White House Releases Memo Bracing Arizonans For The Impact Of The Democrat Shutdown

White House Releases Memo Bracing Arizonans For The Impact Of The Democrat Shutdown

By Matthew Holloway |

The White House Council of Economic Advisers (CEA) released a memo on Friday, detailing the state-level impacts of the government shutdown imposed by congressional Democrats and detailing the projected effects. The effects on Arizonans could be profound if the shutdown is not resolved quickly.

According to the Council of Economic Advisers, Arizona could face a decline of $296 million in Gross State Product each week or approximately $1.3 billion per month, and an increase in unemployment of about 1,000 people. Around 58,000 federal employees, or about 1.8 percent of Arizona’s workforce, could face furlough without pay.

For Arizona seniors and those who receive SSI disability benefits, they will be “likely delayed for those that(who) receive their Social Security benefits by check instead of direct deposit,” per the CEA. In Arizona, approximately 6,200 seniors currently receive their benefits by check.

If the shutdown extends beyond 30 days, the Supplemental Nutrition Assistance Program (SNAP) benefits of 887,000 total enrollees, including 344,000 children, could be impacted.

However, the council warned that families relying on WIC are at greater risk of disruption, saying, “Due to the government shutdown, federal funding for the Women, Infants, and Children (WIC) program stops immediately and becomes reliant on very limited local contingency funding. If the government shutdown is prolonged, those reserves are likely to run out by the end of the first week. In Arizona, there are approximately 153,000 WIC recipients who rely on the program for nutritional support for themselves and their children.. “

Seventy-six million dollars in small business loans, such as those made available to the victims of the Dragon Bravo and White Sage Fires, could also be delayed. Federal contract spending is expected to lose approximately $560 million should the shutdown persist for one month. Overall, the council warns that Arizona could lose $15 billion in GDP each week the government is shut down — a crisis that will ripple across every state.

Kush Desai, a White House Spokesperson, said in a statement emailed to AZ Free News, “President Trump and Republicans remain committed to ensuring families receive the support they deserve. Sadly, Democrats have chosen to shut down the federal government for political purposes…The Democrats’ shutdown is hurting the American people and letting millions of Americans’ livelihoods hang in the balance. Democrats need to vote on the clean, bipartisan funding extension.”

In a press release issued Thursday, Arizona Congressman Abe Hamadeh (R-AZ08) explained that Congressional Democrats are ultimately responsible for this shutdown. He stated, “This nonpartisan funding bill, passed 13 times under Biden, was rejected by Democrats solely due to their opposition to the new president. Their shutdown halts critical services like benefits for Veterans, military pay, and national security programs.”

Hamadeh added, “As the White House points out, the Democrats proposal would require Medicaid to pay more for emergency care provided to illegal aliens than it does for American patients who are disabled, elderly, or children.’ That is unacceptable. We can no longer afford to fund the results of the Biden Administration’s broken border scheme. Americans deserve a functioning government, and House Republicans delivered by voting to keep it open. Yet, Democrats voted to shut it down, prioritizing free healthcare for illegal immigrants over American citizens’ needs.”

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.

Mayes Faces Setback In Legal Challenge Against President Trump’s ‘Liberation Day’ Tariffs

Mayes Faces Setback In Legal Challenge Against President Trump’s ‘Liberation Day’ Tariffs

By Matthew Holloway |

Arizona Attorney General Kris Mayes faced a setback last week in her legal challenge against President Donald Trump’s ‘Liberation Day’ Tariffs. The U.S. Court of Appeals for the Federal Circuit issued a favorable ruling for the President, allowing the tariffs challenged by Mayes’ and eleven other state Attorneys General to remain in effect pending appeal.

The appeals court blocked an order from the U.S. Court of International Trade, which struck down the tariffs on May 28th in State of Oregon, et al., v. Trump, et al. The appeals court acknowledged the Trump tariffs’ raise “issues of exceptional importance” and agreed to expedite the case. It will hear arguments before the entire court on July 31st. In the ruling, the court found that “both sides have made substantial arguments on the merits” and stated, “The court also concludes that these cases present issues of exceptional importance warranting expedited en banc consideration of the merits in the first instance.”

Responding to the ruling, President Trump wrote on Truth Social, “A Federal Appeals Court has just ruled that the United States can use TARIFFS to protect itself against other countries. A great and important win for the U.S.”

The May 28th ruling against the President resulted from two separate lawsuits, one brought by the Liberty Justice Center on behalf of five small U.S. businesses which depend on foreign imports and the second from a coalition of 12 states including Arizona.

Mayes claimed in a post to X that “The president does not have the authority to implement tariffs unilaterally.”

White House spokesman Kush Desai responded to the ruling saying, “The Trump administration is legally using the powers granted to the executive branch by the Constitution and Congress to address our country’s national emergencies of persistent goods trade deficits and drug trafficking. The U.S. Circuit Court of Appeals’ stay order is a welcome development, and we look forward to ultimately prevailing in court.”

At issue in the case are the discounted reciprocal tariffs that the Trump administration announced on April 2nd, which apply a 10% minimum tariff across the board, particularly in Europe, while applying more punitive tariffs, as high as 49%, in the case of Cambodia which charges the U.S. a 97% tariff or 34% initially for China, which at that point charged 67% on U.S. imports.

Through subsequent negotiations with China and a ratcheting upward of the tariffs, the U.S. duties on China stabilized at approximately 55% and will remain there under a new trade deal, Commerce Secretary Howard Lutnick told CNBC.

Despite the legal imbroglio with leftist State AGs, President Trump announced Wednesday that China’s duties on U.S. goods will remain at 10%, where they paused in May when both sides agreed to a 90-day reprieve, and he provided a glimpse into the new agreement pending with Beijing.

In a post to Truth Social, Trump wrote, “OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!”

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.