Takeaways by Bloomberg AI

• Alphabet Inc. is poised to enter the municipal-bond market’s prepaid energy space by participating in a $1 billion transaction out of California.
• The transaction would finance the acquisition of a long-term supply of electricity at a discounted price for Pioneer Community Energy, an electricity provider based in Rocklin, California.
  Alphabet’s entry into the prepaid sector as a funding recipient would make it the first US tech company known to play such a role on a deal, according to data compiled by Bloomberg.
• Google parent Alphabet Inc. is poised to enter the municipal-bond market’s prepaid energy space by participating in a $1 billion transaction out of California, a major development in the evolution of a booming segment.

Alphabet was identified as the funding recipient on a $1 billion transaction slated to be issued by the California Community Choice Financing Authority, according to preliminary bond documents posted late Tuesday. Goldman Sachs Group Inc., one of the leading underwriters of prepaid deals, is arranging the California offering.

Prepaid energy deals are complicated transactions that allow utilities to lock in cheaper prices for gas and electricity over long periods of time. They involve a financial middleman — often banks or insurance companies — which receives the proceeds from the bond issues. Those funding recipients then make regular payments needed to procure the energy for the utility.

Alphabet’s entry into the prepaid sector as a funding recipient would make it the first US tech company known to play such a role on a deal, according to data compiled by Bloomberg.

A spokesperson for Google declined to comment.

The planned bond issuance would finance the acquisition of a long-term supply of electricity at a discounted price for Pioneer Community Energy, an electricity provider based in Rocklin, California. In the roadshow for investors, Pioneer adopted Google’s iconic color palette for its name.

Prepaid deals provide a mechanism for so-called funding recipients to access financing at tax-exempt rates and invest the proceeds at taxable rates, according to a report from American Century Investments.

Investors in the sector count on getting higher interest rates on prepaid energy bonds compared to similarly-rated muni bonds.

Alphabet this week announced it’s raising $80 billion through a package of equity offerings, including an investment deal with Berkshire Hathaway Inc., to help fund its ambitious and growing artificial intelligence spending plans. The company upsized that amount to almost $85 billion on Wednesday.

The muni deal has an expected rating of Aa2 from Moody’s Ratings, according to bond documents.

The Tuesday offering statement has been hotly anticipated by market participants. There has been buzz in the muni market about the possibility of tech companies participating in prepaid energy bonds as they tap various credit markets to finance the build-out of infrastructure related to the artificial intelligence boom.

“Alphabet brings a high-quality, non-financial IG name into the prepaid market, a long-anticipated validation of the structure,” said Kelly McCaughey, a senior analyst at Vanguard Group. “This is reflective of the prepaid structure’s inherent flexibility to incorporate a range of funding recipients while facilitating discounted energy supply to municipal utilities.”

The transaction “reflects the continued broadening and diversification in a sector that was previously utilized almost exclusively by the financial services industry,” said Daniel Blickhan, senior municipal credit analyst for American Century Investments.

Jason Appleson, head of municipal bonds at PGIM Fixed Income, said he expects Alphabet’s entrance will be well received by investors because it’s a fresh name, but warned that the presence of big tech companies risks overwhelming the muni market.

Prepaid structures are “increasingly becoming a wrapper for a variety of sectors that now includes banks, insurance companies, hedge funds, REITs and utilities,” he said in a written comment.

“However, adding hyperscalers opens the door to a dangerous precedent, as these companies need to finance hundreds of billions of dollars for data center infrastructure, which the muni market does not have the depth to absorb entirely.”

Bloomberg Markets

By Amanda Albright and Erin Hudson

June 3, 2026

— With assistance from Elizabeth Campbell

The municipal bond market’s $80 billion tobacco bond sector had its first-ever default after a Nassau County, New York, agency failed to make a $36 million principal payment on June 1.

The junk-rated debt, backed by settlement payments that states receive from tobacco companies, were issued in 2006 as part of a $431 million deal.

Payouts to states and territories participating in the 1998 settlement with the major tobacco companies declined 19% in 2025, according to the National Association of Attorneys General. Those distributions are tied to the companies’ sales, so as cigarette consumption falls, so does the revenue backing the bonds.

Continue reading.

Bloomberg Markets

By Martin Z Braun

June 4, 2026 at 11:58 AM PDT

Takeaways by Bloomberg AI

• Google parent Alphabet Inc. made its municipal-bond market debut with a roughly $1 billion transaction in a prepaid energy deal out of California.
• The deal involves Pioneer Community Energy, an electricity provider, and Alphabet acting as financial intermediary, with bonds issued by the California Community Choice Financing Authority and underwritten by Goldman Sachs Group Inc.
• Investors showed strong demand for the sale, with bonds trading at tighter spreads in the secondary market, and the 2035 maturity seeing especially strong interest with trades amounting to $492 million.

Continue reading.

Bloomberg Technology

By Erin Hudson and Amanda Albright

June 5, 2026

On June 4, PEFA Inc. issued $949 million in Gas Project Revenue Bonds – Series 2026A.

The proceeds of the bonds will be used to prepay the costs of the acquisition of a fixed quantity of natural gas (purchased at a discount to Index) to be delivered over 30 years from the gas supplier.

There were a total of 104 participating municipal gas utilities from 9 different states (42 from Iowa) which are expected to save approximately $3.2 million annually.

The gas supply will come from the Goldman Sachs Group, Inc. through its natural gas supplier, J. Aron & Company LLC.

The Gas Manager for the project is Clayton Energy Corporation while Ahlers & Cooney, P.C. served as the Bond Counsel for PEFA, Inc.

PEFA, Inc., the Issuer, is a separate legal entity and a nonprofit public benefit corporation organized and existing under the laws of the State of Iowa, was organized by the Public Energy Facilities Authority, an Iowa joint powers authority formed pursuant to Chapter 28E of the Iowa Code, to finance the Gas Project.

American Public Power Association

by Paul Ciampoli

June 7, 2026

This is the U.S. Public Finance Rating Action Report 2026 Year to Date (January 1, 2026 to June 5, 2026).

Access Report

Mon 08 Jun, 2026 – 12:14 AM ET

(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

• The strength of the U.S. economy and management’s response to global uncertainty will drive U.S. port activity levels.
  Geopolitical disruptions in the Middle East are exacerbating global supply chain frictions, and evolving trade policies and tariff structures will challenge port management teams.
• Our view of the U.S. port sector, however, remains stable, reflecting our expectation that operators will proactively adjust revenues, expenses, and capital spending to maintain healthy financial margins and liquidity positions to absorb and manage potential activity declines and volatility over the next two years, with larger ports generally better positioned than smaller operators.
• S&P Global Ratings sees the roles of U.S. ports diverging by geography and cargo type over the next two years, with more successful ports transitioning to operating more like a tech-enabled logistics partner from just a landlord port.

Continue reading.

03-Jun-2026

• S&P Global Ratings revised the outlook to stable from negative on Sacramento Municipal Utility District (SMUD), California’s senior- and subordinate-lien revenue bonds.
• At the same time, we affirmed our ‘AA’ senior-lien long-term rating, our ‘AA-‘ subordinate-lien long-term rating and underlying rating (SPUR), and our ‘AA-/A-1’ dual rating on SMUD’s outstanding electric revenue bonds and variable-rate demand bonds.
• The outlook revision reflects our view that SMUD’s wildfire mitigation practices include protocols for materially reducing the utility’s exposure to wildfire liability claims. In addition, we believe that its robust balance sheet liquidity and insurance coverage could mitigate financial burdens of potential wildfire liability claims. Nevertheless, these mitigating factors do not eliminate exposures we associate with the district’s 144 miles of owned overhead power lines that traverse areas that the California Public Utilities Commission (CPUC) identifies as exhibiting elevated or extreme susceptibility to wildfires (see “California Public Power Utilities Dampen Wildfire Flames While Questions Of Long-Term Resiliency Smolder,” Jan. 21, 2026 on RatingsDirect).

Continue reading.

02-Jun-2026 | 13:56 EDT

Takeaways by Bloomberg AI

• Attractive yields and strong credit fundamentals are setting the municipal bond market up for a solid second half of the year, said Paul Malloy, the head of municipals at The Vanguard Group Inc.
• Investors have poured $46 billion into the muni market this year, and the market’s total return year to date bests the return for US corporate bonds and US Treasuries, according to Bloomberg Indexes.
• The municipal debt market could end the year with a 3.5% return, Malloy said, as the nearly 1.9 percentage point difference between 2-year and 30-year muni yields has attracted cash to the long-end of the market.

Continue readiing.

Bloomberg Markets

By Martin Z Braun

June 8, 2026

Key Takeaways

• The muni market rebounded and turned what could have been a negative month into a positive.
• The month of May was a gut-wrenching roller-coaster ride.
• Positioning is key. Don’t sit like an elephant.

What a difference a week makes. The muni market rebounded this week with positive returns across the curve. Two-, 10- and 30-year yields fell 15, 16 and 16 basis points (bps), respectively. The Bloomberg Municipal Bond Index (Index) returned 1.03% last week, bringing month-to-date returns to 0.37%. Year-to-date returns now sit at 1.34%.

Why it matters: A better tone in the US Treasury market, a lighter new issue supply calendar and anticipated June 1 coupon payments resulted in a significant performance rebound week. Credit and longer-duration bonds outperformed. The Bloomberg BBB index returned 1.25% versus 1.02% for the AAA index, while the 20-year index returned 1.51% and the 5-year index 0.57%. This outcome is a microcosm of 2026. As seen in Display 1, the longer end of the muni curve has significantly outperformed shorter maturities. On the credit side, for the year to date the Bloomberg BBB index and Muni High Yield index are up 2.10% and 2.72%, respectively, compared to the AAA index up just 1.12%. Demand for muni bonds remains insatiable, which has also supported our market. According to J.P. Morgan, LSEG Lipper reported inflows of $2.3 billion into weekly reporting municipal funds, which is the second-highest weekly inflow dating back to 1992. Flows continue to favor investment grade at $2 billion and long bonds at $1.6 billion. An interesting note is that tax-exempt money-market funds realized outflows of $1.4 billion. Perhaps investors are beginning to realize the value in extending duration and investing in longer bonds.

Performance for the month of May was certainly a roller-coaster ride. Just last week it seemed as though May’s performance would be a repeat of March.

Continue reading.

June 01, 2026

• Equities are signaling optimism while households are signaling strain. That divide matters because investors and consumers are pulling in different directions. The path of energy prices matters too.
• The municipal bond market is impacted by both. It is helping to finance the infrastructure behind the next economy, while investors are still relying on the credit strength of the current economy.
• This is why municipals still offer opportunities, but also why credit selection matters more than it did when the backdrop was easier to read, and the divide was narrower.

Continue reading.

advisorhub.com

by Tom Kozlik, HilltopSecurities

June 2, 2026

Takeaways by Bloomberg AI

• The California Community Choice Financing Authority approved the issuance of bonds to finance the acquisition of a long-term supply of electricity at a discounted price for Pioneer Community Energy.
• A financial middleman receives the proceeds from the bond issues, invests them, and makes regular payments to procure the energy for the utility, with the utility’s payments used to repay bondholders.
• The prepaid energy segment in the muni market has seen $14.6 billion in debt issued so far this year, a 94% increase compared with the same period in 2025, with annual issuance hitting new highs each year since 2022.

Continue reading.

Bloomberg Markets

By Amanda Albright and Erin Hudson

June 2, 2026

ENGLEWOOD (S&P Global Ratings) May 21, 2026–S&P Global Ratings raised its short-term ratings and affirmed its long-term ratings on 14 Loop Capital Markets LLC tender-option bond trusts, following the replacement of the liquidity provider from Morgan Stanley Bank N.A. to Royal Bank of Canada acting through its New York branch on May 21, 2026, the amendment date.

Continue reading.

21-May-2026 | 16:08 EDT

April tax collections were generally strong across many states, with most also reporting revenues above forecast. April is the tenth month of fiscal 2026 for most states (46 states will end their fiscal year on June 30th) and the largest month for tax collections for income tax states due to the April 15th tax filing deadline. Personal income taxes performed particularly well in April, supported by strong withholding payments, capital gains activity, bonuses, and elevated final payments in several states. Sales tax collections also remained positive, reflecting continued consumer spending growth. Corporate income tax collections were more uneven, with a number of states citing softness tied to elevated refunds, federal tax law changes, or other factors. Several states also noted that comparisons to last year were affected by timing issues related to prior-year filing deadline extensions or refund activity. Although a handful of states experienced weaker year-over-year monthly collections, many still exceeded revenue estimates for the month due to stronger than anticipated income and sales tax performance.

Continue reading.

NASBO Budget Blog

By Brian Sigritz

Key Takeaways:

• Data center development is accelerating rapidly, with approximately $550 billion in U.S. projects currently under development. The water and utility rate structures in place today were not designed for hyperscale demand, making early assessment essential for communities considering or facing a data center announcement.
• Practical readiness — not consultant-speak — is what protects communities. Naming a project manager, empowering a finance lead, and understanding water and sewer rate structures are immediate, tangible steps municipal leaders can take.
• Long after the announcement, local leaders are the ones managing the operational and financial reality. Building the right team, oversight structure, and audit-ready processes early is what separates communities that benefit from data center investment from those that struggle to absorb it.

Continue reading.

EisnerAmper

By Robbi Dickens

May 20, 2026

Today, the Bureau of Transportation Statistics (BTS) released the Transportation Public Finance Statistics (TPFS) with final 2024 data. TPFS provides information on transportation-related revenue and expenditures for all levels of Government, including Federal, state, and local, and for all modes of transportation.

BTS plans to release 2024 State by State TPFS numbers July of 2026.

As seen in the chart below, most highway expenditure occurs at the state and local level – and while the majority of the funding ($262.9 billion) comes from state and local governments, $65.1 comes from transfers from the Federal Government, including but not limited to transfers from the highway trust fund. Of the state and local government funding, $130.9 billion is user-based revenue but the majority ($132.1 billion) is from other taxes and general funds. Fed

Continue reading.

Wednesday, May 20, 2026

After more than three decades in public and project finance, I have learned that real inflection points in infrastructure development rarely announce themselves loudly. They usually arrive embedded in financing authority — technical on the surface, but transformational in effect. The spaceport bond provision enacted through the One Big Beautiful Bill Act (OBBBA) is one of those changes.

With this provision now law, space infrastructure in the United States has gained access to the municipal bond market through tax‑exempt private activity spaceport facility bonds. That shift may sound technical, but its implications are anything but. It fundamentally changes how space infrastructure — and the ecosystems that grow around launch and reentry sites — can be financed, scaled and sustained.

For years, spaceports and related facilities have faced a structural financing mismatch. They are long‑lived, capital‑intensive assets that resemble airports or seaports in function and risk profile. Yet they have often been financed with short‑term, higher‑cost capital more appropriate for commercial ventures than for foundational infrastructure. The result has been chronic underinvestment, deferred modernization and capacity constraints that ripple across the space economy.

Continue reading.

spacenews.com

by Craig Hrinkevich

June 1, 2026

During 2025, infrastructure investors financed $92.4 billion worth of public-private infrastructure transactions, including transportation projects.

Introduction

Over the past four decades, governments worldwide have increasingly turned to the private sector to design, build, finance, operate, and maintain infrastructure, including electric, gas, and water utilities; airports, seaports, and toll roads; and pipelines and telecommunications facilities.

Some existing infrastructure entities needing reconstruction or modernization have been “privatized” via either outright sale or long-term leases. (These are referred to as “brownfield” transactions.)

For new infrastructure, governments may award long-term design-build-finance-operate-maintain (DBFOM) concessions via a competitive process. These long-term public-private partnerships (P3s) have terms typically between 30 and 50 years. These transactions for new projects are referred to as “greenfield” projects.

Continue reading.

reason.org

by Robert Poole
Director of Transportation Policy

May 28, 2026

Funding will support runway, terminal, taxiway and other critical infrastructure improvements

WASHINGTON, D.C. – U.S. Transportation Secretary Sean P. Duffy today announced the Federal Aviation Administration (FAA) has invested more than $523 million in airports nationwide to modernize infrastructure, improve safety and deliver a more efficient travel experience for American families.

The Department delivered 332 grants to airports in 43 states through the Airport Infrastructure Grants program to support runway rehabilitation, apron and taxiway improvements, terminal upgrades, and other airfield investments.

“Upgrading our runway infrastructure is part of our work to usher in the Golden Age of Transportation,” said U.S. Transportation Secretary Sean P. Duffy. “American families deserve state-of-the-art runways and infrastructure that will make their travel experience safer, smoother, and more efficient.”

“The FAA is moving at record speed to deliver these investments to airports nationwide,” said FAA Administrator Bryan Bedford. “These projects will improve reliability across the aviation system while helping airports meet growing demand.”

Airports receiving funding include:

• $70 million to Dallas-Fort Worth International Airport for runway rehabilitation.
• $46.9 million to Charlotte/Douglas International Airport for apron expansion.
• $41.9 million to Miami International Airport for terminal reconstruction and fuel farm expansion.
• $18.7 million to New York’s Syracuse Hancock International Airport for deicing pad expansion and reconstruction.
• $18.6 million to Fort Lauderdale/Hollywood International Airport for new taxi lane construction.
• $18 million to Philadelphia International Airport for taxiway pavement reconstruction.
• $16.2 million to Orlando Sanford International Airport for taxiway extension.
• $10.9 million to Louisiana’s Baton Rouge Metro Airport, Ryan Field for terminal and baggage system replacement.
• $10.5 million to Nebraska’s Eppley Airfield for terminal and boarding bridge reconstruction.

Additional Information:

AIG funding may be used for airport planning, development, sustainability projects, terminal improvements, baggage system upgrades, runway and taxiway rehabilitation, roadway and access improvements, and other safety-related infrastructure needs.

View a data visualization of the airports receiving funding.

