President Donald Trump signed a temporary federal funding measure Wednesday that finances government operations through Dec. 11 while Congress works on fiscal year 2027 appropriations.
The House approved the Senate-amended version of H.R. 6500 on Sept. 1 by a vote of 370-48, with 14 members absent. The supporting votes included 193 Republicans, 176 Democrats, and one independent.
Arizona’s House delegation divided 5-4 on the measure.
Republican Reps. Juan Ciscomani (R-AZ-06), Abe Hamadeh (R-AZ-08), and Paul Gosar (R-AZ-09) joined Democratic Reps. Greg Stanton (D-AZ-04) and Adelita Grijalva (D-AZ-07) in voting for the bill. Republican Reps. David Schweikert (R-AZ-01), Eli Crane (R-AZ-02), and Andy Biggs (R-AZ-05) joined Democratic Rep. Yassamin Ansari (D-AZ-03) in opposing it.
The Senate passed the measure Aug. 8 by a vote of 90-6. One senator voted present and three did not vote. Arizona Democratic Sens. Mark Kelly and Ruben Gallego both supported the bill.
The enrolled legislation generally continues programs covered by the 12 annual appropriations acts at rates derived from fiscal year 2026 funding. Those appropriations encompass defense, homeland security, veterans’ services, transportation, housing, health, education, federal land management, and other government operations.
The law directs agencies to take limited funding actions during the stopgap period and generally prevents projects that received no money or authority during fiscal year 2026 from being initiated. It also permits agencies to fund civilian compensation at rates needed to avoid furloughs after reducing or deferring eligible administrative expenses.
For Arizona, the measure maintains funding for federal personnel and operations along the international border, at military installations, in national forests and parks, and throughout the state’s federal health care and veterans’ systems.
Ciscomani said a shutdown would have disrupted military pay, required Customs and Border Protection personnel and other federal law enforcement officers to continue working without pay, and affected services for nearly 80,000 veterans in his southern Arizona district.
Today, I voted for a bipartisan, temporary Continuing Resolution (CR) to prevent another government shutdown. A government shutdown is not a political game; it has REAL consequences. It disrupts pay for our troops, leaves CBP agents and law enforcement working without pay, and…
“A government shutdown is not a political game; it has REAL consequences,” Ciscomani said. “It disrupts pay for our troops, leaves CBP agents and law enforcement working without pay, and disrupts services for the nearly 80,000 veterans I have the privilege of representing.”
The stopgap also keeps some new fiscal year 2027 spending from beginning until Congress enacts regular appropriations. Ciscomani said operating under a continuing resolution could postpone $42.7 million in proposed projects for Arizona’s Sixth Congressional District that had cleared initial appropriations hurdles.
He concluded, “I have NEVER supported a government shutdown—partial or full. Arizona families should not have to pay the price for Washington’s dysfunction. The House did the right thing today by coming together to keep the government open, keep essential services running, and continue delivering for Arizona.”
One provision with a direct Arizona connection authorizes the Interior Department to fund its assumption of the remaining responsibilities of the Office of Navajo and Hopi Indian Relocation.
The relocation office was created to administer benefits arising from the federal division of disputed Navajo and Hopi lands in northeastern Arizona. Its remaining work includes administrative appeals, fiduciary responsibilities, land management, and livestock obligations. Congress directed Interior Department to begin handling those outstanding responsibilities as part of the office’s closure, according to a Congressional Research Service report updated in February.
The law also provides additional funding authority for the Indian Health Service (IHS) at operating rates of $75.8 million for health services and $8.3 million for facilities. The money is intended to staff and operate facilities opened, expanded or renovated during fiscal years 2022, 2026 and 2027. The legislation states national account rates and leaves facility-level allocations to the agency.
The IHS maintains Phoenix, Navajo, and Tucson administrative areas with hospitals, clinics, and health centers located throughout Arizona. The Phoenix Area system provides health and community services to approximately 180,000 Native Americans in Arizona, Nevada, and Utah through service units and tribally operated facilities. The Phoenix Indian Medical Center alone provides direct services to more than 171,000 patients.
