Overview
– Trump’s funding cuts to sanctuary cities blocked by courts, highlighting federal-state legal clashes over immigration enforcement.
– Judicial rulings like Orrick’s protect municipal grants, reducing credit risk but creating uncertainty for investors amid political divides.
– Historical precedents show mixed impacts on credit ratings, while investors favor resilient jurisdictions with diversified revenue and legal defenses.
– Investors advised to prioritize cities with strong fiscal discipline and legal resilience, avoiding high-risk areas facing direct funding threats.
ainvest.com
by Harrison Brooks
Friday, Aug 22, 2025 10:49 pm ET