Sector View: Stable
- Meaningful changes to the federal-state policy relationship will test the resilience of states’ credit quality, although we believe they have financial cushions and well-embedded management practices to cope with this uncertainty.
- States will continue adjusting to this new policy environment through budgetary and legislative actions to address looming cost increases from many federal program changes and funding shifts.
- Our sector view remains stable, as we believe that most states will be able to balance slowing revenue growth against the rising expenditure needs, while maintaining ample reserve balances.
03-Dec-2025 | 10:14 EST