ArizonaSB 1847Fifty-seventh Legislature - Second Regular SessionSenateWALLET

general appropriations act; 2026-2027.

Sponsored By: Sponsor information unavailable

Signed by Governor

2026-2027abor (see also: arizona board of regents) (h)aca (see also: arizona commerce authority) (h)acjc (see also: arizona criminal justice commission) (h)acupuncture board of examiners (h)adeq (see also: department of environmental quality) (h)adg (see also: department of gaming) (h)adjc (see also: department of juvenile corrections) (h)adoa (see also: department of administration) (h)adoh (see also: arizona department of housing) (h)adot (see also: department of transportation) (h)adre (see also: state real estate department) (h)advs (see also: department of veterans' services) (h)adwr (see also: department of water resources) (h)ahcccs (see also: arizona health care cost containment system) (h)apache county (h)appropriating moniesappropriation reduction (h)arizona board of osteopathic examiners in medicine and surgery (h)arizona board of regents (abor) (h)arizona commerce authority (aca) (h)arizona commission of the arts (h)arizona community colleges (h)arizona criminal justice commission (acjc) (h)arizona department of agriculture (azda) (h)arizona department of forestry and fire management (dffm) (h)arizona department of homeland security (azdohs) (h)arizona department of housing (adoh) (h)arizona exposition and state fair board (h)arizona game and fish department (h)arizona health care cost containment system (ahcccs) (h)arizona historical society (h)arizona judiciary (h)arizona medical board (h)arizona navigable stream adjudication commission (h)arizona pioneers' home (h)arizona state board of accountancy (h)arizona state board of nursing (h)arizona state board of pharmacy (h)arizona state lottery commission (h)arizona state parks board (h)arizona state retirement system (asrs) (h)arizona state schools for the deaf and the blind (asdb) (h)arizona state university (asu) (h)arizona state university police department (h)arizona state veterinary medical examining board (h)asrs (see also: arizona state retirement system) (h)asu (see also: arizona state university) (h)attorney general (h)auditor general (h)automation projects (h)avondale police department (h)azda (see also: arizona department of agriculture) (h)azdohs (see also: arizona department of homeland security) (h)balance transfer (h)barbering and cosmetology board (h)board of athletic training (h)board of behavioral health examiners (h)board of examiners of nursing care institution administrators (h)board of executive clemency (h)board of homeopathic and integrated medicine examiners (h)board of massage therapy (h)board of occupational therapy examiners (h)board of physical therapy (h)board of respiratory care examiners (h)border security (h)buckeye police department (h)budget billschandler police department (h)cochise county (h)cochise county sheriff's office (h)coconino county (h)coconino county sheriff's office (h)commission for the deaf and the hard of hearing (h)corporation commission (h)covid-related expenditures (h)dcs (see also: department of child safety) (h)dema (see also: department of emergency and military affairs) (h)department of administration (adoa) (h)department of child safety (dcs) (h)department of economic security (des) (h)department of emergency and military affairs (dema) (h)department of environmental quality (adeq) (h)department of gaming (adg) (h)department of health services (dhs) (h)department of insurance and financial institutions (difi) (h)department of juvenile corrections (adjc) (h)department of law (h)department of liquor licenses and control (dllc) (h)department of public safety (dps) (h)department of revenue (dor) (h)department of state (h)department of transportation (adot) (h)department of veterans' services (advs) (h)department of water resources (adwr) (h)des (see also: department of economic security) (h)dffm (see also: arizona department of forestry and fire management) (h)dhs (see also: department of health services) (h)division of school facilities (h)doc (see also: state department of corrections) (h)dor (see also: department of revenue) (h)dps (see also: department of public safety) (h)el mirage police department (h)federal reimbursement (h)flagstaff police department (h)fte positions (h)fund balance transfers (h)g&f (see also: game and fish department) (h)game and fish department (g&f) (h)general appropriations actgila county (h)gila county sheriff's office (h)gilbert police department (h)glendale police department (h)globe (h)globe police department (h)goodyear police department (h)governor's office of equal opportunity (h)governor's office of strategic planning and budgeting (ospb) (h)governor's office on tribal relations (h)graham county (h)graham county sheriff's office (h)greenlee county sheriff's office (h)holbrook police department (h)house of representatives (h)industrial commission of arizona (h)interim reporting requirements (h)jlbc (see also: joint legislative budget committee) (h)joint legislative budget committee (jlbc) (h)la paz county (h)la paz county sheriff's office (h)legislative council (h)legislative intent (h)legislature (h)lump sum reductions (h)marana police department (h)maricopa county (h)maricopa county sheriff's office (h)mesa police department (h)miami (h)miami police department (h)mohave county (h)mohave county sheriff's office (h)motor vehicle division (h)naturopathic physicians medical board (h)nau (see also: northern arizona university) (h)navajo county (h)navajo county sheriff's department (h)northern arizona university (nau) (h)northern arizona university police department (h)office of administrative hearings (h)office of economic opportunity (h)office of the governor (h)office of tourism (h)ombudsman-citizens aide (h)operating adjustments (h)opioid remediation (h)oro valley police department (h)paradise valley police department (h)payson police department (h)peoria police department (h)phoenix convention center (h)phoenix police department (h)pima county (h)pima county sheriff's office (h)pinal county (h)pinal county sheriff's office (h)pinetop-lakeside police department (h)prescott historical society (h)prescott police department (h)prescott valley police department (h)public safety expenditures (h)registrar of contractors (roc) (h)residential utility consumer office (h)rio nuevo multipurpose facility district (h)roc (see also: registrar of contractors) (h)santa cruz county (h)sbe (see also: state board of education) (h)school safety interoperability fund (h)school safety program (h)scottsdale police department (h)secretary of state (h)senate (h)show low police department (h)snowflake-taylor police department (h)state board for charter schools (h)state board for private postsecondary education (h)state board of chiropractic examiners (h)state board of dental examiners (h)state board of dispensing opticians (h)state board of education (sbe) (h)state board of equalization (h)state board of optometry (h)state board of podiatry examiners (h)state board of psychologist examiners (h)state board of tax appeals (h)state board of technical registration (h)state department of corrections (doc) (h)state highway fund (h)state land department (h)state mine inspector (h)state natural resource conservation board (h)state personnel board (h)state real estate department (adre) (h)state treasurer (h)superintendent of public instruction (h)supplemental appropriation (h)tempe police department (h)transfer of spending authority (h)university of arizona (uofa) (h)university of arizona police department (h)uofa (see also: university of arizona) (h)water infrastructure finance authority (wifa) (h)wifa (see also: water infrastructure finance authority) (h)winslow police department (h)yavapai county (h)yavapai county sheriff's office (h)yuma county (h)

