distressed municipalities

Distressed municipalities are local governments facing severe financial difficulties, often unable to meet their financial obligations, such as paying debts, funding essential services, or maintaining infrastructure. These challenges may stem from factors like declining tax revenues, rising expenses, or economic downturns. As a result, distressed municipalities may seek assistance through state or federal programs, restructuring debts, or even declaring bankruptcy to regain fiscal stability. The goal is to restore financial health and ensure that essential services for residents can continue.