Tag: state

A Rapid Loss of Food Assistance: 375K Arizonans Cut off From SNAP Benefits in 6 Months

Arizona is experiencing a rapid erosion of access to SNAP benefits, and with it, a significant loss of food assistance for families across the state. In just six months, more than 375,000 Arizonans — including 160,000 children — have lost access to nutrition support they rely on to afford groceries. 

These graphs show how quickly participation has declined since July 2025, when H.R. 1 was signed into law, reflecting a sharp and sudden drop in benefits reaching households and communities across the state. The decrease is likely, largely, the result of changes made to SNAP as part of H.R. 1.

This scale of loss in such a short timeframe is deeply concerning.

SNAP is one of the most effective tools for reducing hunger and helping families afford groceries while also supporting local economies. When hundreds of thousands of people lose access to benefits, the effects extend beyond individual households, impacting grocery stores, food producers, and communities throughout Arizona.

Ensuring that eligible families can access nutrition assistance is critical for the health, stability, and economic well-being of the entire state.  

Arizona Lawmakers Try to Insert Sweeping, Previously-Failed SNAP Changes into Must-Pass DES Bill 

Amendment would add to affordability crisis in Arizona 

PHOENIX —  A sweeping amendment to HB 2728 — the bill to continue the Arizona Department of Economic Security (DES) — would revive a series of controversial SNAP restrictions that lawmakers rejected earlier this session, while tying the future of a critical state agency to policies that could make it harder for Arizona families to afford groceries. 

The amendment, scheduled to be heard Wednesday in the Senate Health and Human Service Committee, dramatically expands what was originally a routine continuation bill for DES by inserting multiple provisions related to SNAP eligibility, work requirements, food purchase restrictions, and enforcement measures. 

Advocates say the move effectively attempts to push through SNAP policy changes that failed to pass as standalone legislation earlier in the session. 

“Arizona lawmakers debated many of these SNAP proposals already — which were vetoed by Gov. Hobbs,” said Joseph Palomino, director of the Arizona Center for Economic Progress. “Now they are being inserted into a must-pass continuation bill for DES, which risks holding an entire state agency hostage to policies that could make it harder for families to put food on the table.” 

SNAP helps hundreds of thousands of Arizona households afford groceries each month. Policy experts warn that changes to eligibility rules, work requirements, and administrative procedures could create additional barriers for families already struggling with high food prices and rising living costs. 

Key provisions in the amendment and their potential impact on Arizona 

Expanded SNAP eligibility verification 

The amendment requires DES to expand data matching with state and federal databases to identify potential changes in eligibility, including wage records, incarceration data, death records, and out-of-state EBT use. It would also require quarterly public reporting on fraud investigations, improper payments, and funds recovered. 

Why this matters: Arizona already conducts extensive eligibility verification under federal SNAP rules. Expanding these requirements would create additional administrative work for the Arizona Department of Economic Security and could slow benefit processing for eligible families. Additional reporting mandates may also divert staff resources away from helping families access food assistance and toward administrative compliance. 

SNAP work requirements 

The amendment prohibits DES from seeking or accepting federal waivers of work requirements for able-bodied adults without dependents unless required by federal law or authorized by the legislature. It also requires many SNAP recipients to participate in employment and training programs. 

Why this matters: Work requirement waivers are typically used during economic downturns or in areas with limited job opportunities. Preventing the state from requesting these waivers could cause thousands of Arizonans to lose food assistance even when jobs are scarce. Employment and training programs can be valuable, but mandating participation without adequate funding or program capacity could create barriers rather than pathways to employment. 

Restrictions on SNAP purchases 

The amendment directs DES to request a federal waiver allowing Arizona to restrict SNAP purchases of soda, candy, and other foods deemed to have minimal nutritional value. 

Why this matters: This policy could be difficult and costly to implement, requiring retailers to reprogram systems and enforce new rules at checkout. Similar proposals have rarely been approved at the federal level. Nutrition experts also note that restricting specific foods does not address broader barriers to healthy eating such as food access, affordability, and time constraints. 

SNAP payment error rate target 

The amendment requires Arizona to reduce its SNAP payment error rate to 3 percent or lower by 2030 and submit quarterly progress reports to the legislature. 

Why this matters: The SNAP payment error rate does not measure fraud; it measures whether benefits were issued in the exact amount households were eligible for under SNAP’s complex rules. Many errors are caused by administrative complexity rather than misuse. Setting an aggressive target could encourage overly strict eligibility decisions or delays that make it harder for eligible families to receive benefits. 

