University Of Arizona Professors Push Administration To Reject Trump’s Higher Ed Compact

University Of Arizona Professors Push Administration To Reject Trump’s Higher Ed Compact

By Staff Reporter |

Over 80 of the top University of Arizona (U of A) professors pushed leadership to reject President Donald Trump’s higher education compact.

At the beginning of this month, the Trump administration sent universities across the country the Compact for Academic Excellence in Higher Education to encourage certain reforms in exchange for preferential federal funding. One major contentious point of the proposed compact would prohibit hostility to conservative viewpoints.

“To advance the national interest arising out of this unique relationship, this Compact for Academic Excellence in Higher Education represents the priorities of the U.S. government in its engagements with universities that benefit from the relationship,” read the compact. “Institutions of higher education are free to develop models and values other than those below, if the institution elects to forego federal benefits.”

The proposed reforms touch on improving equality in admissions, stabilizing the marketplace of ideas and civil discourse on campuses, ensuring nondiscrimination in faculty and administrative hiring, enforcing institutional neutrality on societal and political events, raising and standardizing student academic performance standards, establishing equal treatment of students, reducing the educational costs, and reducing foreign influences.

In response, 80 Regents Professors at U of A issued a letter to university President Suresh Garimella requesting denial of the compact. The professors said the compact contained “significant legal and practical flaws” which would threaten U of A’s academic freedom, institutional independence, and legal integrity.

The Regents Professor designation is an exclusive honoring of “faculty scholars of exceptional ability” with both national and international distinction in their respective fields. It is a recognition of the highest academic merit for faculty members who gave unique contributions to U of A through teaching scholarship, research, or creative work.

Their letter questioned the compact’s ambiguity, specifically the vagueness of the alleged benefits and preferential federal funding universities would receive. The professors stated multiple times that the compact offered no insight on how it would be operationalized and enforced.

“Without clarification, UA thus could be ceding authority over internal operations and academic policies for no enforceable, concrete new benefits,” said the professors.

U of A was one of nine institutions to receive the proposed compact, and the only one in Arizona. The others were Brown University, Dartmouth College, Massachusetts Institute of Technology, University of Pennsylvania, University of Southern California, University of Texas at Austin, University of Virginia, and Vanderbilt University.

These nine universities received the letter because the Trump administration judged them “good actors” based on their having “a president who is a reformer or a board that has really indicated they are committed to a higher-quality education,” per senior White House advisor May Mailman.

Last week, the Massachusetts Institute of Technology formally rejected participation in the proposed compact.

The Tucson City Council sent a similar message to U of A. The council passed a resolution urging the university president to reject the compact.

Garimella said in statements to the media that he and the Arizona Board of Regents are reviewing the compact together to determine a response.

These are the following Regents Professors who signed the letter opposing the compact (not listed: two anonymous signers):

