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 January Beige Book, which was prepared at the Federal Reserve Bank of Richmond and is based on information collected on or before January 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.

“Low-to-moderate income populations and the elderly have experienced mounting barriers to maintaining adequate health insurance. Premiums have increased sharply, and a loss of insurance subsidies has also raised costs. Many people have lost access to low cost and free health insurance plans. Vulnerable populations also face transportation impediments and difficulty with online access and literacy, limiting their ability to access clinics and telehealth services. In response, state governments and community organizations are expanding downstream health services in senior centers, providing training for digital health tools, and are considering contributing to health insurance subsidies.”
– New York Fed, Federal Reserve 2^nd District, Community Perspectives

“In a recent survey of low-income workers, respondents reported experiencing notable economic pressures. Almost 7 out of 10 indicated that their expenses had increased, while half stated that their income did not cover their costs. Still, many expressed optimism regarding the current job market. Forty-five percent said they were planning to seek new employment in the coming months, primarily in the healthcare, technology, and business sectors, and nearly all were confident that they would find a new or better position. These jobseekers identified several potential barriers to their search for positions including the need for additional skills and experience.”
– Cleveland Fed, Federal Reserve 4^th District, Community Conditions

“Community, nonprofit, and other nonbusiness contacts described stable economic conditions overall, though with continued softening in the labor market and increased pressures from inflation. State and municipal government contacts reported stable conditions while noting some uncertainty about the impact of weaker labor markets on consumer spending. Small business contacts were feeling the impact of federal policies, including tariffs and changes to small business support programs. Leaders of social service organizations were relying on collaborations to sustain service delivery in the face of funding changes. High utility costs were straining household budgets, resulting in high demand for food assistance and other supports, like housing and transportation.”
– Chicago Fed, Federal Reserve 7^th District, Community Conditions

“Small businesses in the Tenth District reported increasing cost pressures, and contacts expected holiday sales to be down. In addition to higher input costs from tariffs, owners reported increasing insurance, rent, and labor costs. Most contacts indicated that businesses were largely absorbing these costs, leading to tighter profit margins. To manage labor costs, many owners reported taking on more work themselves and spreading hours across fewer employees to keep labor costs manageable. Several contacts noted that marketing budgets were a common cost-cutting target, with AI often replacing the use of consultants. Contacts also reported more owners exploring retirement or the sale of their businesses, particularly in retail and food services, though these pressures were evident across industries.”
– Kansas City Fed, Federal Reserve 10^th District, Community Conditions

“Nonprofits continued to report elevated demand for social services, driven by economic pressures and community needs. The heighted demand for food assistance from the disruption of the federal Supplemental Nutrition Assistance Program has largely abated, though demand remains higher than last year. Contacts noted that lower-income families budgeted more tightly during the holiday season to manage limited resources, seeking bargains and cutting back on travel and dining out. A community services nonprofit in Southern New Mexico said some migrant farmworkers have been afraid to show up to work given recent immigration enforcement policies, and that even missing one paycheck is impactful to their households. A workforce development contact noted higher demand for employment services compared with this time last year and said there is increasing interest in workshops on the adoption of AI and other digital tools.”
– Dallas Fed, Federal Reserve 11^th District, Community Perspectives

“Conditions for community support organizations weakened further in recent weeks. Demand for community services, particularly food assistance and childcare, remained high. Meanwhile, the ability of nonprofit organizations to provide services continued to be limited by unstable funding, rising costs, and increased administrative compliance requirements. Flooding in the Pacific Northwest additionally spurred demand for assistance services in the region. A few nonprofit contacts reported a seasonal increase in financial donations near year-end, which helped partially offset earlier cuts in federal funding. Organizations continued to report operating at or near capacity with limited budgetary and staffing flexibility. Small businesses reported increased costs and ongoing difficulties in accessing credit, partially due to regulations around community development financial institutions.”
– San Francisco Fed, Federal Reserve 12^th District, Community Conditions

Visit the Janaury 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.