EBT monitoring requirements 

The amendment requires investigations when SNAP recipients repeatedly request replacement EBT cards and increases monitoring of out-of-state EBT spending. 

Why this matters: While program integrity is important, additional monitoring requirements may create burdens for recipients who legitimately need replacement cards due to theft, loss, or electronic benefit transfer skimming. Increased investigations could also require additional administrative resources without significantly reducing program misuse. 

Hospital immigration status reporting 

The amendment requires hospitals to collect voluntary information about whether patients are citizens, lawfully present, or not lawfully present and report aggregated data to the state. 

Why this matters: Public health experts warn that collecting immigration status information in medical settings can discourage people from seeking care when they need it. Even when the information is voluntary, policies like this may create fear or confusion for patients and complicate hospital administrative processes. 

Concerns about the amendment 

Because the provisions are attached to the bill continuing DES, the amendment could complicate passage of legislation necessary for the agency to remain operational. 

DES administers a wide range of programs that Arizona families rely on, including food assistance, unemployment benefits, child care assistance, and services for older adults and people with disabilities. 

“Continuation bills are meant to keep essential government services running,” Palomino said. “Using one to force through controversial SNAP policies risks turning a routine agency continuation into a political standoff with real consequences for Arizona families.” 

What SNAP’s Payment Error Rate Really Means — and Why It Matters for Arizona  

The Supplemental Nutrition Assistance Program (SNAP) helps hundreds of thousands of Arizona families afford groceries. Recently, federal policymakers have increased scrutiny of SNAP’s “payment error rate,” including proposals that would require states to significantly reduce these rates or face financial penalties.  

Under H.R.1, states with higher payment error rates would be required to begin paying a share of SNAP benefits, a cost states have never seen before, as SNAP is a federal program and always has been fully funded by the federal government.  

But the way this metric is often discussed can be misleading.  

The payment error rate does not measure fraud, abuse, or misuse of the program; it measures whether households received the exact benefit amount they were eligible for under SNAP’s complex eligibility rules. 

Understanding what this metric actually captures is important for developing responsible policy and accurately evaluating how the program works.  

What the SNAP payment error rate measures 

Each year, the U.S. Department of Agriculture (USDA) reviews a sample of SNAP cases in every state to determine whether benefits were calculated correctly through the program’s quality control system. 

USDA uses this review process to measure whether participating households received the correct SNAP benefit amount based on program rules. 

These errors include both overpayments and underpayments. Therefore, the error rate reflects situations where a household received slightly more than they should have as well as cases where a household received less than what they qualified for.  

Errors may occur because of administrative complexity or routine changes in household circumstances such as fluctuating income, irregular work hours, or delays in paperwork. The metric measures payment accuracy, not intentional misuse of the program.  

Additionally, the payment error rate does not include instances in which states improperly deny or terminate SNAP benefits for a household that was eligible.  

What the data shows in Arizona  

According to the U.S. Department of Agriculture, Arizona’s SNAP payment error rate was about 8.8 percent in fiscal year 2024, below the national average of 10.9 percent. 

In August 2025, roughly 900,000 Arizonans relied on SNAP to help afford groceries. By January 2026, SNAP participation had fallen to 533,000 Arizonans. Because SNAP serves such a large number of households, even small changes in income, hours worked, or documentation can affect the payment accuracy calculation.  

SNAP error rates reflect complexity, not widespread abuse 

While improving payment accuracy is an important goal, SNAP’s structure makes extremely low payment error rates difficult to maintain.  

SNAP is a large national program with detailed eligibility rules and millions of participating households. Determining the correct benefit amount requires states to calculate income, household composition, deductions, and other factors that can change frequently.  

Several factors contribute to payment errors: 

  • SNAP eligibility requires detailed documentation 
  • Many households experience fluctuating income or work hours that affect benefit calculations  
  • Eligibility workers must process large volumes of cases and documentation 
  • Even small administrative mistakes can count as full errors during federal audits 

The changes from H.R. 1 come at a particularly bad time: From stubbornly persistent inflation to a fragile labor market, states are forced to lower error rates when such a program may need to act as an automatic economic stabilizer for families and communities. 

Because the payment error rate measures administrative accuracy rather than fraud, policy experts caution that focusing solely on lowering the rate may not address the underlying causes of errors.  

Instead, improvements such as simplifying program rules and strengthening administrative systems are more likely to improve accuracy while ensuring eligible families can access food assistance.  

