Core Insights - Muni bonds have shown recovery from a challenging start to 2025 but continue to underperform compared to other segments of the fixed income market [1] - Federal funding cuts, particularly to Medicaid, are expected to exert pressure on state budgets, with California highlighted as an example of strong revenues coupled with increasing spending risks [1] - The outlook for the muni market is discussed in detail on "Bloomberg Markets" by Columbia Threadneedle's Shannon Rinehart [1]