DOGE Effect Stings Muni Bonds Backed by Federal Lease Payments

Elon Musk’s aggressive push to cancel federal leases is pressuring some municipal bonds backed by payments from the US government.

The White House has urged the General Services Administration, the government’s real estate manager, to cut federal office space. The efforts are part of the crusade by President Donald Trump and Musk to lower spending, creating turmoil at federal agencies. Musk’s Department of Government Efficiency has tweeted about some lease cancellations already.

There is a subsection of the $4 trillion state and local government debt market backed by federal lease payments. It’s hard to tally how much debt is ...