A report titled Financial State of the Cities 2026 reveals that the five largest U. S. citiesNew York City, Los Angeles, Houston, Philadelphia, and Chicagodo not have enough money to meet their financial obligations for 2024. The report assesses their fiscal health and taxpayer burden, indicating significant financial challenges across these metropolitan areas.
• Cities Analyzed: The report focuses on New York City, Los Angeles, Houston, Philadelphia, and Chicago, all governed by Democratic leadership.
• Taxpayer Burden: Each city has a specific taxpayer burden, which represents the amount each taxpayer would need to pay to cover the citys debt:
• New York City: $61,700
• Chicago: $42,600
• Philadelphia: $17,000
• Houston: $4,800
• Los Angeles: $1,300
• Debt and Assets: Combined, these cities have $144 billion in assets, but their total debt, including unfunded pension liabilities and other obligations, is $384 billion. This results in a combined shortfall of $240 billion.
• Pension Problems: All cities face ongoing issues due to long-term costs related to pensions and retiree health care benefits, which strain their financial resources.
• Grades Assigned: The cities received grades based on their taxpayer burden:
• New York City and Chicago: F grades
• Philadelphia: D grade
• Houston and Los Angeles: C grades
• Report Insights: The analysis notes that city financial reporting varies significantly due to different state laws and structures, making comparisons complex and less transparent for voters.
The Financial State of the Cities 2026 report highlights significant fiscal difficulties for the largest cities in the U. S., emphasizing the need for improved financial reporting practices and accountability by local leaders. The findings raise urgent questions about how these cities will manage their financial obligations moving forward, particularly concerning pension and health care liabilities.
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