U.S. Public Finance
Today’s municipal market is increasingly complex and challenging. We understand that to make decisions with confidence, you want new insights about credit risk. Whether you are an issuer, intermediary or investor, you need information about this risk that’s based on in-depth market knowledge, forward-looking analyses and transparent criteria. And that’s where our insight is essential.
The Tax Bill Comes Due: Near-Term Risks Are Low, Long-Term Pressures Rising For U.S. Public Finance Entities
On July 4, 2025, the president signed into law The One Big Beautiful Bill Act, which outlines comprehensive domestic policy and amends 2017’s Tax Cuts And Jobs Act (TCJA).
Overall, we believe the final provisions have less near-term impact on ratings for U.S. public finance entities than earlier proposals, but longer-term implications for credit quality and stability could materialize as implementation occurs.
U.S. states and not-for-profit health care providers are affected by new Medicaid stipulations that standardize work requirements for recipients, reduce the provider tax, and introduce other programmatic changes that could financially pressure issuers in the longer term.
On the positive side, modifications to some federal income tax provisions could benefit individuals in states with high tax burdens and potentially support employees in some industries
Changing Demographic Trends Could Affect U.S. Public Finance Issuers' Creditworthiness In Varying Ways
S&P Global Ratings believes that for many U.S. public finance issuers, the slowdown in population growth has long-term implications, including changing service delivery needs and a smaller workforce, which together, could lead to slower economic growth.
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Anthony Ivancich
Senior Director, Relationship Manager
Nora Wittstruck
Managing Director, Chief Analytical Officer – Governments
Heather McArdle
Director, Market Outreach, U.S. Public Finance
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