Wildfire and disaster operations also received special treatment in the stopgap.
The Interior Department and U.S. Forest Service may spend at rates needed for wildfire suppression during the approximately 10-week funding period. Arizona fire officials entered 2026 anticipating increased fire activity because of persistent dryness, fine fuels, drought-stressed vegetation, and tree mortality.
The law gives the Federal Emergency Management Agency (FEMA) similar flexibility to fund disaster response and recovery. It also extends the National Flood Insurance Program through Dec. 11.
Transportation programs that were scheduled to expire Sept. 30 will continue through Dec. 11 under a separate division of the legislation. The extension provides a proportional share of fiscal year 2026 highway and mass transit funding and extends the federal government’s authority to spend from the Highway Trust Fund.
Federal funding accounts for most of the money used in Arizona’s highway construction program. ADOT’s 2026-2030 program includes $2.77 billion for pavement and bridge preservation, $742.9 million for highway expansion, and $603.6 million for modernization.
The law also authorizes the Transportation Department to spend at the rate needed to maintain Essential Air Service. The program subsidizes commercial flights connecting Page and Show Low with Phoenix and Prescott with Denver and Los Angeles.
The Transportation Department’s May 2026 program report listed annual subsidies of approximately $4.4 million for Page, $5.9 million for Show Low, and $6.3 million for Prescott, totaling about $16.6 million.
Federal nutrition and housing programs serving Arizona residents will also continue.
The law maintains mandatory payments and activities under the Food and Nutrition Act, which covers the Supplemental Nutrition Assistance Program (SNAP). Arizona reported that 451,762 people received SNAP benefits in May 2026.
The measure allows the Department of Agriculture to spend at rates needed to maintain participation in the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) and the existing caseload for the Commodity Supplemental Food Program (CSFP). Arizona administers the latter program as the Commodity Senior Food Program, providing monthly USDA food packages to qualifying residents who are at least 60 years old. The state projected an average monthly caseload of 29,931 people during fiscal year 2026 in its budget materials.
The Department of Housing and Urban Development may use prior-year balances to prevent families from losing tenant-based rental assistance because of insufficient funding during the 2026 calendar-year cycle. The City of Phoenix’s Housing Choice Voucher program alone assists more than 7,000 households.
H.R. 6500 also extends a series of veterans’ programs through Dec. 11. Those provisions cover rural mental-health services, suicide-prevention grants, assistance for family caregivers, ambulance reimbursement for qualifying rural veterans, housing support for homeless veterans, transportation to VA facilities, and adaptive sports programs for disabled veterans and service members.
The Department of Veterans Affairs estimated Arizona’s veteran population at 467,010 in fiscal year 2025. Nearly 160,000 Arizona veterans received disability compensation totaling an estimated $4.24 billion annually, while more than 53,000 participated in VA education programs.
The law also permits the Small Business Administration to adjust spending to meet demand for 7(a), 504 and Small Business Investment Company financing. The 7(a) program is the agency’s primary lending program and guarantees qualifying loans for real estate, equipment, working capital, business acquisitions, and other expenses.
H.R. 6500 keeps those operations and programs funded until Congress enacts the applicable fiscal year 2027 appropriations bill or the stopgap expires on Dec. 11.
The United States added 162,000 nonfarm payroll jobs in August, and the unemployment rate remained unchanged at 4.1 percent, according to the Bureau of Labor Statistics’ (BLS) monthly employment report.
Republicans on the Joint Economic Committee (JEC), chaired by Arizona Republican Rep. David Schweikert (AZ-01), reported that the increase included 127,000 private-sector jobs and 35,000 government jobs. The total was more than three times the 53,000-job forecast cited in the committee’s Monthly Employment Update.
Labor Day weekend starts with a BOOM: August jobs numbers BLEW past expectations. 💥
August’s national gain exceeded the average monthly increase of 31,000 jobs recorded during the preceding 12 months. The national labor force participation rate increased by 0.2 percentage points to 61.6 percent, and the broader U-6 unemployment rate declined by 0.2 percentage points to 7.7 percent.
