Joseph Krist

Publisher

SOUTH CAROLINA NUCLEAR

Santee Cooper reached an initial agreement in December with Brookfield Asset Management for the purchase of the two partially built nuclear reactors at the V.C. Summer nuclear plant in Fairfield County. The utility company hopes to know by the first half of 2028 whether the $2.7 billion deal to revive the state’s failed nuclear expansion will officially go through. Santee Cooper will maintain an ownership interest in the reactors of up to 25%. Santee Cooper’s share of the debt associated with the plant was $3.6 billion, which customers so far continue to pay for on their monthly bills. The Brookfield deal could erase all but $1 billion of that.

KEY BRIDGE SETTLEMENT

The State of Maryland has reached a settlement in principle with Grace Ocean Private Limited and Synergy Marine Pte Ltd., the owner and operator of the M/V Dali, resolving a portion of the State’s claims arising from the cargo ship’s March 26, 2024 collision with the Francis Scott Key Bridge. The State’s claims, filed in U.S. District Court for the District of Maryland in September 2024, alleged that the disaster was the result of negligence, mismanagement, and the reckless operation of a vessel that was not seaworthy and should never have left port.

The State sought damages on behalf of its agencies for the destruction of the bridge, harm to the Patapsco River and surrounding environment, lost revenues, and the wide-ranging economic losses sustained by Maryland and its residents. This settlement does not resolve any claims the State may have against the shipbuilder, Hyundai.

WESTERN WATER

The US Bureau of Reclamation will release extra water from Flaming Gorge Reservoir — potentially 1 million acre feet, which is more than a quarter of its storage capacity of 3.8 million acre feet. An initial release from Flaming Gorge, which will begin on or before May 1, is a certainty, according to Wyoming water officials. Among four storage reservoirs in the upper basin, Flaming Gorge has the most — and the most legally unrestricted – water to send downstream to Lake Powell. Colorado River authorities released an extra volume of some 465,000 acre feet of water from Flaming Gorge in 2023.

MTA FUNDING

The federal government agreed to release nearly $60 million in withheld funding for New York City’s Second Avenue subway extension. The U.S. Department of Transportation had told the Metropolitan Transportation Authority (M.T.A.) that the funding had been held up because of a review of the authority’s race- and sex-based criteria for working with disadvantaged businesses. MTA sued for breach of contract over the delayed reimbursements. The Trump administration suspended the funds in October, at the same time that Mr. Trump was pressuring Chuck Schumer, the Senate minority leader and a New York Democrat, to end a government shutdown.

DATA CENTER TAX BREAKS

Last week we noted moves in Texas to reexamine the state’s policies supporting tax incentives to the data center industry. The latest state to look at the issue is North Carolina. Gov. Josh Stein is asking a state energy policy task force to recommend overhauling or repealing a data center sales tax exemption. Under North Carolina state law, data centers that invest at least $75 million within five years are eligible for exemptions from sales and use tax. 

As is the case in many of the states, laws enacted in the 2010s were not designed in anticipation of the speedy expansion of these facilities. This tax break was enacted in 2010 and then expanded in 2015. When the incentives were created and then overhauled, the state did not require recipients to track what they would have otherwise paid in taxes. There are 37 data centers that have received the incentive in North Carolina since lawmakers re-crafted the sales tax exemption in 2015.

The N.C. Department of Commerce used publicly available date to estimate that existing data centers aren’t paying between $45 and $57 million in sales taxes annually. That includes between $25 and $37 million for equipment and about $20 million for electricity. If all of the expected data center expansions in NC be completed, North Carolina would not receive between $1.5 and $2.3 billion in sales taxes during the construction process. Once those data centers are operating, North Carolina would not receive sales and use taxes of about $450 million.

