Southwest
Arizona governor declares protecting groundwater, tackling school voucher costs top priorities for 2024
Arizona Gov. Katie Hobbs has vowed to bring accountability to a school voucher program that’s expected to top $900 million this year and update laws that allow for the nearly unfettered use of groundwater in rural areas of the drought-stricken state.
The Democratic governor, making her second annual state of the state address Monday as the Legislature began its regular session, also leveled criticism at the federal government. She blamed it for closing a key port of entry along the Arizona-Mexico border for one month because of a surge of immigrants and touted her decision to send National Guard members to the international boundary in response to the crisis.
The state is facing a $400 million shortfall in this current budget year and another $450 million deficit in the coming year. Those numbers are mainly due to the skyrocketing costs of a 2022 expansion of the voucher program and a 2021 tax cut that took full effect last year and reduced incoming tax revenues by about 30% from July through November.
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Budget analysts say the shortfall will likely grow when the state’s next revenue forecast is released later this month. Democrat lawmakers concede the tax cut won’t likely go away, but they want to overhaul the voucher program.
“We will rein in wasteful spending without sacrificing public safety and public education,” Hobbs said in the prepared text. “We will establish guardrails on unaccountable programs without hurting hard-working families.”
Gov. Katie Hobbs of Arizona arrives at the House of Representatives floor to give her State of the State address at the AZ state capitol in Phoenix on Jan. 8, 2024. (AP Photo/Ross D. Franklin)
Hobbs also called for creating a new division in state government to oversee the affordability of prescription drugs, capping prices on commonly used drugs such as insulin and preventing huge price hikes. And she promised to work to help solve Arizona’s housing crisis with initiatives including a new mortgage assistance program for working-class families.
Water will also be a focus for the Legislature amid a severe, long-term drought in the arid southwestern state. Concerns are growing in Arizona about future shortages from the Colorado River system, which supplies about 40% of the state’s water.
Hobbs noted her crackdown last year on a Saudi-operated farm that residents feared was depleting precious groundwater for thirsty alfalfa crops. And she promised to do more to protect water this year.
“For decades, rural Arizonans who have begged, demanded, and fought to protect their groundwater have been ignored,” she said. “Now, after forty years of waiting, it’s time we finally take action and update our groundwater management laws.”
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Hobbs said she had directed the Arizona Department of Water Resources to finalize a new, alternative way for water providers and communities to achieve a 100-year assured water supply through the reduction of groundwater pumping and contributions of new water sources. That would affect far-flung communities in metro Phoenix where subdivision construction has been paused due to concerns about insufficient groundwater.
Kathryn Sorensen, director of research for Arizona State University’s Kyl Center for Water Policy, said she was struck by Hobbs’ promise to legislators who have refused to act on water issues: “If you don’t, I will.”
Sorensen also said Hobbs’ call for bipartisan cooperation on the future of Arizona was important as she “reminded everyone that water is a nonpartisan issue and we can achieve more by working together.”
Regarding education, the school voucher program that Hobbs wants to rein in lets parents use public money for private-school tuition and other education costs. It started in 2011 as a small program for disabled children but was expanded repeatedly over the next decade and became available to all students in 2022.
Originally estimated to cost $64 million for the current fiscal year, the program could ultimately top $900 million, budget analysts say. Critics say the expansion is a drain on the state, while backers say the expansion lets parents choose the best school for their children.
Sen. John Kavanagh, a Republican who chairs the Senate Appropriations Committee, said Hobbs’ ideas for changing the voucher program won’t have any chance of getting through the Legislature.
“We are not going to regulate schools that parents choose and are working well,” Kavanagh said.
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Hobbs vowed to bring accountability when she began her term a year ago as the first Democratic governor since 2009. Despite her criticism, the budget proposals negotiated by Hobbs last year didn’t include any caps on the expansion, leading Democratic lawmakers to express dissatisfaction with the lack of action.
She’s now proposing such changes as requiring private schools that receive voucher funding have minimum education requirements for teachers and that students attend public school for 100 days before becoming eligible for the vouchers. She reiterated a desire for accountability and transparency in the program.
Before the speech, Republican Sen. Jake Hoffman said Hobbs’ approach to vouchers would “destroy an empowering program that has helped hundreds of thousands of people, not just in their academic studies, but throughout their life.”
Hobbs also lambasted what she said has been Washington’s “ongoing failure to secure our southern border -– a failure decades in the making under both Democratic and Republican administrations.”
Among the “misguided efforts” by federal officials was the recent monthlong closure of the border crossing in Lukeville, Arizona, Hobbs said.
U.S. Customs and Border Protection called the move necessary to free up personnel to help Border Patrol agents apprehend and process hundreds of migrants entering the U.S. illegally. But the closure “did nothing to actually solve our immigration crisis but did hurt businesses and families,” Hobbs said.
