WASHINGTON, D.C. — Today, the National League of Cities (NLC) released its annual State of the Cities report, revealing that America’s mayors are laser-focused on driving economic recovery through innovation while navigating urgent infrastructure needs and diminishing federal support. The 2025 report paints a detailed picture of the priorities and challenges shaping local governance across the country, as expressed in the annual speeches and budget addresses of hundreds of U.S. mayors.
“City leaders are doubling down on innovation, technology, and workforce development to grow resilient local economies,” said Clarence E. Anthony, CEO and Executive Director of NLC. “But they can’t do it alone. As historic federal investments begin to expire, the need for sustained, strong federal-local partnerships is more important than ever.”
Key Findings from the 2025 Report
Local Leaders Are Driving Economic Recovery Through Innovation: Mayors across the country named economic development as their top priority this year, with an emphasis on attracting new businesses, revitalizing downtowns and building innovation hubs. Notably, 62 percent of local leaders identified business attraction as their top economic challenge in 2025—nearly double the 33 percent who cited it in 2024.
Infrastructure Investment Is Urgent and Under Threat: City leaders continue to prioritize critical infrastructure, including water systems, roads and disaster preparedness. However, federal programs like the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act (IIJA) are nearing expiration, creating a looming “funding cliff.”
- Only 25 percent of city leaders report being “very prepared” for natural disasters or infrastructure emergencies.
- The top challenges facing infrastructure projects include escalating costs of materials and labor and inadequate capital budgets.
Cities Are Resilient, But Federal Partnership Is Essential: Despite growing economic uncertainty, local governments are demonstrating resilience through creative policymaking and community-centered strategies. However, 69 percent of mayors surveyed said the end of ARPA in 2026 is likely to negatively impact their budgets and overall city management.
The Housing Crisis Demands Bold, Collaborative Action: Housing is the second most frequently addressed issue in mayoral speeches this year. Cities are confronting affordability, supply shortages and high costs with innovative, cross-sector strategies. However, additional investment and policy support are necessary to scale these solutions.
Public Health and Safety Are Evolving Challenges: Mayors are increasingly focused on issues such as mental health, substance use and cybersecurity. Many cities are adopting alternative crisis response models and prioritizing recruitment and retention within their public safety workforces to better serve their communities.
The State of the Cities report is the most comprehensive, nonpartisan analysis of mayoral speeches nationwide, offering insights into the priorities and policy landscapes of American cities.
Access the full report now and explore interactive data.
To schedule an interview with one of the authors of the report, email media@nlc.org.
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The National League of Cities (NLC) the voice of America’s cities, towns and villages, representing more than 200 million people. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. Stay connected with NLC on Facebook, X, LinkedIn and Instagram.