August jobs increased by 162K jobs (+127K private sector, +35K gov), more than 3Xs expectations of 53K. The unemployment rate held steady at 4.1% while the labor force participation rate ticked up 0.2pp to 61.6%. July job openings, a measure of labor demand, increased by 89K.…
— Joint Economic Committee Republicans (@JECRepublicans) September 4, 2026
The latest state-level figures cover July, while the newest national report covers August. Arizona added 2,300 seasonally adjusted nonfarm payroll jobs during July, and the state unemployment rate remained at 4.9 percent.
Arizona’s July gain followed an increase of 2,700 jobs in June. The state’s private sector added 1,900 jobs in July after adding 2,500 during the preceding month. Arizona’s total nonfarm and private-sector payroll employment each increased during nine of the 12 months ending in July.
Over the 12 months ending in July, Arizona added 23,100 seasonally adjusted nonfarm payroll jobs and tied for 11th among the states and District of Columbia in percentage payroll growth. The private sector added 29,900 jobs during the same period, placing Arizona in a tie for ninth in percentage private-sector payroll growth. The difference reflects a net decline of approximately 6,800 government payroll jobs during the period.
Private education and health services recorded Arizona’s largest monthly sector gain in July, adding 1,600 jobs. Professional and business services added 1,300. Leisure and hospitality employment declined by 1,600 jobs, and construction declined by 1,300.
From July 2025 through July 2026, Arizona’s private education and health services sector added 18,900 jobs, and professional and business services added 11,700. Leisure and hospitality employment declined by 7,900 jobs, and financial activities declined by 4,500 during the period.
Arizona’s 4.9 percent unemployment rate was unchanged from June and stood 0.6 percentage points above its July 2025 rate of 4.3 percent. A total of 181,297 Arizonans were unemployed in July.
The state’s labor force participation rate declined from 60.3 percent in June to 60.1 percent in July, placing Arizona 37th nationally. The July figure was Arizona’s lowest participation rate in 10 years and stood two percentage points below its July 2025 level.
Arizona’s seasonally adjusted labor force decreased by 14,355 people during July and by 92,368 over the preceding 12 months. The state had approximately 3.286 million seasonally adjusted nonfarm payroll jobs in July.
Nationally, leisure and hospitality led sector growth in August with 62,000 jobs, followed by state and local government with 40,000. Information employment declined by 23,000 jobs, and financial activities declined by 11,000.
The BLS revised July’s national payroll estimate upward by 44,000 jobs, changing the previously reported loss of 23,000 jobs to a gain of 21,000. June’s estimate was revised upward from the previous calculation of 20,000 jobs to a final gain of 31,000. The revisions increased the combined June and July total by 55,000 jobs.
Average nominal weekly earnings for all private nonfarm employees increased 3.69 percent nationally from August 2025 through August 2026, and average nominal hourly earnings increased 3.09 percent. Average hourly earnings reached $37.75 in August.
Separate federal data showed 7.271 million job openings nationwide in July, an increase of 89,000 from June. The job-openings rate increased by 0.1 percentage points to 4.4 percent, with the BLS characterizing both measures as little changed in its Job Openings and Labor Turnover Survey.
The BLS is scheduled to release its September national employment report on Oct. 2.
State Rep. Walt Blackman (R-LD7) has endorsed Republican Bradley “Brad” Bettencourt in the three-candidate race for two Arizona House seats in Legislative District 9.
Blackman is a retired U.S. Army combat veteran who served for 21 years and received the Bronze Star Medal for combat actions in Iraq. He currently serves as chairman of the House Government Committee.
“I’m proud to endorse Brad Bettencourt for the Arizona House in Legislative District 9,” Blackman said. “Brad is a businessman and community leader who has already shown he can step up, fix real problems, and get the numbers to add up. That is the kind of common-sense leadership Arizona families need. He will work hard, respect taxpayers, and be a strong voice for Mesa and Tempe. I encourage LD9 voters to support him.”