CLIMATE LITIGATION

In a unanimous decision, the US Supreme Court ruled that energy companies facing lawsuits over environmental damage to Louisiana’s coast from oil and gas production can move the challenges from state courts into friendlier federal venues. The 8-0 decision (Justice Alito recused) found that the oil company had sufficiently cleared the requirements to move the case into federal court because the lawsuit dealt with oil production in Louisiana dating back to World War II, when Chevron refined crude oil into aviation gasoline for the U.S. military.

The decision found that Chevron had shown that its wartime production of crude oil related to its wartime aviation-gasoline refining for the military, a federal priority. On that basis, the companies were found to acting as “authorized federal agents” when they produced products pursuant to the war effort. The federal officer removal statute authorizes lawsuits against federal officers or people “acting under” them “for or relating to” the officers’ official duties to be moved from state to federal court.

Earlier in the week, a U.S. District Judge dismissed a Trump administration lawsuit seeking to stop Hawaii from ​suing fossil fuel companies in state court over ‌climate change, citing a “longstanding” policy against federal intervention in state court processes. The Justice Department sued both ​Hawaii and Michigan in April of 2025, seeking to stop them from ‌filing ⁠planned lawsuits against major oil companies over climate change, cases the administration said would imperil domestic energy production.

A different federal judge in January dismissed a similar suit ​that sought to block the state of Michigan from suing major oil companies. The judge in Hawaii ruled that the Justice Department lacked standing ​to ⁠sue Hawaii because its case was too speculative. The Justice Department’s “attempt to predict the outcome of a yet-to-be-filed lawsuit ⁠and ​how it could possibly injure the ​federal government in the future is not a concrete injury-in-fact,”.

Now, a state court judge in California has temporarily stayed proceedings in cases being brought by the State of California and many other governments in the state against the fossil fuel industry. The pendency of SCOTUS review of issues in the case of Suncor Energy (U.S.A.) Inc. v. County Commissioners of Boulder County, et al. was cited as a basis for a stay. The state judge noted that on February 23, 2026, the Supreme Court granted the petition for a writ of certiorari in Boulder. Its order specified that in addition to the question presented by the petition (quoted above), the parties are directed to brief and argue the following question: “Whether this Court has statutory and Article III jurisdiction to hear this case.”

KC STADIUM

The city of Kansas City has proposed a $600 million plan to build a new downtown stadium for the Royals baseball team. The plan includes development in the area around Washington Square Park and Crown Center modeled after successful baseball district developments in St. Louis and Atlanta. A proposed implementing ordinance would set the ground rules for the stadium, offices, and infrastructure, committing the city to issuing bonds and seeking substantial state funding. The overall project cost including public investment is projected at $1.9 billion.

Disclaimer:  The opinions and statements expressed in this column are solely those of the author, who is solely responsible for the accuracy and completeness of this column.  The opinions and statements expressed on this website are for informational purposes only, and are not intended to provide investment advice or guidance in any way and do not represent a solicitation to buy, sell or hold any of the securities mentioned.  Opinions and statements expressed reflect only the view or judgment of the author(s) at the time of publication, and are subject to change without notice.  Information has been derived from sources deemed to be reliable, but the reliability of which is not guaranteed.  Readers are encouraged to obtain official statements and other disclosure documents on their own and/or to consult with their own investment professional and advisors prior to making any investment decisions.

Joseph Krist

Publisher

The Muni Credit News is taking next week off. The next issue will be dated April 20, 2026. Maybe by then there will be a NYS state budget. And that will enable much of the focus directed towards the New York City budget. One thing we know is that busses will not be free this year in the City. We expect that this is but one of several retreats we will see from campaign promises made by Mayor Mamdani as his aspirations collide with reality.

__________________________________________________________________

PUERTO RICO SOLAR

Rooftop solar generating capacity in Puerto Rico totaled 1,456 megawatts (MW) at the end of 2025, 20% of the overall capacity mix. Rooftop solar capacity has increased faster than other sources over the past decade. Between 2016 and 2025 rooftop solar installations accounted for 81% of the new generating capacity in Puerto Rico. In 2025, rooftop solar became the second-largest capacity source, after petroleum liquids (oil) capacity (3,671 MW), and surpassed natural gas capacity (1,391 MW).