Thursday, May 28, 2026

Across the country, a quiet revolution is underway in unexpected places: church parking lots. From Los Angeles to Detroit, religious institutions of every denomination are sitting on some of the most underutilized land in America — and forward-thinking developers, policymakers and legal advisors are beginning to unlock its potential.

This is not a story about any one faith tradition. It is a nondenominational reality that’s reshaping how we think about land use, mission, community investment and the future of affordable housing finance.

Empty Pews, Excess Land

For decades, American congregations built sanctuaries and parking lots to accommodate hundreds of weekly worshippers. Today, many of those lots sit largely empty. Attendance has declined steadily across denominations, a trend accelerated by the pandemic and driven by long-term demographic and cultural shifts. The result is a landscape of land-rich, cash-constrained religious institutions struggling to sustain their ministries while the communities around them face worsening housing shortages.

Continue reading.

by Jade Turner-Bond, Justin Cooper & Michael E. Schrader

May.13.2026

© 2026 Orrick, Herrington & Sutcliffe LLP.

This year has been a whirlwind year for investors, marked by shifting geopolitical risks, a mixed economic backdrop and surprisingly strong stock market returns. While improving fundamentals have helped drive the market gains so far, concerns about the outlook for stocks persist amid rising geopolitical risks and high valuations.

For concerned investors, the key question is how best to position portfolios to help mitigate rising risks and potential volatility. Historically, the answer has been incorporating traditional core fixed income—such as U.S. Treasurys and corporate bonds—as part of a well-diversified portfolio.

However, there are also warning signs for investors, most notably the continued rise in debt levels. Earlier this year, U.S. public debt outstanding surpassed $39 trillion for the first time in history and is projected to rise. This has been financed through a substantial Treasury issuance, which has, in turn, contributed to rising long-term Treasury rates throughout the early part of the year.

Continue reading.

fa-mag.com

by Sam Millette

June 1, 2026

Takeaways by Bloomberg AI

• Investors are pouring money back into municipal bonds as higher yields and the approaching summer reinvestment season draw cash into the tax-exempt market.
• Municipal-bond funds attracted about $2.3 billion in the week ended May 27, nearly double the prior week’s tally and the second-largest weekly inflow since 1992.
• JPMorgan strategists said total inflows for May could exceed $10 billion.

Continue reading.

Bloomberg Markets

By Dina Katgara and Aashna Shah

May 29, 2026

Puerto Rico and four U.S. territories can issue tax-exempt bonds under congressional authority. Here’s why that “triple exemption” matters for muni investors.

Why Puerto Rico Can Issue Tax-Exempt Bonds?

As a legally authorized “Territory” of the U.S., Puerto Rico has long been recognized as an important issuer of tax-exempt bonds. The answer lies in the U.S. Constitution, Article IV, Section 3, Clause 2, which allows Congress to create territorial governments, with taxing authority and borrowing authority.

Puerto Rico has been a U.S. territory since the end of the Spanish-American War in 1898. Its constitution wasn’t formally approved by Congress until 1952, but the borrowing authority that came with territorial status has made it one of the most unique, if not important issuers in the municipal bond market over the past 50 years.

Continue reading.

vaneck.com

by James Colby
Senior Municipal Strategist

May 26, 2026

California isn’t just the largest state by population. It’s the largest issuer of municipal bonds, presenting its residents and fixed income investors all over the country with an array of opportunities.

So large is the California municipal bond market that some ETFs are dedicated to Golden State municipal debt. However, this is an example of a municipal bond segment where advisors and investors need to be selective. The American Century California Municipal Bond ETF (CATF) makes it easy to accomplish that goal.

CATF, which turns two years old in July, endeavors to generate robust income exempt from both federal and California taxes. That indicates its utility goes beyond that of investors residing in California. That said, California’s notoriously elevated taxes on high brackets could make this fund appealing for affluent, income-hungry residents of the state.

Continue reading.

etftrends.com

Todd Shriber

May 20, 2026

Municipal bonds have quietly reemerged as one of the most compelling areas of the fixed-income market. For years, the asset class was viewed as a conservative corner of investing, favored mainly by high-net-worth investors seeking tax-efficient income. However, the dramatic shift in interest rates over the last several years has changed that narrative. Higher yields have restored municipal bonds as a serious income-generating asset class. For investors in higher tax brackets, the tax-equivalent yields can look especially attractive compared with taxable bonds.

While the case for the asset class looks increasingly compelling, the way investors access municipal bonds matters.

Unlike equities or more liquid segments of fixed-income, municipal bonds are not a market where passive investing always delivers the cleanest outcome. In fact, the structure of the muni market may make active management particularly valuable.

Continue reading.

dividend.com

by Aaron Levitt

May 20, 2026

Summary

• First quarter of 2026 rating actions, via Moody’s look positive on the surface, but the adjusted count is only 96 upgrades to 90 downgrades.
• Credit pressure is concentrated in the K-12 and higher-education sectors, which is why selection and positioning in higher quality issues matter more now.
• Strong credit profiles matter as the cycle turns, separating issuers that can absorb pressure from those that cannot.

Continue reading.

advisorhub.com

by Tom Kozlik, HilltopSecurities

May 20, 2026

Takeaways by Bloomberg AI

• State revenues are softening, and rainy day fund capacity has declined for the first time since the Great Recession, according to Pat Haskell.
• The combination of softening revenues, slowing tax collections, and rising costs is driving reserve drawdowns and structural imbalances, contributing to increased downgrades and wider credit gaps.
• BlackRock is maintaining higher liquidity levels to be opportunistic and is preferring essential service revenue bonds over general obligation bonds due to potential fiscal strain and changing policy and budget constraints.

Continue reading.

Bloomberg Markets

By Erin Hudson

May 13, 2026

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

You are undoubtedly seeing in the news that high earners are leaving New York, Los Angeles, and other metro areas. This does not begin to address the magnitude of the problem. There are dozens of cities that are trending towards fiscal collapse. Indeed, taxpayers are leaving.

Businesses also are closing, or leaving. Municipal budgets are already deeply underwater. Liabilities are under-reported to the extent that auditors are raising flags. And then there is the fraud, which will lead to deep cuts in disbursements from the federal and state governments.

What we are observing is the very earliest signals of a broad-based collapse in the finances of major municipalities that would likely only be averted via federal bailouts. We estimate that within two years, dozens of metro areas will undergo significant layoffs of public employees, deep reductions in services, and restructurings of public retiree pensions. To envision what we expect for many of these metro areas, contemplate Detroit, and its erosion to eventual bankruptcy in 2013. From the peak, Detroit lost two-thirds of its population and 85% of its taxpayer base.

Continue reading.

advisorperspectives.com

by Paul Hill, 5/18/26

• The municipal bond tax-exemption is not under an imminent attack, but the threat is still building in the background because fiscal pressure is rising, and political dysfunction makes it easier to ignore the issue rather than deal with it.
• The threat is building in this constrained environment defined by debt over 100% of GDP, low public confidence, long-term rates near 5%, and a weaker sovereign credit reality.
• The pro-infrastructure case for the municipal bond tax-exemption is strong, but it cannot not defend itself. Municipal issuance has been heavy, ASCE raised the national infrastructure grade to a “C” while still estimating a multi-trillion-dollar ten-year gap, and the next phase of infrastructure will demand even more resources and capital. Need and reality require constant, plain-language advocacy and education.

The Numbers and the Dysfunction

There is not an imminent threat to the municipal bond tax-exemption right now. The current backdrop is almost worse because the threat continues to build without concentrating on one obvious point. The threat is building quantitatively in the form of fiscal pressure and deterioration. It is building qualitatively, in uneven political understanding, partial support, and a system where dysfunction makes it easier to ignore the reality rather than deal with it.

Continue reading.

advisorhub.com

by Tom Kozlik, HilltopSecurities

May 12, 2026

Key Takeaways

• Federal policy shifts and other cost drivers will keep Medicaid expenditure growth high, outpacing other budget spending. Changes to provider taxes and caps on state-directed payments could place significant pressure on out-year U.S. state budgets.
• States are moving to mitigate Medicaid cost risks, including upfront improvements to technology and administrative processes, ballot initiatives affecting Medicaid expansion, early implementation of new requirements, and targeted revenue enhancements to increase program resources.
• Active management, forecasting, and long-term planning will be important for states to navigate these changes, without weakening state credit quality.

S&P Global Ratings believes the federal‑state Medicaid funding partnership has reached an inflection point, following the enactment of H.R. 1, as the federal government shifts greater financial risk and cost variability onto states. According to the Congressional Budget Office (CBO), net spending reductions are estimated to total approximately $900 billion between 2025 and 2034. The evolving Medicaid policy landscape has uneven credit implications across the state sector as it moves from a program with a historically predictable federal-state relationship to one with a source of state budgetary uncertainty. The ability to adjust policies and align future Medicaid spending growth amid a shifting funding environment, while preserving structural budgetary balance and financial reserves, will remain an increasingly important credit factor for states as we evaluate their long-term credit quality.

Continue reading.

18-May-2026 | 11:43 EDT

Key Takeaways

• State-share Medicaid expenditures have experienced three consecutive years of double-digit growth, rising to $367 billion in fiscal 2025–due in part to the phase-out of pandemic-era federal aid, higher provider payments, and the rising costs of serving higher-need populations.
• While overall Medicaid enrollment has fallen from its pandemic peak, it remains elevated relative to pre-pandemic levels in most states.
• Cost drivers–including medical inflation and shifting federal policies–are likely to keep states’ share of Medicaid cost growth above other expenditures; and with state Medicaid costs potentially doubling by 2036, it raises the risk to states’ financial performance and their credit quality.

Continue reading.

18-May-2026 | 11:38 EDT

Regardless of the type or size of organization, project scope, software vendor, or project budget, every government that’s going through an enterprise resource planning (ERP) project will need a project manager. The amount of time or number of people dedicated to the role may vary; however, perhaps no other role on the project is as critical to the overall success of the project as the project manager. The Project Management Institute (PMI), the leading member association to support project management professionals, defines project success as “the consensus view across intended beneficiaries, other stakeholders, and project participants that a project was perceived to have delivered value that was worth the effort and expense.” ERP projects are notorious for low success rates, which also puts a spotlight on the value of a project manager and the role they play.

So, why do so many governments begin an ERP project without defining the role of a project manager and assigning a qualified individual to this position?

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Government Finance Officers of America

Publication Date: April 2026

Author: Mike Mucha

Fitch Ratings – New York – 12 May 2026: Fitch Ratings has affirmed the following prepaid energy transactions at ‘A’ and revised the Rating Outlooks for each to Positive from Stable:

— PEFA, Inc. (IA) Gas Project revenue bonds, series 2019;

— SA Energy Acquisition Public Facility Corporation (TX) gas supply revenue bonds series 2007;

— Southern California Public Power Authority (CA) gas project revenue bonds series 2007A & 2007B;

— Tennessee Energy Acquisition Corporation (TN) gas project revenue bonds series 2006A;

— Tennessee Energy Acquisition Corporation (TN) gas project revenue bonds series 2006C.

The rating actions reflect Fitch’s assessment of the credit quality of the various counterparties and enhancement providers. They also reflect Fitch’s May 5, 2026 affirmation of Goldman Sachs Group, Inc.’s (GSG) Long-Term Issuer Default Rating (IDR) at ‘A’ and revision of its Outlook to Positive from Stable. In each of the transactions, GSG represents the weakest counterparty whose default risk is not otherwise mitigated.

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As municipalities across the United States work to modernize aging systems and meet growing community demands, funding remains the single most defining challenge. In the National League of Cities 2025 Municipal Infrastructure Conditions (MIC) report we examined the financial hurdles cities face and the pathways used to keep infrastructure projects moving.

Rising Costs, Tight Budgets and Financial Juggling

Survey results underscore what local officials already know too well: Inflation and supply chain disruptions have made project costs skyrocket. This mirrors broader economic trends recently highlighted by Forbes, which notes that labor shortages and inflationary pressures have defined the industry’s landscape for several years. Nearly 90 percent of MIC survey respondents cited rising material and labor costs as a major financial hurdle. Compounding this are insufficient capital budgets (84 percent) and the uncertainty of future funding, making long-term planning a high-wire act.

Municipalities are being pushed to do more with less – stretching limited resources while responding to public demand for better service. Notably, expanded federal support from the American Rescue Plan and Infrastructure Investment and Jobs Act (IIJA) has empowered local governments to accelerate long-overdue improvements, from water systems to broadband access. However, that support is not guaranteed in perpetuity, and local leaders remain concerned about long-term stability.

Continue reading.

National League of Cities

by Farhad Kaab Omeyr

May 12, 2026

WASHINGTON, D.C. – U.S. Transportation Secretary Sean P. Duffy today announced the Department is moving quickly to make $3 billion available for states to invest in aging bridge infrastructure across the country. The Federal Highway Administration (FHWA)’s Bridge Investment Program (BIP) focuses on repairing bridges in poor condition so Americans can safely get to work and school, and American businesses can move their goods efficiently.

“For too long, essential infrastructure has been held hostage by red tape delaying improvements that move traffic,” said U.S. Transportation Secretary Sean P. Duffy. “Under President Trump, the Department is clearing the path for states to rebuild aging bridges faster and more efficiently. We are putting the focus back where it belongs: safety, reliability, and getting Americans home to their families.”

“The Trump Administration is getting back to basics to upgrade America’s bridge projects nationwide, improving mobility and reliability for travelers,” said Federal Highway Administrator Sean McMaster. “We are giving states and local governments more flexibility to decide how to best accelerate bridge building projects in their communities.”

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United States Department of Transportation

Thursday, May 14, 2026

Municipal bonds have had an eventful first quarter. The asset class returned 2.20 percent through February before a sharp rate-driven selloff in March — triggered by the escalating U.S.-Iran conflict and the corresponding spike in oil prices — pushed the full quarter to a -0.18 percent return. The headline looks soft. The underlying setup is anything but.

For investors in closed-end municipal bond funds, the March selloff created precisely the kind of entry point that professionals wait years to encounter: a combination of wider discounts to net asset value, elevated absolute yields, historically steep yield curve dynamics, and technical conditions — specifically a surge in reinvestment demand — that favor total returns through the remainder of 2026. Understanding why requires looking at each of these factors in some detail.

The Yield Picture

The most direct case for muni CEFs begins with yield. According to Nuveen’s Q2 2026 municipal bond outlook, the broad municipal index currently offers a taxable-equivalent yield of 6.37 percent versus 4.57 percent for the Bloomberg U.S. Aggregate Bond Index — a spread that places muni taxable-equivalent yields in the top quartile of their ten-year history. For investors in the 37 percent federal tax bracket — which applies to married couples filing jointly with taxable income above approximately $751,600 in 2026 — a 5 percent muni yield translates to roughly a 7.9 percent taxable equivalent yield. In high-tax states like California (13.3 percent top rate) and New York (10.9 percent top rate), buying that state’s own bonds can push taxable-equivalent yields above 10 percent.

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dividend.com

by Jason Kirsch

May 13, 2026

One of the most durable features of the municipal bond market is its historically low default rate. Investment-grade munis default at a small fraction of the rate of comparably rated corporate bonds, and that track record extends across recessions, financial crises, and periods of significant fiscal stress. For advisors, this history is one of the core arguments for the asset class and a legitimate source of comfort when clients ask whether their muni exposure is safe.

But history is a foundation, not a guarantee — and 2026 introduces a set of credit headwinds that are worth understanding at the sector level, even if the broad market outlook remains stable. The combination of reduced federal funding flows, the Medicaid overhaul embedded in the One Big Beautiful Bill Act, and ongoing state budget pressure from slower revenue growth creates a more differentiated credit environment than the muni market has faced in several years. Not more dangerous — more differentiated. And differentiated credit environments are where credit selection actually matters.

The most significant structural change is the ongoing reduction in federal funding to states and municipalities. The Medicaid provisions of the OBBBA alone — nearly $990 billion in reduced federal spending over ten years — represent the largest shift in federal healthcare funding in decades. Those dollars flowed directly into state budgets and, from there, into hospitals, health systems, and long-term care providers. Hospital revenue bonds are a major component of the muni market, and the credit implications are not uniform across issuers.

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dividend.com

by Jason Kirsch

May 12, 2026

March’s bout of geopolitical volatility affected investment approaches of all kinds, and municipal bonds were unfortunately no different. As just one example, the Bloomberg Municipal Bond Index fell more than 2% on the month, as the fixed income asset struggled to retain its safe haven reputation.

Key Takeaways:

• Despite struggling in March, the municipal bond market has far too much going for it for advisors and investors to back out already.
• The overall fundamentals for munis remain relatively sound, especially in terms of credit, technicals, and historical precedence.
• For those choosing to increase municipal bond exposure, Blackrock recommends a barbell yield curve strategy, favoring the transportation, housing, and corporate sectors.

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advisorperspectives.com

by Nick Wodeshick of VettaFi | Advisor Perspectives, 5/12/26

The conflict in Iran has introduced a familiar dynamic for municipal investors: Geopolitical uncertainty translating into higher energy prices, rising inflation expectations and increased rate volatility. To date, the muni market has remained relatively resilient, with yield movements largely tracking Treasurys rather than signaling broad credit stress. The more meaningful potential longer-term risk lies not in the immediate shock of elevated oil and gas prices, but in the duration of the oil shock gradually pressuring issuer fundamentals through higher operating, labor and capital costs paired with revenues that adjust more slowly. In this environment, credit outcomes will increasingly hinge on oil price trajectories and fiscal discipline, with issuers that maintain strong reserves and cost flexibility better positioned to navigate the cycle.

