreciates over a specified level, the bondholders will share in the upside.
by David L. Dubrow
December 16, 2025
ArentFox Schiff LLP
Takeaways by Bloomberg AI
Bloomberg Markets
By Martin Z Braun
December 23, 2025
As we head into 2026, there are several priorities on the federal horizon that can support local water infrastructure projects to improve drinking water, wastewater and stormwater management systems.
Here are six key points that NLC is advocating for on behalf of water infrastructure, along with ways local leaders can get involved.
1. Water Infrastructure Funding from IIJA Continues to be Available
The bipartisan Infrastructure Investment and Jobs Act (IIJA) allocates $50 billion over five years for water infrastructure (PDF), divided across five distinct pots under the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund (SRF). In addition to traditional uses through the SRFs, there is specific funding for lead pipe replacement and addressing PFAS and other emerging contaminants.
The U.S. Environmental Protection Agency (EPA) is in the process of allocating the FY25 and FY26 amounts to states, which will, in turn, distribute them to communities. Moreover, due to the varying state timelines, some states may still be in the process of distributing FY24 funding to their communities.
National League of Cities
By: Carolyn Berndt
December 18, 2025
Indiana policymakers will decide if taxpayers or private companies should bear the financial risks of repairing and modernizing major highways.
Indiana legislators made history in June when they agreed to finance the long-needed reconstruction and modernization of their aging Interstate highways, using a reliable funding source: 21st-century electronic tolling. Rebuilding these vital corridors for personal travel and interstate commerce will be the largest set of public works improvements in Indiana’s history.
Each Interstate reconstruction is likely to be a mega-project, costing at least $1 billion. Megaprojects, alas, have a long history of cost overruns and late completions. A key question for Indiana policymakers is: Who should bear the financial risks of these megaprojects? Taxpayers or investors?
Since these highway projects will make use of toll financing, there are two alternatives.
by Robert Poole
Director of Transportation Policy
December 15, 2025
reason.org
Not for the first time, tax-exempt bonds have ridden out some bumps to deliver for investors.
When I last wrote about municipal bonds, they were experiencing a bit of a rough patch. In the first half of 2025, the Morningstar US Municipal Bond Index logged a slightly negative total return. It underperformed the Morningstar US Core Bond Index, which represents the market for investment-grade taxable debt, by roughly 4 percentage points. That’s a meaningful margin in the land of fixed income.
Tax-exempt bonds have staged a comeback in the year’s second half. Since July 1, the Morningstar US Municipal Bond Index has outpaced its taxable equivalent. For muni-bond investors, the year is shaping up to be disappointing but far from disastrous.
morningstar.com
by Dan Lefkovitz
Dec 24, 2025
Whitehaven Asset Management, a hedge fund focused on municipal and corporate bonds, will return investors’ money and become a family office, according to managing partner Scott Richman.
The money manager, which is based in Greenwich, Connecticut, plans to return capital to investors over the course of 2026. Richman will oversee it as a family office in 2027. He will manage his own money and invest in areas beyond fixed income, he said.
The Whitehaven Credit Opportunities Master Fund, which has about $1.3 billion of assets, has provided a positive net return to investors every year since its inception in 2014, including a 28.15% net return in 2020, Richman said.
Bloomberg Markets
By Amanda Albright
December 18, 2025
Takeaways by Bloomberg AI
Bloomberg Markets
By Erin Hudson
December 18, 2025
A veteran manager assesses which parts of the muni market appear attractive, the pros and cons of buying individual munis, and which municipalities he’s avoiding.
Our guest on the podcast today is Lyle Fitterer, a senior portfolio manager and co-lead on the municipal bond sector for Baird Advisors. He has 36 years of experience managing bond portfolios. Prior to joining Baird in 2019, he served as the co-head of global fixed income and the head of the municipal fixed income team as Wells Fargo Asset Management. Lyle obtained his undergraduate degree in accounting from the University of North Dakota. He earned the chartered financial analyst designation in 1996 and is currently a member of the CFA Institute and the CFA Society of Milwaukee.
morningstar.com
by Christine Benz and Amy C. Arnott, CFA
Dec 16, 2025
Takeaways by Bloomberg AI
Bond investors have been increasingly wary of debt sold by US hospitals, and they see looming cuts to federal health-care funding as new pain points for an industry that’s just starting to recover from pandemic stress.
