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A lot has happened in the last month, with a tariffs proposal, then it being delayed. Medicaid is being talked about, but no formal bills have been introduced. Many bills have been heard in both houses at the state legislature that will impact many businesses and Arizona citizens.
Arizona’s Water Infrastructure
A new CSI report shows that, in general, Arizona’s water challenges aren't about scarcity; they’re about infrastructure, sound policy and market ingenuity.
Economic Consequences of Inaction – Maintaining the Phoenix AMA homebuilding moratorium over the next decade could cost Arizona 18,600 jobs and $2 billion in GDP by 2035. In contrast, augmenting water supply by 300,000 acre-feet could generate a $4.7 billion net gain in economic output.
READ THE REPORT
Rapid Spending and Short-Term Budgeting Threaten State’s Fiscal Future
The fifth annual Budget Then and Now report from Common Sense Institute (CSI) provides a detailed look at Arizona’s $60B state budget and an analysis of growing city revenues around the state.
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Small Business Optimism Slips
The NFIB Small Business Optimism Index declined by 3.3 points in March to 97.4, falling just below the 51-year average of 98. The Uncertainty Index decreased eight points from February’s second highest reading to 96.
“The implementation of new policy priorities has heightened the level of uncertainty among small business owners over the past few months.” said NFIB Chief Economist Bill Dunkelberg. “Small business owners have scaled back expectations on sales growth as they better understand how these rearrangements might impact them.”
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Small Businesses Concerned as Inflation's Grip Intensifies
What's happening: Small businesses are increasingly concerned about revenue as inflation continues to be a dominant challenge. Recent surveys indicate a record high in inflation concerns among small business owners, leading to a faltering confidence index.
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Building an Agile, Engaged, Resilient Workforce
The center of the workforce development world was in Washington, D.C., this week for Talent Forward hosted by the U.S. Chamber and U.S. Chamber Foundation. Over two days, a packed house of experts tackled pressing issues, including barriers to participation, the need for AI and technical skills, and childcare solutions.
Why it matters: The U.S. remains in a worker shortage with millions of job openings, while employers have difficulty finding workers with the skills they need.
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Arizona’s Jobs & Labor Force Update
Arizona added 4,300 jobs in February—ranking 15th in the country for monthly job growth. But on a year-over-year basis, the state lost 14,200 jobs, placing Arizona second to last out of all states and D.C. for annual job growth for the second month in a row.
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Proposed Legislation Impacting Arizona’s Business Landscape
Every year, the Arizona Legislature introduces dozens of bills that can impact the business community.
As the 2025 legislative session unfolds, here are the bills
SEE THE BILLS
Arizona’s Quarterly Housing Update
Arizona’s housing market remains under intense pressure, with high prices, limited supply, and rising mortgage costs making homeownership increasingly difficult for many Arizonans.
Housing Shortfall – Arizona faces a shortage of 56,616 units—a 17% decrease from 2023, but still not enough to close the gap. It would take 13 years to resolve the deficit at the current permitting pace.
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‘There’s so much opportunity here’
Good polices on tax, regulations, and energy will ease Americans’ worries.
Businesses of all sizes are feeling increasing economic pressure and uncertainty from higher tariffs and rising prices. The U.S. Chamber and other experts are helping Americans understand the rapidly changing economic landscape and how Washington can ease public worries.
Why it matters: Uncertainty is causing local businesses to put off hiring and delay expanding operations in their communities.
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Schweikert says math, not politics, is how to assess U.S. fiscal prospects
United States Rep. David Schweikert (R-Ariz.) at a forum Tuesday in Phoenix said math, not political expediency, should guide policy decisions in Congress if the nation is going to get its fiscal house in order and prevent the national debt and its interest payments from overtaking other government responsibilities like Medicare and Social Security.
