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 October 2025 Beige Book, which was prepared at the Federal Reserve Bank of San Francisco and is based on information collected on or before October 6, 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.

“Many nonprofits are facing challenges due to unpredictable funding and a reduction in federal benefit programs. A community health-care center reported that financial distress among Medicaid patients has risen, limiting patients’ access to care and straining the organization’s finances. More generally, rising business costs, including insurance, added to financial pressures for community service providers.”
– New York Fed, Federal Reserve 2^nd District, Community Perspectives

“In a semiannual survey of nonprofits, a growing share of respondents indicated that funding for their respective organizations decreased over the past six months. One revealed that their organization had to dip into its reserve fund to cover operating expenses for the first time in more than ten years. Another respondent said that the nonprofit sector was not filling open positions because of uncertainty around federal grants. Respondents who assist jobseekers observed that their clients were more likely than before to receive offers for part-time positions with little or no benefits and that formerly incarcerated jobseekers were having a harder time securing employment.”
– Cleveland Fed, Federal Reserve 4^th District, Community Conditions

“Community, nonprofit, and other nonbusiness contacts reported no change in activity over the reporting period and noted ongoing uncertainty about economic conditions. State government contacts noted modest year-over-year increases in sales tax revenue. Workforce development contacts who support individuals facing barriers to employment reported that firms had become more “selective” in hiring, as existing workers were more likely to stay in their current jobs and employers weren’t as eager to fill empty positions. In planning for 2026, many nonprofit organizations anticipated the need to find new funding streams and adapt to smaller budgets. Social service contacts reported that increased operating costs, such as for insurance, combined with reduced income and donations, were causing them to think carefully about which services to prioritize.”
– Chicago Fed, Federal Reserve 7^th District, Community Conditions

“District contacts in childcare said preschool seats seem to be more available than they were earlier in the year. However, prevailing prices remained difficult for low- and moderate-income families to afford, especially for infant and toddler slots. In characterizing the prices of childcare one provider noted, “cost of infant-toddler care in Nebraska is greater on an annual basis than in-state tuition at University of Nebraska–Lincoln.” Nonlabor costs remained a significant driver of pricing, as wage growth has been relatively muted for staff.”
– Kansas City Fed, Federal Reserve 10^th District, Community Conditions

“Nonprofits continue to see elevated demand for a broad range of social services. Food and utility assistance remained key needs, while demand for rental and housing assistance increased. One contact noted that evictions were on the rise. Underemployment was an emerging issue. Funding remains a concern for nonprofits, and some are exploring alternate revenue streams. An agriculture nonprofit noted recording live webinars to expand its eLearning offerings and plans to charge a nominal fee for access. Likewise, a large nonprofit organization is selling high-value products on an e-commerce site, allowing it to reach more consumers than their brick-and-mortar stores.”
– Dallas Fed, Federal Reserve 11^th District, Community Perspectives

“Conditions in community support organizations and small businesses weakened moderately. Demand for assistance rose, particularly for food, other basic household necessities, and health care. At the same time, funding and grant cuts limited their ability to provide assistance. Small business owners reported lower demand and strained finances, as they drew down savings and reduced investment. Contacts attributed some of the decline in demand to changes in customers’ behavior in response to immigration policy. Reports indicated more business closures and cuts to operating hours as well as some increases in loan delinquencies.”
– San Francisco Fed, Federal Reserve 12^th 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.