Hospital debt is one of the worst-performing municipal-bond market sectors so far this year, with its 3.44% gain lagging the overall investment-grade basket by about 0.6 percentage point, according to data compiled by Bloomberg.
Bloomberg Markets
By Aashna Shah and Elizabeth Rembert
December 12, 2025
The healthcare municipal market continues to navigate a mix of structural headwinds, evolving risk appetites and a shifting credit landscape. A recent investor conversation at the Kaufman Hall Healthcare Leadership Conference offers insights as to where investors are focused today, and what borrowers can do to meet the market on favorable terms. Several themes emerged: geography and scale matter but do not outshine performance, execution beats aspiration, disclosure quality is a differentiator, and underlying credit quality matters more than bond or security structure. Underneath it all, supply and demand remain the strongest drivers of investor appetite and determine whether an order shows up on pricing day. Finally, investors’ key question when assessing strategy remains: are management’s incentives aligned with mine?
We thank Connie Lu, a fixed income investment analyst at Capital Group; Brian Pyhel, CFA, CPA, a director and senior research analyst in the municipal fixed income division of BlackRock’s Portfolio Management Group; and Pranav Sharma, a research analyst on Lord Abbett’s Municipal Bond Research team, for participating in our conversation.
HR1, labor, cyber risk and other headwinds
Policy risk is near the top of investors’ watch list. The recently enacted HR1 (also known as the One Big Beautiful Bill) will materially change the healthcare landscape though its phased impacts will be credit-specific and state-mediated. Investors understand the law will impact borrowers in a variety of ways, but that is only the first derivation. While investors are not overly concerned by the potential impact of the law, they are concerned by borrowers who do not have a handle on, or are unwilling to communicate, its impact. “We’re still assessing” is no longer an adequate response.
kaufmanhall.com
December 11, 2025
Sector View: Negative
08-Dec-2025 | 13:27 EST
The operating environment for the public power sector should remain relatively stable in 2026. Fitch expects utilities to increase rates as needed to preserve financial performance.
Wed 10 Dec, 2025 – 11:07 AM ET
Sector View: Stable
11-Dec-2025 | 11:26 EST
Sector View: Mixed
09-Dec-2025 | 12:43 EST
Sector View: Stable for all asset classes
09-Dec-2025 | 12:38 EST
Fitch expects a stable macroeconomic backdrop to marginally lift transportation volumes and revenues in 2026. Ports diverge from the neutral trend with tariffs expected to weaken consumer appetite for imported goods, resulting in lower volumes ahead.
Tue 09 Dec, 2025 – 4:48 PM ET
Sector View: Stable
10-Dec-2025 | 14:50 EST
The affordable housing sector faces unprecedented complexity in 2026 as federal policy shifts elevate tax incentives, but direct program funding is increasingly at risk. Operational uncertainty, high construction costs, and labor shortages are pressuring project delivery and financial performance.
Wed 10 Dec, 2025 – 10:17 AM ET
Fitch Ratings has published an updated version of its “U.S. Public Finance Variable-Rate Demand Obligations and Commercial Paper with External Liquidity Rating Criteria”. This report replaces the prior version published on Dec. 12, 2024. The key elements of Fitch’s rating criteria remain consistent with those of its prior report.
Tue 09 Dec, 2025 – 4:23 PM ET
Key Takeaways
09-Dec-2025 | 12:24 EST
JPMorgan Asset Management is seeking to convert two municipal-bond mutual funds with over $840 million of assets into ETFs in 2026, underscoring the growing popularity of the products.
The board for the JPMorgan California Tax Free Bond Fund and the JPMorgan New York Tax Free Bond Fund will consider the conversion in February, according to a filing Tuesday. If approved, the flip is expected to take place in June.
Both funds focus on investing in investment-grade muni bonds from California and New York, respectively. Those states are both home to wealthy residents who favor tax-exempt bonds as a way to reduce tax bills. Both have seen their assets grow year-to-date.
Bloomberg Markets
By Amanda Albright
December 9, 2025
This Fitch Ratings report highlights the operating and financial performance of Fitch-rated ports in the U.S. It provides an annual, point-in-time assessment of these ports. Ratios for each issuer are determined using audited information or additional information received from the issuer and reflect circumstances unique to each credit. This report excludes corporate-like issuers, public-private partnerships and project financings.
