Arizona agencies request millions to fill the gaps left by federal funding cuts

By Reagan Priest | Arizona Capitol Times

Key Points:
  • State agencies have submitted their budget requests for fiscal year 2027, which begins July 1, 2026
  • Agencies request millions from Arizona’s general fund to address Medicaid and SNAP cuts
  • Governor will provide lawmakers with her proposed budget in January

Budget requests submitted by Arizona’s state agencies are shedding more light on what it will cost the state to conform to federal spending and tax cuts included in President Donald Trump’s “One Big Beautiful Bill.”

Gov. Katie Hobbs and public health advocates have been warning that cuts to Medicaid, the Supplemental Nutrition Assistance Program and other federal programs would impact both the lives of Arizonans and the state budget. Now, state agencies are saying it will cost hundreds of millions of dollars in the next few years to prepare for those changes, which are set to take effect in 2027 and 2028.

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