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She noted that she had sent National Guard troops to the border to help support overwhelmed Border Patrol agents with support duties and is now seeking funding for her Operation SECURE, an office inside the Arizona Department of Homeland Security that aims to better coordinate the state’s response to border issues.
In a video released after the governor’s speech, House Speaker Ben Toma criticized Hobbs’ approach to immigration, saying, “Her record is one of broken borders.”
The Legislature’s goal is to wrap up the legislative session within 100 days, but lawmakers typically go until May or June, especially when there are difficult problems to negotiate such as a budget shortfall.
The governor is scheduled to release her budget proposal later this week.
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Southwest
Jasmine Crockett campaign reportedly kicked Atlantic writer out of rally for being a ‘top-notch hater’
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Atlantic staff writer Elaine Godfrey reported that she was “thrown out” of a rally for Rep. Jasmine Crockett, D-Texas, for being a “top-notch hater” according to Crockett’s team.
“Right before armed guards escorted me from the rally and left me on the edge of a Texas-county road, I was informed that I was no longer welcome at an event that I had already attended,” Godfrey wrote on Thursday.
She described having spent an hour at the Lubbock rally for Crockett’s Senate campaign before being approached by a woman with a badge as soon as she joined other reporters.
Elaine Godfrey claimed Rep. Jasmine Crockett’s team removed her from a rally in Texas earlier this week. (Dustin Franz/Bloomberg via Getty Images)
“‘Are you Elaine?’ she asked. I recognized her from the entrance of the event, where I had identified myself as she’d waved me into the building’s press area. Yes, I answered. ‘Her team has asked you to leave,’ she said. When I asked why, the staffer looked at her phone and read dutifully: ‘They just said, “Elaine from Atlantic, White girl with a hat and notepad. She’s interviewing people in the crowd. She’s a top-notch hater and will spin. She needs to leave,”’” Godfrey wrote.
Godfrey was the staff writer behind a profile piece for Crockett in July that reportedly received backlash from the Texas representative after including comments from fellow House Democrats “without telling her first.”
“She was, she told me, ‘shutting down the profile and revoking all permissions,’” Godfrey wrote at the time.
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Rep. Jasmine Crockett, D-Texas, is running in the Democratic primary for U.S. Senate. (LM Otero/AP Photo)
The piece was still published and included comments from other Democratic figures.
According to Godfrey, Crockett said that there was “no evidence” that a reporter was removed from her rally but claimed that there was a “specific journalist” who has a “history of being less than truthful” and had previously lost a lawsuit against Crockett.
“Perhaps she was thinking of someone else, because that’s not something that has ever happened to me,” Godfrey wrote.
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Godfrey added that her removal from the rally wasn’t a surprise considering Crockett’s firebrand-style of politics, though she expressed concern over how she was handled.
Rep. Jasmine Crockett allegedly tried to shut down an article from Elaine Godfrey after she spoke to other House Democrats. (Bob Daemmrich/The Texas Tribune/Bloomberg via Getty Images)
“As security guards began to materialize around me, I wondered to myself what distinguished a top-notch hater from a middling one. I agreed to leave, and four guards, including at least one who was armed, escorted me out of the building, through the parking lot, and right to the edge of the nearby highway, where they waited as I ordered a car,” Godfrey wrote.
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Fox News Digital reached out to Crockett’s office and campaign for comment.
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Southwest
FAA restricts Texas airspace after Pentagon reportedly strikes down Customs and Border Protection drone
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The Federal Aviation Administration (FAA) restricted flights Thursday near Fort Hancock, Texas, after a U.S. Customs and Border Protection (CBP) drone was reportedly shot down by a laser sytem operated by the Pentagon.
While government agencies have not identified who the drone belonged to, top Democrats on the Transportation and Infrastructure Committee released a joint statement Thursday evening claiming the drone belonged to CBP.
U.S. Reps. Rick Larsen, Bennie Thompson and Andre Carson said their “heads are exploding over the news” that a CBP drone was shot down by the Pentagon with “a high risk counter-unmanned aircraft system.”
The legislators added that this incident is “the result of [the White House’s] incompetence” after a “short-sighted” decision to “sidestep a bipartisan, tri-committee bill to appropriately train C-UAS operators and address the lack of coordination between the Pentagon, DHS and the FAA.”
The FAA expanded a temporary flight restriction near Fort Hancock, Texas, after lawmakers said a Pentagon-operated counter-drone system may have shot down a U.S. government drone. (iStock)
In a joint statement provided to Fox News Digital, the Department of War, CBP and the FAA said the DOW used counter-unmanned aircraft system to respond to a “seemingly threatening unmanned aerial system operating within military airspace.”
The departments said the engagement took place “far away from populated areas and there were no commercial aircraft in the vicinity,” adding they “will continue to work on increased cooperation and communication to prevent such incidents in the future.”
