Highlights Fiscal Pressures, Core Priorities, and Uneven Asset Conditions Across U.S. Cities
Washington, D.C. — The National League of Cities’ (NLC) Municipal Infrastructure Conditions Report (MIC) 2026 offers a timely snapshot of how cities, towns and villages across the country are managing aging infrastructure amid rising costs, workforce shortages and shifting funding landscapes.
Based on a national survey of municipalities, the report finds that recent federal investments have improved municipalities’ ability to assess infrastructure needs, but conditions remain uneven across asset types. Many systems face growing strain, reinforcing the need for stable, long-term funding and technical support.
“Federal investments, including those from the Infrastructure Investment and Jobs Act, influence local planning and project development, but are winding down,” said Clarence E. Anthony, CEO & Executive Director of the National League of Cities. “NLC is committed to lifting up local governments who are on the frontlines of maintaining our nation’s critical infrastructure, including 34 percent of main streets and 50,000 community water systems. This year’s Municipal Infrastructure Conditions report and previous years’ reports keep a pulse on the state of infrastructure in our local communities.”
The report also highlights a shift in how municipalities pay for infrastructure. Property taxes remain the primary revenue source, and compared to 2022, local governments are increasingly relying on local, cash-based funding rather than borrowing, reflecting limited fiscal flexibility.
Capital priorities continue to focus on core infrastructure — streets, water, sewer, stormwater and water treatment systems — that support public safety and daily operations. These priorities closely align with the areas experiencing the greatest stress, reinforcing the importance of long-term planning and dependable funding sources.
Federal grants continue to play a critical role, particularly for transportation and water infrastructure.
Overall, the MIC 2026 Report paints a picture of local governments balancing immediate needs with rising pressure. As Congress considers future infrastructure legislation, the findings emphasize the importance of a reliable federal partnership to help communities maintain and modernize essential systems.
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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.
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