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.
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.