This column by Arizona ˿����Ƶ of Commerce & Industry President and CEO Danny Seiden originally appeared in the on May 27, 2026.

According to the latest  from the American Legislative Exchange Council, Arizona ranks second in the nation for economic growth over the past 10 years. During that time, we’ve ranked in the top-5 for GDP growth, domestic migration, and employment growth, clear indicators of our strength as a destination for both business and talent.

Arizona has also ranked No. 1 on the Common Sense Institute’s  every year since 2019. That growth has translated into real gains for Arizonans: more jobs, rising incomes, and the largest percentage-point decline in poverty in the country.

Despite this undeniable track record, a misguided proposal from some lawmakers threatens to wipe out a key piece of our economic toolbox at precisely the wrong time.

Specifically, they are calling for a sweep of the Arizona Competes Fund, a move that would effectively pull the rug out from under dozens of projects already underway, inflicting lasting damage on the state’s economic credibility.

A complete sweep would jeopardize 34 projects for which grants have already been committed, representing more than 21,000 potential new jobs and more than $12.6 billion in capital investment. That’s like wiping out an entire year’s worth of economic development progress.

Even more concerning, forcing the state to renege on commitments — after funds were appropriated by the Legislature — would trigger a serious crisis of confidence. If Arizona is willing to walk away from its obligations to employers and investors, why would anyone trust it to honor future commitments?

As budget negotiations continue, some have talked about eliminate the Quality Jobs Tax Credit, a program that has been key to making Arizona a magnet for corporate headquarters relocations.  reports that the Phoenix metro ranks in the top 4 for HQ relocations since 2018, projects that come with significant high-wage job gains — the type that fuel additional growth across the economic ladder.

The  is actively competing for an additional 51 HQ projects, representing more than 11,000 potential new jobs with average wages over $90,000 — demonstrating both the opportunity ahead and what’s at stake if Arizona gets this wrong.

At a moment when the state is competing for once-in-a-generation economic opportunities, maintaining Arizona’s credibility and business reputation is absolutely essential.

To be clear: Arizona’s transparent, effective economic development programs should be viewed as a model for the nation. Unlike so many of our competitor states, Arizona does not engage in opaque, backroom deals.

Instead, our programs are accountable and performance-based, with criteria outlined in statute and companies only receiving funds after they’ve filled their commitments. Arizona doesn’t place risky bets. 

These tools complement Arizona’s core advantages: a skilled workforce, modern infrastructure, and a pro-growth tax and regulatory environment.

They also deliver a strong return. Analysis from the ACA shows that companies participating in the Competes program have created more than 22,000 jobs with an average wage approaching $90,000. Those projects have generated over $1.2 billion in state and local tax revenue — meaning every $1 invested returns more than $22 to the public.

Eliminating this program would not produce meaningful budget savings. Instead, it would likely reduce future revenue by driving away jobs, wages and investment.

And if Arizona steps back, other states will step in. Competitors like Texas, Ohio and California would welcome the opportunity to capture projects that might otherwise have come here.

As Warren Buffett famously observed, it takes years to build a reputation and minutes to destroy it. Over the past decade, Arizona has earned a reputation as one of the most reliable places in the country to do business.

Lawmakers should come together to pass a responsible budget that protects and strengthens the policies driving Arizona’s growth. Arizona has spent a decade earning its reputation. Now is not the time to risk it.

Danny Seiden is the president and CEO of the Arizona ˿����Ƶ of Commerce & Industry.

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The Arizona ˿����Ƶ of Commerce & Industry convened business leaders and policymakers last Friday for its annual Update from Capitol Hill luncheon, which featured a timely and wide-ranging discussion with U.S. Reps. Greg Stanton (D) and Juan Ciscomani (R) alongside national political analysis from Jonathan Martin of Politico.

A federal outlook with Arizona implications

The conversation with Stanton and Ciscomani covered a broad policy landscape, reflecting the complex and interconnected challenges facing Arizona employers. Topics included infrastructure investment, international trade, workforce development, regulatory reform, foreign affairs, and ongoing negotiations over the Colorado River—issues with immediate and long-term consequences for the state’s economic outlook.

For Arizona’s business community, the opportunity to hear directly from members of Congress—particularly in a divided government environment—remains a central value of the event.

