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Monitoring Changes to Local Contract Postal Units
The USPS recently announced it is ending some CPU contracts in areas where nearby USPS-operated post offices can serve the community directly. Under the CPU contracts, either USPS or the CPU operator can end the agreement with 120 days’ notice. These decisions are made by USPS and CPU operators, not by Congress. I understand that these decisions made by USPS have left many residents concerned, and I share your concerns.
I am monitoring the situation closely and my staff is staying in contact with USPS. My goal is to ensure that every community in the district retains reliable access to essential postal services.
Deficit Grows Despite Higher Revenues
The newest CBO report shows the deficit is growing at an alarming pace, even with a surge in tariff revenue and higher income tax collections:
- The deficit reached $1.6 trillion, up $109 billion from the same period last year.
- Federal revenues increased by $263 billion (6%), driven largely by $70 billion more in customs duties from higher tariffs (a 112% increase).
- Individual income and payroll tax receipts rose by $214 billion (6%), while corporate income taxes fell by $27 billion (7%).
- Federal spending grew by $372 billion (7%), outpacing revenue growth.
- Social Security spending rose by $102 billion (8%) due to cost-of-living adjustments and more beneficiaries.
- Medicare spending increased by $58 billion and Medicaid by $47 billion, reflecting higher enrollment and service costs.
- Interest payments on the national debt climbed by $60 billion (8%) as total debt nears $37 trillion.
Despite record tariff collections and higher income tax receipts, spending continues to grow faster than revenue, widening the deficit and adding to the nation’s debt burden. You can access the latest CBO report here.
Meeting Sky Harbor’s Four-Legged Navigators
Last week I had the chance to meet two of Phoenix Sky Harbor’s Navigator Buddies. Mr. Darcy and Tatanka are trained to help travelers navigate the airport and provide friendly presence along the way. The program pairs the dogs with airport volunteers to create a welcoming environment for visitors from around the world.
If you are looking for a unique way to serve our community, Phoenix Sky Harbor is seeking volunteers to join its Navigator Buddies team. Volunteers assist travelers, answer questions and help ensure passengers have a smooth travel experience. It is a chance to make a positive impact while working alongside these remarkable dogs. To learn more or apply, visit skyharbor.com/volunteer/phx-navigator-buddies.
Recognizing Some Amazing Citizens of AZ-01
It's always nice to see businesses set up shop in our area. We went to the ribbon cutting ceremony for Abdo Solutions last week with the Scottsdale Chamber of Commerce. The firm just opened a new location in Scottsdale. Events like this are one example that shows our district continues to be an attractive place for businesses to grow and thrive. I appreciate the opportunity to attend events like those and meet members of our business community.
JEC Update
I want you to provide you with some critical insights from the Joint Economic Committee’s June 2025 Trade Update and August 2025 Debt Update.
Debt Update
As of June, the average interest rate on the total marketable debt was 3.399%. The average interest rate is virtually unchanged from 3.391% one year ago but nearly double the rate of 1.714% five years ago.
Of the $29.53 trillion of total public debt outstanding:
$15.2 trillion (51.5%) is in notes
$6.0 trillion (20.3%) is in bills
$5.1 trillion (17.2%) is in bonds
$4.4 trillion (11.1%) is in other securities
The average maturity of this debt composition is 72 months and approximately 31% of the marketable debt will be maturing within the next 12 months.
Trade Update
In June, the U.S. exported $277.3 billion and imported $337.5 billion, resulting in a $60.2 billion trade deficit. This represents a $11.5 billion (-16.0%) improvement from last month’s trade deficit. The monthly total reflects a $85.9 billion goods trade deficit, partially offset by a $25.7 billion services trade surplus.
Over the past 12 months, the U.S. trade deficit totaled $1.06 trillion, consisting of a $1.37 trillion goods trade deficit and a $308.6 billion services trade surplus. Total exports was $3.31 trillion and total imports were $4.38 trillion.
Largest trade deficits: China ($280 billion), Mexico ($185 billion), and Vietnam ($148 billion).
Largest trade surpluses: Netherlands ($57 billion), Hong Kong ($25 billion), and United Kingdom ($21 billion).
The Joint Economic Committee releases fiscal updates on a regular basis, and you can receive these updates by registering HERE.
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