Recent findings from the August Beige Book show that households across the country continue to feel the strain of higher living costs, particularly for housing and transportation. Several districts noted that due to rising healthcare costs, some individuals are delaying or foregoing elective medical care, and some seek greater assistance covering health care expenses. Small businesses continue to struggle with access to credit, while employers report difficulty finding workers for skilled trade positions.
The following are verbatim excerpts from seven of the Federal Reserve Districts included in the August Beige Book, which was prepared at the Federal Reserve Bank of Minneapolis and is based on information collected on or before August 24, 2026.
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.
“Workforce development has emerged as a critical community challenge as labor supply shortages intensify and pathways to replace retiring workers remain inadequate. Workforce development organizations report that reduced federal funding, staffing constraints, and increased competition for resources have limited their capacity to deliver training programs to low- and moderate-income populations. Employers have struggled to find and retain workers as experienced employees retire without transferring expertise. These challenges are compounded by high costs for transportation, housing, and childcare that prevent workforce entry.”
– New York Fed, Federal Reserve 2nd District, Community Perspectives
“In a recent Districtwide survey, workforce development boards reported rising labor demand, especially in skilled trades, linked to economic development projects. Several respondents cited access to transportation and childcare as persistent barriers to employment and training. Most respondents noted using AI in their operations, with the remaining boards planning to adopt AI within the next 12 months. Current AI users said they were leveraging it for administrative efficiency. Half of respondents indicated that AI was partially integrated into their processes, potentially signaling a shift in how workforce boards operate and deliver services.”
– Cleveland Fed, Federal Reserve 4th District, Community Conditions
“Financial strain among low- and moderate-income populations worsened over the summer as higher living expenses compounded existing affordability challenges. Social services providers noted that cost pressures negatively impacted both low- and moderate-income households, with providers observing significant needs among both populations as well as an overall increase in assistance requests. Community contacts indicated that many individuals and families have increasingly relied on debt—including credit cards, payday loans, and “buy now, pay later” services to cover essential expenses. Lenders reported that small businesses continued to struggle with increased operational costs as well as with a financially fragile customer base.”
– Atlanta Fed, Federal Reserve 6th District, Community Perspectives
“Community, nonprofit, and state and municipal contacts saw no change in economic conditions over the reporting period. Contacts highlighted continued price pressures related to the conflict in the Middle East and mixed labor market conditions, with some having difficulty hiring but others cutting back on hours. Overall, state government contacts reported strong sales and income tax revenues. Small business intermediaries noted that service-oriented businesses were struggling to pass on cost increases to customers, leading some to cut back on hours or be more cautious about growth plans. In contrast, intermediaries noted resilient outlooks among manufacturing clients, and some firms introduced training programs for new workers to increase staffing. Nonprofit organizations reported that private donations were holding steady given stability in the equity markets.”
– Chicago Fed, Federal Reserve 7th District, Community Conditions
“Rising gasoline prices have intensified financial strain on low- and moderate-income households already facing higher costs for used vehicles, financing, insurance, and repairs. Rural households have been particularly affected; one contact described a client who has a 100-mile commute, now spends $100 per week on gas, and must work overtime to cover it. Households have redirected funds from rent, utilities, and food while taking on additional debt. Multiple contacts noted people are increasingly using alternative transportation and reducing trips, including to medical appointments. While demand for gas and repair assistance has grown, assistance programs remain severely limited in availability.”
– Kansas City Fed, Federal Reserve 10th District, Community Conditions
“Nonprofits reported sustained high demand for assistance as households are under mounting financial pressure from the higher cost of essentials, such as food and utilities. Cuts in the Supplemental Nutrition Assistance Plans are expected to push up food insecurity. Organizations anticipate higher demand with no corresponding increase in resources, placing stress on both service providers and the communities they serve. Hospitals are adapting to the end of enhanced premium tax credits for Affordable Care Act insurance plans, which significantly increased monthly payments and deductibles. As a result, there has been a decline in the utilization of elective healthcare services and in the ability of patients to pay for emergency room services. Hospitals are responding by slowing hiring and capital investment.”
– Dallas Fed, Federal Reserve 11th District, Community Perspectives
“Community-serving organizations continued to face heightened demand for support. Demand for assistance remained high for housing, food, and utilities. The number of uninsured rose, increasing the need for health care assistance. Obtaining funding, especially from government sources, remained difficult for nonprofit organizations. Contacts noted continued challenges for small businesses, including some declines in credit quality and reduced availability of financial products and services tailored to small businesses.”
– San Francisco Fed, Federal Reserve 12th District, Community Conditions
Visit the August 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.
