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 2025 Beige Book, which was prepared at the Federal Reserve Bank of Minneapolis and based on information collected on or before February 24, 2025.

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.

“Housing shortages persist across much of the District. Although there have been some favorable changes in zoning, legislation, and availability of financing, progress in expanding the supply of housing has been limited, as communities have mounted resistance to real estate development. Still, urban neighborhoods and rural communities alike are finding some success in conversions from commercial properties, including offices but also churches and schools in more rural areas, offering some increase in supply in some communities.”
– New York Fed, Federal Reserve 2^nd District, Community Perspectives

“Demand for food assistance increased over the past three months, particularly for households with children, according to the majority of food bank and pantry respondents in a recent survey. Several respondents had difficulty meeting increased demand and had to limit the amount of food provided and the frequency of visits per family. Declining in-kind donations for items such as eggs, meat, and produce led some respondents to purchase food to meet increased demand. Nearly all organizations expected demand for food assistance to rise over the next six months because of elevated prices and the impact of potential funding cuts on low-income households.”
– Cleveland Fed, Federal Reserve 4^th District, Community Conditions

“Concerns about the cost of living remained top of mind among community contacts. In particular, the lack of affordable housing continued to financially challenge many individuals. Job seekers in lower-wage occupations reported declining confidence in the labor market and a more challenging job search experience. Contacts reported that a perceived lack of employer response to job applications also contributed to a growing sense of discouragement among some prospective workers.”
– Atlanta Fed, Federal Reserve 6^th District, Community Perspectives

“Community, nonprofit, and other nonbusiness contacts reported no change in economic conditions over the reporting period, though many expressed elevated uncertainty about the economic outlook related to recent and potential federal policy changes. State government officials said withholding revenues on personal income taxes were consistent with a stable labor market, while other tax revenues were mixed. Community contacts reported strong concern about the impact of the evolving federal policy landscape on social service organizations, as most lack the capacity to absorb any disruption in funding while maintaining services. Nonprofit and other community organizations stressed that demand for housing, childcare, healthcare, food, and other necessities remains high as families navigate persistently elevated grocery and housing prices.”
– Chicago Fed, Federal Reserve 7^th District, Community Conditions

“Service organizations involved in workforce training, small business support, and providing childcare broadly reported substantial amounts of uncertainty about their long-term funding. Most contacts suggested they were able to manage recent liquidity challenges to support their activities for the short-term, ranging from a week to a couple months. However, many organizations reported they are scenario planning in the face of uncertainty about funding, with plans ranging from significant cuts to their services and headcount to plans for closure. For example, a childcare provider associated with head start reported having available liquidity that will provide for one week of payroll but, without additional funds, will soon lay off staff and cease provision of nearly 1,000 childcare slots.”
– Kansas City Fed, Federal Reserve 10^th District, Community Conditions

“Nonprofit service providers reported a sustained high level of demand, especially for rent assistance and household staples. Workforce development agencies noted wages in lower-skilled roles are not keeping up with inflation, causing financial strain for many households and increasing demand for childcare assistance beyond the available level, resulting in growing waitlists. Some nonprofit organizations reported cutting budgets, beginning layoffs, and making strategic pivots to sustain operations amidst federal funding disruptions. Funding cuts have had a direct impact on newly resettled refugees, as their 90 days of support services have been affected, including assistance with housing, food, healthcare and job placement. Social service organizations also observed a steep decline in service utilization over the past month from foreign-born clients, some of whom are undocumented, and said many are skipping work and missing healthcare appointments or even school out of fear of deportation.”
– Dallas Fed, Federal Reserve 11^th District, Community Perspectives

“Demand for support services remained elevated, while overall conditions of community organizations and small businesses weakened. Individuals across the District sought assistance with food, utilities, health care, and housing. Some workforce development programs expanded training for specific job roles that provide more stable long-term employment. Nonprofit organizations across the District reported being impacted by disruptions in federal government funding, with some organizations shifting budget allocations from public service provision to internal operations. Contacts in the Los Angeles area noted increased donations and improved coordination among individuals and institutions to support wildfire recovery efforts. Small businesses overall remained challenged by high operating costs, and some were acquired by larger companies.”
– San Francisco Fed, Federal Reserve 12^th 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.