State and local governments have accumulated more than $6 trillion in debt, with some of the highest per-capita burdens concentrated in blue states with a history of high government spending. A new Reason Foundation report finds that New York, New Jersey, Connecticut, Illinois, and Hawaii each carry more than $30,000 in state and local government debt per resident. The findings raise concerns about the long-term costs of government spending and the financial obligations being

The Treasury Department's proposed restrictions on U.S. investment in Chinese biotechnology companies could have unintended consequences for American patients seeking access to new medicines. While the government has a legitimate interest in preventing American investments from strengthening China's military capabilities, overly broad restrictions could interfere with pharmaceutical research and development that has little connection to national security. The Comprehensive Ou

A Georgia social media influencer who flaunted private jets, luxury cars, and stacks of cash has been indicted for allegedly stealing more than $4 million in federal food assistance benefits. Federal prosecutors accuse Mercedes Reshard New, known online as "Shawty Dred," of using stolen identities to establish more than 340 fraudulent Supplemental Nutrition Assistance Program (SNAP) accounts over six years. According to the Atlanta Journal-Constitution, New allegedly transfer

The Centers for Medicare & Medicaid Services (CMS) is proposing new transparency requirements for pharmacy benefit managers (PBMs), building on legislation Congress passed earlier this year to address prescription drug pricing practices that can drive up costs for patients and health plans. The proposed rule would require greater disclosure of PBM compensation and financial arrangements under Medicare Part D. It follows years of concern that PBMs can profit from complicated p

President Donald Trump signed an order Friday removing 50% tariffs on certain Canadian agricultural and forestry products, providing relief to American businesses as Republicans face growing political pressure over the administration's trade policies. The exemptions take effect October 30, amid rising public opposition to tariffs and concerns about their economic consequences. According to NBC News, the administration eliminated the duties following pressure from Sen. Susan C

The Treasury Department and Internal Revenue Service (IRS) have proposed new regulations implementing provisions of the Working Families Tax Cuts that tighten eligibility requirements for Obamacare subsidies. The changes are intended to strengthen oversight of the Premium Tax Credit and reduce the risk of taxpayer-funded benefits going to individuals who do not qualify. The proposal addresses longstanding concerns about how the federal government verifies eligibility for heal

Large tax-exempt hospital systems receive billions of dollars in tax benefits each year, despite many operating extensive investment portfolios, accumulating substantial assets, and competing directly with taxpaying health care providers. New research from the Tax Foundation raises questions about whether these tax preferences remain justified and identifies several reforms that could generate significant federal revenue. The Center for a Free Economy (CFE) will bring this is

The federal government collected 65% more in tax revenue over the past decade, yet the national debt more than doubled. Washington's spending grew considerably faster than the revenue available to support it, leaving taxpayers with a growing debt burden despite substantial increases in federal tax collections. According to Treasury data compiled by Charlie Bilello of Creative Planning, federal spending increased 92% between September 2016 and September 2026, reaching $7.4 tri

Patients can shop around for the best price on nearly everything they buy, but when it comes to health care, they are often expected to make expensive decisions without knowing what they will pay. New federal regulations from the Centers for Medicare & Medicaid Services (CMS) aim to give patients better access to health care prices and make it easier to compare costs before receiving treatment. The new Transparency in Coverage rules build on requirements established during Pr

Elon Musk plans to distribute SpaceX stock to American children through Trump Accounts, expanding the role of private investment in the new tax-advantaged savings program. The announcement follows a Treasury Department decision allowing direct stock contributions to the accounts, a change that gives business owners and major shareholders a new way to help children accumulate wealth. According to the Washington Examiner, the proposal would distribute shares of SpaceX to childr

A new report from the Office of the Comptroller of the Currency (OCC) found that the nation's nine largest national banks maintained policies that restricted financial services based on political or religious beliefs and lawful business activities. The findings provide new evidence of how debanking became a problem for Americans whose views or businesses fell out of favor with federal regulators. Much of the criticism surrounding debanking has focused on the banks themselves.

