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Description: Political parties are not free to choose which issues to focus on in parliament. At the national level, it is mostly economic and societal problem pressures which impact parties’ issue attention. In this paper, we argue that at lower levels of multilevel governance systems, parties are additionally limited by institutional and financial constraints beyond their decision-making competencies, which should impact their issue attention. Based on a novel dataset of local parties’ parliamentary questions regarding 19 policy areas in 35 German local councils between 2011 and 2020, we demonstrate the constraining effect of institutional and economic conditions on party behaviour: parties are aware of the institutional constraints and devote more attention to issues where municipalities have more legal leeway, but this effect is moderated by the financial constraints that local communities face. Forthcoming in Swiss Political Science Review