Fri 12 Dec, 2025 – 3:20 PM ET
Fitch Ratings’ 2025 U.S. Ports Data Comparator contains financial data for 14 publicly rated issuers. This tool enables clients to compare indicators across different attributes, rating categories, and years. The current edition offers a snapshot of the financial status of entities as of December 5, 2025. Median calculations, located at the top of the table, update dynamically when the table view is altered using the heading filters. This functionality allows clients to modify the scope of the dataset and display the respective median values.
Fri 12 Dec, 2025 – 3:22 PM ET
Federal-exposed sectors and credits are facing rising uncertainty amid shifting policies. Head of Municipal Fixed Income Greg Steier and Credit Analyst Kate Fuller examine how these evolving federal policies are reshaping risk profiles for exposed sectors and credits, and what investors should watch for next.
When it comes to credit, we don’t shoot for the moon. Instead, we seek durability, which we view as resilience to a wide variety of economic and political circumstances. Over the last year, federal aid, once viewed by our team as a source of credit strength, has become increasingly politicized. As a result, sectors and credits with large exposures to the federal government – through the local economy, appropriations, or grant funding – now face increased uncertainty. We also expect to see a shift in the funding burden away from the federal government. Consequently, there’s a bad moon on the rise for some, including states, local governments, and other not-for-profit entities.
The impact of the One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBBA) became law in July 2025, and with it came sweeping tax and policy provisions with implications for municipal credit. Medicaid cuts of $900 billion by 2034 and significant changes to the Affordable Care Act (ACA) grabbed headlines. The changes include more stringent eligibility requirements for enrollment, a reduction of the provider tax cap in Medicaid expansion states, and new limits on state-directed payment programs. The cumulative impact of these modifications will ultimately include less covered lives, lower reimbursement rates for providers, and less federal dollars flowing in support of Medicaid-related programs.
bbh.com
December 10, 2025
Executive Summary
Accurately estimating utility project costs in the early stages of the project lifecycle is difficult, with systematic assumptions leading to significant deviations for portfolio planning and budgeting. Traditional methods often fall short in early project stages, relying on limited data and subjective judgment, which can result in wide variances and uncertainty. Advances in machine learning offer a transformative solution: by analyzing patterns in historical project data, ML models can deliver more precise and reliable early cost estimates. This data-driven approach not only streamlines construction and reduces costs but also improves infrastructure quality. As the models mature, they could even enable near real-time cost simulation during program planning, which could revolutionize how utilities structure multi-year capital programs.
Exponent Inc – Merih Tekeste and Liyu Wang
12/12/25
Success in the coming years will require sustainability, adaptation and perseverance, especially as AI both enhances and disrupts government. Professional leaders need to look beyond the short term, facilitate change where needed, and reinvent themselves.
As 2025 comes to a close, this is a worthwhile time for public finance professionals and public officials to reposition themselves to master a shape-shifting fiscal landscape, new technologies, staffing challenges and unknown unknowns. Many of their contemporaries will try to cope with the accelerating pace of change by muddling through and playing it safe. Traditional bureaucratic responses may work for some, but they run the risk of leaving the foot-draggers hopelessly out of touch and eventually obsolete.
Survival and success for most professionals in the field of public finance will come easier to those who accept the inevitability of change, adapt to new technologies, avoid gimmicks, promote and practice continuous improvement, orchestrate long-term thinking by those around them, and brush up on their own self-awareness and interpersonal skills.
The most familiar and quantifiable aspect of this long game is fiscal sustainability. For starters, that requires a sober review and projection of the jurisdiction’s revenue and expense trends to question whether each year’s budget has habitually become a game of kicking the can to the next year and one’s successors. At a minimum, a fresh five-year financial forecasting exercise is now timely.
governing.com
OPINION | December 9, 2025 • Girard Miller
Municipal defaults remain rare, but recent data shows a widening gap between the safest and riskiest sectors, highlighting the need for careful credit research and selective sector exposure.
Key Takeaways:
vaneck.com
by Tamara Lowin
Senior Municipal Credit Analyst
December 09, 2025
SIFMA’s Economic Advisory Roundtable forecasts 1.8% GDP growth in 2025 and 2.2% in 2026, with upside risks from lower tariff impacts, productivity gains, and consumer spending. Inflation expectations remain anchored, though core PCE stays above 2%. “This is a notable improvement from the estimates made back in the 1H of 2025,” said Roundtable Co-Chair Scott Anderson, BMO.
