Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Municipal investment forecasts are stark in 2026

BY SourceMedia | MUNICIPAL | 11/14/25 02:58 PM EST By Frank Gargano

President Trump's campaign to do away with FEMA has municipal finance professionals worried about the impact of future disaster events on state and local government budgets, according to new research from The Bond Buyer.

Top questions answered in the research

  • How likely are states and local municipalities to invest in resilient infrastructure in the next five years?
  • Which bond deals were the most worked on in the last year?
  • What type of deals are going to be the most popular over the next three years?
  • How, if at all, are professionals worried about the possible demise of FEMA?

Key takeaways

  • Deals involving disclosed climate risks were worked on the most last year.
  • P3 deals, climate-risk deals and resilient infrastructure deals are all categories slated to grow in popularity.

This three-part series dives into the data using interactive charts broken out into these main themes: the ability of municipalities to meet funding needs, what is guiding the flow of funding and how optimistic funding forecasts are for the future.

  • Part one: Can municipalities meet their funding needs in 2025?
  • Part two: Where is the state of infrastructure heading next in 2026?
  • Part three: Municipal infrastructure investment forecasts are bleak in 2026

The most popular bond deal types

The lack of funding in resilient infrastructure projects

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article