A battleground state in focus

Providing a national lens, Martin offered a detailed assessment of the 2026 election cycle, with particular emphasis on Arizona’s role as a key battleground state. His analysis highlighted the evolving dynamics of modern campaigns, including the growing influence of social media platforms and artificial intelligence in shaping voter behavior and information consumption.

The discussion underscored the degree to which national political trends are increasingly intertwined with local economic and policy considerations, especially in a state that continues to draw national attention.

A signature forum for dialogue

Arizona ˿����Ƶ President and CEO Danny Seiden emphasized the importance of maintaining strong connections between the business community and federal policymakers.

“This event continues to be one of the most important opportunities we have each year to bring Arizona’s business leaders together with the people shaping policy in Washington,” Seiden said. “We’re grateful to Congressman Stanton and Congressman Ciscomani for sharing their perspectives and engaging in a candid discussion on the issues that matter most to our state. And Jonathan Martin provided valuable insight into a rapidly evolving political environment, especially as we head into a consequential midterm election year.”

The luncheon was made possible through the support of presenting sponsor Salt River Project, along with sponsors EPCOR, Arizona Public Service, Mastercard, and Banner Health.

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The Arizona ˿����Ƶ of Commerce & Industry will host its annual Update from Capitol Hill luncheon on Friday at the Arizona Biltmore, bringing together members of Arizona’s congressional delegation and one of the country’s most closely watched political analysts.

will feature U.S. Reps. Juan Ciscomani and Greg Stanton, along with Jonathan Martin of Politico, columnist and host of the .

˿����Ƶ Business News spoke with Arizona ˿����Ƶ President and CEO Danny Seiden about the event and what he’s most interested in hearing.

Tell us about Update from Capitol Hill. It’s one of the ˿����Ƶ’s premier annual events, isn’t it?

Danny Seiden:

It really is one of our signature events each year. What makes it so valuable is that it brings Arizona’s business community face-to-face with members of our congressional delegation at a time when so many federal decisions are directly affecting our state’s economy.

There’s no substitute for hearing directly from the people who are in the room making those decisions—whether it’s on taxes, trade, infrastructure, or regulatory policy. And just as important, it gives our members a chance to better understand the dynamics in Washington and how those decisions translate back home to Arizona.

What topics are you anticipating you’ll hear about from Congressmen Ciscomani and Stanton?

There’s certainly no shortage of issues right now. Water is always top of mind in Arizona, and I expect that to be part of the conversation given the federal government’s role in long-term solutions.

Beyond that, I think we’ll hear a lot about the broader state of Congress—how things are functioning, what’s realistic in terms of bipartisan cooperation, and what we can expect over the coming months.

There are also a lot of frontpage issues—from border policy to economic conditions to foreign affairs—that have real implications for Arizona employers. Having both Congressman Ciscomani and Congressman Stanton there gives us a valuable bipartisan perspective on those challenges.

This year the ˿����Ƶ is welcoming Jonathan Martin from Politico. What do you believe he’ll add to the conversation?

is one of the most respected political commentators in the country. He’s been covering national politics for a long time, and he brings a level of experience and insight that’s hard to match.

He’s also a regular presence on the Sunday shows, so he’s constantly plugged into the national conversation. With this being an election year, his perspective on the state of politics—where things stand heading into the primaries and what to expect in November—will be incredibly valuable.

Honestly, there are very few people who can provide that kind of real-time, informed analysis of what’s happening in Washington and on the campaign trail. I think our attendees will really benefit from hearing his take.

How do federal decisions right now directly impact Arizona’s business community, and what should employers here be paying closest attention to?

Federal policy has a very real, day-to-day impact on Arizona employers, whether people always see that connection or not. Decisions coming out of Washington affect everything from the cost of doing business to the availability of workforce and the reliability of our supply chains.

For Arizona, trade and border policy are especially important. We’re a major gateway state, so anything that affects cross-border commerce—whether it’s customs operations, infrastructure, or security—has a direct impact on our economy. The USMCA review is coming up, for example, so we’re paying close attention to that.

Energy is another major factor right now. Global uncertainty, particularly events in the Middle East, can create volatility in energy markets, and that has a ripple effect across the economy. When fuel costs rise, it impacts everything from what we pay at the pump to the cost of transporting goods, which ultimately shows up in prices on store shelves.

And, obviously, water is also an area where federal involvement matters, particularly in terms of long-term planning and investment. I know our delegation is deeply involved in that issue.