Cities nationwide are tightening their budgets as revenue growth slows and federal COVID-era aid phases out, according to the latest National League of Cities (NLC) fiscal survey. After enjoying several years of stabilization supported by pandemic relief, many municipal finance leaders now report rising expenses and greater uncertainty heading into 2026.
Spending increased 7.5% in FY 2024, but that pace plummeted to 0.7% in FY 2025, NLC found. At the same time, revenue growth, which rose 3.9% in 2024, is now expected to drop 1.9% in 2025, forcing many cities to consider cuts, hiring freezes or delayed capital projects.
The decline in confidence is stark: 52% of finance officers said they could meet their city’s financial needs in FY 2025, down from 64% just one year earlier. Optimism falls further looking ahead to 2026, where only 45% feel confident.
constructionowners.com
Construction Owners Editorial Team
November 27, 2025
State and local financial managers face the impact of federal aid cutbacks, plus new rules and even some opportunities. It’s time to focus on what’s practical and necessary, both near and longer term.
When it comes to the federal-state-local fiscal relationship, the Trump administration and its allies in Congress have driven more changes in less than one year than any other presidency since Franklin Roosevelt’s, most of them going in the opposite direction politically. A clear takeaway for state and local financial managers and their policymaking bosses is that they can no longer count on fiscal federalism — dollars from Uncle Sam — to alleviate budgetary problems.
But there are also some quirky features of this new landscape that present more obscure challenges and even some economic development possibilities. For the public workforce, implementing new payroll features to comply with the 2025 tax law, particularly its overtime taxation provisions, will be the first order of the day, but that’s a bookkeeping and software sideshow in the long run. The main event is that many states’ and some municipalities’ budget reserves are shriveling.
While states and localities collectively face cost shifting for essential functions once paid for by Uncle Sam, such as cybersecurity networks, the most important task for many in 2026 will be a review and reset of their financial reserves policies. If Uncle Sam is now prone to write counter-cyclical checks to taxpayers rather than sending money to states in the next recession, and less likely to provide natural disaster recovery aid, then rainy-day funds may need to be beefed up, not depleted in futile efforts to provide end-of-life support to formerly federally funded programs that remain popular locally.
governing.com
OPINION | November 25, 2025 • Girard Miller
Sector View: Stable
03-Dec-2025 | 10:14 EST
Sector View: Stable
Free Registration Required.
04-Dec-2025 | 11:46 EST
Fitch Ratings-New York-03 December 2025: Fitch Ratings has assigned a Neutral sector outlook to U.S. state and local governments in 2026, saying that the vast majority of Rating Outlooks are Stable. Credit quality should remain consistent and strong as governments manage slower growth with robust reserves, liability reductions and prudent budgets. Economic performance has exceeded expectations. However, risks are emerging from a slower labor market, tariff-driven inflation, and changes in federal responsibilities. Even so, most governments should be able to absorb these pressures due to strong financial resilience.
Macro risks to revenue include the potential for escalating tariff pass‑throughs, which may raise the Consumer Price Index (CPI) and curb consumption; softening payroll growth and potential layoffs; and a slowdown in IT-related capex that could weigh on equity markets and income tax collection in market‑sensitive states like California and New York. In addition, housing indicators are weakening, and Fitch expects the residential housing sector to slow in 2026. This could pressure local sales and transaction taxes, as well as assessed property values over time.
Spending pressures persist. States face uncertainty around changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) implemented under H.R. 1. Wage growth for public employees remains high, increasing strain on budgets, particularly for local governments. The shift of federal costs to states and local governments could be negative for credit where financial resilience is thinner.
Operating trajectories are broadly stable. Most state and local governments used prior surpluses to build reserves, pay down debt and invest in one-time capital needs, though some with pre-existing challenges still face fiscal constraints. Ongoing implementation of state tax policy changes and softer economic growth could drive volatility in revenue and budgets. For local governments, lags in property tax assessments and tax collection trends allow time to adjust to changing conditions, while an economic downturn would create more immediate strain on governments that rely on sales and income taxes.
Fitch’s “U.S. State and Local Governments Outlook 2026” report is available at www.fitchratings.com
Fitch Ratings expects U.S. state and local governments to maintain stable credit quality through 2026 despite economic uncertainties. Robust reserves and prudent budget management will help governments manage fiscal risks and maintain financial resilience.
