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Public finance outlook for 2026: Bond Buyer National Outlook insights
April 1, 2026
Baker Tilly was proud to collaborate with Bond Buyer at the 2026 National Outlook Conference, where public finance leaders gathered to discuss the issues shaping the municipal finance and public finance market in the year ahead. The conversation explored market conditions, issuance expectations, interest rates, disclosure pressures, federal policy uncertainty, the growing role of artificial intelligence and evolving risks facing issuers.
During the discussion, participants also took part in a live market survey, sharing their perspectives on the challenges and opportunities they expect to define the municipal market in 2026. Check out some highlights from the survey!
Survey highlights
Municipal issuance outlook remains strong in 2026
After two consecutive years with municipal issuance exceeding $500 billion, survey respondents expect the municipal bond market to remain active in 2026. Most participants project total municipal issuance above $526 billion, with a majority expecting issuance to exceed $651 billion, signaling continued demand for public finance capital planning and financing.
Disclosure and cybersecurity risks top municipal public finance concerns
When asked which issue is most likely to dominate disclosure‑related headlines in 2026, respondents most frequently cited cybersecurity risks. Timely completion of audits and Annual Comprehensive Financial Reports (ACFRs), along with changes in federal policy and funding, were also identified as key disclosure challenges facing municipal issuers and public sector organizations.
Federal policy uncertainty may significantly impact municipal finance issuers
Survey participants identified reductions in federal infrastructure funding and delays in federal grants and incentives as the federal policy issue most likely to have the biggest impact on municipal finance in 2026, outpacing other macroeconomic and geopolitical risks.
National Outlook 2026
Hear Baker Tilly’s perspective on the key challenges and shifts facing the public finance and municipal market in 2026, including disclosure and cybersecurity risks, federal policy uncertainty and changing expectations for municipal advisors
Special thanks to Bond Buyer for the ongoing collaboration.
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