Gallego discusses economy, housing and energy at West Valley event

By Mary Goldmeer
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Sen. Ruben Gallego addressed the West Valley Regional Chamber expressing concern over a slowdown in the country’s economy.

The Democratic senator attributed the issue to federal policies and high interest rates, warning the nation's long-term prosperity is at risk without a shift in strategy.

Speaking at Estrella Mountain Community College, Gallego offered his perspective on several key challenges facing Arizona, including trade, housing, child care, and energy.

The forum was brought together local business owners and community leaders to hear the senator's take on issues affecting the state’s growth and his steps to change them.

A 'self-inflicted' economic slowdown

Gallego told the audience he's seeing economic indicators of people slowing their investments, a trend he called frustrating and self-inflicted. He pointed to tariffs and unpredictable trade policies as major factors discouraging cross-border business, particularly with Mexico.

"As a senator from a border state, I have to remind my friends from other states… that being a border state is a superpower," Gallego said. "It is something that makes us very, very rich as a state culturally, and the more investment we have on the border, the richer we would be as a country."

He added that his working-class background informs his perspective on policy.

"My mentality is still very much being that kid from South Chicago hustling just to make it," Gallego said, noting his belief in the American Dream and a need to restore confidence among working-class Americans who feel that hard work no longer guarantees a better life.

Housing, child care and energy challenges

Gallego spoke of the lack of affordable housing as one of Arizona’s most significant long-term economic threats, stating about 500 people move to the state each day. He said there is a need for rapid action to streamline the process of building multi-family housing.

The senator also highlighted the high cost of child care. Taylor Tasler, Gallego’s press secretary, stated Gallego pays $21,000 annually for child care for his child whom he shares with his ex-wife, Phoenix Mayor Kate Gallego. 

Even the most affordable child care costs rivals in-state tuition from local universities, Gallego said.

"(The cost of child care) is hurting families. It is a huge, huge burden on them," Galego said.

On the topic of energy, Gallego, a ranking member of a Senate subcommittee on energy, called for the state to expand its nuclear power capacity to keep pace with the growth of industries like semiconductors and artificial intelligence.

"We are lucky that as a state that we have a nuclear power plant here. We need more of them," he said.

Gallego also argued that the state that can ensure stable energy prices will attract the most jobs and lead the country in economic growth.

The ripple effect of inflation

Gallego expressed concern that persistent inflation and high interest rates are creating a ripple effect. He warned if the Federal Reserve continues to keep interest rates high, it will become tougher for  Arizonans and people across the country to borrow money for homes and businesses. This, in turn, will further slow investment and economic expansion.

The event was part of the chamber’s ongoing effort to connect local businesses with decision-makers. Organizers said such forums give the business community an opportunity to engage with elected officials and promote open dialogue on issues affecting the region.

Visit gallego.senate.gov for more information on Gallego’s legislative goals and actions.