Artificial intelligence is emerging as a major driver of American economic growth, attracting billions of dollars in private investment, creating demand for skilled workers, and opening new opportunities for businesses across the economy. While much of the public discussion has focused on the potential for automation to eliminate jobs, recent economic data and employment projections suggest that AI could produce substantial gains in investment, productivity, and employment. T

The Working Families Tax Cuts expanded a federal tax deduction for state and local taxes, but the way Congress structured the benefit has created a financial disadvantage for some married couples. That outcome was a deliberate part of the negotiations, as lawmakers from high-tax states sought to extend the deduction to as many of their constituents as possible. The state and local tax (SALT) deduction allows taxpayers who itemize their federal income tax returns to deduct cer

The Center for a Free Economy (CFE) is leading a coalition of more than 40 organizations opposing California's Medicaid ambulance reimbursement practices. The coalition is urging the Centers for Medicare & Medicaid Services (CMS) to reject proposed changes sought by Governor Gavin Newsom's administration that would favor government-owned providers at the expense of private companies and federal taxpayers. The letter to CMS Administrator Mehmet Oz includes signatures from Amer

Robert Hall’s 2026 Nobel Prize in Economics brings renewed attention to the Hall-Rabushka flat tax, one of the most influential proposals in the history of federal tax reform. Developed with economist Alvin Rabushka, the flat tax helped establish the intellectual foundation for consumption-based taxation, including several major business tax provisions now incorporated into the Working Families Tax Cuts. Although Hall received the Nobel Prize for his contributions to macroeco

A bipartisan Senate proposal would allow families to transfer more unused education savings into retirement accounts by eliminating the $35,000 lifetime limit on rollovers from 529 plans to Roth IRAs. Sen. Ted Cruz (R-TX) and Sen. Lisa Blunt Rochester (D-DE) introduced S. 5550, the "529 Retirement Enhancement Act of 2026," to give families more options when money saved for education is no longer needed for that purpose. The legislation would remove the lifetime rollover cap w

The bottom half of American households has posted the fastest percentage growth in wealth since 2020, an economic gain that has received far less attention than the widening gap between millionaires and billionaires. The Wall Street Journal recently focused on the growing divide at the very top of the wealth distribution. The wealth held by the top 0.1% has more than doubled since the end of 2019, while the threshold for reaching the top 1% has climbed substantially. The Comm

Employers have long helped workers pay for health insurance while retaining considerable control over which plans those workers can choose. CHOICE Arrangements offer a different model: employers provide the money, but employees choose the insurance. The Centers for Medicare & Medicaid Services (CMS) is promoting the approach as an alternative to traditional employer-sponsored group coverage. At a recent event in Texas, federal officials joined employers already using CHOICE A

The Treasury Department is proposing tighter eligibility rules for refundable tax credits, drawing opposition from critics who warn that the change could affect some legal immigrants and families with U.S. citizen children. The criticism comes despite a long record of improper payments and eligibility errors in refundable tax credit programs. Treasury's proposal would classify the refundable portions of the Earned Income Tax Credit, Child Tax Credit, American Opportunity Tax

New federal rules have clarified how taxpayers will be able to use a school choice provision created by the Working Families Tax Cuts, including a tax credit worth up to $3,400 for married couples filing jointly. The Education Freedom Tax Credit allows taxpayers to receive a dollar-for-dollar federal income tax credit for contributions to eligible scholarship granting organizations, or SGOs. The credit is capped at $1,700 for individual taxpayers, while the new Treasury and

The Treasury Department is opening a new path for private investment in Trump Accounts by allowing qualifying donors to contribute publicly traded stock directly to children's accounts. Combined with Treasury's decision to automatically establish accounts for more than 60 million eligible children, the change could make stock ownership a much larger part of the program. The new rules are especially important for companies, founders, and other large shareholders interested in

High-tax states have spent years losing residents and income to lower-tax competitors. If those trends continue, the next loss could be political power in Washington. A new 2030 congressional apportionment forecast projects California losing four U.S. House seats after the next census. Texas would gain four seats and Florida would gain two, while Arizona, Georgia, Idaho, North Carolina, and Utah would each gain one. The forecast is not a guarantee of what the 2030 census will

Washington spends enormous sums trying to lower health care costs while its own programs sometimes pay far more than the private market for the same care. New Medicare data and California's Medicaid ambulance payments show how expensive that disconnect can become. The Centers for Medicare & Medicaid Services (CMS) found that Medicare pays about 16 percent more than private insurers for laboratory services. Bringing those rates closer to private-sector prices could save taxpay

The federal government has steadily taken a larger role in American health care, and that expansion has helped drive a system in which health care spending grows faster than the economy. More federal spending and subsidies have put more money into the health care system while weakening the market pressures that would otherwise force providers and insurers to compete more aggressively on price. In 1962, federal health programs accounted for just 7.2% of national health spendin

