Joseph Krist

Publisher

WIND

A federal judge ruled that Orsted could restart work on Revolution Wind, a large wind farm off the coast of Rhode Island. The $6.2 billion Revolution Wind project was 80 percent completed when the Interior Department ordered construction to stop. The Interior Department cited unspecified national security concerns and argued that the project failed to comply with some conditions of its permit, including coordinating with the U.S. Navy to avoid risks to military operations.

The judge found that Revolution Wind “has demonstrated likelihood of success” on its claims, and said the company would suffer “irreparable harm” if the Trump administration order to stop work remained in place. That meets the test for rejecting efforts to dismiss the suits. A loss for the Administration would be seen as positive for the Vineyard Wind project in Massachusetts and the proposed project off the Maryland coast.

It’s just another step in what has become a confusing process if you are trying to see trends in the wind sector. The same administration that is fighting the Massachusetts and Maryland projects is supporting other projects in court. On Sept. 8, the Interior Department’s Bureau of Ocean Energy Management filed a letter which indicated that it wants to dismiss a lawsuit brought by the anti-wind group Protect Our Coast NJ that challenges New York’s Empire Wind.

The judge noted that ​“mandating the immediate pause to construction of a project whose approval the Bureau continues to defend in other cases is the height of arbitrary and capricious.” Coastal Virginia Offshore Wind the only offshore wind farm currently being built in a Republican-led state. There is also a gubernatorial and legislative election in Virginia this November. So, there is an interest in letting the project continue at least through the election.

BRIGHTLINE SAFETY FUNDING

The Trump administration announced it is committing $42 million to address safety concerns along the Brightline route, as officials respond to the train’s record as the deadliest major passenger railroad in the nation based on deaths per million miles traveled. More than 180 people have been struck and killed by Brightline trains. Some 104 of those incidents were in the three years ending August 31 of this year. The company has not been found liable for any fatalities. Just over 40% of the incidents were suicides.

The USDOT is releasing funding for four grants that had first been announced under the Biden administration but were lacking finalized agreements. Some $25 million in federal funds are dedicated to 33 miles of protective fencing and landscaping at trespassing hotspots, warning markings at rail crossings and 168 crisis-support signs meant to address people who are suicidal. The Florida Department of Transportation and Brightline have each committed an additional $10 million for the measures. Construction is expected in 2026.

RENEWABLES

According to the US Energy Information Administration, batteries are expected to account for roughly a quarter of all installations to the grid this year. According to the American Clean Power Association, in the second quarter of this year battery installations were 63 percent higher than the same period last year. At the same time, the Trump administration’s continuing efforts to eliminate renewable power continue unabated.

The market is clearly sending a different signal than does the President. The One Big Beautiful Bill Act includes  “foreign entities of concern” (FEOC) provisions set to take effect in in January aiming to prohibit imports of components from primarily China. The impact is clear given how China is the leading producer of battery components.  In 2026, storage projects will need to spend 55 percent of costs on non-FEOC components, a percentage that increases to 75 percent by decade’s end.

LNG TERMINALS

Louisiana’s four operating LNG export facilities are the most of any state in the country, and by themselves represent more than 60% of all LNG exports from the U.S. So, it is not a surprise that Woodside Energy’s $17.5 billion production and export facility broke ground in Calcasieu Parish. It is the first LNG plant to receive approval after President Trump declared a domestic energy emergency. The plant is expected to begin operations in 2029. It will add 16.5 million metric tons per year of LNG, and could grow to produce and export another 11 million.

The project is projected to support more than 4,400 jobs at the site during construction, a majority of which will be American workers. It expects another 15,000 direct jobs on the project once complete. The project is also being constructed within a designated foreign trade zone, which offers some relief on taxes and customs duties. Woodside – an Australian firm – took over the Louisiana LNG project in its billion-dollar acquisition of the Houston-based Tellurian in 2024.

TRANSPORTATION FUNDING

The realities of the current economy combined with efforts to reduce federal financial support for transportation continue to show up as one indicator of a less rosy outlook for state finances. Efforts to resolve the Commonwealth of Pennsylvania’s FY 2026 budget continue to drag on. Funding for mass transit is being held back as legislators battle over to raise new funds or reallocate existing funds.

In Oregon and Vermont, shortfalls in transportation revenues are leading to job cuts. In Oregon, a proposed agreement to fund transportation has been repeatedly postponed due to a legislator’s health issue. The transit agency for the Portland, Ore., area, Tri-Met, announced it would eliminate up to eight bus lines as well as reduce the frequency of service on other lines as soon as November without a funding package.

Vermont’s Department of Transportation is laying off 16 employees and cutting a dozen more vacant positions. The cuts are designed to offset losses of revenue. Beyond laying off workers, the plan will save $2 million by delaying the planned replacement and expansion of a vehicle garage, save $500,000 by putting off a plan to improve the platform at the Amtrak station in Rutland, cutting back equipment acquisition.  

HOSPITALS

The Westchester County Health Care Corporation (WCHCC), operates the Westchester Medical Center including operations at the Valhalla campus and the MidHudson Regional Hospital in Poughkeepsie, New York. The system will assume full ownership and operational control (previously 60% owned) of Bon Secours Charity Health System with hospitals in Rockland and Orange Counties.  It is the sole member of HealthAlliance’s hospitals in Ulster and Delaware Counties. The Valhalla campus is leased from Westchester County, although WCHCC has not been required to pay rent under the conditions of the lease agreement.

