Us State Credit Quality Declines on ‘Destabilizing’ Trump Orders
The "rapid and chaotic activity" of the Trump administration is undermining the credit quality of US states, according to a new report from Municipal Market Analytics, citing federal funding policies and staffing changes that create uncertainty for state governments. States rely heavily on federal assistance, with about one-third of their funding coming from Washington, which raises the likelihood of reserve depletion and project cuts. The destabilizing actions of the federal government are a challenge to state credit quality, as states struggle to maintain essential services.
- This trend highlights the significant risks associated with unchecked executive power and the need for robust checks and balances on government authority.
- How will the ongoing impact of these policies on state finances affect the stability of the US economy in the long term?