And of course, tax and regulatory policy always play a role in shaping whether businesses can grow and compete.

I’d also point to the overall economic environment—interest rates, inflation, and federal spending decisions—all of which influence business confidence and investment.

The bottom line is that what happens shows up here in Arizona, and that’s why it’s so important for our business community to stay informed and engaged.

More about this year’s Update from Capitol Hill luncheon can be found on the Arizona ˿����Ƶ’s .

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House Bill 4115, legislation by Speaker of the House Steve Montenegro is scheduled for consideration by the full state House, while companion legislation in the state Senate by Sen. T.J. Shope is similarly ready for consideration by the full Senate.

Here’s a look at how the bills would align the local initiative process with the well-established processes at a state level and protect local economic development efforts.

Bills align local initiative processes with established statewide initiative processes

House Bill 4115, introduced by Speaker of the House Steve Montenegro, seeks to standardize the regulation of initiative and referendum measures across Arizona by expanding state-level requirements to municipal and county levels. A mirror bill, SB 1489 by state Sen. T.J. Shope, has been introduced in the Senate.

The legislation focuses on three primary pillars:

• Increased transparency for paid petition circulators
• Mandatory financial disclosures for spending-related measures
• The creation of regulatory parity between state and local ballot processes

Supported by a broad coalition of the Arizona business community, the bill aims to protect the integrity of the ballot from out-of-state interests, support local decisionmaking, and provide voters with clearer information regarding the fiscal impacts of proposed local laws.

Key regulatory changes

HB 4115 and SB 1489 amend several sections of the Arizona Revised Statutes (Title 19) to ensure that the standards applied to statewide measures are nearly as practicable for local jurisdictions.

Paid circulator requirements

The bill introduces identification and disclosure protocols for paid circulators to ensure voters understand who is soliciting their signatures, similar to the protocols in other states.

Financial disclosure and revenue sources

A critical component for local fiscal management is the new requirement for measures that mandate expenditures. Any municipal or county initiative or referendum that proposes a mandatory expenditure, establishes a specific fund, or allocates funding must:

• Provide a disclosure of the expenditure or allocation.
• Include this funding disclosure within the 200-word initiative description provided to voters.

Economic impact and business community perspectives

The Arizona business community has signaled strong support for HB 4115 and SB 1489, viewing it as a defense against out-of-state activists who leverage local processes to advance narrow political agendas that may conflict with regional economic development.

Proponent coalition

The bill is backed by a diverse group of organizations, including:

• Arizona ˿����Ƶ of Commerce & Industry
• Arizona Restaurant Association
• Greater Phoenix ˿����Ƶ
• Greater Phoenix Economic Council (GPEC)
• United Dairymen of Arizona
• Valley Partnership
• Local chambers of commerce across Arizona

Leadership insights

• Danny Seiden, president and CEO of the Arizona ˿����Ƶ of Commerce & Industry: “These bills contain commonsense reforms that protect the integrity of the ballot, ensure voters know who is behind an initiative, and provide clearer information about proposals that would require new taxpayer-funded spending.”
• Courtney Coolidge, executive vice president of the Arizona ˿����Ƶ: Coolidge has noted that out-of-state activists exploit the lack of guardrails at the local level. The goal of HB 4115 and SB 1489 is to ensure state and local processes are “equally rigorous” to prevent economic strategies from being “sidelined.”

Case study in local volatility: The Marana data center dispute

Current litigation in the Town of Marana underscores the administrative and legal friction that the legislation aims to mitigate through clearer standards.

• The conflict: Residents filed a lawsuit against the Town of Marana after the town clerk rejected a referendum targeting a proposed data center.
• The technicality: The organizers behind the petition campaign argue that their submission was out of compliance and should thus be withdrawn. Supporters not affiliated with the organized referendum campaign, however,  argue that the petitions cannot be withdrawn.
• Business implication: Such disputes demonstrate how local economic development projects can be stalled by procedural ambiguities in the referendum process, highlighting the need for the consistent standards proposed in HB 4115 and SB 1489.

Public sentiment and voter data

Polling conducted by Cygnal in December 2025 indicates that the provisions in HB 4115 and SB 1489 align with a vast majority of Arizona voters:

• 90% believe ballot initiatives should be driven by Arizona residents rather than out-of-state organizations.
• 84% support requiring paid circulators to wear visible identification badges.
• 80% support requiring initiatives that mandate spending to identify a specific funding source.
• 70% support achieving parity between state and local initiative requirements.