Blackman, a 21-year U.S. Army combat veteran and chairman of the House Government Committee, had the following to say.
“I’m proud to endorse Brad Bettencourt for the Arizona House in Legislative District 9,” Blackman said. “Brad is a businessman and community leader who has… pic.twitter.com/HhYahtjhwi
Bettencourt welcomed the endorsement and cited Blackman’s military and legislative service.
“Rep. Blackman’s endorsement means a great deal,” Bettencourt said. “He has served this country in uniform and this state in the Legislature. He knows the difference between talk and results. I will take that same standard to the House: fiscal responsibility, safe communities, parents in charge of their children’s education, and a state budget that works for the people who live here.”
Bettencourt will face Democratic Rep. Lorena Austin and Democratic candidate Jacob Martinez in the general election.
The official statewide primary canvass recorded 10,441 votes for Bettencourt in the Republican primary. Austin received 11,252 votes, and Martinez received 9,290 votes in the Democratic primary.
Austin currently represents LD9 alongside Democratic Rep. Seth Blattman. Blattman announced in December that he would not seek reelection in 2026.
Bettencourt is president of the Dobson Association, the homeowners’ association serving Dobson Ranch in Mesa. His campaign biography says he earned bachelor’s and master’s degrees from Arizona State University, previously worked as a credit analyst and credit officer, and operates a real estate investment business.
Bettencourt has cited his work at Dobson Ranch as evidence of his approach to government finances. His campaign says the community, which includes approximately 5,000 homes and condominiums, uncovered more than $1.5 million in budget errors before he helped bring its finances back into order.
Bettencourt has made fiscal responsibility, housing affordability, water security, public safety, school choice, and government spending central issues in his campaign.
The Legislative District 9 Republican Committee endorsed Bettencourt in February. The committee’s resolution cited his service as an elected Republican precinct committeeman, his Dobson Ranch leadership, and his business experience.
The U.S. trade deficit widened to $88.58 billion in July, increasing $17.39 billion from June and ending the month 43 percent above its 12-month average, according to an analysis released Thursday by Republicans on the Joint Economic Committee (JEC).
The Bureau of Economic Analysis (BEA) and U.S. Census Bureau reported that the deficit increased 24.4 percent from a revised $71.2 billion in June. Total exports declined $6.6 billion to $310.7 billion, and imports increased $10.8 billion to $399.3 billion.
The monthly figures are seasonally adjusted and are not adjusted for changes in prices.
The July increase occurred within a year-to-date decline in the trade gap. Through the first seven months of 2026, the goods and services deficit was $188.4 billion, or 29.6 percent, lower than during the same period in 2025. Exports increased $237.2 billion, or 12 percent, and imports increased $48.8 billion, or 1.9 percent.
The latest figures were released as the Trump administration continues rebuilding its tariff framework following legal setbacks and imposing new duties on goods from dozens of countries.
The goods deficit increased $17.62 billion to $119.59 billion, placing it 31 percent above its 12-month average. The services surplus increased by $225 million to $31.02 billion, reaching 5 percent above its 12-month average.
Exports of goods declined $6.2 billion to $201 billion during July. The decrease included reductions of $4.5 billion in crude oil exports and $3.9 billion in nonmonetary gold exports. Imports of goods increased $11.4 billion to $320.6 billion, led by increases of $6.9 billion in computers, $6.6 billion in computer accessories, and $1.2 billion in semiconductors.
The Washington Times attributed much of the technology-related increase to demand associated with the expansion of artificial intelligence infrastructure. Computers, computer accessories, and semiconductors produced a combined monthly import increase of approximately $14.7 billion.
Total trade deficit in July was $88.58B, 43% above the 12-month average. In trade of goods, the US ran a trade deficit of $119.59B, 31% above the 12-month average. In trade of services, the US ran a trade surplus of $31.02B, 5% above the 12-month average. https://t.co/SWQZ1mDv7e
— Joint Economic Committee Republicans (@JECRepublicans) September 3, 2026
Over the 12 months ending in July, the United States recorded a total trade deficit of $743.58 billion. The country ran a $1.10 trillion deficit in goods and a $353.73 billion surplus in services. Total exports reached $3.67 trillion, and imports totaled $4.41 trillion during the period.