In addition to rooftop solar capacity, distributed battery storage has also increased in Puerto Rico. According to data from the Puerto Rico Energy Bureau (PREB), 171,372 households and businesses had a distributed battery storage system at the end of 2025, with a total energy capacity of 2,864 megawatt hours.

NUCLEAR

The Nuclear Regulatory Commission renewed Diablo Canyon’s license to operate, ensuring that California’s last remaining nuclear facility will continue to run through at least 2030. The license renewal from the commission allows the plant to remain running for 20 years, although extending it past 2030 would require additional action from the California Legislature. The plant was originally slated to close in 2025, but lawmakers extended the deadline by five years in 2022, citing ongoing need for power from a plant that provides more than 8% of the state’s electricity.

New Jersey has enacted legislation which had effectively prevented the development of new nuclear generating assets in the state. The bill eliminates the need for a permanent waste-disposal strategy to come before a new reactor can be built. Intermediate storage disposal has a three decade track record. Ironically,  many intermediate storage containers are produced in New Jersey, at manufacturer Holtec International’s factory in Camden.  

New Jersey is the second state- along with Illinois – to end moratoria on nuclear generation development this year. They joined Wisconsin, Kentucky, Montana, West Virginia in having done the same over the last decade.

FLORIDA CLIMATE DENIAL

HB 1217, all government entities are banned from pursuing any “resolution, ordinance, rule, code, or policy” to support a net-zero policy. That includes levying charges based on greenhouse gas emissions or implementing a cap-and-trade program, which states like California and Washington have used to curb emissions. The bill also bars local governments from paying “dues, membership fees, subscription fees, or charitable contributions” to any organization that has a net-zero policy.

The bill also prevents governments from procuring vehicles or equipment based solely on the type of fuel source used in order to advance net-zero goals. Miami-Dade County estimated that it’s electric bus procurement program — on which the county has already spent over $70 million on — could take a significant hit, though the county is still reviewing exact impacts of the bill.  If signed into law, the bill will go into effect July 1.

DATA CENTER VOTES

Voters in the Milwaukee, WI suburb of Port Washington approved a measure limiting the ability of local government to grant tax breaks by a roughly 2-to-1 margin. The Port Washington referendum requires city leaders to obtain voter approval before awarding developers lucrative tax incentives. The issues behind the vote: transparency, noise pollution, freshwater use and increased energy costs. The same issues driving opposition in Wisconsin are driving opposition across the country.

In New Mexico, Dona Ana County approved the issuance of $165 billion of bonds (not a typo) to finance development of a massive data center for Oracle. The project was the result of a range of negotiations about which information was limited. The perception that the County vote was a fait accompli after closed door negotiations drives legal efforts to stop the bond issue. The bond vote will be challenged in court.

In Maine, the House and Senate have both passed LD 307, a bill that would pause construction on new datacenters until November 1, 2027. It specifically targets datacenters of 20 megawatts or more and calls for the creation of a Maine Data Center Coordination Council to better plan and facilitate the massive construction projects. 

Residents in Monterey Park, California, will decide in June on a measure seeking to indefinitely ban new data center construction within city limits. In August, Augusta Township in rural Michigan will decide whether to override a local ordinance that cleared the way for a data center project. In November, Janesville, Wisconsin will vote on a measure that could scuttle plans to redevelop a former General Motors assembly plant into an AI factory. It was the closure of the GM plant that led to a chain of events leading to the ill-fated Foxconn development undertaken during Trump 1.0.