State and local governments generally enter this period from a position of strength, but higher energy costs can still act as a slow-moving headwind. Rising gasoline prices may dampen consumer spending, particularly on discretionary items that support sales tax revenues, while persistent inflation can force municipalities to absorb higher costs across capital goods, public safety, infrastructure and contracted services. However, the impacts aren’t uniform. A subset of states, including Texas, New Mexico, North Dakota, Colorado and Alaska, stand to benefit from higher oil prices through increased severance tax revenues and energy-driven economic activity. Similarly, states with large defense footprints like Texas, Virginia and California may see incremental support from increased federal defense spending tied to geopolitical tensions. These revenue tailwinds can help offset rising costs and, in some cases, allow governments to reinvest in infrastructure, education and other public priorities.

The more pronounced credit pressures are likely to emerge in sectors directly exposed to energy costs and consumer behavior. Higher fuel prices can weaken travel demand, placing pressure on transportation-related credits such as airports, toll roads and ports. Airports with greater exposure to leisure travel or low-cost carriers may be particularly sensitive if elevated costs persist and discretionary travel declines. While toll roads may experience some reduction in traffic, many retain pricing power that can help mitigate revenue declines. Public power and utility issuers may also face higher input costs, though the extent of the impact depends on their ability to pass costs on to ratepayers. More broadly, inflationary pressures can strain capital-intensive projects, increasing construction costs and complicating long-term planning. Active credit analysis plays an essential role in selecting issuers with strong balance sheets and management teams that can weather significant uncertainty.

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Morgan Stanley

by Matthew Wassersug & Cameron Taatjes

08 MAY 2026

Recommendations and strategies to help fiscal leaders better deal with a vital, complex, and shifting source of revenue

Overview

Grants from the federal government represent a significant but often overlooked part of state budgets. In state fiscal year 2023, federal funds were the second-largest source of state revenue, after tax collections, accounting for 36% of the 50 states’ combined total revenue.1

States use federal funds to provide goods and services for a range of activities, but these sources often come in boom-bust cycles and with complex stipulations for use, reporting requirements, and cash-flow challenges. In contrast, when states impose and collect their own taxes and fees, there can exist broader discretion for the use of that funding. Recent changes in federal priorities—including funding pauses and spending reductions for specific programs, such as Medicaid—have introduced a tremendous amount of uncertainty about the future role of the federal government in supporting state-operated programs and activities.2 These changes emphasize how important it is for policymakers to understand available funding sources, what they pay for, how to use it to advance state priorities, and how to reduce the effects of funding volatility on state budgets.

The Pew Charitable Trusts undertook this study to explore these challenges and uncover promising state practices for managing this complex revenue stream.3 The report is based on Pew’s original research, which included a focus group with elected officials and legislative staff; a 50-state scan of budget documents and websites; and 26 interviews with executive and legislative budget officials from 12 states. (See Appendix A: Methodology.)

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The Pew Charitable Trusts

May 7, 2026

State and local government finance offices are entering a period of transformation that feels both overdue and disruptive. For decades, public finance professionals have operated in environments defined by manual processes, legacy systems, and growing reporting expectations layered on top of constrained budgets and staffing pressures. Financial closes often stretch across weeks, reconciliations consume valuable staff time, and forecasting remains more art than science.

At the same time, expectations have changed. Elected officials, oversight bodies, and citizens now expect faster reporting, clearer financial insight, and stronger stewardship of public resources. Finance leaders are increasingly asked not just to report what happened, but to anticipate what comes next.

Artificial intelligence (AI) and automation are emerging as tools that can help governments meet these expectations. These technologies are not futuristic experiments; they are already reshaping how finance operations function. Automated reconciliations, predictive revenue modeling, anomaly detection, and intelligent reporting tools are beginning to reduce manual effort and provide earlier insight into financial risks.

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BDO

by Lee Klumpp
Assurance National Technical Principal

May 04, 2026

Key Takeaways

• The U.S. public finance default tally fell to two in 2025, down from eight in 2024.
• Credit quality within U.S. public finance remained positive last year, with upgrades (828) outnumbering downgrades (654).
• Appropriation-backed debt was the U.S. public finance sector with the highest upgrade rate in 2025, followed by transportation. Health care and charter schools had the highest downgrade rates.

Credit quality continued to be positive within U.S. public finance in 2025, with upgrades by S&P Global Ratings surpassing downgrades. The 828 upgrades included 62 upgrades in the housing sector and 766 upgrades in nonhousing sectors; the 654 downgrades included 11 in the housing sector and 643 in nonhousing sectors (see table 1).

In 2024, there were fewer total upgrades (743) and fewer total downgrades (490).

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11-May-2026 | 14:55 EDT

Fitch Ratings – Austin – 07 May 2026: Click here for a full list of U.S. Public Finance dedicated tax and revenue bond (DTRB) ratings placed Under Criteria Observation (UCO).

Fitch Ratings has placed certain DTRB ratings on UCO in connection with the publication of the U.S. Public Finance Dedicated Tax and Revenue Bond Rating Criteria on May 1, 2026. The DTRB ratings placed on UCO require additional information and analysis to assess the criteria’s impact. UCO status does not indicate any change in the security’s underlying credit profile, and not all designated ratings will be changed. All existing ratings, Outlooks, and Watch statuses remain unchanged pending Fitch’s review of the affected DTRB securities.

Fitch expects to complete these reviews as soon as practicable and no later than six months from the criteria release date.

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This report summarizes operating and financial performance for Fitch-rated U.S. privatized military housing transactions. The analysis covers 28 ratings on debt issued to finance the development and operation of 17 privatized military housing projects (MHPs) at 34 military installations throughout the continental U.S. Combined, the projects provide more than 50,000 units of housing for accompanied and unaccompanied military personnel assigned to those installations.

Access Report

Tue 05 May, 2026 – 5:14 PM ET

Fitch Ratings-San Francisco/Austin/New York-12 May 2026: Spirit Airlines’ shutdown and bankruptcy will not hurt most U.S. airport financial profiles or ratings, Fitch Ratings says. Service cancellation may leave some airport gates unused, but other airlines will likely fill them quickly.

Frontier Airlines and Jet Blue plan to expand service in former Spirit markets. In many cases, airports can reallocate costs to other airlines under established use agreements, which will protect airport cash flows.

Spirit represented a small share of flights and passenger levels at most airports it served. The airline focused on leisure travel and served predominately origin and destination markets, especially in the Southeast. Fort Lauderdale and Orlando together accounted for nearly 25% of the airline’s total departures.

Spirit had a meaningful share of enplanements at Fort Lauderdale-Hollywood Airport (Broward County) and Orlando International Airport (Greater Orlando Aviation Authority), followed by Detroit International Airport (Wayne County Airport Authority) and Harry Reid International Airport in Las Vegas (Clark County). All four airports have strong service areas and can expand current service or attract new service.

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Key Takeaways

• Following six years of downgrades mostly outpacing upgrades, we anticipate that the North America investor-owned regulated utility industry is entering a period of stability for at least the next two years.
• We revised our industry outlook to stable from negative as the proportion of companies with either negative outlooks or ratings on CreditWatch negative declined below 5%.
• Despite persistent industry risks–including rising high capital expenditure and significant cash flow deficits, data center growth, and affordability concerns about managing regulatory risk–we generally expect issuers to maintain overall credit quality.

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11-May-2026 | 12:26 EDT

The American Water Works Association (AWWA) has released its 2026 State of the Water Industry (SOTWI) Report, which shows that infrastructure renewal and replacement is the top challenge among water sector professionals. Financing for capital improvements followed behind at No. 2.

The annual State of the Water Industry report is compiled from data collected via a voluntary, anonymous survey of water and wastewater professionals.

The survey for the 2026 report was conducted between Sept. 21 to Oct. 31, 2025, from a total of 2,171 respondents. About two-thirds of respondents were from water utilities with at least 11 years of experience and at systems with more than 10,001 connections.

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Water Finance & Management

by WFM Staff

May 6, 2026

A report released in March by the American Water Works Association (AWWA) finds that addressing U.S. drinking water infrastructure and other critical needs will require $2.1 to $2.4 trillion over the next 25 years.

The report is titled Beyond the Replacement Era: Balancing Compounding Infrastructure Needs with Household Affordability. AWWA said it is the most comprehensive assessment to date of the investments needed to sustain safe, reliable drinking water service through 2050.

Developed in partnership with Raftelis and One Water Econ, the report concludes the persistent funding gap for water infrastructure will test the limits of affordability.

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Water Finance & Management

by WFM Staff

April 6, 2026

Local governments are trying to create housing that is permanently affordable by investing directly in construction. They are rewriting how housing programs have traditionally operated.

A few months ago, Matt Bedsole got a call from two real estate developers asking for his help. Their plan to build a four-story apartment complex in Chattanooga, Tenn., had a financial hole that no backer seemed eager to fill. The developers needed $8 million. Would Mr. Bedsole be interested in stepping in?

Mr. Bedsole is not a normal investor. He is the chief executive of Invest Chattanooga, a fund set up by the city of 200,000 to invest in local apartment projects. Unlike private equity firms — the main backers of new construction — he judges deals not solely on their financial return, but also on how much housing they can deliver the city.

The apartment complex cleared that hurdle. It called for 170 new units that would replace a self-storage center ringed by barbed wire, in a gentrifying part of the city. But Mr. Bedsole had terms. In exchange for the $8 million investment, he got a 51 percent stake in the building and an agreement that 30 percent of its units be priced below market rate. The developers said yes. They closed the deal over pastrami sandwiches.

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The New York Times

By Conor Dougherty

May 4, 2026

Digital trading of municipal bonds hit a record in the first quarter of 2026, an encouraging development for an asset class that has been slower than others in adopting electronic venues.

Electronic trading platforms accounted for roughly 21% of muni bond volume in the first quarter of the year, surpassing the all-time high of roughly 20% in 2023, according to a research note from Crisil Coalition Greenwich.

The growth comes after overall municipal bond trading volume surged to a record in 2025, thanks to robust issuance by state and local governments. Investors are keeping up a strong pace this year, with the number of trades surpassing 4 million in the first quarter, up about 2.5% from the same period in 2025, data from the Municipal Securities Rulemaking Board show.

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Bloomberg Markets

By Aashna Shah

May 4, 2026

Takeaways by Bloomberg AI

• Investors are piling into municipal bonds at the fastest rate in five years, drawn by attractive yields and the promise of a safe harbor from recent market volatility.
• Net inflows into funds focused on state and local government debt totaled roughly $22.3 billion in the first four months of the year, the most for the period since 2021.
• The yield-to-worst on the muni index stands at 3.69%, which is a taxable equivalent yield of just over 6%, according to Jason Appleson, head of municipal bonds at PGIM Fixed Income.

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Bloomberg Markets

By Aashna Shah

May 5, 2026

• First quarter 2026 GDP growth rebounded to 2.0%, but the composition matters. Artificial intelligence and tech-driven activity carried the expansion. Geopolitics cloud the inflation and rate outlook heading into the Warsh Fed era, U.S. fiscal math continues to deteriorate, and municipal investors are absorbing the noise with still-steady fund demand.
• Four months into 2026, municipal issuance is tracking close to our expected pace, consistent with a disciplined normalization year.
• The question now is whether the monthly issuance cadence builds into October and then slows in November and December in the usual pattern.

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advisorhub.com

by Tom Kozlik, HilltopSecurities

May 5, 2026

Like Treasuries and Treasury Inflation-Protection Securities (TIPS), municipal bonds betrayed their normally docile reputations in March as the conflict in Iran stirred increased volatility for normally subdued corners of the bond market.

Indeed, there’s no getting around it: Municipal bonds and the related ETFs proved vulnerable to macroeconomic duress and rising Treasury yields last month. However, there are some bright spots for advisors and fixed income investors to consider. First, in broad terms, the overall state of the municipal bond market is solid.

Second, some market observers believe the case for munis is underpinned by a compelling technical picture, coupled with strong credit fundamentals. Add to that, the March decline experienced by these bonds and muni ETFs may have opened the door to value opportunities.

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etftrends.com

by Todd Shriber

May 4, 2026

Fitch Ratings-New York-01 May 2026: Fitch Ratings has updated its rating criteria for U.S. Public Finance Local Governments and replaced the previous criteria from April 2024.

Several changes are outlined below, but they do not materially alter Fitch’s approach to rating U.S. local governments. As such, Fitch does not expect rating changes to result directly from these criteria changes.

The most notable changes include:

–More flexibility to use proxies and other analytical inputs across all metrics;
–The addition of qualitative descriptors for population size and economic concentration outputs;
–A new appendix that described Fitch’s approach to Climate Vulnerability Signals for local governments;
–Removal of the dedicated tax sections of the criteria ahead of the standalone U.S. Public Finance Dedicated Tax and Revenue Bond criteria.

Fitch Ratings-New York/San Francisco-01 May 2026: Fitch Ratings has published its “U.S. Public Finance Dedicated Tax and Revenue Bond Rating Criteria”. The criteria updates and replaces the “Exposure Draft: U.S. Public Finance Dedicated Tax and Revenue Bond Rating Criteria” from January 2026.

The new criteria report sets out Fitch’s methodology for assigning new ratings and monitoring existing ratings on 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.

The new criteria replaces 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,” which have been removed concurrent with this publication.

The new criteria broadly retains the existing analytical and assessment framework for rating DTRBs, with some notable revisions including:

–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 (KRD) 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;

–Eliminate the use of the Fitch Analytical Stress Test (FAST) model;

–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;

–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 approximately 20% of its DTRB ratings may change because of the new criteria, with a slightly higher ratio of upgrades to downgrades possible. Most rating changes are expected to be within a range of one to three notches. We will place the ratings of issuers that may be affected Under Criteria Observation (UCO) within five business days.

The ratings placed on UCO will require additional information and analysis to fully assess the effect of the new criteria on the ratings, if any. Not all the ratings placed on UCO will be changed. Existing ratings, Outlooks and Rating Watches remain unchanged by the placement on UCO. Each UCO review will consider changes in the underlying credit profile in addition to the application of the new criteria. Fitch will review all the ratings designated as UCO as soon as practicable but no later than six months from the date of the criteria release.

Key Takeaways

• Data center expansion is not currently the predominant driver of increased electricity prices in U.S. states, but even perceived linkages between the two pose potential credit risks for utilities, local governments, and data center issuers.
• The effects of data center demand on electricity prices may yet materialize as new rate cases progress and regional grid capacities become increasingly strained.
• Local community concerns are prompting U.S. state and local policy responses that could limit utilities’ ratemaking flexibility and ultimately curtail data center expansion.

Rising electricity prices across the U.S. are prompting concerns about the impact of rapid data center development on energy affordability. Retail rates have risen by 38% over the last five years and by as much as 96% in the District of Columbia, according to the U.S. Energy Information Administration. These price increases have largely been driven by inflationary costs and increased capital spending on safety, reliability, and decarbonization, as well as electrification trends, higher capacity prices, and rising costs for wildfire mitigation in some cases. Data center expansion may have been a contributing factor to increased prices, particularly in some states, but it has so far not been the primary driver. However, even the perception of a link between data center expansion and rising electricity prices could contribute to further local resistance and policy responses, creating potential credit risks for utilities, local governments, and data center developers. These dynamics will be important to watch from a credit perspective, particularly in a midterm election year with 36 U.S. state gubernatorial contests, in S&P Global Ratings’ view.

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30-Apr-2026 | 09:04 EDT

Takeaways by Bloomberg AI

• US hospitals have sold more than $17 billion of municipal bonds so far this year, roughly double the pace of 2025
• Many facilities are borrowing to upgrade aging buildings and expand their footprints ahead of potential credit rating hits from Medicaid cuts.
• Investors say buyers looking at hospital debt should be discerning, as the healthcare market is bifurcated, with small, single site hospitals in rural areas facing more challenging pressures.

Hospitals across the country are bracing for financial pain ahead of sweeping Medicaid cuts from the Trump administration. But that hasn’t stopped them from borrowing at the fastest pace in more than a decade.

So far this year, US hospitals have sold more than $17 billion of municipal bonds, roughly double the pace of 2025, and more in the first four months than any year since at least 2015, according to data compiled by Bloomberg. The surge also surpasses the broader muni market, where issuance is up about 9% this year.

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Bloomberg Markets

By Nic Querolo

April 30, 2026

Overview

S&P Global Ratings took 31 rating actions, made 35 outlook revisions, and placed 24 ratings on CreditWatch within the U.S. municipal water and sewer utilities sector in the first quarter of 2026. These totals include our ratings on municipal utility pools. We also affirmed 91 ratings with no outlook revisions.

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Key Takeaways

• After several years of volatility, U.S. privatized student housing projects’ occupancy and debt service coverage (DSC) have rebounded. Median occupancy is consistently above 96%, and every project rated by S&P Global Ratings is above 1.0x audited coverage, with fewer than 10% below 1.2x.
• The majority of recent new projects have estimated thinner coverage upon opening and have limited university support.
• Only two rated projects have defaulted since 2020, while numerous projects were acquired by their associated universities.

Colleges and universities are finding different ways to adapt to the changing realities in the U.S. privatized student housing sector brought about by demographic challenges, the evolving job market, and enhanced technology, among other things. Many continue to use public-private partnerships to fund much needed new housing on campus. Although this strategy tends to improve efficiencies and time to opening by outsourcing housing expertise, it also means lower auxiliary revenues for the institutions. On the heels of the global pandemic when student housing revenue was severely affected, most rated student housing entities were able to stay afloat, in some instances because schools were willing to pass on some emergency federal funds to alleviate operating pressure. In our opinion, these examples demonstrate the importance of the partnership between the projects and the institution. Since January 2023, S&P Global Ratings has added 22 new public ratings on housing projects: 10 were initially rated ‘BBB-‘, five were rated ‘BB+’, four were rated ‘BB’, one was rated ‘BBB’, and two that had contingent leases were rated in the ‘A’ category.

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29-Apr-2026 | 13:25 EDT

In first-quarter 2026, S&P Global Ratings took a total of 81 rating actions within the U.S. public finance housing sector, consisting of 10 positive rating actions, two negative rating actions, 54 affirmations, and 15 new ratings. Further details are provided in the following paragraphs.

