George Frey/Bloomberg
Water programs and roads high the infrastructure precedence checklist for U.S. cities, whereas municipal bonds are among the many hottest financing device and rising undertaking prices stay a number one concern.
These are among the many findings from the Nationwide League of Cities “2025 Municipal Infrastructure Circumstances Report” launched Tuesday. The annual survey offers a snapshot of the standard and precedence of native authorities infrastructure throughout the nation.
“Native leaders are on the frontlines of protecting water programs protected, roads and bridges practical and communities related,” stated Clarence Anthony, NLC’s CEO and govt director. “The Municipal Infrastructure Report reveals how cities, cities and villages of all sizes are innovating within the face of rising prices and complicated allowing processes to ship the infrastructure residents rely on for a thriving neighborhood.”
Greater than 71% of municipalities who responded recognized water programs as the highest infrastructure precedence, the NLC stated. Roads and bridges acquired 63% of responses adopted by sidewalks, trails and bike infrastructure at 46%. Power initiatives have been recognized by 28% of cities as priorities, and transit by 15%.
When requested why the cities prioritized sure initiatives, most named the necessity to modernize getting old and deteriorating programs.
On the financing aspect, municipal bonds are a high device, utilized by 76% of native governments to finance infrastructure, adopted intently by municipal capital budgets at 74% and loans.
The NLC weighed in on the significance of tax-exempt bonds within the report, warning that if the tax exemption was misplaced, “municipalities would face considerably increased borrowing prices, probably delaying or decreasing the scope of infrastructure initiatives.” The transfer “might pressure municipal budgets, cut back public funding and hinder long-term financial development, and even probably drive their palms to boost taxes,” the group stated.
Probably the most broadly used funding instruments are grants and capital budgets, utilized by 58% and 65% of respondents, respectively. The wants come because the Infrastructure Funding and Jobs Act, which offered an inflow of federal help for native wants, will expire in September 2026, and as Trump administration’s dedication to federal grants for native and state governments stays in flux.
Ninety p.c of cities cited rising prices of undertaking supplies and labor as a monetary impediment, whereas 84% cited inadequate capital budgets. One other 65% cited insufficient grant or mortgage availability as a high problem.
“Non-financial obstacles additionally play a distinguished function in shaping the difficulties that municipalities encounter in managing their infrastructure,” the report stated.
Regulatory compliance and allowing was named by 46% of respondents as probably the most important non-financial problem. Environmental impression assessments and mitigation have been named as a barrier by 34% of respondents.
Final 12 months’s report
The NLC’s 2022 infrastructure report additionally discovered that water/sewer/stormwater programs topped the precedence lists for surveyed municipal governments.