The case for passage

• Uniformity is priority: Standardization of initiative processes reduces the ability of activists to target smaller municipalities with less-regulated processes.
• Fiscal accountability: Future local initiatives will be required to disclose potential costs of their proposals, potentially reducing the risk of unfunded mandates that impact the local tax base.
• Bipartisan support: HB 4115 passed the House Federalism, Military Affairs & Elections Committee with a 5-2 bipartisan vote. SB 1489 was cleared by the Senate Judiciary and Elections Committee. Both bills are ready for consideration by the full House and Senate, respectively.
• Grassroots efforts unaffected: Initiative campaigns by local residents are not affected by the provisions of the legislation.

Photo courtesy Elizabeth Jenkins, licensed as CC BY-NC-SA 2.0.

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The Arizona House Federalism, Military Affairs & Elections Committee on Wednesday advanced two measures designed to bring greater transparency, consistency, and voter clarity to Arizona’s local initiative process.

House Bill 4115, sponsored by Speaker of the House Steve Montenegro (R-Goodyear), passed on a bipartisan 5-2 vote.

The bill’s proponents, who include a broad coalition of the Arizona business community including the Arizona Restaurant Association, Greater Phoenix ˿����Ƶ, Valley Partnership, Greater Phoenix Economic Council, and local chambers of commerce across the state, say the bill ensures greater accountability in the way local ballot measures are circulated and presented to voters.

In addition, HCR 2051, sponsored by House Majority Leader Michael Carbone (R-Buckeye), passed the committee on a 4-3 vote. If approved by the Legislature, HCR 2051 would send the same reforms contained in the Montenegro bill to the November ballot.

Together, the measures reflect a growing recognition among lawmakers that while Arizona’s initiative process is a powerful and important constitutional tool, it must operate with transparency, fairness, and clear information for voters.

“Most of what the bill and referral do are already in place for statewide ballot measures,” Arizona ˿����Ƶ of Commerce & Industry Executive Vice President Courtney Coolidge said. “But out-of-state activists know there are relatively few guardrails around the initiative process at a local level. We’re attempting to fix that to ensure both state and local initiative processes are equally rigorous.”

Bringing parity and transparency to the process

Supporters of the legislation note that the reforms are aimed at improving disclosure, strengthening voter awareness, and ensuring consistent standards for paid petition circulators, particularly in cases where ballot measures would mandate new government spending or impose significant fiscal impacts on taxpayers.

The measures seek to:

• Establish consistent rules and accountability standards for paid petition circulators.
• Improve disclosure requirements for initiatives that mandate new government spending.
• Ensure voters receive clear, accurate information before signing petitions or casting ballots.
• Promote parity between state and local initiative requirements.

Proponents argue that these changes do not diminish the initiative process but instead protect it by reinforcing public trust and transparency.

“Arizona’s initiative process is a powerful tool, and it should be driven by Arizona residents with transparency and accountability,” said Danny Seiden, president and CEO of the Arizona ˿����Ƶ of Commerce & Industry. “These bills contain commonsense reforms that protect the integrity of the ballot, ensure voters know who is behind an initiative, and provide clearer information about proposals that would require new taxpayer-funded spending.” 

Broad support

Coolidge said the 5-2 bipartisan vote on HB 4115 underscores support from members on both sides of the aisle for strengthening disclosure and accountability in the initiative system.

“We’re hopeful that members of both parties will continue to support these bills as they make their way through the process,” she said. “Without these reforms, communities across the state—big and small, urban and rural—are at risk of having their economic development strategy sidelined by out-of-state activists focused more on advancing a narrow political agenda than on creating jobs here in Arizona.”

During testimony in committee, Montenegro and Coolidge pointed to polling conducted by the firm Cygnal in December 2025 that found that 90% of Arizonans believe ballot initiatives should be driven by Arizona residents, not out-of-state organizations, while 84% support requiring paid circulators to wear visible badges that include their name and home state. Additionally, 80% of voters support requiring initiatives that mandate new government spending to identify a funding source, and 70% support greater parity between state and local initiative processes.  Companion legislation in the Senate, SB 1489, sponsored by state Sen. T.J. Shope (R-Coolidge) will be heard on Friday by the Judiciary and Elections Committee.