The federal government ran a $2 trillion deficit through the first 11 months of the fiscal year, according to the Congressional Budget Office (CBO). With one month remaining, Washington is on track to close another fiscal year with a deficit measured in the trillions. The source of the imbalance is clear in the federal budget data. Tax collections remain close to their historical share of the economy, while federal spending is well above its historical average. CBO projects f

The Centers for Medicare & Medicaid Services (CMS) has canceled roughly 315,000 unauthorized Obamacare enrollments covering more than 760,000 people, with approximately $2.2 billion in taxpayer-funded premium subsidies expected to be returned. The size of the recovery is notable, but so is the process CMS used before canceling the enrollments. The agency worked with insurers to identify accounts showing multiple signs of unauthorized enrollment and provided opportunities for

More than 1.4 million Americans have already claimed the new car-loan-interest deduction created by the Working Families Tax Cuts, and the IRS has now finalized regulations governing the tax break. The final rules provide taxpayers and lenders with clearer guidance on a provision that has quickly become a source of tax relief for working and middle-income households. The average deduction claimed so far exceeds $1,800, according to Treasury data released by the U.S. House Way

American household incomes reached a record high in 2025 as the poverty rate declined, providing an encouraging sign for household finances after years of pressure from high inflation. New data from the U.S. Census Bureau show real median household income rose 2.6 percent to $87,460, up from $85,210 in 2024. That is the highest level recorded since the Census Bureau began tracking the measure in 1967. Median post-tax household income rose even faster, increasing 3.1 percent t

President Donald Trump is proposing a $5,000 payment to every adult U.S. citizen if Republicans retain control of Congress. The idea would put thousands of dollars into Americans’ hands, but early polling shows that voters are not embracing it. A Reuters/Ipsos poll found that 63 percent of Americans disapprove of the proposal, compared with 17 percent who approve. Opposition extends beyond Democrats. Reuters reported that 40 percent of Republicans disapprove, while the more d

Some states have found a lucrative way to make federal taxpayers pick up more of their Medicaid costs: tax health care providers, use the tax revenue to claim additional federal Medicaid matching funds, and then direct higher Medicaid payments back toward the providers being taxed. It amounts to a kickback-style financing arrangement. The providers supply money that helps the state qualify for more federal Medicaid dollars, while Medicaid payments can send money back to the s

American businesses have spent more than a year contending with higher costs from tariffs, and the financial pressure is becoming harder to contain. Many companies initially absorbed at least part of those costs rather than passing them directly to customers. As profit margins tighten and fuel, freight and other operating expenses rise, businesses have less room to continue shielding consumers from higher prices. At the same time, tariffs are becoming more unpopular. A Septem

For many lower-income Americans, the biggest obstacle to building retirement savings is getting started. A new federal program taking effect in 2027 is designed to make that first contribution more valuable by matching a portion of what eligible workers save. The Saver’s Match will provide eligible lower- and moderate-income workers with a federal contribution to their retirement accounts when they make qualifying contributions of their own. The policy creates a straightforwa

Washington has taken steps to encourage domestic investment, expand manufacturing, and prepare more Americans for skilled careers. California’s high costs are threatening to undermine that progress in one of the country’s most important manufacturing states. The Working Families Tax Cuts improved the federal tax treatment of business investment, domestic research and development, and new production facilities. The law also expanded the use of 529 education savings plans for w

The Working Families Tax Cuts are providing tax relief to millions of American workers and families while making several important tax provisions permanent for small businesses. Earlier this year, CFE launched a full campaign examining the law, including the individual tax cuts showing up on tax returns and the provisions intended to encourage business investment and job creation. Through its Working Families Tax Cuts campaign, CFE has highlighted how the law affects workers,

The Securities and Exchange Commission (SEC) is moving to make electronic delivery the default for many financial disclosures, replacing rules that still favor paper documents despite the widespread use of online banking and investment services. CFE supports the SEC's proposed Regulation E-Delivery. The change would modernize outdated delivery requirements, reduce printing and mailing costs, and give investors faster access to financial information. Investors who prefer paper

Tax-exempt hospitals receive billions of dollars in tax benefits each year to support their charitable missions. Some of those same institutions are spending millions of dollars to put their names on stadiums, arenas, and other sports facilities. Valley Children’s Healthcare in California, for example, entered a 10-year, $10 million partnership with Fresno State that included naming rights to the university’s football stadium. According to Stateline, the agreement included ac

