Arizona’s Health Care and Food Stamp Programs at Risk Amid Big Beautiful Bill Cuts

Governor Katie Hobbs expressed grave concerns regarding the federal budget bill recently approved by the Senate, which could significantly affect Medicaid recipients in Arizona.

During a press conference, she warned of the potential loss of health care for hundreds of thousands of Arizonans. “This budget bill will be devastating for Arizona in so many regards,” Hobbs stated.

Hobbs emphasized that state resources are insufficient to counteract the anticipated cuts. “We don’t have the capacity to mitigate the cuts,” she asserted, urging those impacted to seek alternative solutions.

The proposed federal cuts extend beyond Medicaid. The Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, is also poised for reductions. These changes could jeopardize the revenue projections critical to Arizona’s $17.6 billion budget.

The Senate bill includes provisions designed to benefit seniors, such as increased standard deductions to offset federal taxes on Social Security benefits. However, these adjustments could also affect state revenue due to Arizona’s reliance on federal adjusted gross income metrics for state tax calculations.

About one-third of Arizona’s budget derives from personal income taxes, making the federal changes particularly impactful. Hobbs noted that the loss of funding could disproportionately affect rural hospitals reliant on Medicaid, potentially leading to closures.

“Hospitals and health care centers will have to close,” Hobbs warned, highlighting the diminishing local health care options.

While the governor acknowledged the evolving nature of the federal legislation, she remains uncertain about the state’s response if the bill is enacted. “The bill keeps changing, the impact keeps changing,” she stated, leaving room for further discussions.

Hobbs made her remarks during a ceremonial signing of a previously approved budget, attended by over 100 lawmakers and lobbyists, all of whom supported various provisions. These events serve as critical platforms for the governor as she gears up for a potential reelection battle.

“This budget moves us in the right direction, but it’s not the end of our efforts,” Hobbs summarized, reiterating her commitment to improving the lives of Arizonans and ensuring their security and freedom.