by AZ Free Enterprise Club | Jun 17, 2025 | Opinion
By the Arizona Free Enterprise Club |
One of President Trump’s most important campaign promises was to bring accountability and transparency to federal government spending. Under the newly created Department of Government Efficiency (DOGE), his administration didn’t waste any time getting to work.
Within weeks of Trump’s inauguration, DOGE had uncovered billions of dollars in waste and abuse of taxpayer funds under the United States Agency for International Development (USAID). Here are just a few of the ways the Trump administration discovered USAID was spending your tax dollars:
- $1.5 million to “advance diversity, equity, and inclusion in Serbia’s workplaces and business communities.”
- $2 million for sex changes and “LGBT activism” in Guatemala.
- Millions to EcoHealth Alliance — which was involved in research at the Wuhan lab.
- $1 million to boost French-speaking LGBTQ groups in West and Central Africa through the State Department.
- $15 million for condoms to the Taliban through USAID.
This list barely scratches the surface of the waste and abuse that was discovered. But now, it appears it’s not just the federal government that’s been throwing your money around to outlandish woke initiatives. Arizona may have its very own USAID scandal…
>>> CONTINUE READING >>>
by Matthew Holloway | May 27, 2025 | News
By Matthew Holloway |
An investigation by Republican Reps. David Marshall, Walt Blackman, and Quang Nguyen found that the City of Phoenix has distributed over $28.5 million of taxpayer funding to more than 100 private organizations with a shocking lack of oversight. Now, the Goldwater Institute is asking Arizona Attorney General Kris Mayes to intervene and stop what it termed an “unlawful spending spree.”
Citing the legislative findings, the Goldwater Institute alleges that “Organizations like the Phoenix Film Foundation, Phoenix Pride Inc, Mexican Baseball Fiesta LLC, the Arizona Science Center’s Galaxy Gala, and many others received subsidies—sometimes simultaneously by multiple departments—under questionable labels like ‘Sponsorships,’ ‘Grants and Subsidies,’ ‘Emerg[ency] Assist[ance],’ or ‘Miscellaneous.’ The city has no lawful authority to spend public money in this way.”
Parker Jackson, a staff attorney at the Goldwater Institute, said in a statement, “This effectively turns large portions of the city’s budget into a patchwork of slush funds that special interests can access in the sole discretion of a single city employee. Amazingly, the city ‘does not track donations by nonprofit status,’ so it does not know exactly how much taxpayer money has been funneled out through this opaque process.”
The reported “Sponsorships,” “Grants and Subsidies,” “Emerg[ency] Assist[ance],” or “Miscellaneous” donations run afoul of the Arizona State Constitution’s Gift Clause according to Jackson in a letter to the Attorney General co-signed by Jon Riches, the Goldwater’s Vice President for Litigation.
Riches wrote, “Most—if not all—of these expenditures appear to violate the Arizona Constitution’s Gift Clause, which strictly prohibits use of public funds to benefit private, special interests. Not only is it doubtful that these allocations serve a legitimate public purpose, but there also appears to be no direct or measurable consideration received in return for this use of public resources.”
The Arizona Constitution under Article 9 Section 7 states, “Neither the state, nor any county, city, town, municipality, or other subdivision of the state shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation, or become a subscriber to, or a shareholder in, any company or corporation, or become a joint owner with any person, company, or corporation, except as to such ownerships as may accrue to the state by operation or provision of law or as authorized by law solely for investment of the monies in the various funds of the state.”
The Goldwater attorneys have called on Mayes to “[e]njoin the illegal payment of public monies” and to “[r]ecover illegally paid public monies,” under A.R.S. § 41-194.01 and A.R.S. § 35-212 respectively.
Jackson wrote in a Goldwater Institute press release that the finding by the Arizona legislature may seem familiar to keen observers: “If treating taxpayers as financiers for private entities—even controversial and ideological ones—sounds familiar, that’s because it mirrors what has been exposed throughout the federal government this year. For example, the U.S. Agency for International Development (USAID) was aptly described as ‘a slush fund for leftist priorities’ after the White House exposed decades of waste and abuse in that agency.”
In a video posted to X, Jackson said, “At the end of the day, public dollars should be used for public purposes… not to enrich special interests at a bureaucrat’s whim.”
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.
by Jonathan Eberle | Mar 14, 2025 | News
By Jonathan Eberle |
Arizona lawmakers are advancing a series of bills aimed at increasing transparency, accountability, and taxpayer protection. These measures tackle issues ranging from government spending on elections to school board meetings and travel, with a focus on ensuring that public funds are used responsibly and efficiently. With strong support from various groups, these bills reflect ongoing concerns about how taxpayer money is spent and how local government actions are conducted.
One of the most significant pieces of proposed legislation, HB2722, is backed by the Arizona Free Enterprise Club and sponored by Rep. Neal Carter (R-LD15). The bill seeks to prevent taxpayers from indirectly subsidizing private businesses through government gifts. Specifically, it targets “gift clauses” in state and local government contracts, which some argue allow for inappropriate use of taxpayer funds to benefit private entities.
