The Joint Economic Committee (JEC) chairman, Republican Rep. David Schweikert (AZ-01), says the government’s inaction on the $40 trillion national debt is “immoral.”
The JEC leader issued a statement on Thursday after the national debt reached a new record high of more than $40 trillion. This fiscal year, the U.S. added more than $2.4 trillion to the national debt. The JEC noted in its press release that interest payments on the national debt make up the fourth-largest line item in the federal budget.
Schweikert said the debt posed “a dangerous fiscal trajectory” that forecasts future economic demise as well as the reality that the national debt will consume most of federal spending.
“Our debt is quickly switching from sustainable, business as-usual, to an unsustainable, market-unraveling nightmare. At this rate, it won’t be long before we face catastrophic consequences,” said Schweikert. “Congress must take the math seriously and act now by charting a new economically responsible path to secure our nation’s future for generations to come. To do nothing or keep on this path is flat out immoral.”
The Government Accountability Office (GAO) has defined that unsustainability as an economy growing at a much slower pace than the debt.
Rising federal debt will raise borrowing costs, such as for home and car loans; stagnate wages and curb investments; and increase the costs of goods and services overall, if not lead to shortages.
Deficits have only continued to grow despite the announced goals and promises from Trump administration leaders.
Treasury Secretary Scott Bessent established a substantial goal of deficit reduction: three percent of GDP by 2028. Deficits have grown. Bessent has said that the war in Iran, tariff refunds, and misappropriated tax cuts have been the main culprits behind stunted improvements to deficits.
The federal response to the COVID-19 pandemic represented unprecedented spending, as noted by the GAO in its page dedicated to federal debt and debt management.
One of President Donald Trump’s promises upon his initial election in 2016 was to eliminate the national debt within two terms. At the time, the national debt was more than $19 trillion.
The GAO projected in March that continued federal deficits will add an average of $2 trillion to the debt annually through 2036. If unchecked, debt will surpass $60 trillion.
Based on those projections the GAO has, like Schweikert, characterized the debt progression as an unsustainable fiscal path and urged Congress to develop a debt reduction strategy, which it had urged previously in 2020.
In its March publication, the GAO renewed its recommendations to Congress from 2020 as well as a recommendation from 2015 and 2020. The 2015 recommendation encouraged Congress to replace the current debt limit process with a clearer approach to link decisions on debt to decisions on revenue and spending.
The GAO also reported that the Department of the Treasury has increased the size and frequency of its debt auctions since fiscal year 2014. In fiscal year 2025, the GAO reported that the Treasury Department held more than 400 auctions of bills, notes, and bonds to borrow $1.9 trillion for government operations and refinance $9.1 trillion of maturing debt.
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The U.S. economy lost 23,000 jobs in July as a 53,000-job decline in government employment more than offset a 30,000-job increase in private-sector payrolls, according to new federal labor data released Friday.
The U.S. Bureau of Labor Statistics’ July Employment Situation report found total nonfarm payroll employment declined by 23,000 after increasing by a revised 20,000 jobs in June. The unemployment rate declined from 4.2% to 4.1%.
The Republican side of the Joint Economic Committee, chaired by Arizona Congressman David Schweikert (R-AZ-01), highlighted the figures Friday in its monthly employment update. Schweikert has chaired the bicameral committee since March 2025.
In July, jobs decreased by 23K jobs (+30K private sector, -53K govt). At the same time, the unemployment rate decreased by 0.1pp to 4.1% while the labor force participation rate decreased by 0.1pp to 61.4%. The broadest measure of unemployment remained unchanged at 7.9%.…
— Joint Economic Committee Republicans (@JECRepublicans) August 7, 2026
Private-sector payrolls increased by 30,000 jobs during July, while government employment declined by 53,000, according to the Joint Economic Committee’s employment update. Private education and health services gained 25,000 jobs and construction gained 22,000, while state and local government employment declined by 50,000 and leisure and hospitality lost 40,000 jobs.
The decline in the unemployment rate came as the civilian labor force decreased by 264,000 people in July, from approximately 169.36 million to 169.09 million, according to the Bureau of Labor Statistics (BLS). The number of employed people fell by 87,000, while the number counted as unemployed decreased by 178,000. The labor force participation rate slipped from 61.5% to 61.4%.
BLS reported that labor force participation has declined by 0.7 percentage points since January, while the employment-to-population ratio has fallen by 0.5 percentage points over the same period. Approximately 5.9 million people outside the labor force said they wanted a job in July.