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30-Apr-2026 | 17:50 EDT

COLORADO SPRINGS, COLO–May 5, 2026–Investortools, a leading provider of fixed-income investment management and credit analysis solutions, today released a new research paper identifying an estimated $1.03 trillion Infrastructure & Capital Asset Burden (ICA Burden) facing U.S. cities. This obligation significantly exceeds other long-term municipal liabilities such as bonded debt and unfunded pensions.

The report, Infrastructure & Capital Assets Commitment Burden: Quantifying the Hidden Fiscal Risk, is authored by Richard A. Ciccarone, President Emeritus of Merritt Research Services, an Investortools company.

In the study, Ciccarone introduces a first-of-its-kind, accounting-based framework to quantify the cost of replacing and maintaining municipal infrastructure and capital assets that have already been consumed but remain in service.

Drawing on audited financial statements from nearly 2,000 U.S. cities, the analysis estimates the inflation-adjusted cost required to replenish roads, bridges, buildings, public safety equipment, and other governmental capital assets supported by tax revenue

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investortools.com

Posted on 05.05.26

With no balance-sheet penalty for putting off infrastructure repairs, cities often delay making improvements

Quick Summary

• A new study offers a glimpse of the magnitude of the repairs local governments will need to address in coming years.
  View more

U.S. cities are facing huge liabilities that remain invisible on their books: dilapidated roads, bridges and buildings.

A new study aims to put a dollar figure on the total wear and tear on the country’s urban infrastructure, and arrives at $1.03 trillion. That is not necessarily what it would cost to bring the infrastructure up to date, but it offers a snapshot of the magnitude of the repairs local governments will need to address in coming years.

The costs are hypothetical for now but could someday hit cities’ bottom lines. About a decade ago, for instance, new rules made cities account for their long-term pension obligations. Afterward, taxes rose, services were cut and municipal bond prices fell for many cities.

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The Wall Street Journal

By Heather Gillers

May 5, 2026 5:00 am ET

Lawmakers are scrambling to rethink funding as firefighting expenses surge beyond budgeted levels.

Oregonians buying nicotine pouches like Zyn and Rogue were met with a surprise at the cash register starting this year. Each tin had new 65-cent tax on it, meant to bolster funding for the state’s wildfire reduction efforts.

Wildfires burned more than 1.9 million acres in Oregon in 2024. By the time they finally died down at the end of October, the state had spent more than $350 million fighting them, greatly exceeding the $10 million it had allocated. “By July 21, I had already completely blown through my cash on hand,” said Kyle Williams, Oregon Department of Forestry’s deputy director for fire operations.

Contractors weren’t promptly paid for services they’d already provided, from digging fuel breaks to supplying meals, and the state had to hold an emergency legislative session to allocate the money. That summer highlighted the flaws in how the state funds both firefighting and the preventive work that reduces the chances of large, destructive blazes in the first place.

Continue reading.

governing.com

May 4, 2026 • Kylie Mohr, High Country News

View the Fitch Report.

Fri 01 May, 2026 – 4:49 PM ET

On Thursday, April 30, the longest shutdown of a federal department in U.S. history came to an end when the president signed a bill to fund most of the Department of Homeland Security. This blog summarizes the continued effects on local governments and reflects recent federal updates.

The ongoing lapse in funding for the Department of Homeland Security (DHS) has now become the longest shutdown affecting one of the federal government’s most essential departments. For America’s cities, towns and villages, this is not an abstract federal issue. It is a growing public safety challenge with real consequences on the ground.

The Senate approved a bipartisan DHS funding bill that excludes U.S. Immigration and Customs Enforcement (ICE) and parts of U.S. Customs and Border Protection (CBP) in the early morning hours of March 27, 2026, passing it by unanimous voice vote. The House has not taken up the measure, as House leadership insists that Congress address ICE and CBP funding first. In late April, the Senate also passed a budget reconciliation resolution, 50-48, that establishes a framework to provide $70 billion in funding to ICE and CBP for the next several years through a simple majority process that bypasses the filibuster. On April 29, 2026, the House adopted the Senate budget resolution on a largely party-line vote, 215-211. After advancing the reconciliation process, the House today approved the bipartisan DHS funding bill that excludes ICE and parts of CBP, nearly a month after the Senate passed it.

Local governments rely on strong and consistent federal partnership to protect residents and maintain community resilience. DHS plays a central role in that partnership, supporting disaster response, emergency management coordination, cybersecurity and infrastructure protection. When DHS operations are disrupted, local leaders are forced to navigate increasing risks with fewer resources and less coordination.

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National League of Cities

By: Yucel Ors

April 30, 2026

WASHINGTON — The U.S. Department of the Treasury announced today that is has initiated a review of certified Community Development Financial Institutions (CDFIs) to identify potential violations of applicable law or CDFI requirements and to help ensure that CDFIs that receive federal assistance act as proper stewards of taxpayer funds.

“CDFIs play a critical role in expanding access to capital in underserved communities,” said Treasury Secretary Scott Bessent.  “CDFIs that engage in predatory practices and take advantage of the very communities they are intended to serve will be reviewed and, where appropriate, held accountable. We remain committed to enforcing the law and protecting taxpayer resources while supporting the mission of responsible CDFIs.”

This ongoing review is part of Treasury’s efforts to strengthen oversight of federal grant programs, promote accountability, and prevent abuse. Treasury is assessing whether CDFIs are complying with applicable legal requirements and the terms of CDFI Fund assistance agreements.

Where appropriate, Treasury will take action consistent with applicable law and program requirements.

April 27, 2026

The study by NASCIO and Deloitte found that just 26% of respondents are extremely or very confident they can protect themselves from cyber threats, down from 48% in 2022.

PHILADELPHIA — State cybersecurity officials appear less confident they can protect themselves against threats to their systems and assets, according to a survey released last week.

The survey by the National Association of State Chief Information Officers and Deloitte found that just 26% of state chief information security officers say they are “extremely” or “very” confident that they can protect themselves from cyber threats. That’s a reduction from the 2022 edition of this survey, when 48% said they were confident of protecting themselves.

Experts put that dramatic drop in confidence down to the continued growth of artificial intelligence, which is already being exploited by bad actors and hackers connected to nation-states. And while AI’s defensive capabilities are already being used, keeping up with threat actors will be a constantly moving target.

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Route Fifty

By Chris Teale,
Managing Editor

May 4, 2026

CHICAGO (S&P Global Ratings) April 30, 2026–S&P Global Ratings affirmed its ratings on various U.S. local governments (see list below) and removed them from CreditWatch, where they were placed with negative implications on March 6, 2026. The ratings are unchanged, and the outlook on all ratings is stable.

The removal from CreditWatch and the assigning of a stable outlook reflects our receipt and review of financial information, including 2024 financial statements, from these issuers. Following our review of the updated financial information, we affirmed our various long-term ratings on these issuers.

For more information on our need for timely information, see “Various Ratings Withdrawn On 70 U.S. Public Finance Issuers Due To Lack Of Timely Information,” April 8, 2026, and “How Quality And Timeliness Of Information Are Incorporated Into U.S. Public Finance’s Rating Process,” Dec. 6, 2021.

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30-Apr-2026 | 14:52 EDT

Takeaways by Bloomberg AI

• The municipal-bond market delivered its best performance for April in over a decade, with the Bloomberg Municipal Bond Index rising nearly 1.15% last month.
• The strong performance in April came after a stretch of war-fueled volatility, including a 2.3% decline in March, and runs counter to historical trends.
• Analysts advise investors to buy during periods of future weakness, expecting that subdued reinvestment capital and higher supply could cause technical conditions for the muni market to become onerous in the coming weeks.

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Bloomberg Markets

By Aashna Shah

May 1, 2026

Municipal credit quality continues to be resilient. S&P reports that upgrades exceeded downgrades in most sectors in 2025, elevating average municipal ratings. Smith’s Research, which combines three rating agency actions, shows similar positive-weighted activity. However, the first quarter of 2026 saw a reversal, with downgrades exceeding upgrades by S&P. It makes sense that the ratio of upgrades to downgrades is narrowing or reversing after several years, with positive ratings actions exceeding negative actions. We have wondered for years when the credit outlook might change, since it has been strong for so long, even with challenges.

Munis have an average rating of AA, reflecting strong economies, improved budgeting tools, and financial cushions to help manage challenges that may lie ahead. Challenges include the ending of pandemic stimulus (some aid still flowed in 2026) that helped many municipalities over the hump of Covid-19 restrictions, changes to federal funding such as FEMA and Medicaid that need to be managed, as well as effects of the Iran war such as increasing oil prices and inflation and cyber risks.

Munis should prevail and usually do. The default rate is practically nonexistent for safe-sector, highly rated bonds. The default rate is extremely low and concentrated on non-rated or lower-rated bonds. The average five-year cumulative default rate from 2015 through 2024 for investment-grade munis was a very low 0.04%, according to Moody’s, which is multiples lower than the 0.85% for investment-grade corporates. States have oversight and monitor local governments, which can act as an early-warning system to identify problems and trigger actions to provide aid in management or finances. Fortunately, states have many revenue sources, the ability to adjust expenses and revenue, and healthy reserve positions.

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aol.com

Patricia Healy, Special to the Herald-Tribune

Mon, April 27, 2026 at 3:40 AM PDT

Digital trading of municipal bonds hit a record in the first quarter of 2026, an encouraging development for an asset class that has been slower than others in adopting electronic venues.

Electronic trading platforms accounted for roughly 21% of muni bond volume in the first quarter of the year, surpassing the all-time high of roughly 20% in 2023, according to a research note from Crisil Coalition Greenwich.

The growth comes after overall municipal bond trading volume surged to a record in 2025, thanks to robust issuance by state and local governments. Investors are keeping up a strong pace this year, with the number of trades surpassing 4 million in the first quarter, up about 2.5% from the same period in 2025, data from the Municipal Securities Rulemaking Board show.

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Bloomberg Markets

By Aashna Shah

May 4, 2026

Takeaways by Bloomberg AI

• Investors are piling into municipal bonds at the fastest rate in five years, drawn by attractive yields and the promise of a safe harbor from recent market volatility.
• Net inflows into funds focused on state and local government debt totaled roughly $22.3 billion in the first four months of the year, the most for the period since 2021.
• The yield-to-worst on the muni index stands at 3.69%, which is a taxable equivalent yield of just over 6%, according to Jason Appleson, head of municipal bonds at PGIM Fixed Income.

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Bloomberg Markets

By Aashna Shah

May 5, 2026

New York’s shifting political environment has significant implications for the city’s finances and municipal bond portfolios. In this episode of the Masters of the Muniverse podcast, Pat Luby, head of municipal research and senior municipal strategist at CreditSights, joins Bloomberg Intelligence’s Matthew Gastall, head of municipal research and strategy, and BI senior associate Karen Altamirano. Luby also shares his views on the growing importance of muni ETFs, new-issue volume trends, and what they could mean for issuers and investors. Listen to this episode on Apple Podcasts and Spotify.

Listen to Podcast.

Bloomberg

Apr 28, 2026

When advisors think about municipal bonds, the conversation almost always centers on tax-exempt bonds — and for high-bracket clients, that focus is entirely justified. The tax math favors it, and the yield advantage of the exemption is meaningful at current rates. But taxable municipal bonds represent a growing and often misunderstood segment of the $4.4 trillion muni market, and for specific client situations, they can add value that the tax-exempt segment simply can’t match.

The market for taxable munis has grown substantially in recent years. The segment now accounts for roughly $33 billion annually in issuance, up significantly from prior cycles. Much of the growth reflects a practical reality for issuers: certain projects that once qualified for tax-exempt financing — advance refundings, some private activity bonds — lost that status under the 2017 Tax Cuts and Jobs Act. Issuers who still needed to access capital had to do so on a taxable basis. The result is a rich and growing universe of investment-grade taxable muni bonds from high-quality state and local government issuers.

The credit profile of this segment is where things get interesting. A study comparing A-rated taxable municipal bonds to A-rated corporate bonds from 2009 through 2023 found a result that deserves more attention than it typically gets: there were zero defaults among A-rated taxable munis over the 14-year period studied. Among comparably rated corporate bonds in the same sample, there were 11 defaults. The study’s author — who is also the chief investment officer for a $4.5 billion insurance company with approximately $1 billion in muni exposure — put it plainly: “I would much rather invest in the muni, both in terms of default rates and in terms of the yield that you’re getting off of those.”

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dividend.com

by Jason Kirsch

Apr 30, 2026

Key Points

• Higher oil prices may support some municipal bond issuers by boosting revenues tied to energy production. However, they can also strain household budgets, potentially slowing economic growth and lessening tax collections.
• Bondholders might feel the effects if revenues weaken, reducing an issuer’s financial flexibility to meet debt service.
• We don’t expect higher oil prices to meaningfully move the municipal market overall. Still, we suggest investors weigh the risks of bonds from smaller local governments where oil and gas are major sources of revenue.

Higher oil prices are an unwelcome sight at the gas pump, but they can benefit some municipal bond issuers. According to Bloomberg, crude oil has risen over 35% since late February and the move has already rippled through other markets. What might higher oil prices mean for municipalities, and what—if anything—should municipal bond investors consider doing about it?

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advisorperspectives.com

by Cooper Howard of Charles Schwab

4/24/26

WASHINGTON— The Treasury Department said Monday it has launched a review of certified Community Development Financial Institutions to look for potential violations of law or CDFI program requirements, signaling a new oversight push as the Trump Administration simultaneously seeks to sharply reduce funding for the CDFI Fund.

Treasury said the review will examine whether CDFIs that receive federal assistance are complying with legal requirements and the terms of their CDFI Fund assistance agreements, and said it will take action where appropriate.

Treasury Secretary Scott Bessent said CDFIs remain important to underserved communities, but warned that institutions engaging in “predatory practices” or exploiting the communities they are meant to serve will face scrutiny. The department described the move as part of a broader effort to strengthen oversight of federal grant programs, promote accountability and prevent abuse of taxpayer funds.

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cutoday.com

04/27/2026

WASHINGTON— The U.S. Department of the Treasury announced today that is has initiated a review of certified Community Development Financial Institutions (CDFIs) to identify potential violations of applicable law or CDFI requirements and to help ensure that CDFIs that receive federal assistance act as proper stewards of taxpayer funds.

“CDFIs play a critical role in expanding access to capital in underserved communities,” said Treasury Secretary Scott Bessent.  “CDFIs that engage in predatory practices and take advantage of the very communities they are intended to serve will be reviewed and, where appropriate, held accountable. We remain committed to enforcing the law and protecting taxpayer resources while supporting the mission of responsible CDFIs.”

This ongoing review is part of Treasury’s efforts to strengthen oversight of federal grant programs, promote accountability, and prevent abuse. Treasury is assessing whether CDFIs are complying with applicable legal requirements and the terms of CDFI Fund assistance agreements.

Where appropriate, Treasury will take action consistent with applicable law and program requirements.

April 27, 2026

S&P Global Ratings took 21 rating actions and maintained 78 ratings in the U.S. not-for-profit higher education sector during the first quarter of 2026. The 21 rating actions include one new rating and are broken out as follows:

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22-Apr-2026 | 15:55 EDT

Overview

During the first quarter of 2026 (Jan. 1, to March 31), S&P Global Ratings changed its rating or revised the outlook on 21 U.S. charter schools, assigned eight new ratings, and maintained 46 ratings across the sector. The rating actions are broken out as follows:

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24-Apr-2026 | 11:58 EDT

Cities across the country entered the FY 2025 budget cycle facing mounting infrastructure demands amid increasingly constrained fiscal conditions. As aging assets require more frequent maintenance and replacement, local governments are balancing the need to invest in core infrastructure such as roads, water systems and public facilities against rising costs and competing budget priorities.

City Fiscal Conditions 2025 survey data from cities revealed that infrastructure needs have continued to rise from FY 2024 to FY 2025, with these growing demands placing strain on municipal budgets. While infrastructure spending has largely been maintained, particularly in smaller communities, the data underscores the financial pressure cities face as they work to sustain essential services and long-term capital investments.

Rising Infrastructure Needs Are Closely Linked to Budgetary Strain

Among cities reporting increased infrastructure needs in the 2025 survey, an overwhelming majority — 90 percent (125 out of 132 cities) — also report a negative budgetary impact, underscoring how growing demand for capital investment is straining local finances. By contrast, no cities experiencing decreased infrastructure needs reported either positive or negative impacts on their budget, reflecting the rarity of declining demand in the current fiscal environment. The CFC survey data emphasized that rising infrastructure needs were not only widespread but also closely associated with fiscal stress for cities heading into FY 2025.

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National League of Cities

By Harshita Umesh Tanksali

April 20, 2026

Notice of Availability of Proposed Guidance for Preferred Loan Sizing for Transit-Oriented Development Projects Under the Railroad Rehabilitation and Improvement Financing Program and Transportation Infrastructure Finance and Innovation Act Program

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A Notice by the Transportation Department on 04/23/2026

WASHINGTON (AP) — A federal judge in Massachusetts on Tuesday struck down several Trump administration actions slowing down development of clean energy, including a requirement that all solar and wind energy projects on federal lands and waters be personally approved by Interior Secretary Doug Burgum.

Chief Judge Denise J. Casper of the U.S. District Court for the District of Massachusetts ruled that a coalition of plaintiffs representing wind and solar developers were likely to succeed on the merits of their claims that the administration’s actions violate federal statute and will cause irreparable harm if the court did not intervene.

She issued a preliminary injunction to stop the administration from implementing the policies, which clean energy advocates said would hamstring projects that need to get underway quickly to qualify for expiring federal tax credits.