  • John J. B. Allen, Distinguished Professor of Psychology, Cognitive Science, and Neuroscience;
  • Sama Raena Alshaibi, art professor; co-director of the Racial Justice Studio, and Regents Professor;
  • J. Roger P. Angel, Regents’ Professor of Astronomy and Optical Sciences, Steward Observatory astronomer, director of Richard F. Caris Mirror Lab;
  • Neal Armstrong, director of SPECS, Regents Professor (Emeritus) for Chemistry and Biochemistry, Regents Professor (Emeritus) for College of Optical Sciences;
  • Victor Baker, Regents Professor of Hydrology and Atmospheric Sciences, Geosciences, and Planetary Sciences;
  • Carol Barnes, Regents’ Professor of Psychology, Neurology and Neuroscience; Evelyn F. McKnight Chair for Learning and Memory in Aging; Director, Evelyn F. McKnight Brain Institute; Director, Division of Neural Systems, Memory and Aging;
  • Chad Bender, Astronomer, Steward Observatory;
  • Thomas Bever, Regents’ Professor, Linguistics, Psychology, Neuroscience, Cognitive Science, BIO5; Co-Director, Center for Consciousness Studies; Director, Cognition and Language Laboratory;
  • Ronald Brieger, Regents Professor and a Professor of Sociology at the University of Arizona; Interdisciplinary Program in Applied Mathematics; Interdisciplinary Program in Statistics & Data Science; School of Government and Public Policy;
  • David D. Breshears, Regents Professor Emeritus of Natural Resources and the Environment;
  • Judith L. Bronstein, University Distinguished Professor; Joint Professor (Ecology and Evolutionary Biology);
  • Judith K. Brown, Regents Professor, Plant Sciences; Research Associate Professor, Entomology; Professor, Entomology / Insect Science – GIDP;
  • Gail Burd, Senior Vice Provost; Office of Academic Affairs, Teaching & Learning; Distinguished Professor, Molecular & Cellular Biology;
  • Hsinchun Chen, Regents Professor of MIS; Thomas R. Brown Chair in Management and Technology; Director, Artificial Intelligence Laboratory; Director, AZSecure Cybersecurity Program;
  • Peter Chesson, Regents Professor, Ecology & Evolutionary Biology;
  • Albrecht Classen, University Distinguished Professor of German Studies;
  • George H. Davis, Regents Professor (Emeritus) of Structural Geology; Provost Emeritus;
  • Alison H. Deming, Regents Professor of English; Agnese Nelms Haury Chair of Environment and Social Justice;
  • Celestino Fernandez, Distinguished Professor Emeritus, Sociology;
  • Price V. Fishback, Regents Professor; APS Professor of Economics;
  • Robert B. Fleischman, Professor of Civil Engineering and Engineering Mechanics;
  • Robert Glennon, Regents Professor and Morris K. Udall Professor Emeritus;
  • John Hildebrand, Regents Professor Emeritus of College of Neuroscience;
  • Malcolm K. Hughes, Regents’ Professor Emeritus for the Laboratory of Tree-Ring Research;
  • Chris Impey, Distinguished Professor of Astronomy; Astronomer, Steward Observatory; Associate Co-Department Head;
  • Takeshi Inomata, Regents Professor for the School of Anthropology;
  • Josephine D. Korchmaros, Director of the University of Arizona’s Southwest Institute for Research on Women (SIROW);
  • Mary Koss, Regents’ Professor in the Mel and Enid Zuckerman College of Public Health;
  • Etta Kralovec, Regents Professor of Teaching, Learning and Sociocultural Studies;
  • Diana Liverman, Regents Professor for the School of Geography, Development, and Environment;
  • Sallie Marston, Regents Professor Emerita for chool of Geography, Development, and Environment; Co-Founder and Consultant, School Garden Workshop;
  • Oscar Martinez, Regents Professor Emeritus, History Department;
  • Toni M. Massaro, Regents Professor of Law Emerita; Milton O. Riepe Chair in Constitutional Law and Dean Emerita; Executive Director of the University of Arizona Agnese Nelms Haury Program;
  • William (Bill) McCallum, mathematics professor;
  • Daniel McDonald, Director, Take Charge America Institute for Consumer Financial Education and Research; Extension Specialist, Financial Literacy;
  • Alfred McEwen, planetary geologist and director of the Planetary Image Research Laboratory;
  • Juanita L Merchant, Associate Director, Basic Sciences, Cancer Center; Chief, Division of Gastroenterology and Hepatology, College of Medicine; Regents Professor of College of Medicine;
  • Pierre Meystre, Regents Professor Emeritus of Optical Sciences;
  • Roger L Miesfeld, University Distinguished Professor of Chemistry & Biochemistry;
  • Barbara Mills, Regents’ Professor Emeritus of Anthropology; Curator Emeritus of Archaeology, Arizona State Museum; Professor Emeritus, American Indian Studies;