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The Arizona ˿����Ƶ of Commerce & Industry will kick off the 2026 legislative session with its annual Legislative Forecast Luncheon on Friday, January 9 at the Phoenix Convention Center, bringing together Arizona’s top elected leaders and business community stakeholders for a timely discussion of the policy landscape ahead.

The event, one of the ˿����Ƶ’s signature convenings each year, will feature a moderated conversation with state House and Senate legislative leaders, led by John Hook of FOX 10 Phoenix. The panel is expected to address major themes likely to shape the 2026 session, including the state budget, economic competitiveness, and how federal policies are affecting state-level decision-making.

In addition to the legislative leadership panel, attendees will hear directly from Gov. Katie Hobbs, who will sit down for an on-stage conversation with Arizona ˿����Ƶ President and CEO Danny Seiden. The discussion will provide insight into the governor’s priorities as lawmakers return to the Capitol, as well as her perspective on Arizona’s economic outlook and policy challenges in the year ahead.

The Legislative Forecast Luncheon traditionally draws a broad cross-section of Arizona’s business, civic, and policy leadership and serves as an early marker for where consensus and potential friction may emerge during the session. For employers and industry leaders, the event offers a valuable opportunity to hear directly from decision-makers and better understand how legislative dynamics could affect Arizona’s economy.

Additional details, including registration information, are available .

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Arizona employers are taking a proactive, collaborative approach to workplace heat safety that recognizes the realities of diverse industries and job sites across the state. 

Gov. Katie Hobbs on December 31 announced that the Workplace Heat Safety Task Force had finalized and submitted its recommendations to the Industrial Commission of Arizona, delivering a set of Heat Guidelines for Employers grounded in real-world best practices and Arizona-specific conditions . 

The task force, which was convened by a 2025 executive order, brought together leaders from business, labor, and industry, along with occupational safety and health experts, to develop commonsense guidance for employers.  

The Arizona ˿����Ƶ of Commerce & Industry and the Arizona Manufacturers Council participated in the process to ensure that employer perspectives were front and center throughout the discussions. 

The finalized recommendations focus on proven strategies to prevent heat-related illness, including access to water, shade, and rest; employee acclimatization; and heat safety training. Importantly for Arizona employers, the guidelines also clarify definitions, outline best practices for employer Heat Illness Prevention Plans, and include specific exemptions for emergency operations, recognizing that not all job sites or industries face the same conditions. 

For the Arizona ˿����Ƶ and the Arizona Manufacturers Council, participation in the task force was about ensuring that worker safety and economic sustainability go hand in hand. 

“This task force brought together employers, workers, and subject-matter experts from across Arizona to focus on what actually works in real workplaces,” said Grace Appelbe, executive director of the Arizona Manufacturers Council and director of government affairs at the Arizona ˿����Ƶ of Commerce & Industry. “The recommendations reflect commonsense best practices many employers already use and provide clear, Arizona-specific guidance that prioritizes worker safety while recognizing the diversity of industries and job sites across our state.” 

That emphasis on flexibility was a consistent theme throughout task force discussions, particularly for sectors like manufacturing, construction, utilities, and small business, where work environments, schedules, and operational demands can vary significantly. 

Next steps, ongoing implementation 

Following the task force’s work, the Arizona Division of Occupational Safety and Health (ADOSH) will take additional steps to implement the governor’s executive order, including publishing annual data on heat-related claims, complaints, and citations, and providing downloadable template heat plans to help employers put the guidance into practice. 

The ADOSH Advisory Committee is scheduled to review the recommendations at a public meeting on February 4 before they advance to the Industrial Commission for final consideration later this spring.  

Appelbe said that for Arizona’s business community, the Workplace Heat Safety Task Force demonstrates the value of collaboration over mandates.  

“By bringing employers, workers, and regulators to the same table, the state has produced guidance that improves safety outcomes without undermining productivity or imposing rigid, one-size-fits-all rules,” she said. 

Appelbe said the Arizona ˿����Ƶ and the Arizona Manufacturers Council will continue to engage with state agencies and stakeholders as these recommendations move forward, ensuring that Arizona remains both a safe place to work and a competitive place to do business. 

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With Congress missing the midnight deadline to fund the federal government, leaders from across the business community are warning of the significant economic consequences a shutdown would have on employers, workers, and families. From delayed contracts to shuttered national parks, industry groups say the disruption would ripple through Arizona’s economy and beyond.

