The October Beige Book reports that low- to moderate-income households are struggling with rising costs for energy, food, and utilities, along with policy changes that are tightening access to public benefits like SNAP and Medicaid. A survey of nonprofit organizations in one district found a record share reported clients’ financial well-being had worsened over the past six months. Meanwhile, small businesses continue grappling with higher costs, late payments from customers, and generally deteriorating financial conditions.
The following are verbatim excerpts from seven of the Federal Reserve Districts included in the October Beige Book, which was prepared at the Federal Reserve Bank of Philadelphia and is based on information collected on or before October 5, 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 communities report intensifying strain, instability, and uncertainty attributed to rising cost burdens for households, businesses, and nonprofit organizations. Specifically, contacts mentioned difficulties managing higher utilities and energy prices, followed by groceries, housing costs, transportation, childcare, and insurance. Low-income households faced risks of losing Medicaid, SNAP, and other benefits in 2027, given new work requirements and more frequent paperwork. Immigration enforcement also reportedly disrupted families’ spending and saving patterns and dampened small business revenues and hiring activity. Small businesses and nonprofits faced mounting financial strain due to inflation and revenue uncertainty.”
– Boston Fed, Federal Reserve 1st District, Community Perspectives
“Community organizations across the District reported surging demand for food and emergency assistance as stricter eligibility and work requirements for SNAP and Medicaid took effect. Food pantries saw a sharp rise in first-time users, with one nonprofit leader describing strains comparable to the pandemic but without the accompanying philanthropic and government support. One agency noted eligible working families and seniors were losing benefits after missing recertification deadlines or being deterred by complex paperwork. An organization assisting mixed-immigrant status households with benefits applications reported clients served at some locations fell dramatically, as families feared applying could jeopardize their immigration status.”
– New York Fed, Federal Reserve 2nd District, Community Perspectives
“In a semiannual survey of nonprofit organizations, 87 percent of respondents, the highest share in the survey’s history, reported that their clients’ financial well-being had declined over the past six months, a situation which they attributed to continued price increases. Respondents noted higher numbers of people seeking food, rent, utility, and foreclosure-prevention assistance. One respondent said, “families [are] one setback, such as a car repair, from losing their ability to meet basic needs,” and a financial counseling service provider said that demand was so high that they had to close their waitlist and stop taking on new clients. Additionally, several respondents mentioned an increase in first-time homelessness, specifically among older adults and families with young children.”
– Cleveland Fed, Federal Reserve 4th District, Community Conditions
“Nonbusiness, government, and other community contacts reported steady economic conditions in late August and September, although price pressures weighed on future outlooks. State government contacts noted continued resilience in tax revenues. However, small business contacts were experiencing a more stressed environment. Businesses explored ways to cover operating expenses as higher costs, late payments from clients, and lower discretionary spending by customers eroded margins. As membership dues and other revenues trended lower, nonprofit organizations looked for ways to cut expenses, including by combining positions or reducing office space.”
– Chicago Fed, Federal Reserve 7th District, Community Conditions
“Organizations serving small businesses reported deteriorating financial conditions for their clients, primarily driven by worsening credit quality and reduced cash flow. They attributed the challenges to higher prices and ongoing policy uncertainty. Additionally, organizations reported that the Small Business Administration had implemented tighter lending standards. According to our contacts, small businesses were increasingly seeking liquidity through merchant cash advances (MCAs), often to cover overhead and payroll expenses. They also noted that the high cost of MCAs and the lack of education about this funding product have exacerbated the difficulties faced by small businesses.”
– Kansas City Fed, Federal Reserve 10th District, Community Conditions
“Nonprofits reported that cost inflation was squeezing margins and household finances among lower-income consumers. Tightening eligibility rules and stricter oversight in the Supplemental Nutrition Assistance Program (SNAP) are pushing food insecurity higher, and high utility costs from late summer heat was a top stressor on lower-income household budgets. While state childcare subsidies are critical for many lower-income parents, contacts note chronic supply constraints and expect a reduced budget next year. Nonprofits anticipate higher demand for basic needs assistance with no corresponding increase in resources, placing stress on both service providers and the communities they serve. Some contacts were seeing people use credit cards to supplement income, as well as retirees returning to the labor market to drive for rideshare apps to make ends meet.”
– Dallas Fed, Federal Reserve 11th District, Community Perspectives
“Conditions in the community support and services sector weakened somewhat. Nonprofit organizations continued to find it challenging to meet elevated demand for their services as operating costs rose and funding remained constrained. Contacts noted that households facing higher food and energy prices increasingly relied on community assistance programs. Housing affordability also remained a salient concern for renters and first-time home buyers. Several nonprofits continued to highlight declining or uncertain federal funding.”
– San Francisco Fed, Federal Reserve 12th District, Community Conditions
Visit the October 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.