Wed 03 Dec, 2025 – 10:09 AM ET
Sector View: Stable
01-Dec-2025 | 13:49 EST
Fitch Ratings-Chicago-04 December 2025: U.S. higher education faces rising challenges in 2026, according to a new Fitch Ratings report. Fitch’s outlook for the sector is ‘deteriorating’ based on the increasing headwinds from federal policy, enrollment, and other macroeconomic conditions that will affect revenue growth prospects and operating margins in the coming year.
Tuition revenue, which is often the largest revenue source for colleges and universities, remains constrained as demographic trends and financial aid policy changes reshape domestic student decisions and as prospective international students face numerous hurdles. While state funding improved for the 12th straight year, slowing revenue growth and shifting federal cost burdens beyond 2026 are risks.
Despite these headwinds, two-year programs are driving sector growth, and institutions are pursuing partnerships, asset monetization, and alliances to manage costs. We expect consolidation to accelerate, especially for schools in regions with economic and demographic stress. Capital spending will likely rise in 2026 to address deferred maintenance and housing needs, but additional debt may otherwise hamper overall operating cost flexibility.
Fitch’s Rating Outlook remains Stable for most rated institutions, though pressure persists for those rated ‘BBB’ and below. “Broader trends, including potentially disruptive AI-driven labor market changes, may further influence demand and program offerings across the sector,” said Senior Director Emily Wadwhani.
The full report is available at www.fitchratings.com.
25-Nov-2025 | 16:43 EST
Sector View: Negative
02-Dec-2025 | 10:44 EST
Sector View: Negative
08-Dec-2025 | 13:27 EST
Fitch Ratings anticipates a ‘deteriorating’ credit environment for U.S. Public Finance Higher Education in 2026 relative to 2025. Revenue growth prospects remain strained, particularly for net tuition as the domestic undergraduate student base shrinks and international students face multiple obstacles.
Thu 04 Dec, 2025 – 1:57 PM ET
Investors snapped up a catastrophe bond tied to North Carolina homeowners and their insurer for installing super roofs.
Takeaways by Bloomberg AI
Bloomberg Green
By Leslie Kaufman
December 1, 2025
Insurers are struggling as climate change-fueled damage intensifies. So are homeowners. Clearly something has to change.
Enter a novel program run by North Carolina’s insurer of last resort that incentivizes homeowners to install roofs that can stand up to extreme winds. It’s still relatively small, but it comes at a time when the federal government is pulling back.
Bloomberg Green
By Leslie Kaufman and Laura Millan
December 1, 2025
What is happening at EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) loan program?
The mysterious issue is not the near-complete cessation of loan closings under Trump 2.0. The reason for that is clearer: the Office of Management and Budget’s pause on federal grants and loans in February combined with continuing federal upheaval under this administration.
Much harder to explain is the steady decline in program loan volume since the end of 2021 through January 2025, despite rising U.S. water sector capex. During this period, WIFIA had a supportive Biden administration, plenty of funding and was run as efficiently as ever. Yet, the program’s annual executed loan volume fell from a calendar year peak in 2021 of over $5.5 billion to under $2 billion in 2024.
Water Finance & Management
November 24, 2025
Takeaways by Bloomberg AI
Bloomberg Markets
By Aashna Shah
December 5, 2025
Strong demand for municipal exchange-traded funds is shifting the state and local bond market’s dynamics and masking flow trends. A single mutual fund conversion last week made what was actually an inflow look like nearly $1 billion in outflows, according to JPMorgan.
Bloomberg’s municipal bonds reporter Maxwell Adler discussed the story on “Bloomberg Markets” with Vonnie Quinn.
Bloomberg Markets – Muni MomentTV Shows
November 26th, 2025, 11:25 AM PST
Strong demand for municipal exchange-traded funds is shifting the state and local bond market’s dynamics and masking flow trends. A single mutual fund conversion last week made what was actually an inflow look like nearly $1 billion in outflows, according to JPMorgan. Bloomberg’s municipal bonds reporter Maxwell Adler discussed the story on “Bloomberg Markets” with Vonnie Quinn.
Bloomberg Markets – Muni MomentTV Shows
November 26th, 2025, 11:25 AM PST
As 2025 winds down, a rocky beginning for municipal bonds is giving way to a smoother ride to the finish. In the latest iteration of its Active Fixed Income Perspectives, Vanguard noted a strong showing by municipal bonds in Q3. Given this, fixed income investors may want to position their portfolios for muni exposure if they haven’t already.
