As federal funding shifts from investment to cuts, local governments must act now. Conducting “stress tests” will help assess risks, engage stakeholders, and develop response plans. Proactive planning ensures communities can adapt and protect essential services amid fiscal uncertainty.

The Trump Administration’s policy shifts have created financial uncertainty for cities and states. NYC’s Comptroller analyzed the city’s reliance on federal funds, highlighting risks to entitlement programs, public services, and infrastructure. This model can help other municipalities assess their fiscal exposure. With federal cuts now a reality, local governments must prepare for the impact.

In light of recent federal disruptions, cities and metropolitan areas must unite and take charge to protect their economies and residents. Local leaders need to organize quickly, collaborate across sectors, and adapt to the challenges ahead. This new localism requires agility and coordination to defend against federal changes, leverage opportunities, and ensure long-term prosperity. The time to act is now.

The resurgence of U.S. semiconductor manufacturing is driven by complex financial structures combining federal incentives from the CHIPS Act, state and local contributions, and private capital, supporting not only fabrication facilities but also infrastructure, workforce development, and research initiatives, exemplifying a collaborative model for revitalizing the industrial sector.

England's experiment with metro mayors aims to decentralize power from the highly centralized government, allowing local leaders to better address regional challenges. However, true devolution requires three key steps: granting fiscal autonomy to mayors, involving them in industrial policy design, and empowering them to compete globally. This would enable cities to drive local growth and reduce the gap between London and other regions, marking a true shift in governance.

The election of Donald Trump and a Republican-controlled Congress heralds a period of volatility for U.S. cities and metropolitan areas.

Kensington Corridor Trust or KCT is a neighborhood trust started in 2019 whose mission is to acquire and redevelop real estate on a disinvested commercial corridor and place it into long-term community control to preserve culture and affordability while building neighborhood power and wealth.

As the United States faces escalating tensions across the globe, the modernization and transformation of our military has become an urgent concern. In response, the Department of Defense's budget has increased significantly in recent years.

The COVID-19 pandemic exposed inefficiencies in global supply chains, leading to record logistics costs in 2022. Factors like e-commerce growth and reshoring drive these challenges, prompting the need for innovative strategies to enhance resilience and optimize supply chain operations.

Revenue-Based Financing (RBF) provides capital in exchange for a percentage of future revenues, offering flexible repayments based on sales. This model is ideal for fast-growing businesses seeking non-dilutive funding without collateral or ownership loss.

Since we launched the Innovative Finance Playbook in November 2022, Catalyze and the Nowak Metro Finance Lab have been assessing Revenue Based Financing, or RBF, as a tool to help address the capital gaps and deficiencies laid bare by the COVID pandemic.

The pandemic and post-pandemic period have been defined in many respects by capital. Beginning with the CARES Act and continuing with the American Rescue Plan Act, the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act, this capital period has seen the federal government dedicate trillions of public resources for a broad set of activities.

Emerging Projects Agreements are a new tool to bridge the gap between federal and local governments, allowing cities to coordinate and integrate large-scale infrastructure projects. By combining individual projects into cohesive portfolios, cities like Austin and Kansas City are leveraging federal investments to drive transformative, regional improvements.

As economic uncertainty grows, cities face potential fiscal storms, such as a slowdown in federal aid, rising inflation, or declining revenues. To prepare, cities must strengthen their financial stability by building emergency reserves and adopting flexible budgeting practices.

The State Small Business Credit Initiative (SSBCI), enacted under the American Rescue Plan Act of 2021, provides nearly $10 billion to support small businesses through equity, credit support, and technical assistance programs. The program aims to leverage private capital, requiring an initial 1:1 private match and targeting a 10:1 private-public leverage over its duration. Administered by states, territories, and Tribal governments within a federal framework, SSBCI allows these jurisdictions to design and implement programs tailored to their unique economic landscapes.

Increased U.S. defense spending presents economic opportunities for cities with military assets, allowing them to create jobs, support local suppliers, revitalize business districts, and promote innovation, while local leaders must strategically position their cities to maximize these benefits.

Cities must adapt to a rapidly shifting global economic order driven by geopolitical tensions, technological changes, and major federal investments. These forces are reshaping supply chains, national security priorities, and economic policies, requiring local leaders to leverage opportunities and mitigate risks.

The post-pandemic period in the U.S. has seen a major resurgence in advanced manufacturing, driven by federal initiatives like the Inflation Reduction Act and CHIPS and Science Act. States like Ohio have attracted significant private investment, while Pennsylvania lags behind due to weaker coordination and incentives. To compete, Pennsylvania must leverage its industrial assets, maximize funding sources, and foster better collaboration between public and private sectors to attract investment and strengthen its economic position.

Remote work is reshaping downtowns, with office vacancy rates rising and tax revenues falling. Cities are exploring office-to-residential conversions to address housing shortages and stabilize finances. Despite challenges like high conversion costs, local governments are using incentives, zoning reforms, and public-private partnerships to make these projects feasible.

Jonathan Tower, founder of Arctaris Impact Investors, drives efforts to revitalize underserved communities by leveraging partnerships to attract private capital for real estate, infrastructure, and minority-owned business projects.