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YAHOO.COM

by JENNIFER McDERMOTT and MATTHEW DALY

Tue, April 21, 2026 at 12:59 PM PDT

• A modest weekly outflow is not likely to break the 2026 municipal demand story when funds are still up nearly $18 billion year-to-date, and issuance is set to stay heavy into late April and May.
• Tax-exempt yields are still competitive, with the 10-year MMD AAA at 2.91% and long-end relative value still very attractive, led by the 30-year at an 87% municipal-to-Treasury ratio.
• Near-term macro concerns may be building. Private credit, U.S. fiscal deficit and Treasury demand chatter, along with energy prices are worth watching over the next few weeks.

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advisorhub.com

by Tom Kozlik, HilltopSecurities

April 20, 2026

Before the ceasefire, markets had essentially given up on Federal Reserve rate cuts in 2026. The probability of at least one cut by year-end had collapsed to roughly 25%, crushed by an oil-driven inflation spike that made the Fed’s job functionally impossible. With Brent crude above $100 and geopolitical risk premiums embedded across the yield curve, the narrative had shifted from “when will the Fed cut?” to “could the Fed hike?” The probability of a rate hike by year-end had climbed to nearly 25% on prediction markets — a remarkable shift from where expectations stood just months earlier.

The ceasefire changed that calculus sharply. Oil fell more than 16% on April 8. The 10-year Treasury yield dropped to around 4.30%, its lowest level in roughly three weeks. Fed cut probabilities by year-end jumped from 25% to over 43% in a single session, according to CME FedWatch data. The probability of a rate hike tumbled from nearly 25% to 14%. In the span of a few hours, the rate narrative had done a near-complete reversal — and the municipal bond market repriced accordingly.

For muni investors, the Fed’s path matters enormously, but the relationship between rate expectations and muni valuations is more nuanced than simply “cuts are good, hikes are bad.” Understanding where that nuance lives is what separates an advisor who manages muni duration strategically from one who simply reacts to whatever the Fed says next.

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dividend.com

by Jason Kirsch

Apr 20, 2026

• With the Fed expected to hold steady, municipal investors’ focus should shift to the long-end where municipal-to-Treasury ratios (M/T ratios) still look unusually attractive.
• Geopolitics is still setting the near-term inflation tone. Trump canceled the planned Pakistan trip for Witkoff and Kushner, and Brent crude finished the week around $105, keeping the Strait of Hormuz risk on the front page.
• The Fed transition is now likely to begin moving. Pirro closed the Justice Dept. probe tied to Powell, Tillis said he will support Warsh, and the Senate Banking Committee is scheduled to vote April 29.

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advisorhub.com

by Tom Kozlik, HilltopSecurities

April 27, 2026

Takeaways by Bloomberg AI

• Democrats are pushing forward on plans to tax the rich, which could be supportive for the tax-exempt municipal-bond market.
• The state of Washington and Maine have instituted new taxes on high-income earners, and other states are considering similar measures to address concerns about affordability and income inequality.
• Analysts say the new taxes could increase demand for municipal bonds and support stronger in-state demand, potentially putting downward pressure on yields for issuers in states with the new taxes.

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Bloomberg Markets

By Amanda Albright

April 21, 2026

NORWALK, Conn., April 17, 2026 (GLOBE NEWSWIRE) — CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for March 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 increase in request volume for new corporate and municipal identifiers.

North American corporate CUSIP requests totaled 8,220 in March, which represents an 11.7% increase on a monthly basis. On an annualized basis, North American corporate requests were up 9.8% over March 2025 totals. Requests for new U.S. corporate equity identifiers rose 3.9% and requests for new U.S. corporate debt identifiers climbed 9.4% for the month of March.

The aggregate total of identifier requests for new municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – rose 8.7% versus February totals. On a year-over-year basis, overall municipal volumes were up 1.3% through the end of March. Texas led state-level municipal request volume with a total of 97 new CUSIP requests in March, followed by California (96) and New York (92).

“We’ve seen steady increases in CUSIP request volume across several major asset classes through the first quarter of 2026,” said Gerard Faulkner, Director of Operations for CGS. “This heightened pre-market activity, particularly in equity markets, suggests issuers are gearing up to access capital markets in a significant way over the course of this year.”

Requests for international equity CUSIPs rose 11.0% in March and international debt CUSIP requests were flat. On an annualized basis, international equity CUSIP requests were up 13.6% and international debt CUSIP requests were up 16.6%.

To view the full CUSIP Issuance Trends report for March, please click here.

Key Takeaways

• Fifty-six percent of S&P Global Ratings’ municipal retail electric utility ratings are in the ‘A’ category, with a median and modal rating of ‘A+’, which is consistent with recent years. This demonstrates our view of most not-for-profit (NFP) utility systems’ sound operations and financial health, despite facing both utility specific and broader industry challenges.
• However, for a subset of the sector, financial stressors from affordability pressures and increasing physical risks led to downgrades outpacing upgrades in each of the past five years (2021 through 2025). While national electric rate increases were modest from 2022 through 2024, as indicated by the Energy Information Administration (EIA), we note national averages often mask substantial, localized rate hikes. We believe electricity prices will likely keep rising above the pace of inflation in the coming years, spurred by the need for grid modernization, AI/data center demand, the energy transition, and grid hardening for climate event resilience.
• In addition, we revised more outlooks to negative than to stable or positive in 2025 due to a combination of delayed cost recovery resulting in deterioration in financial performance, weakened competitive position, and our evolving view of heightened long-term credit exposure associated with wildfires in California, and we anticipate these pressures will persist.
• The higher percentage of downgrades and negative outlook revisions in 2025 continues to support our negative sector view as NFP public power, electric distribution cooperatives, and natural gas utilities face rising operating expenses and capital investment costs. For a more detailed sector view, see “U.S. Public Power And Electric Cooperative 2026 Outlook: Rising Inflation And Capital Spending Stressors Perpetuate Negative Rating Pressures,” Dec. 8, 2025.

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15-Apr-2026 | 15:58 EDT

View the S&P Ratings and Outlooks.

14-Apr-2026 | 11:18 EDT

Prices at the pump have surged everywhere, but it hurts more in cities where driving is the only option.

Takeaways by Bloomberg AI

• Gas prices have skyrocketed across the US as a result of the Iran war, causing more economic pain in some cities than others.
• Many of the hardest hit cities are in the Sun Belt and parts of the South, such as Nashville and Indianapolis, where drivers have paid an average of nearly $70 more per month in fuel costs since March 1.
• Monthly driving costs in denser cities such as New York, San Francisco and Portland, Oregon have not spiked as much, primarily because so many rely on public transit instead of driving.

Gas prices have skyrocketed across the US as a result of the Iran war, but the surge is causing more economic pain in some cities than others.

And it’s not necessarily in the places where gas prices have risen the most, like Chicago or Los Angeles. Instead, it’s in smaller, more spread-out cities, like Nashville or Indianapolis, according to an analysis of local gas prices through April 9 from data aggregator GasBuddy and figures on driver mileage from the Federal Highway Administration.

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Bloomberg Economics

By Aaron Gordon

April 17, 2026

Since publishing the Disaster Recovery Brief “Are Block Grants the Future of FEMA Public Assistance?” we received several inquiries seeking additional information. In response, this brief explains what a block grant is in the context of disaster assistance and the practical effect a block grant model could have on FEMA infrastructure grants to states, tribes, territories, local governments, and private nonprofits. Legislation would be needed to make such a major change to the delivery of FEMA Public Assistance, but if passed, such a shift could allow the Executive Branch to move away from its current project-based system and improve program efficacy.

FEMA’s current Public Assistance grant program is run as a project-based grant where the initial grant to the recipient state or tribe is $0, and FEMA amends the scope and amount of the grant each time the agency approves a subrecipient’s project. The scope and cost of each project is developed consistent with strict eligibility requirements. In contrast, under a block grant model, the agency establishes the purpose, time, and amount of the grant based on a broad scope and then relinquishes control over the way the recipient accomplishes that scope. The federal agency does not micro-manage the implementation of a block grant, but the funds must be used for the authorized purpose and comply with any restrictions set by the authorizing statute or appropriation and terms imposed by the grant agreement. In addition, FEMA’s current Public Assistance Program is reimbursement-based – meaning the applicant does the work, pays, and then seeks reimbursement from FEMA. Under a block grant model, the agency could move away from that system – providing funds up front for the provision of eligible work.

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Baker Donelson

by Erin J. Greten

April 15, 2026

A group sympathetic to the regime claimed responsibility for a hack on the Los Angeles Metro, while the federal government is warning of ongoing vulnerabilities in some systems.

Cyberattacks against critical infrastructure from groups sympathetic to Iran appear to be ticking up, as the federal government warns hackers may look to exploit other vulnerabilities.

Last week, pro-Iranian hacking group Ababil of Minab claimed responsibility for a hack on the Los Angeles County Metropolitan Transportation Authority, known as LA Metro. The cyberattack it experienced last month forced the transit agency to shut down access to some of its network after its security team found unauthorized activity, although LA Metro said bus and rail service was unaffected.

The hacking group published claims on Telegram that they said showed them accessing LA Metro’s internal systems. Tim Miller, field chief technology officer for public sector at Dataminr, an artificial intelligence-backed platform that helps leaders track events, threats and risks in real time, said in a blog post that the group is an “emerging” one “with a limited public profile and little verifiable prior activity in threat intelligence reporting — making any definitive capability or intent assessment premature at this stage.”

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Route Fifty

By Chris Teale
Managing Editor

April 17, 2026

OXFORD, United Kingdom, April 17, 2026 (GLOBE NEWSWIRE) — Annual capital investment in US water and wastewater infrastructure will cross $100 billion for the first time in 2030, according to a new state-level forecast published by Global Water Intelligence on its WaterData platform.

The forecast draws on municipal budgets to project spending through 2030, accounting for pricing impacts and volume growth. It is the first state-by-state US water capex outlook GWI has published since 2023.

“Water and wastewater agencies are pressing ahead with record capital programs despite a tightening web of cost pressures” explained Luke Bratt, North America Editor at Global Water Intelligence. “More of this spending is non-discretionary than at any point in the last two decades, given impending federal and state regulatory deadlines.”

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Global Water Intelligence

April 17, 2026

In thirty years of reviewing fixed-income allocations for single-family offices, I have seen the same mistake repeated with impressive consistency: clients reach for a familiar yield without asking whether the underlying credit has structurally changed. The tax exemption is real, the retail demand is deep, and the inertia is powerful. California municipal bonds are testing all three of those assumptions right now.

The bull case is well known. California is the world’s fourth-largest economy with a GDP exceeding $4.1 trillion. The double federal-and-state tax exemption translates to a combined marginal rate approaching 54.1% for top-bracket California residents, making even a modest nominal coupon genuinely competitive. Morgan Stanley’s municipal team entered 2026 noting that 20-year AA-rated Munis were offering taxable-equivalent yields of just under 7%. On paper, the asset class earns its allocation.

But BlackRock’s municipal credit team offered a more candid read in August 2025: strong retail demand has produced spreads that “traditionally do not reflect the fundamental picture.” That is institutional language for investors not being paid for the risk they carry. I agree.

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realclearmarkets.com

By Jay Rogers

On April 8, municipal bonds posted their biggest single-day rally in over a year. The trigger was the announcement of a two-week ceasefire in the U.S.-Iran conflict, which sent oil prices tumbling more than 16% and immediately repriced inflation expectations across fixed income markets. Benchmark AAA 10-year muni yields dropped 9 to 10 basis points in a single session. Traders reported a frenzy at the open — some early prints could have justified yield drops of 15 basis points — before markets settled as the day wore on and questions about the ceasefire’s durability crept back in.

The move itself was striking, but the context behind it matters more than the headline number. Municipal bonds had been under sustained pressure for most of the first quarter. The U.S.-Iran conflict, which escalated sharply in late February, sent oil above $100 per barrel and reignited inflation fears that the market had spent much of 2025 trying to put behind it. Treasury yields climbed in response — the 10-year benchmark rose from 4.19% at the start of the year to a Q1 high of 4.4% in late March, with the 30-year approaching 5%. Muni yields tracked higher with more volatility, with AAA 10 and 30-year yields rising 60 and 35 basis points respectively from their Q1 lows to their highs. March, as a result, posted the worst monthly muni returns in over two years.

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dividend.com

by Jason Kirsch

Apr 14, 2026

Q1 2026 threw a lot at investors: geopolitical tension, rate volatility, and macro uncertainty. Here’s why municipal bonds held up, and why the setup heading into Q2 may be even more compelling.

Key Takeaways

• Despite a noisy Q1, high-quality munis continued to pay investors their interest and principal as intended.
• Muni yields rose faster than Treasuries in Q1, pushing the 30-year muni/Treasury ratio to near two-year highs, up over 2 points since year-end.
• Credit quality remains excellent with state tax collections still running 10%+ higher in key states. This is a rate story, not a credit story.

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VanEck

by Drew Anderson
Associate Product Manager

James Colby
Senior Municipal Strategist

April 13, 2026

For financial advisors, tax season should not be the only time to talk to clients about municipal bonds. However, with April 15 arriving this week, the timing is ideal to examine how muni bond ETFs are rapidly becoming a cornerstone of fixed-income allocations in 2026.

Key Takeaways:

• Tax season creates a prime entry point for municipal bond ETFs, which gathered $12 billion in the first quarter of 2026.
• While passive ETFs dominate, investors are increasingly pivoting to active management. Funds from Capital Group (CGMU) and JPMorgan (JMUB) have gained in popularity.
• Vanguard’s active municipal bond ETF (VCRM) surpassed $1 billion in assets, signaling that advisors have comfort with professional bond selection.

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advisorperspectives.com

by Todd Rosenbluth of VettaFi

4/14/26

For high yield corporate bond investors seeking an attractive investment to complement their portfolios, high yield municipal bonds feature a number of compelling characteristics.

Key Takeaways

• While this discussion focuses on high yield municipal bonds, we believe they can also serve as a complementary allocation alongside taxable high yield within a broader fixed income portfolio, particularly for investors seeking to optimize after-tax income.
• Historically, high yield municipal bonds have defaulted at about one-fourth of the rate of their corporate counterparts. When municipals have defaulted, investors have realized greater recovery rates than those for corporate bonds.
• Given those factors, we believe high yield munis offer compelling value on a tax-equivalent basis when returns are adjusted to reflect the impact of taxes.
• Further, risk-adjusted returns for high yield munis (when adjusted for municipal bonds’ tax-free income) are higher than high yield corporates and virtually all of the major fixed income sectors.
• Based on their larger risk premium, high yield municipal bonds offer an opportunity for high-earning investors to capture enhanced income and risk-adjusted returns while potentially benefiting from munis’ inherent tax advantages.

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Lord Abbett

By Daniel S. Solender, Nicholas Bragdon

Insight • April 14, 2026

(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

• Although U.S. transportation infrastructure enterprises (TIEs) have historically demonstrated resilience to fuel price fluctuations, prolonged elevated prices could pressure activity levels and ratings.
• Demand at airports, ports, and toll roads is relatively price-inelastic in the short run and exhibits limited sensitivity to fuel price fluctuations. However, sustained higher prices could curb discretionary travel on toll roads, while simultaneously boosting mass transit ridership as drivers become riders.
• In the long term, we expect U.S. consumers could temper their travel behavior if elevated fuel prices persist for a longer duration or become more pronounced, trickling down to soften revenue performance at TIEs.
• Fuel price impacts on transportation infrastructure activity levels and financial performance would be exacerbated if accompanied by a significant slowdown or recession, which is not in our in economic baseline forecasts.

Continue reading.

09-Apr-2026 | 12:15 EDT

(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

• U.S. public finance (USPF) issuers are exposed to supply chain risks through evolving labor market dynamics, federal policy and regulatory shifts, and geopolitical tensions that may lead to higher costs, budgetary strain, and increased debt.
• Consistent with other evolving market risks, we analyze an issuer’s risk identification, mitigation strategies, management oversight, and financial flexibility to determine potential rating implications.
• Issuers demonstrating proactive management, strong financial resilience, and adaptability in the face of supply chain disruptions are more likely to demonstrate broader risk preparedness and maintain credit quality.

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09-Apr-2026 | 09:08 EDT

Fitch Ratings-Sao Paulo/New York-10 April 2026: Fitch Ratings has updated its criteria for rating public-sector counterparty obligations in public private partnership (PPP) transactions. The criteria updates and replaces the prior report from April 2025.

The criteria report continues to set out Fitch’s methodology for assigning new ratings and monitoring existing ratings for obligations of public-sector grantors under a concession, lease or other agreement (referred to herein as a framework agreement) used to support PPP financing for public infrastructure assets.

With this update, Fitch streamlined the Scope section of the report and moved some of that language to other sections to improve consistency in presentation with other Fitch rating criteria reports. We also clarified a reference to the use of Fitch’s “Emerging Market Countries’ Local and Regional Governments’ Specific Securities Rating Criteria” report regarding national scale ratings to say that the adjusted Issuer Default Rating would be the starting point for any notching (not notching uplift) applied to the grantor obligations under the PPP framework agreement.

Fitch also added subheadings in the Other Considerations section of the criteria report to improve readability. Finally, this report also updates references to the current versions of other related criteria.

The key criteria elements remain consistent with those of the prior report. There is no effect on outstanding ratings. The previous version of the criteria has been retired.

The updated criteria report is available at www.fitchratings.com

View the Current List.

06-Apr-2026 | 11:36 EDT

View the Current List.

06-Apr-2026 | 11:35 EDT

View the S&P list.

06-Apr-2026 | 11:33 EDT

(S&P Global Ratings) April 8, 2026–S&P Global Ratings withdrew its ratings on 70 U.S. local governments, utility systems, and airports identified in the list below. The withdrawals reflect our inability to obtain adequate and timely financial information necessary to maintain surveillance of the ratings in accordance with our applicable criteria and policies. Such financial information includes 2024 audited financial statements.