Vietnam accounted for the largest goods trade deficit over the 12-month period at $219.12 billion, representing 20.39 percent of the total goods deficit. Mexico followed at $213.35 billion, or 19.85 percent, and Taiwan ranked third at $203.67 billion, or 18.95 percent.
The largest goods trade surpluses were recorded with the Netherlands at $79.74 billion, the United Kingdom at $45.12 billion, and Hong Kong at $43.90 billion. The BEA’s July report also recorded monthly goods deficits of $27.5 billion with Mexico, $23.3 billion with Vietnam, $18.1 billion with Taiwan, and $15.2 billion with China.
Civilian aircraft, engines, equipment, and parts; nonmonetary gold; and crude oil were the country’s three largest goods exports by value during the 12 months ending in July. Together, the categories accounted for 17.94 percent of exported goods.
U.S. goods exports to Mexico totaled $370.39 billion, followed by Canada at $337.85 billion, and the United Kingdom at $109.39 billion. The three countries accounted for 34.62 percent of U.S. goods exports during the period.
Computers, computer accessories, and pharmaceutical preparations were the three largest imported-goods categories by value, accounting for 20.89 percent of all goods imports. The United States imported $583.73 billion in goods from Mexico, $385.96 billion from Canada, and $271.07 billion from China. Together, the three countries supplied 36.11 percent of U.S. goods imports over the 12-month period.
The Trump administration has presented tariffs as a mechanism for encouraging domestic manufacturing, protecting U.S. industries, and producing federal revenue. Commerce Secretary Howard Lutnick said the administration is pursuing a policy under which companies that manufacture products in the United States would avoid tariffs applied to imported goods.
In a Friday social media post, President Trump connected trade policy with his call for the Federal Reserve to lower interest rates.
“Lower the rate or I’ll stop trading with countries with which we have a deficit,” Trump said.
Trump: U.S. Has the Right to Stop Trading With Deficit Countries
President Donald Trump says the U.S. has leverage over countries running trade deficits, arguing America has the right to stop trading with them if necessary.
Trump wrote that the United States should have the lowest interest rate in the world and said ending trade with countries that maintain surpluses with the U.S. would be “better than tariffs.”
The BEA and Census Bureau are scheduled to release their August trade report on Oct. 6.
Goldwater Institute attorneys urged the Arizona Supreme Court on Tuesday to allow Arizona State University (ASU) professor Owen Anderson to pursue his lawsuit alleging that the school’s “Inclusive Communities” employee training violated state law.
During oral arguments in Arizona Board of Regents v. Anderson, Goldwater Institute Vice President for Litigation Jon Riches argued that the Arizona Court of Appeals applied the wrong legal analysis when it concluded that Anderson had no implied private right to enforce the statute in court.
If a legal right exists, so does the right to enforce it.
That's the case we made before the Arizona Supreme Court today on behalf of @dr_owenanderson, a professor at ASU who is fighting for his right NOT to be forced into discriminatory DEI training. pic.twitter.com/OoPngHtixm
“Where there is a legal right, there is a legal remedy, is one of the oldest maxims in Anglo-American law,” Riches told the justices. “For decades, this court has applied that principle to find implied causes of action where a statute does not expressly create them. Yet without citing a single one of this court’s cases, the lower court did exactly what this court commanded it not to; it treated legislative silence as dispositive as to whether a statute creates a cause of action. But as this court [has held], legislative silence begins rather than ends the inquiry.”
In a post to X on Tuesday, Anderson invoked the legal maxim in Latin, writing, “‘ubi jus ibi remedium’ if there is a right there is a remedy. A cornerstone principle of common law. Yet @ASU and @AZRegents are asking the @AZCourts to suspend this principle and keep me as an employee from holding them responsible for racist DEI training.”