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Analyzed Economic Effects

140 provisions identified: 117 benefits, 15 costs, 8 mixed.

Funding for Arizona Medicaid members

The law provides about $22.96 billion in funding and spending authority for Arizona Medicaid in fiscal year 2026–2027. This includes about $10.31 billion for traditional Medicaid, $7.19 billion for Proposition 204 services, and $844.12 million for adult expansion. KidsCare receives $257.442 million, and the Arizona Long Term Care System receives about $2.664 billion. The funding also supports behavioral health, health plans, and hospital payments. This funding provision does not change who qualifies or set individual benefit amounts.

Monthly payments for kinship caregivers

Eligible relative or fictive-kin caregivers receive $300 per month for each qualifying dependent child placed under Department of Child Safety guidelines. Eligible relatives include grandparents, great-grandparents at any level, and other relatives. The department provides the stipend for children placed with unlicensed kinship foster parents without requiring those caregivers to apply. One qualifying placement paid for 12 months totals $3,600.

Child safety services receive state funding

Child Safety receives about $1.37 billion in funding and spending authority for 2026–2027, with 3,283.1 full-time-equivalent positions authorized. The money supports caseworkers, child placements, family support, and children's health care. New child safety staff must receive training before taking client cases. Prevention funding includes $264,400 in state money to draw $1.322 million in federal child abuse prevention grants. If those federal grants become unavailable, both funding amounts are removed.

Hospital payments support Arizona patient care

For fiscal year 2026–2027, the law designates $4.2443 billion for hospital enhanced-access payments, including hospital assessments and federal matching funds. Within traditional Medicaid funding, $12.1581 million is reserved for inpatient payments to hospitals meeting Arizona's legal rural-hospital definition. That rural amount includes $4.4 million in state general funds and $7.7581 million in spending authority. Arizona Medicaid can also spend qualifying disproportionate-share hospital receipts and federal matching funds above $208.4786 million. Those receipts come from local governments, tribal governments, and state universities; the agency must notify legislative and Governor's budget offices before spending the extra money.

Arizona State University receives operating funding

Arizona State University receives about $1.293 billion for operations in 2026–2027. This includes $385.1506 million from the state general fund and $907.7595 million from the university collections fund. The provision does not set tuition, individual student aid, or changes to student access.

