State and local governments have been issuing record amounts of debt, mostly to maintain and expand infrastructure. Will the surge continue?
In Brief:
- State and local governments issued nearly $500 billion in bonds in 2024, then broke that record in 2025.
- The money is mostly funding infrastructure repair, expansion and new projects. Some bonds help continue projects started with now-ended or frozen federal funding.
- Some investors see municipal bonds as a safer option compared to U.S. Treasury bonds or a potentially overheated stock market.
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