  • Lynn Nadel, Regents Professor Emeritus of Psychology;
  • Alan C. Newell, Mathematics professor;
  • Mimi Nichter, Professor Emerita of Anthropology;
  • Janko Z. Nikolich, Professor, Basic Biomedical Sciences; Associate Dean for Research and Partnerships; Regents Professor; UA College of Medicine-Phoenix;
  • John W. Olsen, Research Professor Emeritus of East Asian Studies;
  • Jeanne E. Pemberton, Regents Professor of Chemistry & Biochemistry;
  • Ian Pepper, Director, WEST Center; Regents Professor, Environmental Science;
  • David A. Pietz, Regents Professor; UNESCO Chair in Environmental History; Director, School of Global Studies;
  • George Rieke, Regents Professor for Lunar & Planetary Laboratory;
  • Marcia J. Rieke, Professor, Astronomy; Regents Professor; Astronomer, Steward Observatory; Endowed Chair, Dr Elizabeth Roemer – Steward Observatory;
  • Robert Robichaux, University Distinguished Professor Emeritus of Ecology & Evolutionary Biology;
  • Jerzy W. Rozenblit, University Distinguished Professor; Professor of Electrical and Computer Engineering; Raymond J. Oglethorpe Endowed Chair; Professor of Surgery; Professor of the BIO5 Institute;
  • Steven Schwartz, Regents Professor of Chemistry & Biochemistry;
  • Beverly Seckinger, Distinguished Outreach Professor in the School of Theatre, Film & Television; former director of the School of Media Arts; Executive Committee of the Human Rights Practice graduate program; founded U of A LGBTQ+ Institute;
  • Chris Segrin, Regents Professor, Steve and Nancy Lynn Professor of Communication;
  • Thomas E. Sheridan, Professor Emeritus of Anthropology; Research Anthropologist, Southwest Center;
  • Kathy G. Short, Regents Professor, Teaching, Learning & Sociocultural Studies;
  • Kelly Simmons-Potter, Associate Dean of Academic Affairs, College of Engineering; University Distinguished Outreach Professor; Director AzRISE, the Arizona Research Initiative for Solar Energy; Professor of: Electrical and Computer Engineering, Optical Sciences, Materials Science and Engineering, and Indigenous Food, Energy and Water Systems Graduate Interdisciplinary Program;
  • Marvin Slepian, Regents Professor and Associate Department Head, Clinical & Industrial Affairs, Biomedical Engineering; Director, Arizona Center for Accelerated Biomedical Innovation; Regents Professor of Medicine, Division of Cardiology; Regents Professor of Medical Imaging, Department of Medical Imaging; Regents Professor of Materials Science and Engineering
  • David H. Soren, Regents Professor of Anthropology and Classics;
  • Sally J. Stevens, Distinguished Outreach Professor in Gender and Women’s Studies; Research Professor with the Southwest Institute for Research on Women;
  • Mary Stiner, Regents’ Professor Emeritus, Anthropology; ASM Curator Emeritus, Zooarchaeology; Fellow of the National Academy of Sciences;
  • Peter A. Strittmatter, Regents Professor Emeritus of Astronomy;
  • Tom Swetnam, Regents’ Professor, Emeritus of Laboratory of Tree-Ring Research;
  • Bruce E. Tabashnik, Regents’ Professor & Department Head of Entomology;
  • Vicente Talanquer, University Distinguished Professor of Chemistry & Biochemistry;
  • Leslie Tolbert, Regents Professor Emerita of Neuroscience;
  • Rebecca Tsosie, Regents Professor and Morris K. Udall Professor of Law;
  • Todd Vanderah, Co-Director, MD/PhD Dual Degree Program; Department Head, Pharmacology; Director, Comprehensive Pain and Addiction Center; Professor of: Anesthesiology, BIO5 Institute, Neurology, Neuroscience – GIDP, Pharmacology and Physiological Sciences – GIDP;
  • Marcela Vásquez-León, Professor, Anthropology; Research Anthropologist, Bureau of Applied Research in Anthropology; Director, Center for Latin American Studies;
  • Donata Vercelli, Regents Professor, Cellular and Molecular Medicine; Director, Arizona Center for the Biology of Complex Diseases; Associate Director, Asthma and Airway Disease Research Center; Professor of BIO5 Institute and Genetics GIDP;
  • Robert A. Williams, Jr., Regents Professor, E. Thomas Sullivan Professor of Law;
  • Rod Wing, Director of Arizona Genomics Institute; Professor, Plant Science; Bud Antle Endowed Chair For Excellence, Agriculture & Life Sciences; Professor of BIO5 Institute and Ecology & Evolutionary Biology;
  • Connie Woodhouse, Regents Professor Emerita of Geography, Development, & Environment;
  • Jiang Wu, Regents Professor of East Asian Studies;
  • Dennis Zaritsky, Deputy Director, Steward Observatory; Regents Professor, Astronomy;
  • Ofelia Zepeda, Professor, American Indian Studies and Linguistics; and
  • Lucy M. Ziurys, Regents Professor, CBC and Astronomy