The withdrawals follow our placement of the ratings on CreditWatch with negative implications on March 6, 2026 (see “Ratings On Various U.S. Public Finance Issuers Placed On CreditWatch Negative On Lack Of Timely Information, March 6, 2026”).

While specific reasons may vary from issuer-to-issuer, it is our understanding, based on our outreach on this topic to issuers and their agents, that auditing firms continue to experience some staffing shortages, resulting in setbacks in completing issuers’ financial disclosures in a timely manner. Issuers also report that they have faced staffing turnover in key reporting departments as well, which has further contributed to delayed reporting.

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Data as of March 31, 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.

Key Takeaways

• There were more than 580 rating actions across USPF through March 31, 2026.
• Upgrades outpaced downgrades in the states, housing, not-for-profit, education, and transportation sectors.
• Downgrades outpaced upgrades in the public power, local governments, charter schools, health care, and utilities sectors.
• Unfavorable outlook revisions exceeded favorable outlook revisions year-to-date.

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10-Apr-2026 | 14:56 EDT

In March 2026, S&P Global Ratings maintained 28 ratings without revising the outlooks, and took one negative rating action in the U.S. not-for-profit health care sector. In addition, we revised two outlooks favorably and three outlooks unfavorably without changing the ratings.

Included in the month’s activity were ratings assigned to eight new debt issuances for currently rated systems, all of which were affirmed.

The six rating actions and outlook revisions consisted of the following:

• One downgrade on a stand-alone hospital in the ‘BBB’ category.
• Two outlook revisions to positive from stable on one stand-alone hospital and one system, both in the ‘A’ category.
• Three outlooks revised to negative from stable on two stand-alone hospitals, one in the ‘A’ category and one in the speculative-grade category, and one system in the ‘A’ category.

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10-Apr-2026 | 14:19 EDT

Key Takeaways

• On April 6, 2026, the Centers for Medicare & Medicaid Services (CMS) released its 2027 Medicare Advantage (MA) Rate Announcement, finalizing the payment structures and policies that will result in an averaged expected revenue increase of 2.48% for insurers.
• This final rate is higher than the 0.09% initially proposed in the Advance Notice.
• While we think the improved final rate will lift some margin pressure originally feared by insurers in 2027, we remain cautious on the margin recovery as there may still be a gap between the rate increase and high medical cost trend.
• Providers’ operating margin may also be constrained as insurers attempt to transfer their financial pressures related to MA rates onto provider reimbursement.

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08-Apr-2026 | 16:21 EDT

KBRA releases research discussing the impact of the One Big Beautiful Bill Act’s (OBBBA) effect on states arising from its Medicaid rules. For states, significant changes to Medicaid result from OBBBA provisions that reduce federal funding, limit how states raise their share of funding, or add new administrative costs.

Since the enactment of the OBBBA in July 2025, KBRA has analyzed, across multiple reports, the potential credit impacts of the changing relationship between the federal government and state and local governments. This relationship has been altered through a variety of provisions in the law and through separate actions taken by the administration, including the funding freeze placed on critical mass transit projects. Looking ahead, states face a multitude of financial pressures resulting from the recasting of the federal relationship with states and localities. In addition, OBBBA has also altered the Medicaid landscape. In this commentary, KBRA addresses notable pain points for states arising from OBBBA’s Medicaid provisions, with a focus on fiscal and administrative challenges.

Key Takeaways

• Policy changes in Washington are shifting greater responsibility for funding certain federal programs, particularly low-income medical care, to state and local governments.
• Among the Medicaid provisions with the largest federal spending reductions are work requirements, provider taxes, state-directed payments, and the moratorium on the Medicare Savings Program final rule.
• KBRA believes changes involving work requirements, provider taxes, state-directed payments, and eligibility redeterminations may have the largest impacts for states due to their combined fiscal and administrative implications.
• OBBBA’s Medicaid changes will place pressure on states to close the coverage and financial gaps that emerge as implementation occurs while addressing the knock-on effects of federal policy changes such as the expiration of enhanced premium tax credits.

Click here to view the report.

Municipal bond buyers expect higher interest rates from communities more prone to wildfires

Wildfire season is approaching, threatening not only property and lives but municipal bond prices in the most vulnerable places.

A study from the University of Iowa’s Tippie College of Business found that communities more prone to wildfires pay higher interest rates on their municipal bonds as investors demand higher returns for the increased risk.

Those cities pay an additional .36% in interest on average, which can translate to thousands if not millions of additional dollars depending on the size of the bond issue.

That means taxpayers in the most affected cities had to pay an additional $4 billion in property taxes to cover the interest rate premium between 2000 and 2022.

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7-Apr-2026 at 8:00 PM EDT, by University of Iowa Tippie College of Business

Bloomberg’s Erin Hudson joins Katie Greifeld on “Bloomberg Real Yield.”

The concerns building in the private-credit industry are starting to inflict pain in a rapidly growing segment of the US municipal debt market.

Watch video.

Apr 10th, 2026

State and local government bonds surged by the most in a year after the ceasefire to the US war against Iran unleashed relief rallies across global financial markets.

The advance sent benchmark 10-year yields down by 9 basis points to 2.9% as of 3 p.m. New York time. That’s the biggest drop since last April, when President Donald Trump’s decision to pause his tariffs pulled markets back from a meltdown and set off similar rebounds.

The advance only erased some of the losses that piled after the US bombardment sent oil prices surging, threatening to fan already elevated inflation. That drove traders to largely abandon once-widespread expectations that the Federal Reserve would resume cutting interest rates later this year, with such a reduction still seen as an outside change.

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Bloomberg Markets

By Aashna Shah

April 8, 2026

High yield munis offer tax-exempt income, historically lower default rates than corporate high yield, and distinct sector exposure. Here’s what defines this asset class.

Key Takeaways:

• High yield munis are project-backed, not government-guaranteed. Healthcare, education, and housing drive this market.
• Tax exemption can make after-tax yields highly competitive. High yield munis may exceed corporate high yield on an after-tax basis.
• Unrated does not automatically mean low quality. Many unrated munis skip ratings for cost reasons, not credit weakness.

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vaneck.com

April 08, 2026

The Ides of March came calling for municipal bonds. State- and city-issued debt joined gold and consumer staples stocks as asset classes that betrayed their safe-haven reputations in March.

A broad measure of municipal bonds slipped more than 2% last month. This is an usually large move for these bonds in such a short timeframe. Undoubtedly, municipal bond investors don’t sign up for 2%+ losses in the span of a month, but there’s a silver lining in that last weakness may signal opportunity with ETFs such as the ALPS Intermediate Municipal Bond ETF (MNBD).

A month isn’t a long period of time with municipal bonds. Still, MNBD deserves some credit. It performed less poorly than the largest ETF in this category over the past month. Year-to-date, the ALPS ETF is sporting a modest gain while its passive rival is in the red.

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etftrends.com

by Todd Shriber

April 13, 2026

2026’s macroeconomic conditions are already shaping up to be similarly chaotic to 2025’s. How will the municipal credit market handle the pressure?

According to the experts at Northern Trust Asset Management, the municipal credit market may remain resilient this year. This analysis came from the recently-released the Northern Trust 2026 Municipal Sector Outlook, which evaluated the state of play for the U.S. economy and where municipal bonds fit into the puzzle.

In the outlook, the Northern Trust team surmised that due to a resilient economy and weaker inflation risks, a soft landing is the most likely scenario for the U.S. economy. Looking broadly, the Northern Trust outlook found that municipal credit is so resilient that it can likely even weather a few surprises from different macroeconomic risks.

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etfdb.com

by Nick Wodeshick

Apr 09, 2026

Takeaways by Bloomberg AI

• The concerns building in the private-credit industry are starting to inflict pain in a rapidly growing segment of the US municipal debt market, specifically prepaid energy bonds.
• Investors have demanded extra yield on deals involving Athene Annuity and Life Co., suggesting they’re worried the insurer won’t be able to keep up its end of the bargain if it starts to face losses on its private-credit investments.
• The weakening in the Athene-linked debt highlights the risks within a part of the muni market that’s seen record-breaking annual issuance since 2022, and now tallies more than $100 billion in outstanding debt.

The concerns building in the private-credit industry are starting to inflict pain in a rapidly growing segment of the US municipal debt market.

The anxiety around private credit, where firms have faced high-profile blowups and redemption requests, has roiled select munis in a sector known as prepaid energy bonds. These securities allow municipal utilities to buy electricity or natural gas at a discount by locking in decades of supply upfront — savings they can pass on to customers.

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Bloomberg Markets

By Amanda Albright and Erin Hudson

April 7, 2026

Fitch Ratings-New York/San Francisco-07 April 2026: Fitch Ratings is in the process of finalizing its U.S. Public Finance Dedicated Tax and Revenue Bond Rating Criteria. We plan to publish the final criteria by the end of the first half of 2026.

Fitch published the exposure draft on Jan. 8, 2026, and the feedback period ended on Feb. 15, 2026. The exposure draft outlines Fitch’s methodology for assigning new and monitoring existing ratings on dedicated tax and revenue bonds (DTRBs) issued by, or on behalf of U.S. state and local governments and territories.

The report, “Exposure Draft: U.S. Public Finance Dedicated Tax and Revenue Bond Rating Criteria,” is available at www.fitchratings.com

Federal Tone, Oversight Signals, and Financial Management Implications

In his February 24, 2026 State of the Union address, President Donald Trump outlined several policy priorities that, while not directed specifically at state and local governments, may shape the federal funding, regulatory, and oversight environment in which governments operate.

The State of the Union does not change laws. It does, however, signal executive priorities that often influence agency enforcement posture, budget proposals, and regulatory direction. Any material changes affecting state and local governments would still require legislation, appropriations action, or formal agency rulemaking/guidance, so timing and scope remain uncertain.

For government CFOs and finance leaders, the question is not political alignment, it is operational readiness. Below are key themes emerging from the address and what they may mean for public finance leadership teams, along with practical “watch items” and planning actions.

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BDO USA

by Lee Klumpp
Assurance National Technical Principal

April 1, 2026

COMMENTARY | Why 2026 will be less about adopting AI and more about embedding it responsibly into the work government already does.

State and local governments don’t have the budgets or staff to experiment endlessly with artificial intelligence. Constituents expect services to work efficiently and accurately every time. Agencies making progress are not chasing silver bullets; they are strengthening the workflows that already run government.

Recent pilots revealed a clear lesson: standalone AI tools that sit outside day-to-day systems create operational friction. CIO forums and legislative hearings increasingly reflect frustration with tools that require parallel processes, extra training, or manual reconciliation.

That distinction matters. In high-impact areas such as health, infrastructure, investigations and service delivery, automation must be accountable and explainable. In 2026, agencies will move beyond pilots, embedding AI directly into real-world processes where it can operate reliably and at scale. Five shifts already taking shape illustrate how state and local governments are putting AI to work.

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Route Fifty

By Stephanie Weber

April 6, 2026 10:00 AM ET

The rules vary widely from state to state, and they do little to prevent policymakers from pushing costs into the future unsustainably. A couple of states are trying to take a longer-term view.

In 2017, Illinois confronted fiscal problems years in the making. The state had accumulated more than $15 billion in unpaid bills, its pension systems were deeply underfunded and the legislature had been locked in a multiyear budget impasse — all under a constitutional balanced-budget requirement. More recently, Massachusetts, like a number of states, was forced to make midyear adjustments when revenues fell short.

These examples are often framed as failures of compliance. They are not. They are examples of something more fundamental: the limits of what balanced-budget rules measure. Every state but Vermont has some form of balanced-budget requirement. Yet the rules vary widely. Some require governors to propose balanced budgets. Others prohibit legislatures from passing unbalanced ones. Some require midyear corrections. A few prohibit deficits from carrying forward.

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governing.com

OPINION | April 7, 2026 • Craig S. Maher

LONDON, April 3, 2026 /EINPresswire.com/ — “Carbon-Smart Municipal Bond market to surpass $191 billion in 2030. In comparison, the Green Bonds market, which is considered as its parent market, is expected to be approximately $883 billion by 2030, with Carbon-Smart Municipal Bond to represent around 22% of the parent market. Within the broader Financial Services industry, which is expected to be $51,116 billion by 2030, the Carbon-Smart Municipal Bond market is estimated to account for nearly 0.4% of the total market value.

Which Will Be The Biggest Region In The Carbon-Smart Municipal Bond Market In 2030?

North America will be the largest region in the carbon-smart municipal bond market in 2030, valued at $73 billion. The market is expected to grow from $46 billion in 2025 at a compound annual growth rate (CAGR) of 10%. The strong growth can be attributed to increasing issuance of climate-focused municipal bonds, rising government commitments toward sustainable infrastructure financing, strong presence of advanced capital markets and institutional investors, growing integration of environmental criteria in public finance decisions, and expanding investments in climate resilience, renewable energy, and low-carbon urban infrastructure projects across North America.

Which Will Be The Largest Country In The Global Carbon-Smart Municipal Bond Market In 2030?

The USA will be the largest country in the carbon-smart municipal bond market in 2030, valued at $57 billion. The market is expected to grow from $37 billion in 2025 at a compound annual growth rate (CAGR) of 9%. The strong growth can be attributed to favorable tax incentives and regulatory frameworks supporting municipal bond issuance, increasing adoption of standardized ESG disclosure and reporting practices, expansion of public-private partnerships for sustainable infrastructure funding, rising use of digital platforms for municipal bond issuance and investor access, and growing emphasis on transparency and impact measurement in climate-related municipal financing across the country.

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As backlash grows, a nationwide search is underway for solutions to the AI energy crunch.

Last month, President Trump sat alongside executives of the largest tech companies in the country as they pledged to pay a fair share of the energy costs of their data center buildout. “Data centers … they need some PR help,” Trump said at the gathering. “People think that if the data center goes in, their electricity is going to go up.”

It’s not an entirely unfounded assumption.

As the tech industry has funneled billions of dollars into the AI boom over the last several years, it has simultaneously been expanding its fleet of computing powerhouses, which require vast amounts of energy to run. These facilities have been cropping up all over the country, from rural communities in eastern Pennsylvania to the cities of northern Utah.

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Route Fifty

By Naveena Sadasivam,

April 6, 2026 11:00 AM ET

The Port Infrastructure Development Program (PIDP) is a discretionary grant program administered by the Maritime Administration. Funds for the PIDP are awarded on a competitive basis to projects that improve the safety, efficiency, or reliability of the movement of goods into, out of, around, or within a port.

PIDP grants support efforts by ports and industry stakeholders to improve port and related freight infrastructure to meet the nation’s freight transportation needs and ensure our port infrastructure can meet anticipated growth in freight volumes. The PIDP provides funding to ports in both urban and rural areas for planning and capital projects. It also includes a statutory set-aside for small ports to continue to improve and expand their capacity to move freight reliably and efficiently and support local and regional economies.

The Infrastructure Investment and Jobs Act (Pub. L. 117-58, November 15, 2021) (“IIJA”) provided $2.25 billion for the PIDP program over five years (2022-2026), $450,000,000 of which has been made available in Fiscal Year (FY) 2026. In addition the FY 2026 Appropriations Act appropriated an additional $103,330,000 for the FY 2026 PIDP grant program. Of that amount, $38,628,000 is available to be awarded as discretionary grants. Therefore, a total of $488,628,000 in funding is available to be awarded as discretionary grants for the FY 2026 PIDP grant program.

For reference, the FY26 PIDP NOFO can be found here. PIDP applicants can also find the FY26 PIDP Grants.gov funding opportunity here. Applications for FY26 PIDP are due by June 26, 2026 at 11:59:59 p.m. E.D.T.

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• Moody’s recently assigned its first-ever credit rating to Bitcoin-backed revenue bonds issued through the New Hampshire Business Finance Authority’s Waverose Finance Project, giving up to US$100,000,000 of 2029 bonds a provisional Ba2 rating backed by Bitcoin collateral custodied by BitGo Bank & Trust.
• This move extends Moody’s ratings framework into crypto-collateralized municipal debt, highlighting how traditional credit analysis is being applied to digital-asset-backed securities.
• Next, we’ll examine how Moody’s entry into Bitcoin-backed bonds could influence its investment narrative, especially around innovation in risk assessment.

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Simply Wall St

Sat, April 4, 2026

Overview

Bitcoin is now functioning as collateral in U.S. municipal bonds and residential mortgages, marking its integration into traditional finance. New Hampshire issued the first Moody’s-rated Bitcoin-backed municipal bond with a Ba2 rating, featuring 1.6x overcollateralization and dynamic liquidation triggers managed by BitGo. Concurrently, Coinbase and Better Home & Finance launched conforming, crypto-supported mortgages allowing digital assets as collateral for down payments. These developments, supported by recent regulatory actions, signify Bitcoin’s normalization as high-quality collateral, enabling greater financial interoperability and capital efficiency.

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TradingKey

Apr 4, 2026 8:00 AM

New Hampshire is advancing a first-of-its-kind bitcoin-backed municipal bond—rated Ba2 by Moody’s Investors Service—that blends crypto volatility with traditional debt markets by offering investors yield plus upside tied to bitcoin collateral without taxpayer risk.

A first-of-its-kind municipal bond backed by bitcoin is moving closer to issuance after receiving a sub-investment-grade rating from Moody’s Investors Service, marking a major step in the convergence of digital assets and traditional public finance.

The proposed $100 million issuance, structured by the New Hampshire Business Finance Authority (BFA), earned a Ba2 rating — two notches below investment grade, according to Bloomberg reporting.

If completed, the deal would represent the first municipal bond backed by bitcoin collateral, opening a potential new pathway for institutional capital to access the asset class through regulated fixed-income markets.

