The post-election discussion around community finance is underscored by a lack of precedent that is the new precedent for the incoming Administration. With obvious downsides to unknowns lets focus on the upside: public finance has an opportunity to define itself and we suggest it is done through resilience. We are not alone but we could suggest readers comb through the posts over the last 18-months where this theme is properly vetted.
Now we know what the headline is so its time to think on implications. This is the first of several series looking at various components of 2025.
For decades, municipal bonds have funded the infrastructure that underpins our communities. By embracing adaptation and resilience, public finance can prepare state and local governments for the challenges ahead while reinforcing the value of our asset class.
This focus on resilience isn’t just practical—it’s strategic. With tax reform looming and the tax-exemption status of municipal bonds potentially at risk, demonstrating the role of municipals in protecting communities and minimizing future federal bailouts is vital. By investing in resilient infrastructure, public finance can showcase its ability to not only drive economic growth but also mitigate risks posed by climate change and natural disasters. This approach positions our market as an indispensable tool for the future.