U.S. Cities Face Looming Budget Crises As Federal Aid Expires and Costs Rise

Cities across the U.S. face budget shortfalls due to declining commercial real estate values and other pandemic-related revenue drops.

Federal pandemic aid helped state and local budgets in the short-term, but that funding is expiring, leaving gaps.

Inflation is increasing costs for state and local governments to provide services and employee compensation.

Long-term issues like aging populations and electric vehicle adoption threaten future tax revenue.

Political battles over budget priorities add uncertainty over how governments will close deficits.