What this means for Arizona 

State budget analysts have projected that Arizona’s 8.8 percent payment error rate from Fiscal Year 2024 could rise to roughly 10 percent in Fiscal Year 2025.  

If those levels persist when new federal policy takes effect, Arizona will be required to cover 10 percent of SNAP benefits. According to the Joint Legislative Budget Committee, the error rate will equal about $139 million per year in new state costs, roughly the same amount of funding needed to cover a year of in-state tuition for more than 10,000 students at Arizona’s public universities.  

Immigration Bills Stack Up at the Capitol — What They Could Mean for Arizona’s Economy 

PHOENIX — Immigration bills advancing during the 2026 Arizona legislative session could significantly reshape how Arizona’s economy functions, affecting access to courts, financial institutions, public programs, and public safety. 

While many of these proposals are framed around enforcement, their ripple effects extend into workforce participation, state and local budgets, and community stability. 

The Arizona Center for Economic Progress released on Wednesday an overview of several immigration-related bills currently moving through the legislature and what they could mean for Arizona’s economy and communities.  

The snapshot highlights proposals that would: 

  • Restrict access to financial services and remittances for residents without certain forms of identification 
  • Expand immigration status verification requirements across public programs and state systems  
  • Increase state and local coordination with federal immigration enforcement 
  • Appropriate tens of millions of dollars in state funding for border enforcement, detention, and infrastructure 
  • Expand data sharing between state agencies and federal immigration authorities 

Taken together, these proposals represent a broad push to expand immigration enforcement tools while also affecting Arizona’s workforce stability, economic participation, and access to essential systems. 

“While these proposals are often framed around enforcement, in reality they carry real impact for families as well as economic consequences for Arizona,” said Joseph Palomino, director of the AZCenter. “Policies that affect access to financial systems, education, and public services can shape workforce participation and economic stability across the state.”  

The full snapshot includes detailed explanations of each bill, its current status, and analysis of potential fiscal and economic impacts.  

Following the Money: Major 2026 Tax Bills at the Capitol — and What They Mean for Arizona 

PHOENIX — The Arizona Center for Economic Progress released on Tuesday a new overview of major tax-related bills advancing during the 2026 Arizona legislative session, warning that several proposals could significantly reduce state and local revenue, create new tax loopholes, and divert funding away from shared priorities such as public K-12 education, child care, infrastructure, and public safety. 

The snapshot outlines proposals that would: 

  • Provide high-end capital gains tax breaks that disproportionately benefit wealthy homeowners 
  • Freeze local government revenue for nearly four years 
  • Create new refundable tax credits that divert General Fund dollars away from public K-12 education 
  • Commit Arizona to a new federal voucher-style tax credit program with uncertain long-term fiscal consequences 
  • Restrict the ability of state agencies and local governments to respond to rising costs 

“These proposals may be framed as tax relief, but many would primarily benefit the wealthy few and big corporations while increasing pressure on state and local budgets,” said Joseph Palomino, director of the Arizona Center for Economic Progress. “Arizona’s long-term economic growth depends on stable, sustainable revenue and smart public investments — not structural changes that make budgeting harder or tax breaks that disproportionately flow to the ultra rich.” 

The full snapshot includes detailed explanations of each bill, its current status, and analysis of potential fiscal and economic impacts. 

Follow the money here.

AZCenter Urges Lawmakers to Reject SB 1142, Warns Federal Private-School Tax Credit Could Harm K-12 Public Schools and Arizona’s Budget

PHOENIX — The Arizona Center for Economic Progress (AZCenter) testified today in opposition to SB 1142, warning that the bill would commit Arizona to a new and largely undefined federal scholarship tax credit program that could strain state finances and further undermine public K-12 education.

The federal tax credit, created under H.R. 1, allows taxpayers to donate to Scholarship Granting Organizations (SGOs) that fund private-school tuition in exchange for federal tax breaks. However, key program rules and oversight mechanisms have not yet been finalized by the U.S. Treasury, raising concerns about accountability, state control, and fiscal risk.

“We should not surrender state oversight to a federal program that isn’t fully defined,” said Joseph Palomino, director of the AZCenter. “This bill asks our state to sign onto a system before we’ve seen the fine print — and once we opt in, we may not be able to set our own guardrails or fix problems if they arise.”

AZCenter also cautioned that the tax credit could result in significant federal revenue losses, potentially leading to cuts in funding for education, health care, and other essential services.

Those federal reductions, in turn, could place new financial pressure on Arizona’s already tight state budget.

