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Where are Tax-Exempt Hospitals Spending Your Tax Dollars?

Last week, I chaired a Ways and Means Oversight Subcommittee hearing to examine how tax-exempt hospitals are using the benefits they receive. These hospitals enjoy billions of dollars in tax breaks each year, so it’s important Congress conducts appropriate oversight to ensure these hospitals are meeting the standard of care and community investment required by law.
We looked at how the current IRS reporting process, particularly Form 990 and Schedule H, fails to provide transparency. These forms make it difficult to track whether hospitals are genuinely serving their communities. As I said during the hearing, the quality of the information is just not there. I believe it is time to redesign Form 990 to make sure policymakers, auditors, and researchers have access to clear, detailed data.
The tax code must not be taken advantage of or used as a tool for mission creep. Hospitals that benefit from public support should be held to a higher standard and refocus on patient care and community health.
Service Academy Deadline Fast Approaching

The online academy application portal for my office remains open to eligible high school students residing in Arizona's First Congressional District who are interested in attending one of our nation's premier military service academies.
To learn more about the congressional nomination process and how to submit an application, please review the nomination application process and resource guide here. I wish prospective students the best of luck and sincerely appreciate their interest in serving our country.
The deadline to apply and submit a completed application file is October 3, 2025.
Recognizing Community Members

Last Week, the Fountain Hills Chamber of Commerce hosted a successful FH Connect, featuring Maricopa County District 2 Chairman Thomas Galvin. It is a pleasure to recognize the success and resilience of the businesses that are the backbone of our community.
We wish Chairman Galvin and the Maricopa County Board of Supervisors nothing but the best as they continue to lead one of the largest counties in the nation!

I also want to congratulate Karsten’s Ace Hardware on their recent ribbon cutting with the Carefree Cave Creek Chamber of Commerce! It is a pleasure to recognize their success as they open their new location.
Local businesses are vital to our community, and we wish David and Cheryl Karsten’s, along with the entire Karsten’s Ace Hardware team nothing but the best as they continue to grow.
The Quiet Cost of Inaction

On the House floor this week, I shared a concern that keeps me up at night. We are borrowing more than $72,000 every second. At the same time, the Medicare trust fund is projected to run out in just seven years. Social Security faces the same cliff. Without action, benefits could be cut by nearly a quarter, and we could see a dramatic rise in senior poverty.These aren't abstract numbers. They affect real families, including the seniors in our own communities who rely on these programs to make ends meet.
Both parties need to come together and have a serious conversation about what’s driving our debt. Interest payments and rising health care costs are swallowing the budget. Even if we passed every tax increase and every spending cut either party has proposed, it still wouldn’t be enough. This isn’t about politics. It’s about being honest with the American people. If we act now, we still have time to get this right. But that window is closing.
I’ll continue raising these issues every chance I get, because I believe we can build a future that is sustainable, compassionate and worthy of the next generation. It starts with telling the truth.
Have Thoughts on Trade with Mexico and Canada?
The Office of the United States Trade Representative (USTR), as directed by Congress, announced the beginning of a 45-day public comment period in advance of the 2026 Joint Review of the United States-Mexico-Canada Agreement (USMCA).
As we approach the six-year review of the USMCA, it is vital that Arizonans share their perspectives on the agreement’s successes and areas for improvement. The landmark trade agreement reshaped and modernized North American commerce, opening new opportunities for growth. Arizona knows the importance of cross-border trade, particularly with Mexico, our state’s largest trading partner, totaling $20.1 billion in 2024. Public feedback will help ensure that the trade agreement continues to strengthen our shared economic security and delivers for producers, workers, and consumers alike.
If you have experience with cross-border trade, run a business affected by USMCA rules, or care about North American economic competitiveness, I encourage you to take part. The deadline for written comments is November 6, 2025, and a public hearing will be held on November 14. To submit a comment or request to participate in the hearing click HERE.
JEC Update
I want you to provide you with some critical insights from the Joint Economic Committee’s August 2025 State Employment Update.
National
In August, among the 50 states and the District of Columbia, unemployment fell in 13, rose in 12, and remained unchanged in 26. The highest unemployment rate was 6 percent in the District of Columbia, and the lowest was 1.9 percent in South Dakota. Nationally the unemployment rate rose by 0.1 percentage points to 4.3 percent.
Arizona
In August, Arizona added 700 net payroll jobs, and the unemployment rate remained unchanged at 4.1 percent. In the prior month, Arizona added 2,700 net payroll jobs. Over the past 12 months, Arizona added 41,400 net payroll jobs and the unemployment rate rose by 0.4 percentage points from 3.7 percent.
What I'm Reading and Why it Matters
Phoenix-based 'deep tech' startup hub will focus on AI, semiconductors
A Phoenix-based startup hub, formed through a coalition of semiconductor and local stakeholders, joins together to drive innovation in chip manufacturing and artificial intelligence.
Building this innovation pipeline maintains the Valley’s semiconductor leadership while strengthening domestic competition in the chip industry. In addition to boosting the regional economy, the hub is designed to attract companies to Phoenix’s innovation ecosystem.
The hub could create hundreds of specialized engineering, design, and support jobs across the region. By increasing domestic chip production, the hub will also strengthen our national security by enhancing cyber defense capabilities.

The official federal deficit for fiscal year 2025 will be released in mid-October. Before that number sweeps in like a budgetary haboob, I’m inviting you to take your best shot at predicting it.
To enter, simply reply to my newsletter with your FY2025 deficit spending estimate by the end of the month.
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