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Biggs Raises $564k In Q3, Extending Campaign Momentum

Biggs Raises $564k In Q3, Extending Campaign Momentum

By Ethan Faverino |

The Biggs for Arizona campaign announced a strong Q3 fundraising haul of $564,075, marking the strongest quarterly total of the campaign cycle to date. This significant increase from the previous quarter brings the campaign’s 2025 fundraising total to over $1.2 million.

With more than 4,000 new donors added in Q3, the campaign ended September with $630,187 cash on hand, demonstrating strong financial momentum heading into the critical stages of the 2026 Arizona gubernatorial race.

“As I continue to travel across Arizona and share my vision of freedom for our state, more and more voters are coming on board to show their support,” said Rep. Andy Biggs. “It’s clear we deserve better than the weak leadership and petty vetoes Katie Hobbs has built her office around, but it will take someone with the relationships and experience at the State Capitol and beyond to lead our state from Day One. Our campaign is making this case to voters every single day, and the results show we are on the right track. There’s no doubt we will be well-equipped to defeat Katie Hobbs in November 2026.”

Representative Andy Biggs (AZ-05) has garnered endorsements from key conservative figures, including President Trump, the late Charlie Kirk, and Turning Point CEO Erika Kirk. Congressmen Eli Crane and Paul Gosar, as well as Maricopa County Supervisors Debbie Lesko and Mark Stewart, also support his campaign. Recent polls show that Rep. Biggs is leading the Republican gubernatorial primary with a commanding 22-point advantage over Karrin Taylor Robson and a 37-point lead over Rep. David Schweikert. This substantial lead shows Biggs’ strong support among Arizona voters and his position as the frontrunner in the race.

Arizona State Representative Leo Biasiucci echoes this sentiment, saying, “Whether it’s at Republican events across Arizona or at the State Capitol, I’m hearing the same thing: Arizonans are ready for Andy Biggs as our next Governor. This strong quarter shows Andy is putting in the work and exceeding expectations on the fundraising front, which will only boost the momentum he has with grassroots conservatives across the state.”

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Rep. Crane Introduces Bill To Expedite Rebuilding Of Grand Canyon North Rim

Rep. Crane Introduces Bill To Expedite Rebuilding Of Grand Canyon North Rim

By Matthew Holloway |

Rep. Eli Crane (R-AZ-02) has introduced the North Rim Restoration Act of 2025 to streamline federal contracting and accelerate recovery from the Dragon Bravo Fire.

The fire, sparked by lightning on July 4, burned 145,504 acres in Grand Canyon National Park and the Kaibab National Forest before being declared fully contained, almost four months later, on September 29th. It destroyed key infrastructure across the parks, including the historic Grand Canyon Lodge, leading to partial closures of the North Rim that are likely to continue throughout the 2025 season. The closures have reportedly impacted park staff, local communities, and the tourism revenue from the site that generates billions annually for Arizona’s economy.