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bitcoinmagazine.com

By Micah Zimmerman

March 31, 2026

Takeaways by Bloomberg AI

• The New Hampshire Business Finance Authority plans to sell a Bitcoin-backed municipal bond, which they say is unprecedented, and has earned a Ba2 rating from Moody’s Investors Service.
• The bond will be backed by Bitcoin collateral deposited into a trust, and provisions are in place to address Bitcoin’s volatility, including liquidation of the trust if the token’s price dips below a certain threshold.
• The deal does not involve public funds or taxpayer dollars, and the transaction fees will be paid in Bitcoin to support a Bitcoin Economic Development Fund that could support early-stage companies or infrastructure.

The riskiest asset class is converging with one of the safest in a first-of-its-kind financial product: A Bitcoin-backed municipal bond.

The New Hampshire Business Finance Authority’s plans for such a security — which they say is unprecedented — earned a Ba2 rating from Moody’s Investors Service on Tuesday. That’s the second-highest level of speculative grade.

Bitcoin mining and data center company CleanSpark will borrow the proceeds and deposit the Bitcoin collateral into a trust, from which bond payments will be made.

A ratings action brings the novel idea one step closer to reality. The New Hampshire conduit is aiming to sell $100 million of taxable, Bitcoin-backed bonds through two series, although there is no official date yet.

There are provisions to help address Bitcoin’s notorious volatility. If the token’s price dips below a certain threshold, the trust will be liquidated to pay bondholders in full. Meanwhile, bondholders will also be eligible for additional payments if the Bitcoin’s price appreciates in value.

Moody’s pre-sale document notes credit strengths like strong oversight, the transparency of the Bitcoin market and robust collateral that will help mitigate risks. Challenges include Bitcoin’s price volatility, possible delays in liquidation and the involvement of unrated entities like BitGo.

The deal does not involve any public funds or taxpayer dollars, according to James Key-Wallace, the executive director for the New Hampshire Business Finance Authority.

“If for some reason it doesn’t work, New Hampshire is not the one paying,” Key-Wallace said. “We’re creating the environment for this innovation without putting taxpayer dollars on the line.”

Test Case

Still, he’s hoping this transaction will be the first of many, and that it will mark New Hampshire as the destination for other companies that want to leverage cryptocurrencies for cheaper borrowing.

The conduit’s transaction fees will be paid in Bitcoin, which will kickstart a Bitcoin Economic Development Fund that could support early-stage companies or infrastructure like childcare and roads, Key-Wallace noted.

Wave Digital Assets LLC will be responsible for day-to-day transaction administration, and BitGo Bank & Trust will act as custodian. New Hampshire Governor Kelly Ayotte and the executive council will still need to sign off on the sale, but Ayotte voiced her approval when the conduit approved the structure in November.

“I’m proud that New Hampshire is once again first in the nation to embrace new technologies with this historic Bitcoin-backed bond,” she said. “This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance without risking state funds or taxpayer dollars.”

Still, Bitcoin is notoriously volatile, down nearly 50% from its peak around $126,000 in October 2025. During that same period, an index of high-yield muni bonds returned 1.82% to investors, according to data compiled by Bloomberg.

Bloomberg Technology

By Elizabeth Rembert

March 31, 2026 at 11:58 AM PDT
Updated on April 1, 2026 at 8:35 AM PDT

Jennifer Johnston, senior vice president and director of research for municipal bonds at Franklin Templeton joins Scarlet Fu on “Bloomberg Markets.” The US municipal market’s worst month in more than two years has cheapened the debt enough to lure some investors looking to add to their tax-exempt holdings.

Watch video.

Apr 2nd, 2026

Takeaways by Bloomberg AI

• The US municipal market has had its worst month in more than two years, declining 2.5% in March, which has made the debt cheaper and attracted some investors.
• A heavy calendar of supply and less cash flowing in before Americans make tax payments in April have contributed to munis’ underperformance, but some market observers say it’s time to take advantage of the situation.
• Benchmark 10-year muni yields are up about 60 basis points this month, making top-rated munis more attractive to investors, with some starting to buy given the “attractive” yields, especially on longer maturities.

Continue reading.

Bloomberg Markets

By Amanda Albright

March 31, 2026

Municipal bonds were crushed in March, enough so that they may now offer a buying opportunity for investors looking for a place to ride out the current market turbulence.

The tax-free bonds, which fund everything from sewerage authorities to airports, had their worst performance in nearly three years last month, losing 2.32%. Investors sold their muni holdings as U.S. Treasury yields rose in response to the Iran war. The market was also stressed by investors trading out of exchange-traded funds at the same time a large amount of new muni bonds were being issued.

For longer-term buy-and-hold investors, munis’ bad month means buying opportunities may be around the corner, especially as investors seek high-quality, U.S.-focused assets during a time of broad geopolitical uncertainty.

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Barron’s

By Patti Domm

April 07, 2026, 9:49 am EDT

The setup for long-duration municipal bonds is as favorable as it’s been in years. Rates, the muni curve, and credit quality all point in the same direction for MLN investors.

Key Takeaways:

• 30-year AAA munis are offering ~6.9–7.0% taxable equivalent yield, roughly 120–140 bps above long corporates
• The muni curve spread between 10- and 30-year maturities sits at ~220 bps on a TEY basis, historically steep
• This is a rate-driven setup, not a credit story, which makes the risk/reward unusually clean

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vaneck.com

April 02, 2026

Oil prices are rising again, driven largely by ongoing geopolitical tensions and uncertainty in global energy markets. Their effects are already moving beyond energy markets and into state budgets, household finances, and policy debates.

Oil price swings can reshape state budgets quickly, especially in oil-producing states that rely heavily on severance taxes. But even in non-oil-producing states, higher oil prices raise the costs of government services and squeeze household budgets.

In both kinds of states, policymakers should remember that oil price increases are usually followed by declines. In oil-dependent states, those downturns can quickly weaken revenues, jobs, and broader economic activity. In states without significant oil production, rising prices may prompt calls for gas tax holidays—but lawmakers would do well to instead focus on policies that strengthen families’ long-term economic security.

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Tax Policy Center

by Lucy Dadayan

March 26, 2026

(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

• The evolving war in the Middle East has triggered an abrupt rise in oil and gas prices that will likely provide a temporary boost for mineral-producing U.S. states’ economic output.
• Broader macroeconomic pressures, however, could blunt growth if prices remain elevated and affect inflation and consumer discretionary spending.
• In recent years, these states have actively managed fiscal and budget discipline, conditioned by previous oil and gas price swings that helped them preserve, and in some cases strengthen, overall credit quality.
• Although some operating fund reliance on mineral-related revenues remains, many states have diligently implemented measures to isolate mineral-driven revenue by using them for one-time purposes.
• New Mexico and Texas are exceptions to the mining sector’s historically positive yet uneven (largely oil and gas activities) contribution to economic output, with outsize growth usually temporary and long-term average growth rates below those of national peers.

Continue reading.

31-Mar-2026

Fitch Ratings-New York-25 March 2026: Fitch Ratings expects elevated policy uncertainty to continue shaping U.S. goods trade through 2026, as tariffs and supply-chain realignment increasingly drive divergence across states and sectors. States benefiting from AI-related capital spending show stronger trade momentum, while those more exposed to tariff-sensitive auto supply chains lag.

“The growing divergence in state trade performance suggests tariff effects now feeding more directly into regional trade outcomes,” said Olu Sonola, Head of U.S. Economics, Fitch Ratings. “States linked to AI-related investment show greater resilience, while states tied to auto supply chains face greater vulnerability to policy uncertainty.”

Imports provided the clearest trade signal in 2025, led by machinery. Imports of nonelectrical machinery rose 25% YoY, the fastest gain among major trade categories. Imports of electrical machinery and electronics imports rose 6%. Fitch views this trend as consistent with firm demand for semiconductor-related equipment, computing infrastructure, and other AI-linked capital goods. Arizona’s imports rose 36% YoY, while Nevada and New Mexico posted gains of 92% and 34%, respectively. Texas also benefited from the machinery upcycle, with imports rising 4%.

By contrast, autos and parts remained the clearest area of weakness, with imports falling 14% YoY. Michigan’s imports declined 3%, driven mainly by autos and parts, which fell 7%. California and Tennessee also recorded 1% declines in imports, with imports of autos and parts contracting by 14% and 24%, respectively.

Exports showed a similar split. Auto-heavy states underperformed, with exports falling in Michigan, Tennessee, Ohio and Illinois. By contrast, Texas remained the largest export state, while New York posted strong export growth, driven largely by gold and precious metals trade rather than broad-based sector strength.

Fitch Ratings-Barcelona-27 March 2026: Fitch Ratings has updated its Public Policy Revenue-Supported Entities Rating Criteria following the publication of an Exposure Draft on 12 December 2025.

The criteria update introduces Climate Vulnerability Signals (Climate.VS) as a screening tool to enhance Fitch’s ability to consistently identify international public finance credits with higher potential exposure to climate-related risks. Fitch will subject these credits to additional analysis and consideration in credit rating reviews.

Fitch will not use Climate.VS as a direct input into ratings and does not expect its introduction to have an immediate impact on any international public finance credit ratings.

‘Public Policy Revenue-Supported Entities Rating Criteria’ is available at www.fitchratings.com.

Takeaways by Bloomberg AI

• The market for ESG-focused funds keeps shrinking, with ninety-one US-based funds shutting down last year and just nine new offerings launched.
• About 430 sustainable funds remain in the US, and total US sustainable fund assets rose to $368 billion at the end of December from $344 billion a year earlier.
• Despite fund closures, there are “signs of life”, with renewables having “gone mainstream” and the use of ESG factors becoming commonplace within conventional investing.

Continue reading.

Bloomberg Green

By Tim Quinson

March 25, 2026

Program Overview

The Infrastructure Investment and Jobs Act (IIJA) was signed into law on November 15, 2021. The law created the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) first ever infrastructure grant program. The Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program is designated $200 million a year in grant funding with a total of $1 billion in grant funding over five years. The grant funding is to be made available to a municipality or community owned utility (not including for-profit entities) to repair, rehabilitate, or replace its natural gas distribution pipeline systems or portions thereof, or to acquire equipment to (1) reduce incidents and fatalities and (2) to avoid economic losses.

Continue reading.

Managed lanes are the fastest-growing sector in ground transportation due to their effectiveness in addressing congestion relief. Fitch upgraded or placed a Positive Outlook on eight managed lanes over the past 13 months, reflecting robust traffic and revenue growth.

Access Report

Mon 30 Mar, 2026

Takeaways by Bloomberg AI

• JPMorgan Chase & Co. says aging grid infrastructure is a “national security risk” due to threats from extreme weather to cyberattacks.
• The bank views investments in grid infrastructure as “increasingly attractive” and a “massive investment opportunity” due to growing energy demand and volatility.
• JPMorgan expects $5.8 trillion of global grid investment through 2035, with $1 trillion expected in the US, as grids undergo a “fundamental reframe” from legacy assets to strategic infrastructure.

Continue reading.

Bloomberg Green

By Alastair Marsh

March 24, 2026

COMMENTARY | City and county managers can no longer see cybersecurity as an IT problem. They can take various practical steps before an incident occurs.

The call came at 6:47 a.m. on a Tuesday. The public works director couldn’t log in. Neither could anyone in finance. By the time the city manager arrived, the message on every screen was clear: the city’s entire network was encrypted, and the attackers wanted $350,000 in Bitcoin.

This wasn’t a major metropolitan area with a dedicated cybersecurity team. It was a community of 12,000 people with an IT department of one. The city had no incident response plan, no cyber insurance and backups that hadn’t been tested in over a year.

Stories like this play out thousands of times each year across America’s small municipalities. While headlines focus on attacks against major cities and Fortune 500 companies, criminal organizations have quietly discovered that small local governments offer something even better: essential services under political pressure to pay, defended by IT teams stretched impossibly thin.

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Route Fifty

By Alton Henley

March 27, 2026

From strategic reserves to the bond market, policymakers increasingly eye digital currency options

Once considered a fringe investment, cryptocurrency is beginning to make inroads into state and local government finance.

In 2025 alone, at least 19 states considered or passed legislation that would allow a portion of state funds to be invested in digital assets or related investment products, according to a review by The Pew Charitable Trusts. Cryptocurrency is a form of digital currency that can be used to make payments, although it is more often treated as a high-risk investment.

Last May, New Hampshire became the first state to approve such a law and is now on track to issue the first municipal bonds backed by bitcoin, a cryptocurrency created in 2008. Texas, meanwhile, launched and seeded a state Strategic Bitcoin Reserve, making it the first state to fund a cryptocurrency reserve.

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The Pew Charitable Trusts

Authors: Liz Farmer and Gayathri Venu

March 31, 2026

The Bank of North Dakota is on track to introduce stablecoin to local banks this September after state regulators approved the technology’s use in bank-to-bank transactions.

This story was originally published by the North Dakota Monitor.

The Bank of North Dakota is on track to introduce stablecoin to local banks this September after state regulators approved the technology’s use in bank-to-bank transactions on Wednesday.

Ten local banks have expressed interest in participating in the pilot program for the state’s planned Roughrider Coin, Bank of North Dakota CEO Don Morgan said in an interview following the North Dakota Industrial Commission meeting.

“Which is perfect because we want a wide, diverse selection so that we can fully test it out, make sure it’s working and we build a good foundation,” Morgan said.

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Route Fifty

By Jacob Orledge,
North Dakota Monitor

March 27, 2026

After lawmakers rejected incentives for large data centers, Gov. Larry Rhoden signed a bill that puts new limits on them.

This story was originally published by the South Dakota Searchlight.

After lawmakers rejected proposals to incentivize the construction of large data centers in South Dakota, the governor signed a bill into law Tuesday that will place new limits on the industry.

The law applies to data centers with a peak electrical demand of 10 megawatts or greater. It will require data center companies to ensure their water use does not overburden local resources and to pay for the electrical infrastructure costs attributable to them. It also prohibits the state from overriding local ordinances limiting, prohibiting or otherwise regulating data centers.

Another bill Rhoden signed into law Tuesday allows the state Public Utilities Commission to assess data center companies the costs of regulatory reviews related to their projects.

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Route Fifty

By Joshua Haiar,
South Dakota Searchlight

March 25, 2026

Lawmakers passed House Bill 1834 with a 104-95 vote.

Lawmakers in the Pennsylvania House of Representatives on Tuesday voted 104-95 to approve legislation that would task the state Public Utility Commission with developing statewide regulations for data centers as local concerns grow over their effects on communities – and electricity bills.

The legislation, House Bill 1834, would direct the PUC to develop temporary and permanent regulations for commercial data centers to curb the effects that power-hungry data centers could have on electricity rates.

Among other provisions, the bill would require data center regulations developed by the PUC to bar electric companies from passing on costs of infrastructure updates and energy demands from data centers onto customers. HB 1834 would also require the PUC’s data center regulation to ensure data centers are responsible for costs associated with regional transmission, network upgrades, grid reliability and PJM emergency capacity procurement caused by commercial data centers.

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Route Fifty

By Justin Sweitzer,
Managing editor, City & State Pennsylvania

March 25, 2026

Key Takeaways

• Data centers provide economic and revenue opportunities for U.S. local governments, but they could also lead to economic and revenue concentration and volatility as well as strain local resources.
• Long-term financial planning and risk analysis are crucial for local governments that contemplate data center development and related revenues.
• Smaller, more remote communities have fewer advantages in negotiating with data center developers; they may also be less able to adequately identify and plan for risks.
• The rapid expansion of data centers could stress housing affordability as well as pressure utilities to recover infrastructure investment costs from residential ratepayers.

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24-Mar-2026

Bloomberg’s Shruti Singh, joins Scarlet Fu on “Bloomberg Real Yield.” The municipal-bond market’s weakest month in more than two years is starting to cause some borrowers to delay or shrink deals, or offer higher yields to lure investors, underwriters and investors say.

Watch video.

Mar 27th, 2026

Key Takeaways:

• Active ETFs have helped unlock fixed income strategies in recent years.
• Muni bond interest has grown at the same time as investors look to reduce bills.
• Munis may be able to build on a strong turnaround in 2025.

Muni bonds may not always be the most exciting part of a portfolio, but they often play a very important role in reducing tax bills. This year has been very volatile for investors so far, too, making saving a bit here and there on those bills potentially even more important.

Understanding municipal bonds, and why active investing can unlock them, is the name of the game. Active ETFs, which have exploded in popularity since the ETF rule arrived in 2019, offer tax efficiency, flexibility, and liquidity. Perhaps most importantly, they can provide a deep, fundamental research-driven view into individual issuers.

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etfdb.com

by Nick Peters-Golden

Mar 26, 2026

Takeaways by Bloomberg AI

• Pressure is building in the US municipal bond market, with state and local debt selling off and benchmark yields climbing as much as seven basis points.
• The asset class is now poised for its worst month of performance in a year, driven by concerns about inflation due to the war with Iran.
• Despite the selloff, some investors see a “nice entry point” for buyers, as the surge in yields has caused state and local debt to cheapen from pricey valuations seen earlier this year.

Continue reading.

Bloomberg Markets

By Amanda Albright and Elizabeth Rembert

March 20, 2026

Takeaways by Bloomberg AI

• US municipal borrowers are opting for shorter-dated debt to cater to investors that prefer those maturities.
• Municipal bonds issued with a maturity date of less than 15 years have totaled about $61.7 billion this year, up 24% from the same period in 2025.
• The demand from separately managed accounts is driving the shift to shorter-term debt, allowing localities to lower borrowing costs by focusing on that area.

A shift is afoot in how US municipal borrowers structure their debt sales.

Typically, state and local issuers favor longer maturities of 20 to 30 years, giving them more time to repay — akin to a homeowner with a 30-year mortgage. The University of Denver, for example, sold bonds this month maturing in 2056 to build laboratories and athletic facilities.

Lately, however, borrowers are opting for shorter-dated debt to cater to investors that prefer those maturities. Municipal bonds issued with a maturity date of less than 15 years have totaled about $61.7 billion this year, up 24% from the same period in 2025, data compiled by Bloomberg show.