The Medicare system is on the verge of bankruptcy. By this time next decade, there will not be enough money in the system to pay full promised benefits. Without cost savings, America's $40 trillion national debt will get even bigger just to pay scheduled Medicare benefits to seniors. Some of Medicare’s problems are rooted in the program’s basic design and will require broader reforms. But Congress can begin addressing the immediate budget problem with a relatively simple appr

Rep. Anna Paulina Luna (R-Fla.) is proposing a 2 percent cap on federal student loan interest rates as a way to provide relief to borrowers. The proposal has an obvious populist appeal, but it overlooks how federal subsidies have shaped the economics of higher education. Lower interest rates would reduce financing costs for borrowers. They would not reduce the price colleges charge. By making tuition less expensive to finance, the proposal could weaken pressure on colleges to

The Trump administration is reportedly considering a significant change to federal child care policy that would extend federal assistance to some married couples in which one parent works and the other stays home to care for their children. The proposal responds to a legitimate imbalance in current policy. Federal child care programs and tax benefits generally provide assistance when parents pay someone else to care for their children, while offering less support when a paren

American manufacturing is showing renewed strength, with recent employment and industry data pointing to increased production, hiring, and investment. The gains come as businesses begin operating under the permanent pro-growth provisions of H.R. 1, the Working Families Tax Cuts. The August jobs report showed employers added 162,000 jobs, including 127,000 in the private sector. Manufacturing employment increased by 16,000 during the month, bringing total manufacturing employm

Banking regulation rarely attracts the attention given to taxes, health care, or other pocketbook issues. But millions of Americans rely on the nation’s largest banks for checking accounts, credit cards, payments, savings, and other financial services. Changes to federal banking rules can have consequences well beyond Wall Street. Nearly three-quarters of Americans have an account with a large national bank, including JPMorgan Chase, Bank of America, Wells Fargo, and Citibank

A new analysis of federal prescription drug price controls finds that policies intended to lower costs today could result in higher drug spending over the long term by discouraging generic and biosimilar competition. Writing in RealClearHealth, University of Chicago economist Tomas J. Philipson argues that the prescription drug price controls enacted under the Inflation Reduction Act could weaken the competition responsible for some of the largest reductions in drug prices. H

Congressional support is growing for legislation aimed at confronting foreign government drug price controls and reducing the burden they place on American patients and businesses. Sen. Tim Sheehy (R-Mont.) has introduced S. 5265, the “Use Sovereignty to Reduce Rx Act,” or “USTRx Act,” establishing a Senate companion to legislation introduced in the U.S. House by Rep. Jodey Arrington (R-Texas). The Senate introduction marks an important step forward for the USTRx Act and foll

Sen. Bernie Moreno (R-Ohio) has joined Sen. Elizabeth Warren (D-Mass.) in calling for the elimination of the Social Security payroll tax cap, a proposal that would subject all wages and self-employment income to the program’s 12.4 percent payroll tax. In a recent op-ed for The Hill, CFE President Ryan Ellis warns that the proposal would amount to a significant tax increase on work, entrepreneurship, and small businesses without addressing the underlying cause of Social Securi

A bipartisan group of senators is advancing a package of more than 60 changes to the IRS and federal tax administration, bringing together a series of practical reforms designed to make the tax system easier for families and businesses to navigate. The U.S. Senate Finance Committee advanced S. 3931, the "Taxpayer Assistance and Service (TAS) Act" by a 26-1 vote. Rather than pursuing a major rewrite of tax policy, the legislation addresses persistent problems with IRS administ

The Center for a Free Economy (CFE) recently urged the U.S. Senate Finance Committee to reject proposals that would expand federal drug price controls as lawmakers consider policies aimed at lowering prescription drug costs. In comments submitted to the committee, CFE warned against accelerating Medicare price-setting, importing foreign government price controls, and extending federal price regulation into the private insurance market. CFE instead recommended reforms designed

Seven million American children are already enrolled in Trump Accounts, an early sign of strong participation in the new savings program created by H.R. 1, the "Working Families Tax Cuts." The milestone comes as new federal guidance gives employers a clearer path to contribute directly to accounts for their workers' children. According to the U.S. House Ways and Means Committee, reporting on Treasury Department data, 86% of children enrolled in Trump Accounts come from famili

The Center for a Free Economy (CFE) submitted comments supporting U.S. Trade Representative Jamieson Greer’s Section 301 investigation into Germany’s pricing of innovative pharmaceutical products. CFE argues that Germany’s price controls undervalue new medicines, discourage research and development, and shift more of the cost of pharmaceutical innovation onto American patients. CFE urged USTR to press Germany to end these market-distorting policies and encouraged the administ