If applied, cities like New York, Chicago and San Francisco would be penalized to the tune of billions of dollars in Federal funding for domiciling, educating and providing healthcare to illegal immigrants without reporting it to the Federal government. Hence, the term ‘sanctuary cities.’

In all, the Federal government provides funding to cities across the country in the magnitude of $27b per annum, through a spiderweb of programs which embodies the very essence of bureaucratic corruption.

“These jurisdictions have caused immeasurable harm to the American people and to the very fabric of our Republic,” Trump’s executive order said, signed on January 25th, 2017.

As such, municipalities have been forced to disclose this new risk to their liquidity during recent bond sales.

This was affixed to a recent New York general obligation bond issuance, led by Citi.

“If implementation of the executive order results in the reduction of federal aid to the city, the city expects that it would mount a vigorous legal challenge,” the disclosure said. “However, there can be no guarantee that implementation of the executive order will not result in a significant reduction or delay in receiving such aid.”

Other states, such as Oregon and California, are disclosing risks associated with the repeal of Obamacare and Dodd Frank, citing ‘material adverse effects on the financial condition of the state’, should it be implemented.

Since the year is young and bond issuance has only just begun, expect to hear more about these sort of disclosures as time presses on.

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