What does the rise of artificial intelligence (AI) capabilities and federal funding shifts changes mean for the future of the municipal market?

On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves and Curation Editor Stephanie Fagnani speak with municipal market veteran Tom Kozlik, Head of Public Policy and Municipal Strategy at Hilltop Securities, to get his thoughts on the subject.

They explore whether federal dollars act as a stabilizer or a source of uncertainty for investors and examine sectors facing structural challenges—like higher education—that amplify these funding shifts. The conversation also looks at how declining federal support impacts municipal bond supply and demand. Then, it pivots to AI—why it’s not just a tech story but a public finance story, how it could reshape infrastructure investment, and the opportunities and risks it creates for municipalities.

Finally, they discuss the race between AI adoption and energy infrastructure readiness—and what that means for local governments and investors.