Anderson also shared a clip from the hearing in which Justice Clint Bolick characterized the right-remedy maxim as “the indispensable common law principle” and invoked Chief Justice John Marshall’s discussion of the principle in the landmark 1803 decision Marbury v. Madison.
Following the hearing, Anderson posted a statement saying, “That was an excellent hearing today before the @AZCourts. Jonathan Riches for @GoldwaterInst presented a solid case. The Justices asked the @AZRegents lawyer questions that exposed the contradiction at the heart of their claims, with their lawyer at one point stumbling so badly as to say, ‘I forgot the question.’ Oops! Now we wait for a decision.”
That was an excellent hearing today before the @AZCourts Jonathan Riches for @GoldwaterInst presented a solid case. The Justices asked the @AZRegents lawyer questions that exposed the contradiction at the heart of their claims, with their lawyer at one point stumbling so badly…
The Supreme Court limited its review to whether the Court of Appeals failed to apply the factors established in the court’s 1988 Transamerica Financial Corp. v. Superior Courtdecision before finding that A.R.S. § 41-1494 provides no implied private right of action.
Those factors include the statute’s context and language, its subject matter, its effects and consequences, and the law’s overall purpose. Riches argued that the lower court improperly treated the Legislature’s silence about a private cause of action as conclusive instead of beginning the broader analysis required under Transamerica.
The Arizona Board of Regents asked the justices to uphold the appellate ruling. In its supplemental brief to the Supreme Court, the board argued that courts should begin with the statutory text and consider secondary factors such as legislative history, consequences, and purpose only when the text is ambiguous.
The board maintained that § 41-1494 regulates government conduct without creating a private right or remedy. It also pointed to the statute’s annual compliance-reporting requirement and argued that lawmakers left enforcement to elected officials. The board said nearly all surrounding statutes contain express private rights of action, indicating that the Legislature deliberately omitted one from § 41-1494.
The statute prohibits the state, its agencies, and political subdivisions from requiring employees to undergo training, orientation, or therapy that presents blame or judgment based on race, ethnicity, or sex. It also prohibits the use of public money for such training and directs the Arizona Department of Administration to submit an annual compliance report to the governor and legislative leaders.
Anderson’s case began after ASU informed employees in October 2022 that they were required to complete its “Inclusive Communities” training. Anderson, a philosophy and religious studies professor, filed suit against the Board of Regents in 2024, seeking declaratory and injunctive relief.
Anderson alleges that the training presented prohibited concepts involving race, sex, and identity. His court filings cite training materials discussing “whiteness,” white supremacy, heterosexual privilege, land acknowledgments, and efforts to “decolonize the university.” The accompanying examination identified designated answers concerning systemic bias, transformative justice, and the incorporation of diversity, equity, inclusion, and belonging throughout the university.
A Maricopa County Superior Court judge found that the statute contained no express private cause of action but concluded that it implied one for employees subjected to prohibited training. The Arizona Court of Appeals reversed that decision in December, finding that the statute “unambiguously does not create a private right of action.”
The Court of Appeals left Anderson’s underlying allegations about the training unresolved. The Supreme Court’s current review also concerns the enforcement question rather than whether the content of ASU’s training violated § 41-1494.
The Board of Regents has disputed that the training was mandatory. Anderson said the alleged injury arose from being required to undergo the training.
“Well, I think the hurt is in taking the training, and so I would ask them to consider it from their perspective if they were asked to sit through hours of training that involved racial discrimination against a group they identify with, they would be offended by that and feel hurt,” Anderson said. “So the hurt — the consequence — is just in the fact that I had to sit through that.”
Anderson previously asked the Supreme Court to accept the case after the appellate ruling, arguing that public employees would otherwise lack an effective way to enforce the training prohibition. Goldwater’s petition sought recognition of an implied private cause of action allowing employees to challenge alleged violations by government employers.
The Supreme Court took the case under advisement following Tuesday’s arguments. Anderson said that he intends to proceed toward trial if the justices recognize his right to bring the claim. The court has not announced a deadline for its decision.