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Downtown Phoenix small businesses say keep DBacks in AZ is essential
Small businesses in downtown Phoenix are supporting the passage of HB 2704, a bill to establish a financing mechanism for needed repairs at Chase Field and to ensure that the Diamondbacks remain downtown for decades to come, all without raising taxes. Area restaurants, bars, and other businesses in the downtown area garner a large share of their customers from the crowds coming from Diamondbacks games.
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The Cost of Killing School Choice in Arizona
Arizona has long been a leader in school choice, with nearly half of the state’s K-12 students enrolled in charter schools, private schools, microschools, or district open enrollment programs. Yet, every year, new legislation aimed at killing school choice is introduced at the Arizona Legislature. A new report from the Common Sense Institute reveals the financial and academic consequences if school choice options were rolled back.
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Why are Public Schools Closing?
Common Sense Institute is live-tracking public school closures and the economic impact of K-12 demographic decline in its school closure dashboard.
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How to Make Childcare More Affordable
The lack of affordable and accessible childcare options poses challenges for working parents.
The national average cost of childcare is $10,500 per year for one child, with costs in high-expense areas exceeding $15,000 annually.
At the same time that families struggle to make sure their kids have quality care, businesses have trouble finding workers. Improving America’s childcare system can solve both these challenges. That’s why the U.S. Chamber is collaborating with policymakers to enhance accessibility and affordability.
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Legislators push early ballot election reform, ID requirements for voting
Republican leaders are determined to reform the state’s election system to speed up tabulation of election results — even after Gov. Katie Hobbs vetoed a bill last month that aimed to accomplish that goal.
The new measures would change the deadlines for early ballot drop off, require voters to update their names on an Active Early Voter List within a specific timeframe, allow schools to be used as polling places, and create new laws to ensure all votes are counted within a day of the election.
These provisions are similar to those vetoed by Hobbs in the past.
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Permanent Tax Reform Will Prevent a Historic Tax Hike
When American companies have a competitive tax code, local economies prosper, and workers benefit from higher wages and more job opportunities. But Americans will face the largest tax increase in U.S. history unless Congress extends provisions of the 2017 Tax Cuts and Jobs Act (TCJA) set to expire at the end of this year
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Voting and Elections in Arizona - Final Report
In 2024, Arizona Town Hall programs addressed the topic of "Voting and Elections in Arizona."
With 35 events hosted and nearly 1,200 participants engaged, we have completed the Final Report which contains the Highlights Report, Key Facts handout, the Community Town Hall reports, and the Background Report.
This report is a critical resource for anyone who wants to understand how Arizona’s diverse communities feel about voting and elections and where we go from here.
SEE THE REPORT
Congress Avoided a Federal Shutdown
On March 15th President Donald Trump signed a stopgap funding bill that will keep the government open for the remainder of the fiscal year, paving the way for Republican lawmakers to pivot to signature border and tax bills they seek to pass in the coming months.
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Deadline nears for ‘Real ID’ requirement; Make sure your ID complies
Twenty years ago, in the wake of the Sept. 11 attacks, U.S. Congress passed more stringent ID requirements if you want to travel by plane.
Now, those requirements are finally going into place, and you have two months to upgrade before the TSA requires them.
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Treasury Announces Broad Roll-Back of CTA
The Treasury Department is announcing that, concerning the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.
Photo Enforcement Ballot Measure Moves Forward
A ballot measure that would prohibit photo enforcement in Arizona moved out of committee this week. SCR 1002 photo enforcement systems; prohibition passed out of the House Transportation and Infrastructure Committee on Wednesday. Unlike SB 1019, the SCR would bypass the Governor and go straight to the ballot for voters to consider. The SCR still needs approval of the House Government Committee.
March Economic Conditions
The U.S. Chamber of Commerce's Chief Economist, Curtis Dubay, has shared his latest insights on the economy, highlighting a positive trend in recent data. However, the landscape has shifted dramatically in the past two weeks due to evolving tariff policies, creating significant uncertainty
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