News
Tempe Streetcar: Exceeding Expectations, Fueling Expansion
“Tempe Streetcar exceeds expectations, paving the way for expansion and improved transportation in the region.”
Last Updated on August 10, 2024 by Daily News Staff
In its inaugural year, the Tempe Streetcar has not only surpassed ridership expectations but has also laid the groundwork for future expansion. This 3-mile streetcar route has swiftly become a preferred mode of transportation through Tempe’s busiest areas, presenting a compelling case for extending its reach into Mesa.
Tempe Streetcar Success
The streetcar’s successful launch is the culmination of over a decade of planning and development. Tempe’s sustainability and resilience director, Eric Iwersen, explains that the city’s landlocked nature prompted the need for high-capacity public transit. The city first implemented an extensive bus system, followed by light rail, and the streetcar serves as the next phase in this growth trajectory.
Since its opening in May 2022, the streetcar has catered to over 800,000 passengers, far surpassing the initial goal of 330,000 riders set by Valley Metro and Tempe. Operating as a hybrid between a light rail and a bus, the streetcar’s design resembles a small light rail car but offers more frequent stops and a slower pace.
The integration between the streetcar and the light rail has demonstrated the efficacy of a regional transportation system. Valley Metro capital planning manager Marty Ziech emphasizes the connectivity between different modes of transit, showcasing the streetcar’s role in the larger transportation network of metro Phoenix.
Looking ahead, Tempe and neighboring Mesa have allocated funds for a study to explore an extension of the streetcar route. This proposed expansion would journey east on Rio Salado Parkway, passing prominent locations like Tempe Marketplace and Sloan Park, before heading south on Dobson Road, linking to the Mesa Asian District and a light rail stop on Main Street.
While challenges exist, such as recent legislation limiting future rail funding, proponents of the project remain optimistic. Funding avenues include the possibility of reallocating existing transportation funds, leveraging federal transit money from the bipartisan infrastructure law, and seeking creative solutions to finance the streetcar’s future.
For now, the streetcar continues to operate fare-free, providing accessible transportation to all. Once fares are implemented, riders can expect to pay approximately $1, presenting an affordable option for convenient travel within Tempe.
The Tempe Streetcar had a successful first year, highlighting its potential to improve connectivity and growth in the region.As plans for expansion take shape, the streetcar stands poised to transform transportation in Tempe and beyond.
Source: Valley Metro, City of Tempe, Axios
Valley Metro: https://www.valleymetro.org/
City of Tempe: https://www.tempe.gov/government/engineering-and-transportation/transportation/bus-light-rail-paratransit-streetcar
Tempe Streetcar exceeded expectations in first year (Jessica Boehm) https://www.axios.com/local/phoenix/2023/09/18/tempe-streetcar-free-extension-cost-ridership
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The Knowledge
Where Does Federal Money Go? The Biggest Costs Behind the Budget
Where does federal money go? Part two of our National Debt Explained series examines the biggest expenses in the 2025 budget and how spending connects to government borrowing.
The Knowledge | National Debt Explained, Part 2
When discussing debt, ask: Who borrowed the money? That question helps distinguish a family’s finances from the federal budget. Our first episode explained why your credit card balance is separate from the national debt. Now comes the next question: What does the federal government spend money on?
Much of it pays for retirement benefits, health coverage, national defense, public services, and interest on previous borrowing.
Social Security was the largest individual program in fiscal year 2025, costing approximately $1.6 trillion. But combine the major health care programs—including Medicare, Medicaid, and health insurance subsidies—and their spending reached about $1.8 trillion, exceeding Social Security alone. cbo.gov
The figures below cover October 1, 2024, through September 30, 2025.Major expense FY 2025 spending What it supports Social Security About $1.6 trillion Retirement, survivor, and disability benefits Medicare, net $988 billion Health coverage for older adults and certain people with disabilities Net interest $970 billion Cost of servicing publicly held federal debt, after subtracting interest income Discretionary defense $893 billion Military personnel, operations, equipment, and research Medicaid $668 billion Federal contribution toward health coverage and care for eligible people
These are selected expenses, not the entire budget. Medicare spending is shown after premiums and other offsetting receipts. The combined health care total already includes Medicare and Medicaid, so it should not be added to those rows. cbo.gov
The government also supports veterans’ health care, transportation, education, housing assistance, courts, law enforcement, scientific research, disaster response, and environmental protection. Nondefense discretionary spending totaled approximately $980 billion in 2025, covering many of these services. Some funding for these areas falls elsewhere in the budget. cbo.gov
Federal spending falls into three broad groups:
- Mandatory spending: Payments governed by existing eligibility rules and benefit formulas, including Social Security and major health programs.
- Discretionary spending: Funding lawmakers control through appropriations legislation, including most defense spending and many public services.