EVERYTHING IS BIGGER IN TEXAS

Texas legislators are indicating that tax breaks for data centers are proving too successful. Early in the last decade, Texas legislators approved tax breaks to support data centers. At the time, these facilities were smaller and required fewer resources. From 2014 to 2022, the exemption amounted to between $5 million and $30 million in lost state revenue per year. By 2023, that lost revenue amounted to more than $150 million. The AI stampede now sees that this year Texas is forgoing at least $1.3 billion based on state projections.

Texas is one of 37 states offering tax exemptions for data centers, most of which are sales tax exemptions tied to local economic growth requirements. There are currently 121 data centers receiving the sales tax break, according to a comptroller’s office database. Three years ago, the comptroller’s office projected the tax break would be valued at about $180 million in the 2027-2028 biennial budget. In 2025, the projection was revised upward to more than $3 billion.

Under existing law, qualifying data centers are exempted from paying the state’s 6.25% sales taxes on purchases related to building and maintaining the facility — including servers and other data storage hardware, software, office equipment, the cooling system, emergency generators and plumbing. Data centers are also exempted from paying state sales taxes on the cost of electricity. It is a significant benefit given the enormous energy demand of the facilities. 

A recent Quinnipiac poll found 65% of Americans oppose the construction of a data center in their community.

PUBLIC POWER SOLAR

Pasadena Water and Power is launching a pilot program offering new rebates for residential and commercial solar installations and battery storage. Eligible PWP residential electric customers can receive a rebate of $0.60 per watt for the purchase and installation of a new, permanent rooftop solar system, or for the expansion of an existing system. Customers enrolled in one of PWP’s income-qualified bill assistance programs are eligible for a rebate of $1.00 per watt. Battery energy storage incentives are also available and offer up to $550 per kilowatt-hour.

Qualifying commercial customers may receive rebates of up to $80,000 per meter for installing new, permanent rooftop solar systems or expanding existing systems. Tiered rebates for battery energy storage are also available up to $80,000 per meter. It is one possible response to changes in the State’s net metering scheme which effectively reduced the financial benefits to residential solar customers.

ENERGY IDEOLOGY AND REALITY

Over the course of March, the nation got more electricity from renewables than it did from natural gas, which is typically the single-largest source of energy on the U.S. grid. Emissions-free sources, a category that includes both renewables and nuclear, produced more than half of the nation’s electricity. Solar, batteries, and wind together will once again make up the overwhelming majority of new energy capacity added to the grid this year. 

Craig No. 1, the coal unit scheduled for retirement in December, 2025 is scheduled to resume operation as we go to press and possible several more days. The plant did not operate at all in 2026 prior to now even though it was ordered to do so by Energy Secretary Chris Wright. The resumption of electrical generation was not ordered by Sec. Wright, but instead by the Southwest Power Pool. SPP cited resources outages and load and intermittent resource uncertainty in telling Tri-State Generation and Transmission, the operator and part owner of the unit, to resume operation.

VW informed employees in Chattanooga and the United Auto Workers union that it will cease production of the electric ID.4 at its plant in Chattanooga, TN. It will instead produce the Atlas and the Atlas Cross Sport, gas powered vehicles. The ID.4 saw an increase in sales in 2025, rising from 17,000 in 2024 to 22,400. Those figures were skewed by buyers seeking to purchase an electric vehicle before federal tax credits for the automobiles expired Sept. 30. The impact of that policy change showed up in January of this year when the electric VW SUV was the slowest-selling vehicle in the United States. 

Disclaimer:  The opinions and statements expressed in this column are solely those of the author, who is solely responsible for the accuracy and completeness of this column.  The opinions and statements expressed on this website are for informational purposes only and are not intended to provide investment advice or guidance in any way and do not represent a solicitation to buy, sell or hold any of the securities mentioned.  Opinions and statements expressed reflect only the view or judgment of the author(s) at the time of publication and are subject to change without notice.  Information has been derived from sources deemed to be reliable, but the reliability of which is not guaranteed.  Readers are encouraged to obtain official statements and other disclosure documents on their own and/or to consult with their own investment professional and advisors prior to making any investment decisions.