Arizona ˿����Ƶ of Commerce & Industry: “Arizona’s economy thrives on stability”

The Arizona ˿����Ƶ of Commerce & Industry is urging swift congressional action to pass a continuing resolution and keep the government open.

“Arizona’s economy thrives on stability,” said ˿����Ƶ President and CEO Danny Seiden. “Prolonged debates that put government operations at risk create ripple effects of uncertainty for employers, workers, and investors alike. The effects of that uncertainty would extend across our economy, delaying critical government contracts and ultimately threatening both Arizona’s industries and the nation’s economic security. We urge Congress to act swiftly to avoid self-inflicted setbacks that weaken America’s competitiveness at home and abroad.”

Arizona Lodging & Tourism Association: National parks at risk

The Arizona Lodging & Tourism Association warned that a shutdown would deal a devastating blow to Arizona’s tourism economy, particularly if it forced the closure of national parks such as the Grand Canyon, Petrified Forest, and Saguaro National Park.

“Families, student groups, and international travelers plan their trips around access to our national parks,” said AzLTA President and CEO Kim Grace Sabow. “If visitors are turned away, the economic ripple effects will extend far beyond park boundaries, hurting hotels, restaurants, attractions, and local businesses. Arizona thrives because of tourism, and keeping our parks open is essential to safeguarding the jobs and economic vitality that so many Arizonans depend on.”

Tourism is one of Arizona’s largest industries, supporting nearly 300,000 jobs and generating more than $33 billion annually. The Grand Canyon alone drew nearly 5 million visitors in 2024, supporting more than 8,700 jobs and generating over $1 billion in positive economic activity.

National Association of Manufacturers: Certainty needed for growth

In Washington, the National Association of Manufacturers (NAM) emphasized the critical role a functioning government plays in supporting industrial growth.

“A functioning government is essential for a strong manufacturing economy,” said NAM President and CEO Jay Timmons. “Manufacturers need certainty, not disruption. Our leaders in Washington must come together and keep the government open, so it continues working for the American people. From supply chains and permitting to regulatory certainty, product approvals and facility inspections, manufacturers rely on the government to do its job and provide the stability that drives growth.”

U.S. ˿����Ƶ of Commerce: “Shutdowns are harmful to the economy”

The U.S. ˿����Ƶ of Commerce also issued a warning, noting that shutdowns affect more than just government employees.

“Government shutdowns are harmful to the economy, our national security, and the American people, often in ways that are not immediately obvious,” said Neil Bradley, executive vice president and chief policy officer at the U.S. ˿����Ƶ. “From passports and permits to clinical trials and air travel, a well-functioning economy requires a functioning government. The ˿����Ƶ calls on Congress and the Administration to work together to pass legislation to avert a federal government shutdown.”

Photo courtesy Flickr user reivax, CC BY-SA 2.0 , via Wikimedia Commons

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A from the Common Sense Institute Arizona (CSI) and the Arizona ˿����Ƶ Foundation warns that dozens of bills introduced in the 2025 Arizona legislative session could have placed the state’s decade of economic growth at risk, threatening jobs, incomes, and overall competitiveness.

The 2025 Arizona Job Killers report identified 88 bills that, if enacted, would have imposed more than $45.9 billion in new annual costs on businesses, reduced employment by 660,000 jobs (a 20% decline), cut per-capita income by $4,600, and shrunk Arizona’s economy by $64 billion.

Bad bills could cost Arizona jobs

The report underscores that Arizona’s pro-growth policies since 2016—including lower taxes, smaller government, and fewer regulations—helped drive some of the nation’s strongest gains in jobs and GDP. Recent slowdowns in hiring and housing, however, coupled with the volume of “job killer” legislation considered in 2025, highlight the risks of policy missteps.

“Arizona has shown the nation what happens when states embrace policies that encourage growth,” said Courtney Coolidge, executive vice president of the Arizona ˿����Ƶ of Commerce & Industry. “But this report makes clear that the progress we’ve made is not guaranteed. The sheer number of costly bills considered in the 2025 session should serve as a warning. We must remain vigilant in protecting Arizona’s competitiveness and preserving the policies that have made us an economic leader.”