- Net interest: The expense of servicing publicly held federal debt, minus government interest income. cbo.gov
Interest deserves attention because it pays for borrowing already undertaken. In 2025, net interest exceeded discretionary defense spending. Congressional Budget Office
A program’s cost does not automatically translate into an equal increase in national debt. Taxes and other receipts finance much of federal spending. Social Security and Medicare’s hospital insurance program receive dedicated payroll taxes, while Medicare also collects premiums.
In 2025, federal spending totaled approximately $7 trillion, compared with $5.2 trillion in revenue. The roughly $1.8 trillion shortfall was the deficit, requiring borrowing. Understanding national debt therefore means examining both what government spends and what it collects. cbo.gov
Explore more explanations behind the headlines at STM Daily News, home of The Knowledge.
Sources for this episode
- CBO: The Federal Budget in Fiscal Year 2025 — Overview of spending, revenue, deficits, and debt interest.
- CBO: Mandatory Spending in Fiscal Year 2025 — Breakdown of Social Security, Medicare, Medicaid, and other benefit programs.
- CBO: Discretionary Spending in Fiscal Year 2025 — Defense spending and services including transportation, education, and veterans’ health care.
- CBO: Overview of the FY 2025 Budget Infographics — Highlights the largest expenses and broader budget trends.
Related reading
- U.S. Treasury: Understanding the National Debt — What federal debt represents and how borrowing works.
- U.S. Treasury: Understanding the National Deficit — Explains the difference between an annual deficit and accumulated debt.
- U.S. Treasury: Federal Spending — Additional context about where federal money goes.
Daily News
Whose Debt Is the National Debt?
The national debt isn’t Americans’ credit card balances added together. This simple explainer separates federal borrowing from household debt and explains the difference between debt and a deficit.
Last Updated on October 11, 2026 by Daily News Staff
The Knowledge | STM Daily News
When you hear “national debt,” do you picture everyone’s credit card balances added together? The name can create that impression, but the national debt and household debt measure different borrowing.
The U.S. national debt is money the federal government owes. Your personal credit card balance is not included.
Federal debt versus household debt
The Treasury defines national debt as the federal government’s total outstanding borrowing accumulated over the country’s history. Household debt covers borrowing by individuals and families, including mortgages, credit cards, auto loans, and student loans.
|Type of debt |Who borrowed? |Examples |
|————–|————————|————————————————–|
|National debt |Federal government |Outstanding Treasury securities |
|Household debt|Individuals and families|Credit cards, mortgages, auto loans, student loans|
Putting a $500 purchase on your credit card increases your personal balance. It does not add $500 to the national debt.
How does the national debt grow?
When federal spending exceeds tax collections and other revenue, the government runs a budget deficit. Treasury sells securities to borrow money to cover the gap.
Consider a simplified, hypothetical example: the government collects $5 trillion and spends $6 trillion in one year. That leaves a $1 trillion deficit requiring financing.
A deficit measures a shortfall over a period, usually a year. Debt measures outstanding borrowing accumulated over time. Repeated deficits generally increase that debt. Interest on existing borrowing is also a federal expense.
Does paying off your credit card reduce the national debt?
Paying off a card reduces what you owe your lender. It does not directly repay Treasury borrowing. Household debt and government debt can influence the same economy, but they remain separate obligations.
When discussing debt, ask: Who borrowed the money? That one question helps distinguish a family’s finances from the federal budget.
Find more explanations of the ideas behind the headlines at STM Daily News, home of The Knowledge.
Sources
● U.S. Treasury: Understanding the National Debt
● U.S. Treasury: Understanding the National Deficit
● Federal Reserve Bank of New York: Household Debt and Credit Report
Science
October Meteor Showers Give Phoenix Skywatchers a Reason to Look Up
Phoenix skywatchers have several chances to catch October’s meteor showers. Here’s when to watch the Taurids and Orionids—and how moonlight affects the view.
Last Updated on October 10, 2026 by Daily News Staff
PHOENIX — October is bringing several opportunities to spot shooting stars over the Valley, with the Draconids reaching their October 8–9 peak and more meteor activity ahead.
The Draconids remain active through October 10, although viewers should expect a light display as the peak passes. Under favorable conditions, the shower typically produces only a handful of meteors per hour. timeanddate.com
Next, the Southern Taurids have an annual activity peak around October 14. Known for occasional bright fireballs, the shower continues into November. The stronger Orionids peak on the night of October 21 into the morning of October 22, typically producing 10–20 meteors per hour under dark skies. A bright Moon will interfere with this year’s display. American Meteor Society
The Orionids originate from debris left by Halley’s Comet. For Phoenix viewers, the best opportunity will be after moonset and before dawn, weather permitting. City lights will further reduce the number visible. amsmeteors.org
NASA recommends finding a viewing area away from streetlights, allowing about 30 minutes for eyes to adjust, and watching a broad stretch of sky. No telescope is needed—just a comfortable chair and patience. NASA Science
ECurious about what’s happening above us? Explore more space stories and science explainers in The Knowledge at STM Daily News.xplore more space, science and everyday