Arizona universities receive yearly operating funds

For fiscal year 2026–2027, Northern Arizona University receives $240.1315 million for operations. That includes $114.681 million from the state general fund and $125.4505 million from university collections. The University of Arizona receives $822.4304 million, including $333.7558 million in general funds and $488.6746 million in collections. These appropriations do not set student payments or tuition changes.

Funding for residential mental health treatment

The law provides $7.812 million for Arizona Medicaid's enhanced residential treatment program. It states an intent to continue the three-year pilot in fiscal years 2027–2028 and 2028–2029. Each future year lists $2.7396 million from the seriously mentally ill housing trust fund and $5.0724 million in spending authority. Those future amounts express legislative intent, not guaranteed appropriations.

College aid and teacher preparation receive funds

For fiscal year 2026–2027, the Arizona Board of Regents receives $20 million for Arizona Promise scholarships. It receives $15 million for the Arizona Teachers Academy. Another $4.078 million supports student subsidies through the Western Interstate Commission for Higher Education. These appropriations do not set individual award amounts or eligibility rules.

Correctional officers get lasting pay increases

In fiscal year 2026–2027, state correctional officers’ prior one-time 4% stipend becomes an ongoing 4% salary increase. Youth correctional officers who received the prior stipend also get an ongoing increase, based on their 2025–2026 annual salary. The state provides $3.7672 million to raise contract payments enough to give officers at Arizona-contracted private prisons 4% raises. Corrections can also use $10.9 million from its 2025–2026 operating funds to pay compensatory or holiday liabilities earned that year.

Veteran spouses receive tuition scholarship funding

The Arizona Board of Regents receives $10 million for tuition scholarships for spouses of military veterans. The funding covers fiscal year 2026–2027. This appropriation does not set individual awards or additional qualification rules.

State legal operations and theft enforcement funded

The Attorney General's Department of Law receives $106.6044 million for 2026–2027 from listed funding sources. The total includes $17 million for reentry planning grants and $1.6452 million for the organized retail theft task force. Task force funding covers operations, one attorney, one paralegal, two investigators, one support worker, and four peace officers. Those officers must focus on investigating and prosecuting organized retail crime.

More funding for Medicaid program formulas

For fiscal year 2025–2026, the law adds funding for Medicaid formula adjustments. Arizona’s Medicaid agency gets $104.7284 million from the general fund and $471.7418 million in added spending authority. The Department of Economic Security gets $82.8187 million from the general fund and $216.3047 million in developmental disabilities Medicaid spending authority. These funds support program formulas, not a stated change in anyone’s eligibility or benefit amount.

District and charter schools receive extra aid

Schools share a $75 million state aid supplement based on weighted student counts, including nonresident pupils attending a district. Another one-time $37 million is divided by weighted counts of pupils eligible for free or reduced-price lunch. One-time additional assistance provides $23.142 million for districts and $5.858 million for charter schools. Those shares follow each recipient’s 2026–2027 additional-assistance funding, and all three supplements increase school budget limits. Districts may use the $37 million and $29 million supplements for operations or unrestricted capital spending.

Lottery funds seller commissions and operations

For fiscal year 2026–2027, retailer commissions equal 6.5% of gross lottery sales excluding charitable tab tickets, plus up to 0.5% of gross sales. Total retailer commissions are estimated at $107.533 million, or 6.7% of total ticket sales. Charitable sellers’ tab-ticket commissions equal 20% of those sales, estimated at $1.976 million. Instant-ticket printing and distribution funding equals 3.6% of actual instant-ticket sales, estimated at $41.4731 million. Online vendor fees use a contract-set percentage, estimated at 1.079% of total ticket sales, or $17.4242 million.

State employee health insurance funding increases

The law adds a one-time $404.6845 million for employer health insurance contributions in 2026–2027. This includes $324.6845 million from the state general fund and $80 million from other funds. Administration distributes the adjustment among state agencies and departments. The provision does not specify changes to employee premiums, coverage, or out-of-pocket costs.

School districts receive building project funding

The law provides $199.9679 million for school building renewal grants and $750,000 for administration in 2026–2027. The Division of School Facilities administers renewal grants for eligible Arizona school districts. New school facilities receive $12.7349 million, plus authority to use up to $27.3181 million of the available fund balance. The new-facility money is limited to facilities and land costs. Districts must have received final division approval by December 15, 2025, to use that new-facility funding.

State funds support colleges and rural students

For fiscal year 2026–2027, Arizona provides $99.5262 million in general funds for community colleges. This supports operating aid, equalization aid, science and workforce programs, rural aid, and listed allocations. The $1.0829 million rural reimbursement subsidy gives Apache County $699,300 and Greenlee County $383,600. Diné College also receives $1 million in general funds for remedial education. These funds do not set individual student awards or tuition cuts.