“This tax credit has no cap — meaning it could drain billions from public revenue and force states like Arizona to pick up the tab,” Palomino said. “Arizona’s current revenue situation cannot absorb new cost pressures without risking cuts to services families rely on while wealthy donors and private institutions benefit.”

In addition to fiscal concerns, AZCenter warned that SB 1142 could exacerbate funding challenges for Arizona’s public schools, which already rank 49th in the nation in per-pupil spending. The organization noted that recent expansions of Arizona’s Empowerment Scholarship Account (ESA) program have already redirected substantial resources away from traditional public schools.

“Public schools cannot simply downsize buildings, transportation, or utilities when funding is pulled away,” Palomino said. “Students who remain in public schools end up bearing the cost. Arizona should be strengthening its public education system — not further draining resources to subsidize private-school tuition.”

AZCenter urged lawmakers to pause and seek greater clarity on the federal program’s structure, fiscal impact, and oversight requirements before committing the state.

“This is a high-risk decision with long-term consequences for Arizona’s budget and our children’s education,” Palomino said. “We should not gamble with Arizona’s budget or our children’s future on an untested federal experiment.”

Arizona Lawmakers Consider Corporate Tax Giveaway as State Faces Budget Pressures

PHOENIX — Joseph Palomino, Director of the Arizona Center for Economic Progress, will testify Wednesday in committee in opposition to HB 2288, legislation that would reduce corporate tax accountability for large multinational corporations while worsening Arizona’s long-term budget outlook.

The bill would decouple Arizona from federal anti-profit-shifting tax rules designed to prevent multinational corporations from moving profits to low-tax foreign jurisdictions — a move that would cost the state significant revenue at a time when Arizonans are struggling with rising housing, health care, and child care costs.

“At a time when Arizonans are struggling to afford the basics, this bill cuts taxes for multinational corporations and sends the bill to working families,” Palomino said.

WHY THIS MATTERS

Congress enacted federal guardrails — known as GILTI/NCTI — to stop large corporations from hiding profits overseas to avoid paying taxes. Arizona already is decoupled from GILTI, and HB 2288 also would decouple the state from NCTI, allowing likely billions of dollars in corporate profits to escape the state tax base.

  • GILTI – Global Intangible Low-Taxed Income
  • NCTI – Net Controlled Foreign Corporation Tested Income

More than 21 states and Washington, D.C. already tax some portion of this income, primarily affecting the largest corporations — not small businesses.

IRS data show:

  • Corporations with over $2.5 billion in assets account for more than 93% of this income
  • Businesses without foreign subsidiaries are not impacted at all

“This bill asks teachers, first responders, and small businesses to make do with less so multinational corporations can shift profits overseas,” Palomino said.

IMPACT ON ARIZONA

Arizona’s Constitution makes long-term deficits unsustainable, which means lost revenue always comes with consequences.

“Arizona can’t afford tax policies that work for the few and fail the many,” Palomino said. “Every dollar we give away in corporate tax breaks is a dollar we can’t invest in schools, infrastructure, housing, or public safety.” “

This bill doesn’t help everyday Arizonans — it deepens the hole in our state budget so big corporations can pay less,” Palomino said.

TESTIMONY DETAILS

WHO: Joseph Palomino, Director, Arizona Center for Economic Progress WHAT: Committee testimony opposing HB 2288

WHEN: Wednesday, Jan. 21 at 10 a.m.

WHERE: House Ways & Means, House Hearing Room 3, Arizona Legislature

LIVESTREAM: https://www.azleg.gov/videoplayer/?clientID=6361162879&eventID=2026011051

WHY: To oppose a bill that cuts taxes for large multinational corporations while worsening Arizona’s fiscal outlook

AZCenter Reacts to Gov. Hobbs' budget

PHOENIX — The Arizona Center for Economic Progress released the following statement Friday from Director Joseph Palomino following the release of Gov. Katie Hobbs’ budget:

“Gov. Hobbs’ budget includes targeted investments to lower everyday costs for Arizona families — from K-12 public education and food assistance to housing and energy bills — and uses alternative tools to stretch limited dollars.

“But many of these investments rely on one-time funding or short-term solutions, and affordability cannot be sustained without stable, long-term revenue. By shrinking the state’s revenue base through the flat tax and other tax cuts, lawmakers have constrained Arizona’s ability to sustain the investments families rely on.

“The Arizona Center for Economic Progress will closely review the full budget and legislative proposals and provide further analysis on whether they strengthen Arizona’s fiscal foundation and truly support families over the long term.”

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