The broader U-6 measure of labor underutilization remained at 7.9%. The measure includes unemployed workers, people marginally attached to the labor force and those working part time for economic reasons.
The July payroll decline came in well below economists’ expectations. The Dow Jones consensus had projected an increase of approximately 83,000 jobs.
BLS reported that the decline in local government employment was concentrated in education, which lost 50,000 jobs. Retail trade declined by 19,000 jobs, while financial activities continued a downward trend with a loss of 14,000. Health care added approximately 22,000 jobs during the month, led by an 18,000-job increase in ambulatory health care services.
Federal government employment has fallen by 252,000 jobs since July 2025, according to the JEC, while private education and health services added approximately 550,000 jobs over the same period. Professional and business services increased by 115,000 jobs year over year, while financial activities declined by 114,000.
The latest report also included another round of substantial downward revisions to earlier job estimates.
May payroll growth, initially reported at 172,000 jobs, has now been revised to 63,000, a cumulative reduction of 109,000 jobs from the original estimate. BLS had previously revised May’s figure to 129,000 before Friday’s report reduced it again to 63,000. June employment was revised from a gain of 57,000 jobs to 20,000.
BLS said the latest revisions alone reduced previously reported May and June employment by a combined 103,000 jobs. The agency said monthly revisions result from additional reports received from businesses and government agencies and recalculated seasonal factors.
Annual wage growth slowed in July. Average hourly earnings for employees on private nonfarm payrolls reached $37.62, up 3.2% from a year earlier. Average hourly earnings for private-sector production and nonsupervisory employees stood at $32.40. The average private-sector workweek remained unchanged at 34.3 hours.
Separate BLS Job Openings and Labor Turnover Survey data released Tuesday showed 7.4 million job openings nationwide in June, with the openings rate at 4.4%. Hiring remained at approximately 5.3 million, while total separations were little changed at 5.4 million.
Arizona’s most recent state-level employment figures currently cover June. The Arizona Office of Economic Opportunity’s June employment report showed the state’s seasonally adjusted unemployment rate increased from 4.8% in May to 4.9% in June, compared with the national rate of 4.2% that month.
Arizona’s labor force decreased by 20,204 people from May to June and by 73,302, or 1.9%, compared with June 2025. The state nevertheless recorded 27,900 more nonfarm jobs on a not-seasonally-adjusted basis than it had one year earlier.
BLS data show Arizona had approximately 3.28 million seasonally adjusted nonfarm jobs in June, an increase of about 23,600 jobs, or 0.7%, from a year earlier. Construction employment was up 1.5% year over year, while government employment was down 1.5%.
Arizona’s July employment figures are scheduled for release on August 21.
U.S. Representative Eli Crane (R-AZ-02) spent the last week of July traveling across Arizona’s Second Congressional District, meeting with constituents, educators, ranchers, business leaders, and local officials while highlighting legislative priorities ranging from agriculture and energy to education and public lands.
The weeklong tour included stops in Douglas, Show Low, Holbrook, Williams, Camp Verde, and other communities where Crane promoted recent federal investments, discussed ongoing policy initiatives, and gathered feedback from residents on issues affecting rural Arizona.
One of the week’s most significant announcements came Wednesday, July 29 in Douglas, where Crane joined fellow Republican Representatives Andy Biggs (AZ-05) and Juan Ciscomani (AZ-06) alongside Secretary Brooke Rollins as the U.S. Department of Agriculture (USDA) unveiled a $25 million investment to construct a new sterile fly production facility in Douglas.
The project is intended to strengthen the nation’s defenses against the New World screwworm, a destructive livestock pest that has prompted growing concern among ranchers across the Southwest.
The announcement followed a letter signed by Crane, Biggs, and Ciscomani along with Rep. David Schweikert (R-AZ01) and Rep. Paul Gosar (R-AZ09), urging the USDA to modernize the Douglas facility to improve the nation’s long-term response capabilities.
Following the announcement, the congressmen toured livestock inspection facilities at the Douglas Port of Entry, which is scheduled to re-open to livestock trade on August 24th after preparations aimed at safeguarding American agriculture.
Crane later traveled to Show Low, where he visited Linden Valley Arena, a well known destination within Arizona’s roping community that has been owned and operated by the Perkins family since 2010.
The following morning, Crane addressed teachers and staff with the Show Low Unified School District ahead of the upcoming school year, sharing lessons on leadership and teamwork drawn from his experience as a Navy SEAL and small business owners.
He also thanked educators for their commitment to students while highlighting what he described as a recent legislative victory for rural schools.
