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 February Beige Book, which was prepared at the Federal Reserve Bank of Cleveland and is based on information collected on or before February 23, 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.
“Contacts reported low- and moderate-income communities faced continued pressures from high costs of food, rent, and energy, including home heating. Increased reliance on food pantries, first reported last October, persisted in recent months, with especially acute needs in November with the temporary suspension of federal SNAP funds. Increased immigration enforcement was associated with negative impacts on economic activity, especially for small businesses. In one Maine community experiencing an enforcement surge, many businesses noted disruptions in staffing and/or experienced decreased revenues from lower foot traffic. Several nonprofits reported difficulties satisfying the growing demand for their services, along with facing higher health-care costs, shrinking resources, and unstable federal funding.”
– Boston Fed, Federal Reserve 1st District, Community Perspectives
“Housing affordability continued to strain low- and moderate-income households, with tight inventory and persistently steep increases in home prices and rental costs. Access to public housing remained severely constrained, with families relying on vouchers competing in tight private markets with limited available properties. Contacts reported that arrears were increasing. New affordable housing projects remained constrained by high per-unit development costs, rising insurance and interest expenses, long timelines, and complex funding.”
– New York Fed, Federal Reserve 2nd District, Community Perspectives
“Nonprofits reported that clients’ financial stress worsened over the past three months because of elevated food, utility, and housing costs coupled with reduced social support services. In response, contacts said some clients stopped paying bills, skipped meals, or delayed medical care. One contact noted seeing more employed individuals requesting food, rent, and utility assistance, and another noticed more seniors seeking employment to make ends meet. To address their clients’ increased financial stress, nonprofits provided hotel stays when homeless shelters were full, worked with local grocers to secure more food donations, and furnished funds to cover delinquent rent and utility bills.”
– Cleveland Fed, Federal Reserve 4th District, Community Conditions
“Concern about the stability of the labor market was pervasive among both employed workers and job seekers. While some individuals expressed confidence that they would be able to find a new job, if necessary, most indicated that the job would likely represent a trade down in terms of wages, schedule, and/or benefits. Workers, jobseekers, and community agencies repeatedly emphasized the negative impact of price pressures on household financial positions, especially the costs of groceries, energy, and health care. Individuals reported employing a variety of strategies for navigating tight household budgets, including selling clothes online, scrapping metal, tapping savings, utilizing buy now/pay later offerings, eliminating dining out, using coupons, and buying in bulk. Social service providers indicated that requests for food and rental assistance increased. Several of these same organizations noted that the combination of rising living costs and a cooling labor market have led many families to deprioritize pursuing pathways to upward mobility (such as investing in continuing education) in favor of meeting immediate needs.”
– Atlanta Fed, Federal Reserve 6th District, Community Conditions
“Community, nonprofit, and other nonbusiness contacts saw little change in economic conditions over the reporting period. They viewed the resiliency of the labor market as supporting these stable conditions, though low- and moderate-income consumers, very small businesses, and those facing barriers to employment remained stressed. State government contacts reported that employment and revenues held relatively steady. Contacts at organizations serving low-income consumers spoke of increased food insecurity across their communities; lack of affordable housing was a frequently mentioned cause. Small business contacts said high insurance and labor costs were putting pressure on profit margins.”
– Chicago Fed, Federal Reserve 7th District, Community Conditions
“Rural health-care contacts across the Tenth District reported mixed financial conditions and noted expected risks over the next few months. Contacts reported that about half of rural hospitals were operating at a loss, with many distressed hospitals likely to close. In northern Missouri, five hospitals were reported as at-risk of closure, resulting in the potential loss of 1,000 jobs. Their reported financial challenges stemmed from low Medicaid reimbursement rates, growing uninsured populations, pharmacy reimbursement issues, and federal funding changes. Multiple contacts noted that they have encountered more disputes with manufacturers and restrictions through the 340B pharmacy benefit program, which has disrupted an important source of their revenue.”
– Kansas City Fed, Federal Reserve 10th District, Community Conditions
Nonprofits continued to report elevated demand for social services, particularly for food assistance and even after the resumption of the Supplemental Nutrition Assistance Program. The rising cost of health insurance is affecting both social services providers and clients. A food bank had to cut employee health-care benefits in response to higher costs. Another nonprofit reported increased use of its medical clinic. Several contacts noted their concern with the anticipated rise in the uninsured population as the enhanced ACA subsidies expire and changes to Medicaid requirements are implemented in 2026. Contacts worried that individuals will lose out on routine and preventative care, and hospitals will have to bear the financial toll of caring for the uninsured. This comes at a time when rural and smaller metro hospitals are struggling to recruit physicians and other medical staff. The financial pressure could force hospitals to close in these places.”
– Dallas Fed, Federal Reserve 11th District, Community Perspectives
“Community support organizations continued to report elevated demand for services and limited funding. Organizations found it more challenging to provide support for housing, food, and health-care needs. Competition among nonprofits for limited private sector philanthropic grants was reportedly higher due to continued declines in federal government funding. Some reports noted that District state and local governments facing budget deficits are opting to reduce community service offerings and funding, particularly for education. Small businesses overall remained challenged by elevated operating costs and limited access to credit.”
– San Francisco Fed, Federal Reserve 12th District, Community Conditions
Visit the February 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.
