Hobbs announces bill moratorium over disabilities funding standoff
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Gov. Katie Hobbs issued an ultimatum to GOP lawmakers, saying she won't sign any new bills until the Legislature resolves a shortfall in the budget for development disabilities funding. Photo: Jeremy Duda/Axios
Gov. Katie Hobbs escalated the standoff over a budget shortfall for developmental disabilities services, announcing she'll veto any new bills that land on her desk until she gets the funding she wants without GOP strings attached.
The big picture: The Thursday announcement is tied to Hobbs' and the Legislature's dispute over $122 million she wants to keep developmental disabilities services running through the end of the fiscal year.
- Hobbs derided a recent Republican proposal as "political theater" and said GOP lawmakers "continue to hold Arizonans with disabilities hostage to their manufactured chaos."
Caveat: The moratorium doesn't apply to bills that have already been sent to her but that she hasn't signed or vetoed yet.
Catch up quick: The Parents as Paid Caregivers program, which grants funding to home care givers for their children with severe developmental disabilities, is expected to run out of money on May 1.
- Republican lawmakers blame Hobbs for continuing the program without state funding after federal dollars ran out for the pandemic-era program.
- Hobbs attributed the funding shortfall to higher-than-expected enrollment and costs this fiscal year.
Friction point: After hours of emotional testimony on Tuesday, Republicans in the House and Senate appropriations committees approved GOP proposals to restore the funding, but with stipulations.
- The bills would cap the number of paid caregiving hours to 40 per week starting in July and reduce the total to 20 in July 2026.
- They would also require legislative approval before the governor could request federal permission for the state Medicaid system to provide various health care services.
- Funding for the developmental disabilities shortfall would come from the state's Housing Trust Fund, Prescription Drug Rebate Fund and a fund that provides government incentives for economic development, some of which has been a sticking point.
What she's saying: Hobbs called the Republican plan "unserious and a complete nonstarter."
The other side: House Speaker Steve Montenegro said in a statement that Hobbs' "decision to hold every bill hostage because she didn't get her way on a blank check is not leadership — it's political blackmail."
- Senate President Warren Petersen's response was more muted, saying that lawmakers met with stakeholders Wednesday, and he anticipates changes before it goes to the governor.
The intrigue: Three Republicans voted against the GOP plan in the House Appropriations Committee, so there may be an opening for a bipartisan compromise.
- One, Rep. Julie Willoughby (R-Chandler), proposed an amendment that would keep the 40-hour cap.
- House appropriations chair Rep. David Livingston (R-Peoria) added three Republicans to the committee to ensure the GOP plan had enough support to pass, the Arizona Republic reported.
- Hobbs said she'll continue working toward solutions and is willing to use money from the Prescription Drug Rebate Fund, from which the Republican plan would take $74 million, to pay for developmental disabilities services.
In other legislative news, Hobbs vetoed a slew of legislation earlier in the week before her bill moratorium, nixing 15 items including:
🚰 Seven water bills sponsored by Rep. Gail Griffin, R-Hereford, that Hobbs derided as "political cover for the Legislature's inaction on water security."
- The bills would have given voters the ability to remove groundwater restrictions in parts of the state, among other changes.
⚤ Legislation to enshrine in state law there are only two sexes and establishing corresponding policies regarding sex discrimination, vital statistics and separate, single-sex environments for athletics, locker rooms, domestic violence shelters, restrooms and other facilities.
💉 A bill allowing college students to opt out of the schools' proof-of-immunization requirements for religious and other personal beliefs.
🥤 "Make America Healthy Again" legislation to ban food stamp recipients from buying soda with Supplemental Nutrition Assistance Program (SNAP) benefits.
- Yes, but: Hobbs signed another Robert F. Kennedy Jr.-inspired MAHA bill to prohibit schools from selling ultra-processed foods with chemical additives like potassium bromate, titanium dioxide and red dye 3 and 40 to students.
🎖 And the bill moratorium won't apply to bills that the Legislature has already sent to Hobbs, which means she's free to sign stolen valor legislation that makes it a state crime to lie about military service for personal gain.
- The Senate passed the bill 29-1 on Tuesday, and Hobbs signaled that she'll sign it.