Last year, Crane helped build congressional support for a three-year reauthorization of the Secure Rural Schools program, legislation that was ultimately signed into law and continues funding for education and essential county services in communities located near national forests throughout Arizona’s Second Congressional District.
After leaving Show Low, Crane visited Northland Pioneer College in Holbrook, where he met with administrators to discuss the college’s Commercial Driver’s License (CDL) program.
The visit coincided with the Trump administration’s recently announced Freedom Haulers Initiative, a federal effort designed to expand career opportunities for veterans entering the trucking industry.
Crane praised the initiative while recognizing the college’s work to strengthen workforce development through its CDL program.
Later that day, Crane met with the Murph family at H Bar and Y Ranch in Holbrook. The Murph family, whose cattle operation pre-dates Arizona statehood, faces uncertainty over long-held Arizona State Land Department grazing leases because of a proposed solar development by a foreign company.
Crane said he has been working behind the scenes to help resolve the dispute. The meeting also followed last month’s signing of a memorandum of understanding between the USDA and the Small Business Administration (SBA) establishing cooperation between the USDA Lawfare Portal and the SBA’s Office of National Ombudsman.
The agreement is intended to ensure complaints from farmers, ranchers, and agricultural producers alleging legal harassment are investigated and resolved.
According to the USDA, the Lawfare Portal has received more than 400 complaints from 47 states over the past two years.
Crane also toured the Cholla Power Plant, which stopped burning coal in March 2025 after more than six decades of operation. Arizona Public Service is pursuing plans to convert the facility to natural gas, a transition expected to generate approximately 380 megawatts of capacity while preserving jobs and maintaining reliable power generation for the region.
On Saturday, August 1, Crane attended the annual Coconino County Farm Bureau and Cattle Growers Association banquet in Williams, where he updated attendees on several legislative priorities pending before Congress.
Among the measures discussed was the House-passed Farm Bill which includes Buy American requirements for school meal programs, increased reporting requirements for agricultural land purchases by foreign adversaries, and strengthened farm credit and crop insurance programs.
Crane also highlighted his amendment intended to accelerate recovery efforts following the White Sage Fire, while noting his support for proposals removing pesticide liability protections and ensuring compensation for livestock losses caused by Mexican wolves.
The measures seek to improve forest management through expanded technology and reduced litigation while accelerating reconstruction efforts at the Grand Canyon’s North Rim following the Dragon Bravo Fire. Both bills have passed the House but remain pending in the Senate.
The congressman’s final stop took him to Camp Verde, where he met with ranchers to discuss ongoing concerns involving the U.S. Forest Service.
Crane said he is developing legislation aimed at simplifying fence repairs following natural disasters while also addressing what he characterized as abuses of the Equal Access to Justice Act.
The district also received additional federal infrastructure support during the week as the U.S. Department of Transportation awarded more than $5 million in airport improvement grants throughout Arizona’s Second Congressional District.
The funding Includes:
Bagdad: $90,389 for design work to expand terminal parking.
Chinle: $339,000 to reconstruct aircraft apron pavement.
Cottonwood: $536,876 to reconstruct portions of Taxiway A.
Page: $679.031 for design of a new aircraft rescue and firefighting facility.
Springerville: $443,000 to construct a new taxilane serving future hanger development.
Prescott: $2.97 million to construct a new aircraft storage hanger designed to improve airport self-sufficiency.
ICYMI – The @USDOT awarded more than $5 million to improve airport infrastructure in #AZ02.
The latest awards follow additional federal grants announced last month totaling approximately $10 million for improvements at Polacca Airport and Coolidge Municipal Airport.
Reflecting on the week’s events, Crane emphasized the importance of maintaining close ties with constituents while Congress remains out of session.
“Last week, I had the privilege of visiting with constituents, industry leaders, and remarkable institutions within Arizona’s Second Congressional District,” said Rep. Crane. “While there is much work to be done in Washington, D.C., it’s refreshing to get back home and meet face to face with the people I’m honored to represent. I look forward to building on these relationships and delivering principled and effective solutions for all Arizonans.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
U.S. Rep. David Schweikert (R-AZ01), chairman of the Joint Economic Committee (JEC), warned that the United States faces growing fiscal risk unless Congress acts sooner to stabilize the federal debt-to-GDP ratio.
Schweikert sent the committee’s latest Views and Estimates letter to House Budget Committee Chairman Jodey Arrington in a letter earlier this month.