State employee health contribution funding falls

For fiscal year 2026–2027, the law makes a one-time $240.6653 million reduction in employer health insurance contributions. The cut includes $194.7889 million from the general fund and $45.8764 million from other funds. The Department of Administration divides the adjustment among agencies and departments. The law does not specify changes to employee premiums, coverage, or out-of-pocket costs.

Public universities face spending limits

Arizona’s three public universities cannot use appropriated money for scholarships, except awards through the Arizona financial aid trust. They also cannot use appropriated money for student newspapers. State general fund money cannot fund alumni associations or the specified increase in state funding for medical marijuana research.

Address privacy services receive added support

For fiscal year 2026–2027, the law deposits $400,000 into Arizona's address confidentiality program fund. Another $250,000 supports program operations. The $400,000 deposit cannot move to another budget line. This funds administration and participant services, not individual payments.

Blind users' radio reading service funded

The Secretary of State receives $97,000 for the statewide radio reading service for blind users in 2026–2027. The money supports the service rather than payments to individual users.

Nonprofits receive statewide civil legal funding

The law directs $3 million to nonprofits providing general civil legal aid statewide. Services must follow Legal Services Corporation terms and restrictions as of federal fiscal year 2026. This provision does not state individual eligibility rules or payment amounts.

Remote tribal veterans receive service funding

The law provides $2.2624 million for veterans' services officers serving rural tribal nations in Arizona. Eligible communities must be at least 100 miles from the nearest U.S. Department of Veterans Affairs service center. The funding supports local services, not a stated payment to each veteran.

Real estate technology funding cannot raise fees

Beginning in fiscal year 2026–2027, the Real Estate Department gets a $140,100 ongoing increase for technology maintenance and operations. The department cannot use this increase to raise any fee or assessment. The increase also stays out of the department’s appropriated-budget calculation under state law.

Listening and speech help for toddlers

The law provides $50,000 in fiscal year 2026–2027 to continue existing contracts for supplemental listening and spoken-language services. Services include parent coaching for eligible children from birth through age three. A certified auditory-verbal educator or therapist must provide or oversee the services. Providers can deliver services in natural, clinical, or educational settings, or virtually.

Lower school meal costs for families

The law provides $2 million in one-time grants to reduce or remove copayments for children eligible for reduced-price school meals. Districts and charter schools must participate in the National School Lunch Program or School Breakfast Program. The Department of Education distributes the grants. When funding cannot cover all awards, each grant is reduced proportionally.

Psychiatry hotline support for Arizona families

The University of Arizona must operate the Arizona perinatal and pediatric psychiatry access hotline. It must use no more than $1.2 million from its state general fund operating allocation for the hotline. The service supports access to psychiatry around pregnancy and for children. This provision does not set individual eligibility rules or household payments.

Arizona judges get set salary rates

Beginning January 1, 2027, Arizona’s Supreme Court chief justice earns $242,000 annually; each other justice earns $235,000. Court of Appeals judges earn $220,000 annually, and superior court judges earn $210,000. The law does not state earlier salaries or the size of any pay change.

College internships get fees and housing support

The law provides $300,000 for Washington, D.C. internships, program fees, and housing, split equally among three state universities. Universities must use a partner offering full-time semester internships and short programs through Washington, D.C.-based organizations. The partner must have at least ten consecutive years of placement experience and capacity for all students the universities need placed. Dedicated staff must help students find programs in their areas of interest.

Funding targets Arizona veterinary student enrollment

The University of Arizona’s veterinary college receives $21.2372 million to increase the number of Arizona-resident students. Before spending, the university must report current resident and nonresident student counts to the Joint Legislative Budget Committee. The law does not guarantee admission or lower tuition for any student.

Loan repayment for behavioral health providers

The law provides $1 million for Arizona's behavioral health care provider loan repayment program in fiscal year 2026–2027. Providers who qualify for that program can receive loan repayment. The law does not state individual award amounts or how many providers receive help.

National Guard members get tuition support

The 2026–2027 budget provides $1 million for tuition reimbursement for eligible Arizona National Guard members. The money remains available through September 30, 2027. The provision does not state each member’s reimbursement amount or explain eligibility rules.

Private prison staff can receive stipends

Corrections can transfer operating-budget savings from pay and employee-related costs to fund private prison staff stipends. The department must first submit a spending plan. Each stipend cannot exceed the amount given to department staff. The law does not guarantee a transfer or set a stipend amount.

