Good evening, everyone. I am Eric Foster, Vice President of Strategy and Business Development for Banks & Company, as well as Research. I want to address the importance of recognizing when circumstances have changed and adapting to those changes accordingly. Although my initial statement may seem vague, I encourage you to listen closely.
The Structure and Interconnectedness of Governmental Systems
Within our governmental system, we have various branches and levels: federal, state, county, local, school districts, higher education, and intergovernmental agencies that sometimes cross jurisdictions, such as park, water, or transportation authorities. These bodies often overlap and interact—competing at times but usually collaborating effectively under normal conditions.
However, in 2026, we find ourselves in an abnormal environment. If you are a leader or representative of a majority voting community that did not support the current administration in Washington, D.C., the federal government may harbor negative sentiments toward your community. This can result in punitive actions, such as holding up funding or issuing executive orders that target policies or programs important to your constituents, effectively punishing your community.
Adapting to New Realities and Seeking Alternatives
It is vital to accept these realities and make necessary changes. If you belong to one of these governmental bodies, now is the time to explore alternative ways to meet the needs of your constituents. Traditionally, support from the federal government would help with disaster relief, infrastructure, education, and public health guidance. However, those avenues may no longer be available, and accepting this new reality is crucial.
This situation can be likened to marriage—you eventually reach a point of no return. Speaking as a two-time divorcee, I know that delaying acceptance of such endings only impedes effective transition. Just as I had to rethink how to live, function, and raise my sons after divorce, local governments must now consider how to operate independently of federal support.
Communities like Illinois, Detroit, Fulton County, and Maricopa County are embroiled in contentious disputes with the federal government. Much like the intense conflict depicted in “The War of the Roses,” it is better to accept the situation and begin planning for new opportunities and partnerships.
Exploring Creative Solutions and Partnerships
As municipalities, counties, school districts, universities, or states, you must now seek “a new love,” as the Jody Watley song suggests. The federal government, once a reliable partner, may now be uncooperative or even adversarial. It is time to look for new ways to meet obligations and co-parent responsibilities. That is where Banks & Company comes in—as your consulting counselor to help navigate this breakup.
Accepting the breakup means making changes, which can range from amending constitutional provisions or statutes to allow emergency debt issuance, to considering public-private partnerships and corporate sponsorships. For example, if your state constitution restricts debt issuance during emergencies, it is time to amend those provisions, as emergencies may persist for years. Michigan, for instance, has laws allowing emergency fiscal actions, such as issuing debt or exceeding budget limits during emergencies.
Given the current climate, you must break the glass in case of emergency—take creative steps to support your community, even if it means increasing your budget or forming new partnerships. If federal support for parks, roads, or other projects is unavailable, look to businesses, companies, or other entities to fill the gap. Corporate sponsorships, such as naming rights for public facilities, may not be ideal, but if they help close budget gaps and advance improvements, they are worth considering.
Communicating and Preparing for Transition
Banks & Company can help you identify and implement creative solutions to attract like-minded residents and businesses from other states, and communicate effectively with your community about these changes. Just as I had to have difficult conversations with my children after divorce, it is important for government leaders to prepare constituents for the realities of co-parenting and separate responsibilities.
These life experiences have shown me the importance of early and honest communication, which helps minimize the impact on those affected. Governments must do the same to ensure a smooth transition and position themselves for success after the “divorce” from federal support.
Planning for a Resilient Future
States such as Illinois, Minnesota, Minneapolis, Denver, Colorado, California, and Portland, Oregon, are now in the divorce phase with the federal government. It is time to develop a game plan for transitional life, ensuring you are prepared regardless of future administrations. Having a contingency plan—a “go bag”—will allow you to continue providing for your citizens and businesses, even if political dynamics shift again.
If you are interested in Banks & Company’s approach to public policy, development strategy, and transition, please contact me at eric@bankscompany.us or visit our website at www.bankscompany.us. We are here to support agencies, elected bodies, and communities as they prepare for and navigate this transition period.
Support and Resources from Banks & Company
The transition is challenging and unexpected—no one anticipated being “kicked out” by the federal government. Nevertheless, Banks & Company is here to help you function effectively in spite of these circumstances. Our team brings business expertise and life lessons to help you strategize and move forward. Visit us online at www.bankscompany.us, email me at eric@bankscompany.us, listen to our Apple Podcasts or Substack channel, and connect with us on LinkedIn, Facebook, Threads, or Twitter. We are here to help you make the best transition possible and emerge stronger from this period of change.