WCHCC is the only tertiary and quaternary care provider between New York City and Albany. Often a provider of regional trauma care, it is highly dependent on Medicaid for revenues so it is at risk for changes going forward as the impacts of the OBBBA roll out over the sector. As it faces these pressures, WCHCC has received a boost in its ratings outlook.

Moody’s) has revised the outlook for Westchester County Health Care Corporation (WCHCC) (NY) and Charity Health System (CHS) (NY) to positive from negative. The Caa1 revenue bond ratings were affirmed. The outlook revision to positive from negative reflects stabilizing liquidity as new bond proceeds will cover CHS’ November bullet payment, vendor obligations, and provide working capital. As these issues are addressed, the expectation is that additional outside liquidity support would be available.

One of the constraining factors on the credit is the low level of liquidity on the balance sheet. Some of that reflects the construction of a new building which is expected to generate higher more profitable demand beginning next year.

Owensboro Health, Inc. (OHI) is a three hospital system with the flagship hospital located in Daviess County in western Kentucky. The hospital is designated as both a sole community provider and a rural referral center. That puts it at the center of the debate over the federal role in funding these safety net facilities. A heavy reliance on government payors and the risks to Medicaid funding posed by recent legislation create challenges for a system which already was supported by state Medicaid supplemental funding.

Nonetheless, Moody’s revised OHI’s rating outlook to positive from stable and affirmed its Baa2 revenue rating. It cited a lack of new debt and sufficient cash flow to service debt. The plan is to reduce leverage and build cash to debt over 80% next year. 

CHICAGO

The Chicago City Council members approved an agreement to pay $90 million to 180 people who said they were victims of a unit with corrupt police officers who fabricated evidence, charged drug dealers a “street tax” and falsely arrested people at a public housing complex in the early 2000s. The settlement is expected to be paid next year which means it should be accounted for in the city budget which is due for submission to the Council in mid-October. It is no secret that the City faces the next stage of an ever-worsening fiscal crisis, with a projected deficit of $1.15 billion for the next year.

The Civic Federation has weighed in on the approval of a balanced budget by the Chicago Public Schools (CPS). “The District continues to face projected structural deficits of over $500 million annually, carries pension obligations and debt burdens that constrain its flexibility, and oversees aging facilities with an estimated $14 billion in backlogged maintenance.” The plan represents a political defeat for the Mayor in that it does not include a $175 million pension contribution from CPS.

FEDERAL HOUSING POLICIES

The New York City Housing Authority provides affordable housing for nearly 521,000 New Yorkers through buildings it owns and operates, as well as through rental subsidy vouchers that enable low-income tenants to afford to rent units in the private market. NYCHA carries out federal housing programs largely relying on federal funding, with smaller revenue streams from tenant rents and City and State sources. The current estimate to bring NYCHA’s apartment real estate portfolio into a state of good repair is estimated to top $78 billion over 20 years. Nevertheless, NYCHA now faces federal proposals to substantially reduce funding for public housing and vouchers.

NYCHA owns and operates about 157,000 apartments in 251 housing developments serving more than 312,000 residents across all five boroughs. NYCHA is by far the largest Public Housing Authority (PHA) in the United States. For context, the locations with the next largest PHAs are Puerto Rico (54,000 apartments), Chicago (20,000 apartments), and Philadelphia (13,000 apartments).3 Over 300,000 New Yorkers live in NYCHA public housing. There are currently over 241,000 families on NYCHA’s waitlist.

The median household income is about $26,000 for public housing residents, and the average rent paid by a NYCHA tenant is $628 per month. NYCHA’s operating expense budget for fiscal year 2025 is $5.4 billion. The largest expense is Section 8 payments, inclusive of Tenant-Based and Project-Based Vouchers. Other expenses in NYCHA’s operating budget include staffing, utilities like fuel and water, contracts for maintenance such as plumbing and painting, and fringe benefits to employees.

NYCHA’s operating expense budget for fiscal year 2025 is $5.4 billion. The largest expense in NYCHA’s operating budget is Section 8 payments, inclusive of Tenant-Based and Project-Based Vouchers. Other expenses include staffing, utilities like fuel and water, contracts for maintenance such as plumbing and painting, and fringe benefits to employees.

NYCHA has several revenue sources, but most of these operating expenses are funded by the federal government. In 2025, 67% of NYCHA’s revenue comes from the federal government—43% from Section 8 and 24% in other federal subsidies, mainly HUD’s public housing operating subsidy. Tenant Rents comprise 20% of 2025 revenues. Only 5% of NYCHA’s operating budget is funded by the City.

The proposals from the Trump administration would combine these programs into one backed by block grants. They proposed a two year cap on rental assistance for all “able-bodied adults” to “ensure a majority of rental assistance funding through States goes to the elderly and disabled.” Given the acute shortage of affordable housing in New York City and notably low rents relative to market rate housing, the average tenancy of a NYCHA resident is 25 years and 15 years for a Section 8 voucher holder

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