Demand is growing for shorter-term debt along with the popularity of separately managed accounts, a corner of the muni market that has swelled to more than $1 trillion. These bespoke muni accounts tend to avoid the interest-rate risk of lengthier tenors, a particular concern lately as the Iran war boosts oil prices and stokes inflation concerns.

The appetite from SMAs, as they’re known, has tamped down shorter-dated muni yields relative to longer securities, allowing localities to lower borrowing costs if they focus on that area. Issuers are taking note of the steep gap between short and long muni yields, said Julie Burger at Wells Fargo & Co.

“Many issuer clients are more actively considering strategies to capitalize on the short-end of the yield curve, rather than locking in long-dated yields,” the bank’s co-head of public finance said in an email.

The yield on the 30-year AAA muni benchmark was about 2.13 percentage points higher than on two-year debt as of March 23, around the biggest gap since September, according to data compiled by Bloomberg. That spread can add up for a municipality that’s borrowing hundreds of millions of dollars.

It’s also a different dynamic than has been seen in Treasuries in recent weeks, underscoring the power of the demand from SMAs. In the US government-bond market, the spike in oil prices has led traders to price out Federal Reserve interest-rate cuts, causing shorter maturities to underperform.

Hospital Deals

In one short-dated deal, Cleveland Clinic sold more than $500 million of bonds this month, roughly split between segments maturing in 2029 and 2032. The three-year portion, graded AA by S&P Global Ratings, priced with a yield of 2.51%, or 30 basis points above AAA securities, Bloomberg’s BVAL pricing data shows.

The hospital system was “seeking shorter-term maturities where MMD prices offered attractive value,” according to Chief Financial Officer Dennis Laraway. MMD is a reference to one of the muni market’s AAA yield curves.

Last month, Houston Methodist, a non-profit hospital in Texas, raised roughly $1.25 billion in a bond sale that only included securities maturing from three to 10 years.

Brian Barney, a portfolio manager on Morgan Stanley’s Parametric fixed-income team, said he’s seeing more supply in the middle of the curve. In conversations, Barney said underwriters and issuers seem more interested in tailoring sales to investor preferences.

“They’re watching the cost of capital, but they’re also more and more cognizant of what buyers want,” he said. “They want to make sure they’re minimizing their cost of capital by maximizing their issuance into that demand.”

Bloomberg Markets

By Elizabeth Rembert and Amanda Albright

March 24, 2026

— With assistance from Matthew Himel and Danielle Moran

Fitch Ratings-San Francisco/New York-19 March 2026: Local government credit quality remains strong, anchored by high reserves, budgetary control, and moderate long-term liability burdens, with most well positioned to address mounting economic- and demographic-driven fiscal pressures, Fitch Ratings says. The weighted average security rating (including bonds backed by dedicated tax revenues) is ‘AA’. Eighty-nine percent of security ratings have a Stable Outlook, 5% have a Positive Outlook, and nearly 6% a Negative Outlook.

Continue reading.

Thu 19 Mar, 2026 – 5:09 PM ET

If abruptly changing federal policy becomes a recurring feature, state and local governments will need to adjust how they govern, not just how they budget.

Last March, state and local officials in Kansas and Missouri were trying to understand what had just happened to their budgets. Federal grants supporting public health, nutrition assistance and community programs were suddenly reduced or cut off. Local leaders told a Kansas City news publication that they were scrambling to determine how much funding had been lost and what services would have to be scaled back. Some were calling members of Congress simply to confirm whether the money was truly gone.

This wasn’t a recession. Revenues hadn’t collapsed. What had changed were the rules. In the current environment, the tools built to manage downturns remain essential. But if abruptly changing federal policies — from tax law to Medicaid rules to funding streams — continue to reshape the fiscal landscape, those tools alone will not be enough. It will be time to re-examine larger issues of governance.

I’ve been talking with state and local finance officers over the past several months, and I keep hearing a version of the same thing: We know how to plan for economic downturns. What we’re less prepared for is federal policy shifts mid-budget.

Continue reading.

governing.com

OPINION | March 24, 2026 • Craig S. Maher

Fitch Ratings-New York/San Francisco-18 March 2026: The Iran conflict and surging oil prices may increase U.S. municipal transportation infrastructure costs and reduce demand but will not materially alter credit profiles or result in rating changes. Strong liquidity and pricing power insulate ratings from negative pressure, Fitch Ratings says.

Flight disruptions have minimal impact on U.S. airports because they serve a higher proportion of domestic travel than international travel. Similarly, U.S. ports have low exposure to Middle East shipping, with any disruptions nominally affecting port throughput.

We do not expect a material impact on global growth or inflation under Fitch’s baseline assumption of a temporary oil price spike and a return to near pre-conflict price levels in 2H26. However, the risk of prolonged tensions is significant. If oil prices remain above USD95/barrel, Fitch estimates global GDP would decline by 0.4% over four quarters. Broader inflationary pressures from higher oil prices and slower growth would dampen consumer spending and reduce transportation volumes.

While we expect the oil price shock to be short-lived, sustained high oil prices would directly increase operations and maintenance (O&M) and capex costs, including fuel and oil-derived products such as rubber and asphalt. O&M rarely has a material impact on transportation financial performance, as municipal transport assets operate with high margins. Ample liquidity and comfortable debt service coverage ratios (DSCRs) help absorb one-off shocks.

The municipal transportation sector broadly benefits from strong pricing power that reflects the legal ability to increase rates. While political considerations may make this more difficult in the short term, particularly if U.S. growth slows, we expect most issuers would adapt their rate and cost structures over the long term.

Rated ports operate as landlords and usually benefit from minimum annual guarantees with shipping lines. Shipping lines may be pressured. However, competing lines have historically back-filled ports quickly when shipping lines leave, given the economic importance of cargo imports.

Higher airline ticket prices in response to higher jet fuel prices may modestly decelerate enplanement growth. Many airports have strong cost recovery provisions, such as residual airline use and lease agreements that auto-adjust airline charges higher when volumes fall, or compensatory features that allow mid-year adjustments and extraordinary financial backstops from airlines.

High gas prices will not cause a major decline in toll road traffic or revenues considering the historically demonstrated low elasticity of demand due to the highly essential nature of automotive travel.

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.

Continue reading.

Key Takeaways

• We typically assign a shade of Light Green to data centers for which low-carbon electricity accounts for a material portion of overall power demand.
• Water use is growing in importance, but the use and reporting of water risk metrics in the design and operation of data centers is still relatively nascent. In our assessments, we seek to understand how water risks are identified and managed, specifically in regions with high water stress.
• Data centers that address the most material environmental risks in their project design and/or operation–including the emissions intensity of electricity procured, water use, and energy efficiency–would receive a shade of Medium green or Light green.
• We expect most data centers that have no direct connection to low-carbon electricity, especially those used to train AI, to receive a shade of Orange due to their outsized electricity demand and other environmental impacts.

Continue reading.

23-Mar-2026 | 12:28 EDT

View the list.

20-Mar-2026 | 15:59 EDT

Uncertainty looms: Municipal water utilities face greater credit risks from reduced allocations and potential higher curtailments after the failure by the seven basin states to reach a consensus on the Colorado River operating framework that expires later this year.

Growing affordability concerns: For the more than 300 rated municipal water utility issuers within the Colorado River Basin, affordability pressures could increase from growing costs and sustained capital investment to maintain a reliable supply as operational physical risks intensify over time.

Credit differentiation emerging: Local governments and water utilities lacking above-average storage or banking capacity, strong proactive management, and rate flexibility are more exposed to higher costs despite having legal water rights priority.

Governance alignment: Many water utilities may move into alignment with their sponsoring local governments’ policies on growth and development, infrastructure investments, and contingency planning.

Read the full report.

This month’s Muni Monthly covers performance, supply and demand technicals, fundamentals and valuations for the month ending February 2026.

Performance Overview: Strong Municipal Performance in February Counters Recent Weakness

In February, market sentiment was shaped by escalating US-Iran geopolitical tensions and sector-specific selloffs driven by concerns about AI’s potential disruption to existing business models. Economic data presented a mixed picture, with January nonfarm payrolls increasing by 130,000 jobs, rebounding from December’s revised 48,000 gain, while the unemployment rate edged down to 4.3%. Inflation data for January eased from the prior month, with headline Consumer Price Index (CPI) falling to 2.4% year-over-year (YoY) from 2.7% and core CPI easing to 2.5% YoY from 2.6%. All told, Treasuries rallied across the curve, and the municipal yields followed suit but generally underperformed the risk-off sentiment. The Bloomberg Municipal Bond Index gained 1.25% leading year-to-date (YTD) returns higher to 2.20%. February’s strong performance counters recent weakness, with the index averaging negative returns in February, largely driven by softening demand ahead of tax season and limited new issuance.

Continue reading.

advisorperspectives.com

by Western Asset Management, 3/23/26

Dan Close, Nuveen, joins ‘The Exchange’ to discuss municipal bond markets.

Watch video.

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.

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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

• Operating costs at not-for-profit (NFP) U.S. public power and electric cooperative utilities are unlikely to face direct exposure to higher oil and liquefied natural gas (LNG) prices triggered by the Middle East conflict.
• However, as the producers of a broad basket of consumer goods incorporate conflict-related costs in retail prices, NFP utilities’ ratemaking flexibility and financial performance could erode.

Continue reading.

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).

Continue reading.

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

• There were more than 230 rating actions across USPF through Feb. 28, 2026.
• Upgrades outpaced downgrades in the states, housing, not-for-profit, education, and transportation sectors.
• Downgrades outpaced upgrades in the public power, local governments, health care, and utilities sectors.
• Unfavorable outlook revisions exceeded favorable outlook revisions year-to-date.

Continue reading.

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.

Continue reading.

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.

Continue reading.

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.

Continue reading.

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:

• Gas prices are rising as a result of the war in the Middle East and the blockage of oil shipping channels.
• States rely on gas taxes at the state and federal levels to pay for transportation infrastructure.
• Gas tax revenues are increasingly not big enough to cover all their needs, and lawmakers have a hard time raising them.

Continue reading.

governing.com

March 13, 2026 • Jared Brey

Read the interview.

pwfinancing.com

January 2026

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.”

Continue reading.

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.

Continue reading.

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

• In 2025, sustainable bond issuance fell 13% while the broader municipal market grew, marking the first divergence since the initial municipal sustainable bond was issued in 2013. S&P Global Ratings anticipates this slowdown will continue in 2026, with a further potential decrease of 7%-12%.
• Issuance remains concentrated in California, New York, and Massachusetts issuers (accounting for 62% of the market), anchored by large, repeat borrowers–predominately in affordable housing, sustainable infrastructure, and green energy.
• Green bonds demonstrate stronger alignment with external frameworks relative to other labeled structures, with over 79% undergoing third-party reviews (compared with 57% of all labeled bonds). (For purposes of this report, “labeled” refers to bonds designated by issuers as green, social, sustainability, or sustainability-linked.)

Continue reading.

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:

• The Hudson River Tunnel Project connecting New York and New Jersey
• The Metropolitan Transportation Authority’s (MTA) Second Avenue Subway (SAS) expansion in New York City
• The Chicago Transit Authority’s (CTA) Red Line extension
• CTA’s Red and Purple Line modernization

Key Takeaways

• The October 2025 federal funding pause introduced uncertainty regarding the stability of federal funding for mass transit—a particularly acute risk factor for the four infrastructure projects, for which the federal Full Funding Grant Agreement (FFGA) share of total project costs ranges from approximately 34% to over 40%.
• The pause increases risks in the planning of multiyear capital projects including risks of greater delays, contract renegotiations, construction disruptions, cost escalation, and potential litigation.
• Issuer responses will likely be idiosyncratic. Strained intergovernmental relationships may result, and some issuers may consider litigation against the federal government as part of their response strategy.

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.

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Sector View: Stable

• Credit quality for U.S. not-for-profit entities is stable, with financial resources strengthening across the sector and institutions remaining agile in their operations.
• Consistent donor gifts and solid investment returns in recent years have boosted endowments and investment portfolios, granting institutions greater flexibility to address the shifting federal funding landscape and operating and strategic needs.
• Cultural institutions continue to respond to evolving market demands, deploying strategic investments in emerging technologies and innovative programming to enhance engagement.
• Rising macroeconomic headwinds could hinder operating performance over the near term, with some subsectors better suited than others to handle the challenges.

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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:

• In the wake of the U.S.-Israeli strikes on Iran, pro-Iranian hacktivists launched attacks. While most hacks focused on the Middle East, a Pennsylvania township was reportedly hit.
• Iranian drones struck several Amazon Web Services data centers in retaliation as well. Many tech companies have significant operations in the Middle East. The war could disrupt cloud services used by state and local governments.
• Iran blockaded a major oil transportation pathway, which may lead to spikes in the costs of goods and transportation. For state and local governments, that could mean projects delayed or coming in over budget.

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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.

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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.

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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.

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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.

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multifamilydive.com

by Anna Merod

March 3, 2026

Takeaways by Bloomberg AI

• Municipal bonds deepened their selloff on Tuesday, with benchmark yields rising as much as 11 basis points, as geopolitical unrest in the Middle East and surging oil prices roiled US Treasuries.
• Ten-year muni yields rose 11 basis points to 2.63% as of 4 p.m. in New York, marking the biggest gain since April.
• The turmoil raised concerns about demand for deals if the pressure continues, with buyers wanting to see stabilization in the Treasury market before committing to purchase new issues.

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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.

Listen to audio.

Bloomberg Intelligence

Mar 06, 2026

3 key takeaways:

• Investment speed in municipal bond portfolios does not equate to better outcomes.
• A higher yielding portfolio does not always mean better performance for a client.
• Using municipal bonds for tax-loss harvesting may help lower taxes, not just defer them.

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

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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.”

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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.

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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.

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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.

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Key Takeaways

• In 2025, sustainable bond issuance fell 13% while the broader municipal market grew, marking the first divergence since the initial municipal sustainable bond was issued in 2013. S&P Global Ratings anticipates this slowdown will continue in 2026, with a further potential decrease of 7%-12%.
• Issuance remains concentrated in California, New York, and Massachusetts issuers (accounting for 62% of the market), anchored by large, repeat borrowers–predominately in affordable housing, sustainable infrastructure, and green energy.
• Green bonds demonstrate stronger alignment with external frameworks relative to other labeled structures, with over 79% undergoing third-party reviews (compared with 57% of all labeled bonds). (For purposes of this report, “labeled” refers to bonds designated by issuers as green, social, sustainability, or sustainability-linked. See “Sustainable Bonds Defined.”)

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02-Mar-2026 | 10:41 EST

Sector View: Stable

• S&P Global Ratings’ outlook on the U.S. independent school sector is stable, anchored by steady to improving demand trends, continued strengthening of resources and investment income, and largely proactive management teams.
• Despite an evolving education landscape and significant competition, we expect schools will focus on sustaining demand by further refining their value propositions, and that nimble management teams will successfully navigate potential financial headwinds.

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24-Feb-2026 | 11:49 EST

Takeaways by Bloomberg AI

• The escalating Middle East conflict sent most safe haven assets higher as investors braced for the worst case scenarios, with municipal bonds expected to continue to be a shelter for investors.
• Municipal bonds slipped Monday as geopolitical concerns hammered Treasuries, with top-rated state and local government yields rising as much as five basis points.
• Despite the move, strong buy-side interest has supported performance and kept the overall market tone firm, with munis remaining the best performing fixed income asset class through February.

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Bloomberg Markets

By Erin Hudson and Aashna Shah

March 2, 2026

Takeaways by Bloomberg AI

• Municipal bonds deepened their selloff on Tuesday, with benchmark yields rising as much as 11 basis points, as geopolitical unrest in the Middle East and surging oil prices roiled US Treasuries.
• Ten-year muni yields rose 11 basis points to 2.63% as of 4 p.m. in New York, marking the biggest gain since April.
• The turmoil raised concerns about demand for deals if the pressure continues, with buyers wanting to see stabilization in the Treasury market before committing to purchase new issues.

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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.

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dividend.com

by David Loesch

Mar 02, 2026

Key Takeaways

• There were more than 90 rating actions across USPF through Jan. 31, 2026.
• Upgrades outpaced downgrades in the housing, charter schools, and transportation sectors.
• Downgrades outpaced upgrades in the local governments, health care, and utilities sectors.
• Unfavorable outlook revisions exceeded favorable outlook revisions year-to-date.

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18-Feb-2026 | 09:34 EST

Takeaways by Bloomberg AI

• John Seo says the market for catastrophe bonds is drawing in new issuers at a rate that’s unlike anything he’s seen before.
• The rise in first-time sellers has been driven by the rise in inflation, which has added about 50% to the cost of rebuilding property over the past half decade.
• Seo expects cat bond sales of about $24 billion this year, testing last year’s record, and says the issuance surge is far from over.

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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.

Watch video.

Feb 20th, 2026

Takeaways by Bloomberg AI

• 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.
• The concerns are driven by a pattern of federal funding freezes and threats, which can create uncertainty for budget writers and affect states’ credit quality.
• Morgan Stanley’s Craig Brandon said that while there are questions about the impact of federal funding policies on state credit, he hasn’t seen the anxiety translate into broad muni-market moves, and state credit is still viewed as generally steady.

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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

• As not-for-profit (NFP) electric utilities continue substantial infrastructure investments to meet generation, transmission, and distribution needs, financial metrics and our ratings could weaken if retail rate affordability hinders cost recovery.
• NFP utilities that serve many low-income customers or those utilities with small customer bases are particularly vulnerable to declining ratemaking flexibility, financial performance, and credit quality.
• We view larger utilities serving customers with sound incomes as best equipped to socialize cost increases and maintain financial performance and ratings.

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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.

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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.

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publicpower.org

by Paul Ciampoli

February 21, 2026