The bill grants the National Park Service emergency contracting authority to bypass standard procurement delays for fire recovery efforts, including forest management, maintenance, rebuilding, and infrastructure upgrades. It requires the agency to submit progress reports to Congress every 180 days.

Original cosponsors include Reps. Andy Biggs (R-AZ05) and Abe Hamadeh (R-AZ08), as well as House Natural Resources Committee members: Subcommittee on Oversight and Investigations Chairman Paul Gosar (R-AZ09), Subcommittee on Federal Lands Chairman Tom Tiffany (R-WI07), Congressional Western Caucus Chairman Doug LaMalfa (R-CA01), and Rep. Celeste Maloy (R-UT02).

“While the Dragon Bravo Fire dealt a setback for Northern Arizona, we won’t let this tragedy define our future. We have an opportunity to rebuild stronger and better than before, and we can’t let unnecessary regulations get in the way,” Crane said in a statement. “This legislation paves the way for an efficient recovery, and I’m grateful for the bipartisan support on this approach. I also want to thank our heroic firefighters and first responders who brought the fire to full containment, as well as the local leaders in Coconino County who are committed to restoring this treasured place.”

The Coconino County Board of Supervisors praised the act stating, “Coconino County supports the North Rim Restoration Act, which gives the National Park Service the ability to respond swiftly and thoughtfully, not only to rebuild the physical structures, but to restore the enduring spirit of the Grand Canyon’s North Rim. We are deeply grateful to Representative Crane for championing this legislation and recognizing the devastation caused by the Dragon Bravo Fire and the heartbreaking loss for everyone who treasures this extraordinary place.”

Crane previewed the bill in an Oct. 9 post to X, writing, “Tomorrow, I’m introducing the North Rim Restoration Act of 2025. This legislation will eliminate bureaucratic hurdles and expedite the rebuild of the Grand Canyon. While the Dragon Bravo Fire dealt a setback for #AZ02, we won’t let this tragedy define our future.”

Crane also announced the availability of low-interest federal disaster loans via the U.S. Small Business Administration in early September. The loans will assist businesses, nonprofits, and tribal nations that endured economic losses from the Dragon Bravo and White Sage fires.

The bill has been referred to the House Committee on Natural Resources.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

AG Mayes Threatens Legal Action If Grijalva Not Sworn Into Congress

AG Mayes Threatens Legal Action If Grijalva Not Sworn Into Congress

By Staff Reporter |

Attorney General Kris Mayes says recently elected congresswoman Adelita Grijalva must be sworn in, or else she will take legal action against House leadership.

Statewide certification occurred on Tuesday. After, Mayes sent a letter threatening House Speaker Mike Johnson with legal action should Grijalva not be sworn in promptly. Grijalva assumed the seventh congressional district seat vacated by her father, Raúl Grijalva, in a special election last month.

“Failing to seat Ms. Grijalva immediately or to otherwise provide a reasonable explanation as to when she will be seated will prompt legal action,” said Mayes in her demand letter.

Representative-elect Grijalva received nearly 70 percent of the 102,000 votes certified, a “substantial share” of which were mail-in ballots. There are about 440,000 registered voters in the district, which would mean Grijalva was elected by just 16 percent of all active registered voters in the district.

Even though Grijalva represents far less than a quarter of voters in her district — and her father was virtually absent from two whole sessions of Congress — Democrats insist on the relevance of immediate representation for the seventh congressional district.

In an accompanying press release, Mayes blamed the delay to swear in Grijalva on “political games.” 

“It’s way past time for Mike Johnson to stop the political games and seat Adelita without delay,” said Mayes. “We are keeping every option open to us, including litigation, to hold him accountable and make sure that Adelita is able to begin her work as Arizona’s newest member of Congress.”