An oversupply of munis due to heavy issuance to start the year has turned for the better. As the rate-cutting cycle ensues through Q4 and into next year, municipal bonds can offer investors a combination of yield and strong credit fundamentals. Heavier demand in Q3 saw munis outperform broad bond indexes.
“The municipal bond market enjoyed a rally in the third quarter, outperforming the Bloomberg US Aggregate Index,” the report said. “Yields moved lower across the curve, but longer maturities delivered the best returns due to higher duration. The key feature of this market remains a historically steep curve with highly attractive long-end valuations and richer pricing in the short end.”
Here are a few solutions to consider for muni exposure by way of Vanguard’s low-cost ETFs.
etfdb.com
by Ben Hernandez
Nov 26, 2025
These mutual funds and ETFs receive top ratings from Morningstar’s analysts.
Morningstar’s Guide to Active Fixed-Income Investing lays out the case for active bond funds. In short, the complexity and inefficiencies of the bond market spell opportunity for skilled portfolio managers.
While most investors focus on taxable bonds, the argument for active investing applies to the municipal-bond market as well. In “How to Use Municipal-Bond Funds in a Portfolio,” Amy Arnott and Margaret Giles provide a primer on the asset class, part of Morningstar’s portfolio basics series. Muni bonds are issued by state or local governments to raise money for day-to-day operations and public projects. The interest paid on these bonds is usually exempt from federal income taxes and may also be exempt from state and local taxes for investors who live in the state or municipality where the bond was issued.
Investors, particularly those in higher tax brackets, can therefore benefit from holding municipal-bond funds in their taxable accounts. Strategies in the muni national intermediate Morningstar Category are appropriate holdings for a core portfolio, as Morningstar’s Role in Portfolio framework explains. To home in on worthwhile actively managed offerings, the Morningstar Medalist Rating is a good place to start, as it identifies funds that are likely to outperform over a market cycle.
morningstar.com
by Laura Lallos
Dec 2, 2025
Fitch Ratings-New York-19 November 2025: U.S. state budgets are well-positioned to address slower revenue growth and increasing economic and policy uncertainty in fiscal 2026, according to Fitch Ratings in its latest annual report.
State budgets remain fiscally sound following several years of strong post-pandemic economic and revenue performance, according to Senior Director Karen Krop. ”However, states now face the highest level of uncertainty since the early pandemic months, driven in part by economic unease and federal policy changes. Despite these pressures,“ said Krop, ”Fitch expects states credit quality to remain robust, supported by prudent operating performance and substantial fiscal buffers.”
Most states anticipate slow revenue growth in fiscal 2026, reflecting expectations of subdued U.S. GDP growth, ongoing inflation and the fading effect of federal stimulus. Fiscal 2026 is seeing more tax policy action, with several states lowering income tax rates or flattening brackets, while others are raising revenues to close gaps or meet program goals. Fitch notes states pursuing aggressive tax reductions may see heightened credit pressure if revenue growth fails to accelerate.
Medicaid and education remain the primary drivers of state spending, with federal policy changes, notably H.R. 1, introducing new budgetary uncertainties. However, states continue to fund initiatives in housing and homelessness prevention and climate resilience, among other high priorities.
“U.S. States: Budgets Stable Amid Uncertainty” is available at www.fitchratings.com
With data gathered from all 50 state budget offices, this semi-annual report provides a narrative analysis of the fiscal condition of the states and data summaries of state general fund revenues, expenditures, and balances. The spring edition details governors’ proposed budgets; the fall edition details enacted budgets.
Click here to view the NASBO Survey.
Reduced revenues and rising costs leave municipalities tightening their budgets, per a new National League of Cities report.
In Brief:
Municipalities are already spending more cautiously this year, and they expect that trend to hold in 2026 as cities grapple with rising costs, lower revenue, and the wind-down of federal aid, per a new report from the National League of Cities.
governing.com
by Jule Pattison-Gordon
November 24, 2025
State budgets have remained stable in fiscal 2026, despite potential economic weakness and federal policy uncertainty. Revenues are growing slowly, with states adapting spending to a slower trend and maintaining fiscal resilience.
Wed 19 Nov, 2025 – 2:46 PM ET
In a major Bitcoin news today, New Hampshire has greenlighted the first-ever BTC-backed municipal bond. This marks a big milestone that could open the door to the $140 trillion global debt market for Bitcoin and digital assets. The move comes after New Hampshire became the first state to pass a “strategic Bitcoin reserve” bill into law.
