Your City and State Is Running Out of Money (Video)
In this 22 March 2026 video, host Michael Bordenaro talks about how in 2026, many U.S. cities and states are facing severe fiscal challenges as pandemic-era federal aid expires and structural costs—particularly Medicaid and pensions—continue to rise. Reports indicate that as of early 2026, at least 20 of the nation’s 25 most populous cities have reported significant budget gaps. Several states are navigating multi-billion dollar deficits or “sinkhole” status (lacking enough funds to cover all bills). New Jersey, Connecticut, Illinois, Massachusetts and California have been identified as having the least ability to cover their long-term debts.
Large municipalities are experiencing “fiscal cliffs” as they exhaust their remaining American Rescue Plan Act (ARPA) funds. In states like Colorado, Medicaid has become the single largest expenditure, with costs outpacing revenue growth and inflation. Changes in federal tax, trade, and immigration policies (such as H.R. 1) and higher interest rates are straining local revenue streams. Cities like Chicago and Portland are struggling with billions in unfunded retirement entitlements.
https://youtu.be/1FTonSr7zZk
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