The costliest proposals

Among the most significant measures flagged in the report:

• Repeal of Arizona’s right-to-work law — projected to impose $18.6 billion in new costs and reduce employment by nearly 4% by 2033.
• New or increased taxes — totaling $3.7 billion, including a proposed 1% payroll tax on employers with more than 50 workers and a $1,000 minimum corporate income tax.
• Energy and environmental mandates — including adopting California-style vehicle emissions standards and requiring 50% renewable electricity generation by 2035, which CSI estimated would raise energy costs by billions and reduce job growth.
• Housing market interventions — such as rent control, which CSI cited as a policy with a “well-documented” record of reducing supply and harming affordability.

Lessons from Colorado

The report draws sharp contrasts with Colorado, where CSI has tracked the enactment of more than 20 “job killer” laws since 2019. Once a peer economy, Colorado has since fallen behind Arizona in both GDP and job growth. CSI estimates that if Arizona had followed Colorado’s trajectory, the state would have 113,000 fewer workers and $18.6 billion less in annual economic output today.

Katie Ratlief, executive director of CSI Arizona, said the findings illustrate the direct connection between public policy and economic performance.

“Good policy choices have helped Arizona outpace much of the country in growth over the last decade,” Ratlief said. “But as this report shows, just a handful of costly mandates could reverse those gains. The lesson from states like Colorado is clear: when lawmakers pursue policies that burden job creators, the entire economy suffers.”

While none of the 88 bills analyzed were enacted this year, the report cautions that the annual introduction of such legislation reflects a continuing risk.

CSI and the ˿����Ƶ argue that sustaining Arizona’s economic momentum will require policymakers to reject measures that add costs, restrict growth, or erode the state’s business-friendly climate.

“Arizona stands at a crossroads,” the report says. “After a decade that brought generational change, job growth has stalled and the economy has slowed. The lessons are clear: there are pro-growth policies, and policies that hurt growth. Too often, the search for villains – developers or data centers being blamed for water shortages, or investors and short-term-rentals for housing market woes – deflects from real problems and leads to harmful policies.”

Image courtesy Pixabay and was published prior to July 2017 under the Creative Commons CC0 1.0 Universal Public Domain Dedication license

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Dozens of new laws passed during the 2025 legislative session will take effect tomorrow, including several priorities championed by the Arizona ˿����Ƶ of Commerce & Industry.

“As these laws take effect, Arizona employers can count on policies that reflect their priorities,” said Arizona ˿����Ƶ President and CEO Danny Seiden. “From keeping vital economic drivers in Arizona, to passing commonsense energy reforms that will deliver long-term stability and affordability, to supporting global companies, these are the kinds of policies that keep Arizona competitive and attractive for investment.” 

˿����Ƶ-backed wins

Among the most notable measures that will take effect

• Senate Bill 1543 — Establishes a framework for international headquarters to build on-site workforce housing and support services, addressing a major barrier to growth for global employers.
• House Bill 2679 — Allows utilities to refinance certain infrastructure investments through securitization, lowering long-term interest costs and creating more predictable energy rates.
• House Bill 2704 — Authorizes renovations to Chase Field without raising taxes, securing the Diamondbacks’ future in downtown Phoenix while protecting thousands of jobs and strengthening surrounding businesses.
• Senate Bill 1307 — Creates a policy foundation for advanced air mobility, including electric aircraft, drone deliveries, and air taxis, positioning Arizona as a national leader in next-generation transportation.
• House Bill 2201 — Requires utilities and public power entities to adopt wildfire mitigation plans, protecting communities, infrastructure, and the state’s energy reliability.

Another priority, Senate Bill 1215, which sets stiffer standards for third-party litigation funding and prohibits foreign entities of concern from funding lawsuits, will take effect on December 31, 2025 due to a delayed implementation date.

In addition to the new law, the state Supreme Court earlier this month adopted new rules to enhance the level of transparency around lawsuit loans.

The business community also backed a provision in the bipartisan state budget passed earlier this year that permits the issuance of SPEED bonds, which are construction loans used by Arizona’s public universities and supported by Arizona Lottery ticket sales that help ensure recurring financial support provided to build and maintain public university facilities.

“These are just a few of the highlights the ˿����Ƶ and broader business community accomplished at the Capitol in 2025,” ˿����Ƶ Executive Vice President Courtney Coolidge said. “What we don’t always see, though, are the many bad bills we worked to defeat that would have harmed the state’s job creators.”

Coolidge said the ˿����Ƶ and think tank Common Sense Institute Arizona would soon release a report about the many bills that would have harmed the state economy.

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