Federal Reserve Banks across the country collect anecdotes from contacts and hone in on concerns for Federal Reserve Beige Book summaries, published eight times each year. Historically, insights about conditions affecting low- and moderate-income communities have come from the perspective of businesses. Several Reserve Banks began including “Community Conditions” and “Community Perspectives” sections in the fall of 2022. These sections provide insight into local changes through direct accounts of nonprofit and community leaders and workforce professionals serving lower-income people. Here are some takeaways from the July 2025 Beige Book, which was prepared at the Federal Reserve Bank of Boston and is based on information collected on or before July 7, 2025.
Please note that the Beige Book summarizes comments received from contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.
“Households in the District continued to face challenges meeting their needs due to rising expenses and reduced availability of financial assistance. In particular, housing costs have climbed as tax burdens have increased due to higher reassessments, while insurance and maintenance fees have increased markedly. Funding shortfalls in childcare programs in New York City due to escalating costs have led to a freezing of childcare voucher enrollments, requiring parents to shoulder higher expenses. Further, the lifting of COVID-era protections on Medicaid and housing continued to put stress on some households.”
– New York Fed, Federal Reserve 2nd District, Community Perspectives
“In a recent survey of nonprofit organizations that support small businesses, contacts reported challenges associated with capacity constraints and growing demand for services. Several respondents reported federal funding reductions, with one rural organization describing cuts of more than 40 percent to their federal and state grants. Others raised concerns about whether private funds would remain available for their organizations given economic uncertainty. Meanwhile, demand for these organizations’ services increased, as small business owners sought assistance managing higher expenses, modifying supply chains, and obtaining credit. Additionally, respondents noted that small businesses had lost federal contracts and that federal policy changes were raising concerns about future contract opportunities, especially for women-, minority-, and veteran-owned businesses.”
– Cleveland Fed, Federal Reserve 4th District, Community Conditions
“Community, nonprofit, and other nonbusiness contacts reported no change in economic activity over the reporting period, reflecting a “pencils down” response to ongoing tariff and budget negotiations. State government contacts saw declines in income tax withholding and sales tax revenue. Contacts working with small businesses reported hesitancy around investment decisions amid efforts to cut costs to preserve margins. Leaders of nonprofit and social service organizations said they were confused about how to navigate changes to federal funding, in particular for programs related to food, housing, and small business. Organizations serving low-income communities noted that prices of daily necessities had stabilized, while food pantry contacts continued to report unprecedented levels of demand.”
– Chicago Fed, Federal Reserve 7th District, Community Conditions
“Nearly all community college and certificate program contacts reported strong job placement, with many programs—such as building trades, diesel tech, welding, and aircraft maintenance—continuing to have more jobs available than there were graduates. These educational programs also reported higher demand on their food pantries, mental health services, and assistance for transportation, housing and utilities among students. While most community education contacts reported growth in local tax revenue and tuition dollars, several were starting to plan for challenges from proposed federal and state funding changes, particularly around Pell grants.”
– Kansas City Fed, Federal Reserve 10th District, Community Conditions
“Demand for social services remained elevated as nonprofits continue to adjust to actual and proposed federal spending cuts. Nonprofits are working on locating new private sources of funding to fill the gap. Some contacts reported that private dollars are also in short supply as competition for donations and economic uncertainty both increased. A Houston-area nonprofit had once expected donations from the oil and gas sector to rise because of changes in federal policy, but donations have decreased as the sector faces domestic and geopolitical uncertainty. A few contacts commented that clients are not seeking services out of fear of Immigration and Customs Enforcement raids. Some organizations noted utilizing artificial intelligence (AI) to improve efficiency and help cut costs. They noted various AI use cases such as performing human resources tasks, conducting research, analyzing data, taking notes, and proofing documents.”
– Dallas Fed, Federal Reserve 11th District, Community Perspectives
“Conditions deteriorated further in the nonprofit sector. The cancellation of federal grants and a continued drop in charitable donations pushed several nonprofit organizations across the District to reduce staff levels and program offerings. Some reports highlighted the impact from recent enforcement of immigration policies on overall conditions in affected communities and small businesses that serve them. For example, contacts highlighted more cases of worker absenteeism and declines in foot traffic in both urban and farming communities. Demand for mental health services and housing assistance programs remained elevated across regions in the District. Food insecurity rose somewhat in rural and urban Mountain West communities.”
– San Francisco Fed, Federal Reserve 12th District, Community Conditions
Visit the July Beige Book report for a full national summary and more information about economic conditions from each Reserve Bank, including labor markets, financial services, real estate, and more.