“There is great uncertainty about when and how the debt will switch from sustainable, business as-usual, to an unsustainable, market-unraveling nightmare,” Schweikert wrote. “Every year we wait to change course increases leverage, and the higher the debt-to-GDP ratio the easier it is for bad headwinds—such as crisis spending or interest rate fragility—to lock us into a debt spiral. In short, allowing the debt burden to increase is a levered bet, and the downside risks are already enormous.”
JEC Chairman @RepDavid sent @HouseBudgetGOP Chairman @RepArrington the latest Views & Estimates. “There is great uncertainty about when & how the debt will switch from sustainable, business as-usual, to an unsustainable, market-unraveling nightmare. https://t.co/pPMp4K17EP
— Joint Economic Committee Republicans (@JECRepublicans) June 8, 2026
The committee’s Republican staff found that rising federal debt is structurally unsustainable and that stabilizing the debt-to-GDP ratio will require large early policy changes. The letter states that delaying action materially increases the risk of severe economic and financial consequences.
According to the letter, federal debt has recently reached 100 percent of gross domestic product, meaning the federal debt is now roughly the size of the economy’s total annual output. The Congressional Budget Office projects debt held by the public will reach 118 percent of GDP by 2035, 142 percent by 2045, and 172 percent by 2055. Treasury projections cited in the letter are higher, estimating 129 percent by 2035, 183 percent by 2045, and 245 percent by 2055.
The JEC letter describes the current debt path as a “levered bet on stability” that depends on avoiding major crises requiring substantial fiscal headroom and on future interest rates remaining favorable relative to economic growth. The letter warns that the damage to the nation’s fiscal position and status as a world power could be “catastrophic and irreversible” if those conditions deteriorate.
The committee cited estimates from the Committee for a Responsible Federal Budget indicating that a fiscal adjustment of about $9.5 trillion over ten years would be needed to stabilize the debt-to-GDP ratio at about 100 percent. The JEC letter used a similar ballpark estimate of about $9.2 trillion to close the primary deficit over a ten-year window, while noting that the exact adjustment would depend on interest rates, economic growth, the timing of policy changes, and the path of the primary deficit.
“In any case, these are magnitudes of adjustment virtually absent from current policy debates,” the letter states.
The letter recommended reforms in Medicare, international taxation, and immigration that it estimated would produce about $3.6 trillion in deficit reduction over ten years, or roughly 40 percent of the adjustment identified as necessary to stabilize the debt-to-GDP ratio.
The largest proposed savings would come from Medicare Advantage reform. The letter states that Medicare Advantage now covers 55 percent of all Medicare beneficiaries and that flawed payment policies, excessive coding practices, insufficient enforcement, and federal inaction have driven up costs. According to the JEC, Medicare Advantage beneficiaries are now estimated to cost roughly 14 percent more than they would under traditional Medicare, amounting to an estimated $76 billion in excess federal spending in 2025.
The letter cites H.R. 3467, the Better Medicare Act, as a proposal to realign Medicare Advantage incentives. The JEC estimated the legislation would reduce federal spending by approximately $1.8 trillion over ten years.
In a Fox Business appearance posted to X by Schweikert’s office, Schweikert described what he called “institutional design fraud,” citing his team’s investigations into New York and California “where they’re exploiting part of the Medicaid system for billions and billions and billions of dollars.”
Federal prosecutors say a $30 million Medicaid scheme meant for children’s mental health services helped pay for a fleet of luxury vehicles. That is bad actor fraud.
But the real bleeding is coming from New York and California exploiting parts of Medicaid for billions and… pic.twitter.com/jFyGJr3JAC
“If New York actually had the same cost in their Medicaid system,” he continued, “it would be a $50 billion savings a year if they had the same costs as other states. That’s actually where the tremendous amount of money is, because remember, we’re borrowing about a million dollars every 15 seconds. So, the scale is what’s just so hard to get your head around.”
The committee also recommended a border adjustment tax policy, which would tax business income based on where products are sold rather than where they are produced. Under the proposal, export receipts would be excluded from the tax base and import deductions would be disallowed. The JEC estimated the policy could raise approximately $1.5 trillion over ten years.
On immigration, the committee recommended shifting employment-based admissions toward higher-producing applicants through a points-based, industry-targeted framework. The letter states that an aging population and a shrinking pool of younger workers are reducing the labor force needed to grow the economy and service the debt. The JEC estimated that such a reform could produce a net fiscal benefit of $335 billion over ten years and $1.34 trillion over twenty years, assuming annual immigration remains at current levels.
