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Munis Poised to Extend Gains Amid Unclear Fed Policy Path

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November 19, 2025

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Scott Diamond, Co-Head: Municipal Bond Team at Goldman Sachs, details why heavy issuance and a steeper curve are making the 10–20-year municipal bond space more compelling.

MUNI NEWS

-- The Trump administration said it will transfer some of the Education Department’s largest grant programs and major portions of several offices to other federal agencies, part of a broader plan to greatly reduce the department’s authority. The plan would shift tens of billions of dollars in federal funding out of the Education Department and give the Department of Labor, in particular, much greater oversight of the federal education budget, agency officials told reporters on Tuesday. Relevant department staff will also be reassigned to their new agencies, officials said, without giving total numbers.

-- Connecticut transferred about $1.5 billion in excess budget reserves to its underfunded state employees’ and teachers’ pensions, bringing extra deposits in the funds to more than $10 billion over the last six years, state Treasurer Erick Russell said Tuesday. Under a law passed in 2017, Connecticut — which is heavily reliant on Wall Street for income-tax revenue — must stock its rainy-day fund with any capital-gains and bonus taxes that exceed a certain threshold. Once the rainy-day fund reaches 18% of annual spending, any excess is transferred to the pensions.

-- President Donald Trump’s border czar said federal immigration teams are already operating in New York City and that additional agents are being deployed, pledging to “flood the zone” in response to the city’s sanctuary policies. Tom Homan told Fox News that Immigration and Customs Enforcement agents were “on the ground” conducting operations and would expand their presence after New York’s City Council blocked an earlier agreement to allow ICE access to the Rikers Island jail complex.

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Guests & Subjects Covered

Goldman SachsMUNI NEWSThe TrumpEducation DepartmentsEducation DepartmentTuesday RelevantTreasurer Erick RussellTuesday Under

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