How Federal Debt Costs Are Eating State Budgets

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Oct 10, 2026 · 8m · transcript

In this episode, Lucas and Luna explore the direct link between rising federal interest rates and shrinking state budgets. With the ten-year Treasury yield hovering near 4.2 percent in October 2026, states are seeing their debt service costs skyrocket. We break down how a specific $10 billion infrastructure project in Ohio is being delayed because of higher borrowing costs, and what that means for local schools and roads. This isn't just macroeconomic theory; it's about why your potholes aren't getting fixed and why some municipalities are cutting back on services. Listen to…