Schweikert has raised the alarm regarding demographic decline as a driver of fiscal collapse, citing three unassailable facts: “debt, deficits and demographics,” in March 2025.
The letter also credited H.R. 1, commonly known as the One Big Beautiful Bill Act, with pro-growth tax provisions. The JEC said policymakers should redirect their focus toward “transparently pro-growth reforms” and cited federal land sales, reforms of the Jones Act, and policy related to port automation as examples of areas that could support growth.
Schweikert’s letter concluded that growth alone should not be counted on to resolve the federal government’s fiscal problems.
“I have highlighted fiscal reforms that would bring us about 40 percent of the way to stability of the debt-to-GDP ratio,” Schweikert concluded in the letter. “While there is strong potential for increasing economic growth as a partial solution, we should not count on growth alone to address our fiscal problems.”
The Joint Economic Committee (JEC) released an update Thursday showing inflation remained above the Federal Reserve’s target in April while consumer spending increased and personal savings declined.
According to the JEC’s Monthly Expenditures Update, the headline personal consumption expenditures (PCE) price index increased 0.40% from March to April, while core PCE inflation, which excludes food and energy prices, rose 0.24%. The annual inflation rate from April 2025 to April 2026 measured 3.77% for headline PCE and 3.29% for core PCE, both exceeding the Federal Reserve’s stated 2% inflation target.
The PCE index is the Federal Reserve’s preferred inflation measure and tracks changes in prices paid by consumers for goods and services.
The JEC reported that spending increased during the same period while savings declined. Real personal consumption expenditures increased by 0.11%, representing approximately $18.08 billion in additional spending. Real spending on services increased 0.19%, or $21.47 billion, while real spending on goods rose 0.08%, or $4.7 billion. At the same time, the nominal personal savings rate declined by 0.6 percentage points to 2.6%.
Y/Y, headline PCE price index inflation was 3.77%, which is higher than the Federal Reserve’s target of 2% & core PCE price index inflation was 3.29%. M/M, headline personal income remained unchanged, or $19 million, while real disposable personal income per capita decreased by…
— Joint Economic Committee Republicans (@JECRepublicans) May 28, 2026
According to the committee’s update, headline personal income remained effectively unchanged month-over-month, increasing by approximately $19 million, while real disposable personal income per capita decreased by 0.50%. The report stated that after-tax income increased more slowly than consumer prices during the month.
The figures align with data released Thursday by the U.S. Bureau of Economic Analysis (BEA), which reported increases in both consumer spending and inflation during April. According to the BEA, personal income increased by $210.1 billion, or 0.8%, while disposable personal income increased by $189.4 billion, or 0.8%. Personal consumption expenditures increased $47.8 billion, or 0.2%.
The BEA reported that prices for personal consumption expenditures increased 0.4% month-over-month and 3.8% annually, while core PCE prices increased 0.2% during April and 3.3% over the previous twelve months.
The JEC also released its Gross Domestic Product Update for the second estimate of first-quarter 2026 economic activity.
According to the committee, real gross domestic product increased 1.62% from the fourth quarter of 2025 to the first quarter of 2026. Current-dollar GDP increased 5.15%, or approximately $396.9 billion, bringing the total size of the U.S. economy to $31.819 trillion.
JEC Chairman Rep. David Schweikert (R-AZ01), who is also running for governor of Arizona, discussed affordability and inflation during a segment with KTAR host Mike Broomhead, describing what he characterized as the continuing effects of “Biden inflation” on Arizona households.
“For people in Arizona, for a whole segment of our working middle class — you know, hardworking population — they’re poorer today than they were five years ago,” Schweikert said. “We were one of the epicenters of Biden inflation. Then you actually do policies from particularly the governor’s office of not recruiting new businesses here to compete for your willingness to work. So affordability — because our wages haven’t gone up — we’re now 45th in affordability. That’s miserable. I mean how many people can afford a house right now?”
Arizona’s working middle class is poorer today than five years ago. Wages are flat, housing is out of reach, and families are trying to make the mortgage and car payment.
If we want affordability, we need jobs that force businesses to compete for Arizona workers again. pic.twitter.com/lU9c983UUT
— David Schweikert (@DavidSchweikert) May 27, 2026
In a post to X on Thursday, he wrote, “If we’re serious about affordability, the first thing we do is raise wages by bringing employers here that have to compete for Arizona workers.”
The committee’s GDP update reflected the Bureau of Economic Analysis’ second estimate for first-quarter economic growth. The full Joint Economic Committee Monthly Expenditures Update and GDP Update are available through the committee’s website.