The departments said they are “working together in an unprecedented fashion to mitigate drone threats by Mexican cartels and foreign terrorist organizations at the U.S.-Mexico border.”
“The bottom line is the Trump Administration is doing more to secure the border and crack down on cartels than any administration in history,” the statement added.
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Congressional aides told Reuters that the Pentagon reportedly used the high-energy laser system to accidentally shoot down the CBP drone near the Mexican border, an area that frequently sees incursions from drones believed to be operated by Mexican drug cartels.
The FAA told Fox News Digital that a temporary flight restriction (TFR) was “already in place” around the Fort Hancock area and that the TFR “has been expanded to include a greater radius to ensure safety.”
The restriction does not impact commercial flights, the agency said.
The FAA said in a Notice to Air Missions (NOTAM) that airspace around Fort Hancock was temporarily restricted for “special security reasons.”
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The restriction comes a couple of weeks after the FAA grounded flights to and from El Paso International Airport for 10 days before lifting the order roughly eight hours later.
Drones operated by Mexican drug cartels breached American airspace earlier this month near El Paso International Airport in Texas, leading the FAA to temporarily close the airport. (Kirby Lee/Getty Images)
A Trump administration official previously told Fox News that the initial lockdown came in response to “Mexican cartel drones” that breached U.S. airspace.
A U.S. official later confirmed that the U.S. military had shot down what was later determined to be a party balloon near El Paso.
Fox News Digital reached out to the White House for comment and was directed to the joint statement provided by the Department of War, Customs and Border Patrol and Federal Aviation Administration.
Fox News Digital’s Anders Hagstrom and Reuters contributed to this report.
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Southwest
Corporate America is on the move, and these red states are cashing in
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A wave of corporate relocations is reshaping the U.S. economy, and Texas is emerging as the clear winner.
According to a report by CBRE, one of the nation’s largest commercial real estate brokerage firms, 561 companies have relocated their headquarters nationwide since 2018. The research shows many companies are reassessing tax climates, operating costs and growth prospects as they consider a move.
That’s significant because these moves are often driven by long-term financial and growth strategies, not just geography — giving business-friendly states a competitive edge.
From Texas to Tennessee, those states are racking up new headquarters, while blue strongholds like California and New York are losing companies at a notable clip.
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Dallas recorded the highest number of corporate headquarters relocations in the country. (Beata Zawrzel/NurPhoto/Getty Images)
The Lone Star State clearly dominates the relocation map. Dallas-Fort Worth captured 100 headquarters moves between 2018 and 2024 — the most of any metro in the country — while Austin secured another 81 and Houston added 31. Combined, those three markets accounted for more relocations than most entire states, cementing Texas’ outsized role in reshaping the corporate landscape.
Meanwhile, California metros saw the steepest net losses, led by the San Francisco Bay Area with a net loss of 156 headquarters over the same period.
As blue states debate regulation and tax policy, Texas business leaders say the state’s approach is paying off. Megan Mauro, interim president and CEO of the Texas Association of Business, points to the state’s tax structure and lighter regulatory climate as key draws.
“We have a light regulatory touch and no personal or corporate income tax,” Mauro said, citing Texas’ recent $25 billion surplus as evidence of what she calls a competitive tax environment.
Her argument aligns with research from CBRE, which found that companies most often cite lower taxes, reduced operating costs and stronger growth opportunities when relocating their headquarters.
The shift has intensified scrutiny of tax policy in high-cost states. Steve Moore, economist and co-founder of Unleash Prosperity, said those states risk driving away wealth and investment.
“It is common sense for business leaders to pick places for future financial success rather than economic suffocation,” Moore told Fox News Digital.
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California Gov. Gavin Newsom has previously said that he does not support the “billionaire tax” measure. (Sean Rayford/Getty Images)
He argued that proposals such as California’s 2026 Billionaire Tax Act are accelerating the outflow of the state’s ultra-wealthy residents to lower-tax states like Texas and Florida.
“These business tycoons are running to states like Florida and Texas because of lower taxes, economic freedom and future economic prosperity,” he said, describing it as “voting with their feet.”
That shift is also reflected in population data.
From 2021 to 2024, Texas and Florida posted the largest net population gains, while California and several northeastern states recorded some of the steepest losses, according to IRS and U.S. Census Bureau data.
Moore added that the broader economic implications extend beyond corporate balance sheets.
Growth in states like Texas can expand the tax base and provide additional funding flexibility for infrastructure, education and other priorities — often without raising tax rates.
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President Donald Trump pointed to job growth and other economic milestones during his State of the Union speech on Feb. 24, 2026. (Win McNamee/Getty Images)
Economic performance frequently shapes midterm messaging, and migration trends like these are poised to feature in debates over tax competitiveness.
Whether those patterns endure remains to be seen. For now, though, population flows are reinforcing a broader argument: tax policy is no longer an abstract debate — it’s shaping where Americans choose to build their futures.
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