The Arizona Free Enterprise Club has been vocal about the need for stronger protections against such expenditures. The organization has stated that this bill is necessary to curb the growing trend of government spending on private corporations without clear public benefit.
“Taxpayers should not be used as a backdoor financing mechanism for private companies,” said Arizona Free Enterprise Club officials. “This bill is about ensuring that public dollars are spent in a way that directly benefits the public, not private interests.” If passed, this bill would create stricter guidelines on how public funds can be spent and would allow taxpayers to hold officials accountable when misused funds are discovered.
Another bill making its way through the Arizona legislature is SB1036, supported by the Goldwater Institute and sponosred by Sen. John Kavanagh (R-LD3). This bill targets government spending on influencing elections, a topic that has sparked considerable debate in recent years. SB1036 would create a private right of action for taxpayers, allowing individuals to sue if they believe government funds are being spent on efforts that influence an election. This would make it easier for citizens to challenge the use of taxpayer money in elections, particularly when the spending appears to be partisan or otherwise improper.
The Goldwater Institute has argued that taxpayers have a right to ensure their money isn’t used to sway political outcomes. According to a recent report by the organization, there have been multiple instances of local governments spending taxpayer funds to advocate for policies that align with political interests, which has raised concerns about government overreach.
“Governments should not be using taxpayer money to influence the political process,” said Goldwater Institute officials. “This bill provides taxpayers with the ability to stand up for their rights and ensure public resources are not misused.”
Another bill, HB2169, which was introduced by Representative Matthew Gress (R-LD4), seeks to address transparency within Arizona’s public school districts. The bill would require school board meetings to be held in public facilities within the district, ensuring that they are easily accessible to the communities they serve. Additionally, the bill mandates that school boards must receive public approval before engaging in out-of-state travel, making it more difficult for administrators to make costly decisions without community oversight.
This legislation gained near-unanimous support, with proponents arguing that it ensures greater accountability for how public schools operate and how funds are spent. Critics of the current system have pointed to examples of school board members using taxpayer money for luxury travel without clear, public approval or benefit. A notable incident involved a local school district that faced backlash after spending taxpayer funds on extravagant trips while simultaneously requesting additional funding from voters for educational needs.
“Public education is about serving the community,” said Representative Gress in a statement. “We need to make sure that the actions of school boards are always in the public interest. This bill strengthens public trust in our school systems.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Jan 25, 2025 | Opinion
By the Arizona Free Enterprise Club |
As President Trump gets to work cleaning up Joe Biden’s failed economy, the last thing the people of Arizona need is to be sending their hard-earned dollars to woke Hollywood. But that’s exactly what’s happening.
Thanks to a law passed in 2022, movie companies that film in Arizona will begin receiving refundable tax credit subsidies this year—up to 15 percent if they spend up to $10 million in production costs, 17.5 percent if they spend between $10 million and $35 million, and 20 percent if they spend over $35 million. Then, to top it all off, these movie companies can get an additional 2.5 percent if they meet other criteria.
But here’s the real kicker. The keyword in all of this is “refundable.” This essentially means that if a movie company qualifies for more credits than they owe in taxes, the State of Arizona sends them a check!
So, how much does this outrageous tax scheme cost the people of Arizona?
Up to $125 million each year!
For that kind of money, there must be at least some kind of return on this investment, right? Nope.
If a company comes to Arizona, films a movie, mentions our state in the credits but decides not to release or distribute the film, it still receives the money.
Yes. You read that right. Arizona taxpayers could be funding Hollywood movies that won’t ever see the light of day…
>>> CONTINUE READING >>>
by AZ Free Enterprise Club | Jul 3, 2024 | Opinion
By the Arizona Free Enterprise Club |
After months of debate surrounding the controversial reauthorization of the Arizona Commerce Authority (ACA), the tension finally broke on the last day of session when HB2210 was raced through the House and Senate and signed by Governor Hobbs.
Everyone at the capitol was aware of the problems surrounding the Commerce Authority. Our elected officials were briefed on the innumerable deficiencies, questionable activities, and likely illegal behavior of the agency. Yet when it came time to act, the legislature capitulated to the special interest benefactors of the agency, passing a reauthorization with no real reforms. The included changes were so inconsequential that an agency dealing with months of negative press about illegal CEO junkets had nothing but accolades for legislative leadership.
What did the final ACA package look like? In exchange for a five-year reauthorization (one of the longest reauthorizations ever granted to the ACA), the agency agreed to add to their board an attorney practiced in litigating Gift Clause violations, a requirement that their board meetings be videoed and hosted online for public review, a cap of “only” 100 state-paid full-time employees, and some reporting requirements for permitting and approval times by local cities and towns.
So, what started out as a hopeful and robust opportunity for reform quickly disintegrated into window dressing changes…
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