Yahoo Finance
by Varinder Singh
Tue, November 18, 2025
New Hampshire has become the world’s first government to approve a $100 million Bitcoin-backed municipal conduit bond, a move greenlit by the state’s Business Finance Authority that could usher digital assets into the $140 trillion global debt market.
New Hampshire has become the first state in the U.S. — and the first government globally — to approve a municipal bond backed by Bitcoin, a structural breakthrough that could open the door for digital assets to enter the $140 trillion global debt market.
On Monday, the state’s Business Finance Authority (BFA) approved a $100 million Bitcoin-backed conduit bond, allowing private companies to borrow against over-collateralized Bitcoin held in custody, according to exclusive reporting from Eleanor Terrett at Crypto in America.
The bond is not backed by the state or taxpayers; instead, the BFA acts strictly as a facilitator, approving and overseeing the deal while repayment risk rests entirely on the Bitcoin collateral held by BitGo.
bitcoinmagazine.com
By Micah Zimmerman
November 19, 2025
New Hampshire is doing something that no other state has done before. They’ve given the green light to a Bitcoin-backed municipal bond, which is a first for the US. It’s a major milestone for the convergence of traditional finance and digital assets. The potential here is massive, with access to a $140 trillion global debt market. But, of course, there are opportunities and challenges for local governments and fintech innovators alike.
Bitcoin-Backed Bonds Rising
These Bitcoin-backed bonds are a new beast in the financial world. They blend traditional debt securities with the potential upside of Bitcoin. Recently, New Hampshire’s Business Finance Authority (BFA) approved a $100 million bond that allows private companies to borrow against Bitcoin held by a licensed custodian. This means they can raise capital without risking state funds or taxpayer dollars.
Here’s the kicker: the bond requires borrowers to put up about 160% of the bond’s value in Bitcoin. If the collateral dips below a certain point, an auto-liquidation process kicks in to safeguard investor interests. If this works, it could set the stage for similar bonds popping up across the country, opening the door for a new class of crypto-collateralized debt.
OneSafe
OneSafe Editorial Team
Nov 19, 2025
Data center development continues to surge, yet local zoning and land development frameworks have not kept pace. Across the country, projects are encountering delays and added risk due to outdated ordinances, procedural gaps, inconsistent interpretations by local officials, and increasing public opposition. Even well-capitalized projects can be threatened by these issues. These risks can be managed with careful planning, clear documentation, and guidance from lawyers experienced in complex land use and data center development matters. Understanding where projects most often run into trouble is the first step toward preventing setbacks and initial and future delays in delivering data center projects on time and on budget.
Secure Clear and Final Land Use Approvals
Many zoning codes do not explicitly address data centers. When ordinances fail to address data centers expressly, approvals often hinge on how individual zoning officers interpret terms such as industrial, utility, or technology facility. That ambiguity can open the door for appeals, even after substantial capital has been committed. Before proceeding with site work, ensure approvals are not only obtained but are also final and unappealable. Investors and lenders should consider obtaining zoning opinions when available or other supporting legal analysis to confirm the approval and land use status of a given site before development commences.
Verify Proper Public Notice Procedures
Establish a clear record of compliance with all public notice requirements. Even minor procedural missteps, such as missed postings, incomplete filings, or improper notice delivery, can extend or invalidate appeal periods. In some cases, the appeal period might never begin, leaving completed projects vulnerable to challenge months or even years later.
by Matthew N. McClure, Jill S. Parks, Bruce F. Johnson, Alicia B. Clark, and Dominic J. De Simone
November 17, 2025
Ballard Spahr
Megawatts to Megabytes: Orrick’s Guide to Developing, Financing & Powering Data Centers
How can data center developers secure reliable power when U.S. demand is growing 23% annually and interconnection delays now stretch to 5+ years? This guide examines practical strategies for powering data centers amid grid constraints and clean energy requirements.
The guide covers power generation options from nuclear and geothermal to natural gas and fuel cells, grid interconnection strategies including co-located generation and replacement rights, and contracting mechanisms such as Clean Transition Tariffs, behind-the-meter PPAs, and virtual PPAs. It also addresses key regulatory requirements including FERC interconnection rules, state supply restrictions and market-based rate authority.
Read this excerpt from our guide Megawatts to Megabytes.
November.20.2025