Joseph Krist

Publisher

NEW YORK STATE

The confluence of election year pressures, an uncertain economy, rising housing and utility costs are delaying the enactment of a budget for the State. Not to mention the holidays as well. The passage of an extension bill to fund operations was not unexpected. The immediate issues include a potential tax increase, energy policy and immigration.

The tax increase proposed on millionaires has been supported by New York’s Mayor who seeks the funds to deliver free buses and childcare in the City. The impact of the State’s 2019 climate legislation is a major sticking point. Massive increases in electric costs were felt across the state. Delaying the deadlines in the climate legislation are seen as a way to increase supply and lower costs. The immigration issues are policy-based rather than an issue of funding.

That actually means that the process is likely to extend well into the month. There will be little financial pressure to reach agreement, and these policy issues usually require prolonged negotiations. It could be a while

HOSPITAL MARKETS AND COMPETITION

It isn’t your imagination. Americans continue to be served by the most expensive healthcare system in the world. Charges continue to go up, insurance companies balk and medical bills are still the leading cause of individual bankruptcies. This comes in the wake of the consolidation of the hospital industry. That process has unfolded over the last decade and a half. The theory was that consolidation would lead to efficiencies which should have slowed the incessant growth in medical care inflation.

A recent study from the Kaiser Family Foundation (KFF) has shown that the reality of a consolidated hospital market has not generated cost savings while reducing choice. KFF finds that nearly one in five (19%) metropolitan statistical areas (MSAs) were controlled by a single health system, and more than one in four (27%) markets were controlled by two systems in 2024.

In more than four of five metropolitan areas (83%), one or two health systems controlled more than 75 percent of the market. These markets all met the definition of highly concentrated markets based on thresholds in current antitrust guidelines. One health system controlled at least half of the market in about three out of four MSAs (76%) and at least a quarter of the market in nearly every MSA (98%). These markets tend to be outside of the big cities and that data shows the relationship between population and service area choice.

In 79% of MSAs with a population of less than 200,000, one or two health systems controlled the entire market for inpatient hospital care in 2024. Virtually all (54 of 55) MSAs with a population of at least one million people had at least four health systems. Diversity does not necessarily lead to less concentration. In fourteen of these relatively large MSAs with four or more health systems, the two largest health systems controlled at least 75% of the market, and in 44 of these areas, they controlled at least 50% of the market. 

As for rural providers, the outlook remains negative. A $50 billion federal Rural Health Transformation Program was created under the OBBBA last July. It was intended as a bit of a bone thrown to rural areas to offset the planned Medicaid cuts under the bill. It will cut $911 billion in federal spending on Medicaid and CHIP over the next 10 years, according to estimates from the Congressional Budget Office. 

We came across the example of how the bill would impact small providers in the rural West. Montana rural hospitals can receive payments for implementing recommendations, “including right-sizing select inpatient services” to match demand. In Wyoming, any facility that receives funding must agree to “reduce unprofitable, duplicative or nonessential service lines,”. Colorado and Oklahoma health departments said no facility will be forced to end services. Mandates from the state in those two jurisdictions as to which services are “appropriate” in a small rural facility, however, can be just as effective in driving decisions to cut services or close facilities.

Almost half of the at-risk hospitals have special Medicare payment designations that are typically associated with hospitals that are rural or financially vulnerable and play a critical role in the communities they serve, including Critical Access Hospital (19%), Rural Referral Center (16%), Sole Community Hospital (9%), and Medicare Dependent Hospital (4%). Five states now have over a quarter of all their hospitals at risk: Connecticut, California, New York, Massachusetts, and Washington.

All of this is just another reason to approach the healthcare sector with caution. It’s not an accident that municipal analysts have cited the sector as one of primary concern for 2026. The merger gun has just about run out of bullets as costs continue to increase – especially for labor – while reduced choice for consumers has not necessarily led to bottom line growth.