Grijalva has also been accused of political games with her demands to be sworn in prior to the certification of the special election, which would officiate the results.

The Democratic Women’s Caucus — and a few male Democratic electeds — marched the Capitol hallways chanting “Swear her in!” with matching political signs that read, “Every American Deserves Representation. Swear in Adelita Grijalva Now.”

Johnson was not in the Capitol during this display, as he was reportedly attending the ceremony to award the late Turning Point USA founder Charlie Kirk with the Presidential Medal of Freedom on what would have been his 32nd birthday. Kirk was assassinated by a progressive activist last month

A Johnson aide told CNN that Grijalva is one bargaining measure to pressure Democrats to lift the ongoing government shutdown, which has lasted over two weeks now. 

Grijalva insists there’s more to the story. The representative-elect claims Johnson’s delay doesn’t have to do with the shutdown but with her support for releasing the Epstein files. Grijalva’s signature would ensure their release. 

Mayes addressed the Johnson aide remarks in her demand letter.

“Arizona’s right to a full delegation, and the right of the residents of CD 7 to representation from the person they recently voted for, are not up for debate and may not be delayed or used as leverage in negotiations about unrelated legislation,” said Mayes.

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Bipartisan AZ Leaders Unite In Praise For Trump’s Gaza Triumph

Bipartisan AZ Leaders Unite In Praise For Trump’s Gaza Triumph

By Matthew Holloway |

President Trump’s historic Gaza ceasefire deal, signed Monday with Palestinian leaders and Israel, has sparked rare bipartisan praise from Arizona’s elected officials.

Congressman Andy Biggs (R-AZ05) wrote from the gubernatorial campaign trail, “This incredible day is happening because of President Trump’s strength and determination to bring peace to the region.”

However, he has also raised the alarm regarding post-deal barbarism from Hamas, with reports of public executions in Gaza streets just hours after inking the treaty. “Hamas is carrying out barbaric executions… They must do so expeditiously or face consequences for violating the ceasefire,” he posted on X.

Kudos have poured in from Democrats as well, with Sen. Mark Kelly offering Trump a rare bipartisan praise. “I think he should get a lot of credit. I mean, this was his deal. He worked this out. He sent Steve Witkoff and Jared Kushner over to negotiate this, and it so far has gone well,” Kelly told CNN’s Dana Bash on “State of the Union.”

Kelly hailed the hostage returns and the flood of aid trucks that “should have been happening over the last two years.” Kelly, however, cautioned, “I am concerned that they may change their minds here.”

Kelly posted on X: “After two years, this is a real opening for peace that will release the hostages and get desperately needed aid to civilians in Gaza. There’s a lot more work to see this through, but I appreciate the work of President Trump, the administration, and our international partners to reach this point.”

Senator Ruben Gallego notably avoided lauding the Trump administration in his statement on Monday, merely calling the peace “profoundly overdue.” He wrote, “After two long years, the final Israeli hostages have returned home. This day is profoundly overdue, and my heart is with the families whose unwavering hope and perseverance made it possible. Their return marks an important step toward peace. I remain steadfast in the belief that the United States must continue its efforts to ensure humanitarian aid reaches Palestinians and that Gaza is rebuilt.”

Congressman Abe Hamadeh (R-AZ08), who has been instrumental in the administration’s Middle East diplomacy, wrote a lengthy statement, saying in part: “In a day some thought would never come, the remaining Israeli hostages have been freed and returned to their families.”

Hamadeh added, “It was a day 737 days in the making and one that wouldn’t have been possible without the bold leadership of President Trump and the hard diplomatic work of Secretary of State Marco Rubio, Steve Witkoff, Jared Kushner, and the entire Trump Administration.”

Hamadeh asked God for blessings for the returning hostages, their families and the families of those whose remains were returned adding, “It is my fervent hope that the bodies of those who haven’t been returned are located and returned soon.” He concluded: “Blessed are the peacemakers who fought so hard on behalf of these families amidst overwhelming odds and overwhelming uncertainty.”

