Unique analysis: Can municipalities get funding in 2025?

The Bond Purchaser’s 2025 Infrastructure Survey

Integral to infrastructure

A large spectrum of respondents recognized roads/bridges and water and sewer as the highest areas that have been both essentially the most vital infrastructure initiatives or the place U.S. cities and cities wanted funding over the following 5 years.

Sixty-one % of buyers put roads and bridges within the prime spot, adopted by 57% of sell-side professionals. Fifty-three % of issuers and public-sector consultants marked the world as extremely necessary, however not the highest.

In a earlier report, printed by The Bond Purchaser in January primarily based on a survey of 110 business consultants, 65% of aggregated respondents mentioned roads and bridges have been the highest market space in want of funding, adopted by 52% who recognized water and sewer.

The No. 1 space which issuers and public-sector respondents recognized as in want of funding was water and sewer, with 57% in settlement. Fifty-two % of buyers and 47% of sell-side consultants mentioned this space was the second-most necessary.

Different areas to notice embody public transit, colleges, renewable vitality and airports.

Key takeaway: Roads/bridges and water and sewer have remained prime areas in want of funding over the previous couple of years.

What’s on the horizon for municipal financing?

Trying throughout the following 5 years, 34% of respondents within the South have been essentially the most optimistic in regards to the outlook of reaching vital infrastructure wants for cities and cities within the U.S.

By comparability, solely 20% of these within the Midwest have been hopeful of assembly these wants in the identical time-frame, and likewise for 27% of Northeasterners and 0% of Westerners.

Ten years out, these within the Northeast (38%) accounted for the best share of optimists on whether or not vital infrastructure wants can be met. For these within the Midwestern (33%) and Western (32%) areas, the best share of optimists have been trying past 10 years.

The sooner report discovered that the majority respondents have been optimistic (56%) to some extent about these wants being met when trying greater than 10 years into the long run.

Key takeaway: Municipal finance professionals within the South have been essentially the most optimistic about hitting funding targets someday within the subsequent 5 years.

Capturing for the moon…

President Trump’s One Large Stunning Invoice Act made investments into area infrastructure a brand new alternative for municipal finance. However not all areas of the market are prepared for spaceport initiatives. 

Thirty-one % of respondents mentioned that the authorized and tax counsel sector of the business is both very or principally prepared for investing in area initiatives. That share drops to twenty% for buyers, 19% for non-legal consultants and advisors, 13% for regulators and 12% for issuers.

Fifty-one % of respondents mentioned regulators have been the least prepared for the sort of funding exercise. Shut behind have been issuers, with 46% recognized as not prepared, adopted by non-legal consultants and advisors (37%), buyers (36%) and authorized/tax counsel (22%).

Key takeaway: Regulators are the get together least prepared for investments in area infrastructure.