WESTERN WATER

Nearly every snow basin in the Mountain West had one of its warmest winters on record and is well behind normal for water supplies. Denver Water announced Wednesday that it is seeking a 20% cut in water use, asking people to turn off automatic watering systems until mid-May and restricting the watering of trees and shrubs to twice a week. It is the earliest in the year that Denver Water has ever issued a restriction.

It follows a very dry winter in Colorado. There was much attention paid to the lack of snow and the impact that had on the ski industry and tourism. Now, the even more important impacts of that dry winter are clear. Snowpack is some 40% below historic levels and the lowest since 1981. Denver Water gets about half of its water from the Upper Colorado River Basin and the South Platte River Basin where snowpack was at about 42% of normal. The Upper Colorado River Watershed was at 55%.

Salt Lake City officials, preparing for drought, have temporarily banned the opening of any large non-residential developments that consume significant amounts of water. city facilities have been ordered to cut their water use by at least 10%, and residents and businesses have been asked to voluntarily conserve 10 million gallons. In the northern Colorado city of Erie, officials warned residents and businesses to halt any irrigation until early April, and they warned they could shut off water access to anyone caught wasting water on their lawns.

In California, state measurements on April 1, the closely watched date when snow levels historically reach their peaks show that snowpack in the Sierra Nevada, southern Cascades and Klamath Mountains is 18% of average. State water officials say the snowpack was at its largest point in February, more than a month before it has historically peaked.

The U.S. Bureau of Reclamation, which runs the Central Valley Project and its flagship reservoir, Shasta Lake, announced last week that it expects to provide only 20% of the water requested by irrigation agencies in the San Joaquin Valley, the state’s farm belt. The State Water Project, which serves mainly urban communities, including spots in the Bay Area, is planning to meet just 30% of the water requests of most cities and towns.

TRIBAL SOLAR RIGHTS

Minnesota’s Upper Sioux Community constructed a solar array two years ago on tribal land with the intention of using that power for its casino and resort. It is  engineered so the power would stay on tribal land and off the local power grid.

As existing customers, tribal leaders expected to stay plugged into the larger grid and remain part of their local rural electric cooperative, Minnesota Valley Cooperative Light & Power Association even as they made their own electricity.

The utility, though, responded by threatening to shut off power to the tribe if it switched on the solar farm, arguing the project violated state law and the tribe’s obligations as a member of the nonprofit co-op.

Now, the dispute is in front of state regulators. An administrative law judge is reviewing the case and will make recommendations to the Minnesota Public Utilities Commission. Minnesota Valley Cooperative Light & Power has exclusive rights to sell electricity in its service territory. Like other state electric cooperatives, its board limits its members only to small energy projects up to 40 kilowatts, generally enough to power a small convenience store or a restaurant. 

Minnesota Valley says its rules require members who generate more than 40 kilowatts to sell their power to an outside buyer at a near-wholesale rate, pay the cooperative what’s known as a wheeling fee to transport it — and then continue buying all their electricity from the cooperative at the standard retail price. The solar array was designed to offset about 30 percent of the casino’s electricity consumption at lower cost economically and environmentally.

At the core is the reaction to past practices by the Cooperative. Minnesota Valley’s own 2024 study — commissioned by the cooperative to evaluate its rates and costs — showed that it was overcharging the Upper Sioux Community by as much as 11 percent for power. A 1995 federal court decision from North Dakota involving the Devils Lake Sioux tribe, in which a judge found that state utility service territory boundaries cannot be used to take away a tribe’s right to choose its own electricity provider for businesses on tribal trust land. The Upper Sioux have cited the same decision in their filings.

CARBON PIPELINES

Summit Carbon Solutions, the company facing regulatory hurdles to its construction of a pipeline for carbon sequestration has decided to use the carbon for fossil fuel extraction. Summit now says its pipeline will be used to drive domestic oil and gas production in a process known as enhanced oil recovery (EOR), which would inject the CO2 directly into wells. 

