Rising gas prices are not only putting pressure on consumers at the pump; they are forcing local governments to make tough choices with their budgets.
The average price for a gallon of regular gasoline in June, when municipal governments set their fiscal year budgets, was $4.05. The national average price is higher yet as of Wednesday, reaching $4.10 per gallon, and city councils and appointed officials were faced with preparing for the unknown with global uncertainty around fuel availability.
As a result, city leaders across the country have been choosing to put infrastructure projects that are “less than necessary” on hold, despite the certainty that the costs of those projects will ultimately be higher down the road.
The Congressional Budget Office estimated in 2023 that local governments funded nearly 70% of public capital investments, such as public infrastructure, and about 87% of operation and maintenance of water and transportation infrastructure.
https://www.upi.com/Top_News/US/2026/08/26/gas-prices-municipal-government-budgets/8001787749755/