Arizona Senate President Warren Petersen (R-LD14) offered very direct praise from the State House, naming the President simply “the peacemaker.” He wrote, “Peace in the Middle East. Thank you, @realDonaldTrump, the peacemaker.”

State Rep. Alma Hernandez (D-LD 10) provided a particularly raw and emotional take as well from the Democrat side of the aisle, posting about her openly sobbing over reunion videos only to wake in fresh grief for the families learning their loved ones wouldn’t return.

Though she didn’t directly credit the administration, she wrote, “While we are all overjoyed and celebrating the return of the 20 hostages, let’s not forget those families who anxiously waited for over two years to find out this morning that their loved one was not returning alive… I can’t imagine the feeling of great heartbreak & sorrow those families are feeling right now. They held on to every ounce of hope… my heart goes out to them, and I pray that they will overcome this tragedy.”

Notably, as of this report, no statements from Governor Katie Hobbs, Attorney General Kris Mayes, or Secretary of State Adrian Fontes praising the administration were publicly available, despite all three being vocal on the topic of the Hamas-Israel conflict.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Small Business Optimism Declines In September Amid Growing Concerns

Small Business Optimism Declines In September Amid Growing Concerns

By Ethan Faverino |

The National Federation of Independent Business (NFIB) Small Business Optimism Index dropped 2 points in September to a score of 98.8, marking the first decline in three months.

Despite remaining above the 52-year average of 98, the dip reflects growing concerns among small business owners grappling with inflationary pressures, supply chain disruptions, and persistent labor shortages. The Uncertainty Index climbed 7 points to 100, making it the fourth-highest reading in over 51 years.

NFIB Chief Economist Bill Dunkelberg said, “Optimism among small business owners decreased in September. While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges. Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations.”

In Arizona, small business owners echoed with national concerns: “Unfortunately, Arizona small business owners are facing the same sort of challenges we see in the national survey,” NFIB State Director Chad Heinrich said. “The ongoing labor shortage and inflationary pressures are giving small business owners pause in this economy. They’re focused on meeting their customers’ needs and retaining their workforce.”

Key findings from the September survey include:

  • Inflation and Supply Chains: Inflation emerged as a significant issue, with 14% of owners citing it as their top business problem, up 3 points from August. A net 24% raised selling prices, up 3 points, and a net 31% plan to increase prices in the next three months, up 5 points. Supply chain disruptions impacted 64% of owners, a 10-point jump from August.
  • Labor Market Struggles: 32% of owners reported unfilled job openings, unchanged from August. Of the 58% that are hiring or trying to hire, 88% faced a shortage of qualified applicants. A net 16% plan to create jobs in the next three months (up 1 point) is the highest since January 2025. Labor quality is tied with taxes as the top concern, cited by 18% of owners.
  • Inventory and Sales: A net negative 7% viewed current inventory as “too low,” down 7 points—the largest monthly decline in the survey’s history. A net negative 7% reported higher nominal sales over the past three months, up 2 points, but a net 8% expect higher real sales volumes (down 4 points).
  • Earnings and Investments: Actual earnings improved, with a net negative 16% reporting profit trends, up 3 points, and the highest since December 2021. Among those with lower profits, 33% cited weaker sales and 17% pointed toward material costs. Capital outlays remained steady, with 56% of owners reporting expenditures, primarily on equipment and vehicles.
  • Financing Challenges: A net 7% reported tougher loan conditions, up 4 points and the highest this year. The average rate on short-maturity loans rose 8.8%. Regular borrowing increased, with 26% of owners reporting loans, up 3 points.

Despite these challenges, 57% of owners rated their business health as “good,” up 3 points, while 11% said “excellent,” down 3 points.

Taxes and labor quality tied as the top concerns, each cited by 18% of owners, while poor sales (10%) and government regulations (6%) remained notable issues.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.