Carbon captured for use in enhanced oil recovery also qualified for tax credits—though slightly smaller ones, up to $65 per metric ton under the terms of the Inflation Reduction Act. The One Big Beautiful Bill Act of 2025 increased tax incentives for CO2 emissions captured and used in enhanced oil recovery. Now, whether a project captures carbon for permanent storage or to drive fossil fuel production, it receives the same credits.

This month a North Dakota judge revoked a permit issued to Summit that would have allowed it to store CO2 underground in the state. Summit is now considering destinations in Nebraska, Wyoming, Colorado and Kansas for sequestered carbon. Summit petitioned the Iowa Utilities Commission in September 2025 to amend the terms of its permit and remove mentions of a specific route or destination. 

MILLIONAIRES TAX

Washington Gov. Bob Ferguson signed historic legislation creating an income tax. The bill imposes a 9.9% levy on households with income above $1 million a year. Collections would begin in 2029 and generate around $3 billion a year from an estimated 21,000 filers. The state has historically been known for a high level of regressivity in its tax structure. This is an effort to address the issue in an era of affordability being top of mind.

It is also not unexpected that the conservative Citizen Action Defense Fund announced it plans to sue, arguing it is unconstitutional and conflicts with the state Supreme Court precedent set in 1933 when it invalidated a voter-approved income tax. Another conservative political committee – Let’s Go Washington – filed a referendum to give voters a chance to repeal the law this fall. However, because the new law contains a so-called “necessity clause” preventing a referendum, the Secretary of State’s Office formally rejected the filing this week.

Tax opponents will sue to remove the language and allow such a ballot challenge.

If the law stands, companies grossing less than $300,000 a year will be exempt from paying the state’s main business tax. Sales tax for diapers, personal care products, like shampoo and deodorant, and many over the counter drugs will be eliminated on Jan. 1, 2029. And most retail sales taxes lawmakers adopted last year on services will end on Jan. 1, 2029. 

CANADA

The impacts of the hostile environment towards Canada by the Trump administration are having real world economic consequences. North American Transborder Freight decreased 5.5% in January 2026 from January 2025 according to the US Bureau of Transportation Statistics. Freight between the U.S. and Canada: $52.8 billion, down 18.4% from January 2025.

Just look at the three primary methods facilitating Canada-US trade. Trucks moved $84.6 billion of freight, down 3.5% compared to January 2025. Railways moved $12.2 billion of freight, down 19.6% compared to January 2025. Pipelines moved $9.3 billion of freight, down 10.3% compared to January 2025.

Detroit, Port Huron, and Buffalo are the top truck ports for U.S. freight flows with Canada. Chicago, Port Huron, and Minneapolis are the top pipeline connection regions for U.S. energy freight flows with Canada. Port of Boston, Arthur, and Portland are the top water port connections for U.S. energy flows with Canada. Declines in tourism continued to impact communities like Palm Springs, CA and Las Vegas. In Las Vegas, a dismal 2025 saw the number of visitors decline 7.5 percent. That is the worst annual decline outside of the pandemic since the Great Recession of 2008-9. 

Disclaimer:  The opinions and statements expressed in this column are solely those of the author, who is solely responsible for the accuracy and completeness of this column.  The opinions and statements expressed on this website are for informational purposes only and are not intended to provide investment advice or guidance in any way and do not represent a solicitation to buy, sell or hold any of the securities mentioned.  Opinions and statements expressed reflect only the view or judgment of the author(s) at the time of publication and are subject to change without notice.  Information has been derived from sources deemed to be reliable, but the reliability of which is not guaranteed.  Readers are encouraged to obtain official statements and other disclosure documents on their own and/or to consult with their own investment professional and advisors prior to making any investment decisions.