Economists say Arizona’s steeper declines warrant attention.

“We did see in Arizona that about 175,000 people lost SNAP. So we believe that there is a correlation here,” said Joseph Palomino, director of the Arizona Center for Economic Progress.

Palomino said the concern is what happens when fewer SNAP dollars circulate in the economy.

“We’ve cut all these people off of SNAP, it lowers their purchasing power. And then that leads to potentially that grocery store having to pull back on wages or employment,” he said.

New federal data shows grocery and convenience stores have lost jobs and wages across the country, but especially in Arizona.

The rate at which Arizona experienced a decline was four times greater than the national average. The decrease in employment occurred when roughly 175,000 Arizonans were kicked off the Supplemental Nutrition Assistance Program between December 2025 and March 2026.

The total number of Arizona SNAP recipients who’ve been dropped from the program is much higher. The federal labor data was analyzed by the Arizona Center for Economic Progress — a progressive think tank — which says those reductions could have a negative impact on the state’s economy.

Besides the drop in employment, total grocery and convenience store wages also fell more sharply in Arizona compared nationally.

The biggest cuts affected funding for infectious disease control, pollution reduction, tree-planting programs, disaster relief and the Supplemental Nutrition Assistance Program, known as SNAP.

“These type of dollars often support equitable economic growth,” said Joseph Palomino, director of the Arizona Center for Economic Progress.

Researchers said the root of many of the cuts trace back to Congress, specifically the One Big Beautiful Bill Act.

An Arizona economist was asked to break down how the changes are showing up in SNAP, the category hit hardest.

“We’re essentially seeing that we’re almost at cumulatively over $600 to $700 million of SNAP benefits that have not gone to Arizona families and have not gone into local economies,” he said.

Joseph Palomino, director of the Arizona Center for Economic Progress, said the data underscores the agency’s previous claims that DES is understaffed and underfunded by the state.

“There are two problems converging on DES to drive the decline in SNAP participation. First, new provisions in H.R. 1 have added bureaucratic red tape, making it harder for families to get and keep the benefits they qualify for. Second, an already underfunded state agency — both in staffing and technology — is being asked to administer these changes while facing severe financial penalties if it falls short,” Palomino said in an email.

The result, Palomino says, is cutting eligible people from SNAP.

“These declines are not evidence of waste, fraud or abuse. They show what happens when we fail to make adequate public investments,” he said. “Whether it’s administering a safety-net program like SNAP, maintaining our water infrastructure or funding our schools, underinvestment ultimately hurts Arizona families — and it hurts Arizona’s economy.”

Arizona has seen record numbers of people removed from the SNAP rolls. And there has been pressure from Congressional Republicans to raise the threshold for schools to qualify for those universal free lunches.

David Lujan is executive director of Children's Action Alliance and the Arizona Center for Economic Progress, which crunched the numbers on this.

The Show spoke with him more about it.

“It's not a plan. It's really just a tax shift to everyday Arizonans,” said David Lujan, executive director of the Arizona Center for Economic Progress and Childrens’ Action Alliance.

Lujan is a former Democratic lawmaker who served alongside Biggs in the Legislature. 

“You're going to have to fill that gap someplace,” he said.

“It’s either going to come from cuts to schools and public safety or you're going to have to shift the tax cut to somewhere else, and it's most likely going to be an increase in the sales tax.”

Arizona has issued $600 million less in SNAP benefits since July 2025, even as food bank traffic surges.

Alabama should take notice. Arizona shows what can happen when sweeping federal changes collide with an underfunded, overburdened system.

About 1 in 8 Alabamians — roughly 650,000 — use SNAP to help keep food on the table. 

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Since Congress enacted H.R. 1 last summer, nearly 440,000 Arizonans have lost SNAP assistance — roughly half of all participants. Over 180,000 are children. The decline far exceeds estimates of those directly affected by new eligibility restrictions, suggesting many eligible people are being caught in a system struggling with complicated rules and pressure to reduce errors and future costs. Arizona has issued $600 million less in SNAP benefits since July 2025, even as food bank traffic surges.

North Carolina should take notice. Arizona shows what can happen when sweeping federal changes collide with an underfunded, overburdened system.

Nearly 1.3 million North Carolinians rely on SNAP. Beginning Oct. 1, the federal government will cut its share of SNAP administrative costs from 50% to 25%. State budget writers in North Carolina decided to push those costs onto local governments after local budget deadlines passed.

Counties are expected to face $52 million in new administrative costs in the first year and going forward to operate SNAP. That does not include the staffing, technology and training required by expanded work-reporting and verification rules. Counties cannot absorb these costs without consequences. They may have to reduce services, cut staff or raise taxes and fees. Smaller and rural counties, often with fewer resources and more residents relying on SNAP, face especially difficult choices. Without state funding, counties will struggle to answer calls, process applications and resolve paperwork problems. Families may wait longer or lose benefits because a document was not processed in time. That is how a fiscal cost shift becomes a hunger crisis.