Recent community perspectives from the July Beige Book highlighted that persistently high prices for essentials continued to strain household budgets. Elevated gasoline costs made commuting and daily living more expensive, particularly for rural workers. Multiple districts identified housing affordability as an urgent concern. In some areas, workers prioritized stability over career advancement, and some employers reported a willingness to train candidates with appropriate soft skills. A lack of critical funding impacted training programs and support services providers. Small businesses have also been disproportionately impacted by rising fuel costs and a shrinking labor force.
The following are verbatim excerpts from seven of the Federal Reserve Districts included in the July Beige Book, which was prepared at the Federal Reserve Bank of Chicago and is based on information collected on or before July 6, 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 serving low- and moderate-income households reported increased demand for assistance along several dimensions, as families struggled with persistently high prices of food, housing, and transportation. Reliance on food pantries increased further, transportation assistance expanded, and nonprofit organizations received more requests for help with housing payments and health care supplies. Lower-income consumers reportedly added credit card debt to pay for essential goods. However, some nonprofits reported greater financial stability in 2026 after a turbulent 2025. Nonetheless, many struggled with tight budgets in the face of rising costs and reduced funding, making it difficult to meet the growing needs of communities they serve.”
– Boston Fed, Federal Reserve 1st District, Community Perspectives
“Community contacts reported that affordable housing supply remained critically below demand, with multiyear waitlists and stalled projects resulting from funding gaps, regulatory barriers, and limited tax credit access—particularly in rural areas. These challenges have created a housing ecosystem where families are increasingly rent burdened, doubling up, or living in hotels, while rising construction and labor costs make new development increasingly difficult. Affordable housing developers and community planners have identified a critical mismatch between household incomes and available units, which particularly affects households earning slightly above income thresholds—who earn too much to qualify for assistance yet cannot afford rising housing costs.”
– New York Fed, Federal Reserve 2nd District, Community Perspectives
“Most community college contacts expected enrollments to grow in fall 2026 compared to fall 2025. Some contacts reported strong demand from both employers and students for short-term credentials, skilled trades, and apprenticeships in IT, health care, and advanced manufacturing, though one noted lower demand for computer science programs. To meet this increased demand, contacts planned to add more short-term training programs, align coursework with employers’ needs, and develop pathways between noncredit programs and traditional degrees. Most contacts said that declines in funding impacted their ability to expand programs, support students, and hire instructors. Regarding staffing, one contact shared that ‘a lack of qualified instructors for workforce training is a major challenge’.”
– Cleveland Fed, Federal Reserve 4th District, Community Conditions
“Community, nonprofit, government, and other nonbusiness contacts reported slightly improving labor demand reflecting a small increase in economic activity. Furthermore, contacts in state government saw growth in revenue from income tax withholding. However, persistent uncertainty continued to be a drag on low- and moderate-income consumers and the organizations that serve them. Small business intermediary contacts reported that increased shipping costs were affecting the stability of very small businesses, even those that have been in business for several years. Social service providers said they had decreased their reliance on the federal government as funding levels and rules have changed. Instead, they have continued to turn to other strategies to meet community needs. Community contacts noted that low wage workers, many of whom cannot work from home, have been adversely affected by higher gas prices, making commuting more costly.”
– Chicago Fed, Federal Reserve 7th District, Community Conditions
“Employment services organizations across the Tenth District reported growing challenges for both employers and jobseekers. Employers said they were willing to train candidates with technical skill gaps but struggled more with those lacking soft skills. Small businesses were also cutting jobs as lower- and middle-income consumers cut discretionary spending and as overhead costs increased. Jobseekers reported increased difficulty getting past AI application screeners, even with help from career assistance centers. They also started to favor jobs offering greater stability and advancement opportunities rather than positions based solely on hourly pay, even though fewer of these jobs were available.”
– Kansas City Fed, Federal Reserve 10th District, Community Conditions
“Nonprofits and organizations serving lower-income individuals reported continued high, broad-based demand for assistance, with a notable pickup in service requests from seniors. Housing affordability was a growing concern in areas experiencing new economic development, including data centers. Contacts attributed the issue partly to an influx of workers, as well as to employers willing to subsidize housing costs for their workforce. Cuts in federal and state assistance programs as well as food and fuel cost inflation have prompted low- and moderate-income families to seek additional help. One nonprofit reported that demand for food assistance has surpassed levels experienced during the financial crisis and the pandemic. Some nonprofits reported struggling to fund services, with rising food and fuel costs posing challenges particularly for organizations engaged in food distribution or delivery services.”
– Dallas Fed, Federal Reserve 11th District, Community Perspectives
“Conditions in the community support and services sector were strained. Demand for essential support services, such as housing and food assistance, remained elevated. Several contacts reported signs of heightened household financial stress, including faster spending of tax refunds and rising credit card balances. Nonprofit organizations continued to face funding issues, pushing some organizations to reduce staffing or cut back on services. Local health services providers and small businesses reported facing elevated operating costs and financial challenges.”
– 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.