Students get college preparation funding

The 2026–2027 budget provides $1.2658 million for college placement exam fee waivers for eligible students. It also provides $325,000 for tribal college dual enrollment. These provisions do not state individual award amounts or explain the programs’ eligibility rules.

Teachers receive loan and training funding

For 2026–2027, the Board of Regents receives $90,000 for the Arizona teacher incentive program. It also receives $426,000 for the Arizona teacher student loan program. The budget includes $1 million for computer science professional development for educators. These provisions do not state individual eligibility, incentive amounts, loan terms, or how many educators receive training.

Added operating funds for public safety

The law provides $4.75 million from the Arizona Highway Patrol Fund for Department of Public Safety operations in fiscal year 2025–2026. The money is exempt from the usual rules that cancel unused appropriations. The provision does not name a new service or a household cost change.

Animal disease response gets two positions

Agriculture can use up to $250,000 from the commercial feed trust fund in 2026–2027 for two full-time positions. One addresses screwworm; the other responds to specified or emerging animal diseases and pests. If the border opens for live cattle imports, the department can conduct screwworm-response inspections there. The state veterinarian must oversee those inspections.

Arizona adds funding for arts activities

For fiscal year 2026–2027, Arizona deposits $2 million from the general fund into the Arizona arts trust fund. The money supports the fund and arts activities. It does not create a direct household payment.

Arizona funds boating safety grants

For fiscal year 2026–2027, the State Treasurer receives $2.1838 million for law enforcement and boating safety grants. These grants support recipient programs and safety activities. They do not establish direct household payments.

Arizona funds health licensing board operations

For fiscal year 2026–2027, Arizona transfers $150,000 from the Medical Board Fund to update the Medical Board’s website. The Board of Athletic Training receives $166,000 from the athletic training fund. The law authorizes 1.5 full-time-equivalent staff positions for that board. These funds support agency work, not new household benefits or medical coverage.

Arizona funds wildfire crews and prevention

For fiscal year 2026–2027, Arizona provides $902,700 for inmate firefighting crews and $1.3327 million for postrelease crews. The law provides $3.0393 million to remove hazardous vegetation. That money remains available through June 30, 2028. Another $1.7034 million funds tree thinning on U.S. Forest Service land. These funds support firefighting and land work, not direct household payments.

Child internet crime funds stay available

The Attorney General's Internet Crimes Against Children program keeps specified fiscal year 2026–2027 funds available until June 30, 2028. These continuing appropriations include $900,000 from the enforcement fund and $378,300 from the state general fund. The extension supports enforcement work rather than household payments.

Communities receive wildfire response and prevention funding

The law provides $10.2 million for fire suppression and $27.3549 million for wildfire prevention work in 2026–2027. Of the suppression money, $10 million must follow the purposes and restrictions of the referenced 2021 and 2022 laws. Both appropriations remain available through June 30, 2029. The money funds operations, not direct household payments.

Counties get environmental and education grants

For fiscal year 2026–2027, Arizona provides $250,000 through its forestry department for county environmental projects. The law also sets aside $30,000 from the natural resource conservation district fund deposit for environmental education centers. These grants support local projects and centers, not direct household payments.

County sheriffs receive local safety funding

The law provides $7 million for sheriff support in 2026–2027, due by July 31, 2026. Recipients are Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai, and Yuma counties. Allocations range from $100,000 for Greenlee to $1.2 million for Yavapai. Another $600,000 supports the original five regional major-incident task forces. That money is split evenly among sheriff's offices in Cochise, Coconino, Navajo, Pinal, and Yuma counties.

Crime victim services receive grant funding

Public Safety receives $9.3 million for crime-victim grants in 2026–2027. The money supports crime-victim services. This provision does not state who qualifies for individual help or how much a household receives.

Eight counties receive reentry planning grants

The law allocates $17 million for coordinated reentry planning in 2026–2027. Coconino, Maricopa, Mohave, Navajo, Pima, Pinal, and Yavapai counties each receive $2 million to supplement existing programs. La Paz County receives $2 million to establish a program. Another $1 million supports a statewide database.

Electronic monitoring for probationers stays funded

The law provides $1.3 million in 2026–2027 to continue statewide electronic monitoring for people on probation for sex offenses. Spending is limited to contracted platform services: devices, data, software, officer training, and directly related contractor compliance services. After required obligations are met, leftover money can support monitoring other violent-offender populations. This funding provision does not create household payments.

Extra mine fund receipts support reclamation

For fiscal year 2026–2027, aggregate mining reclamation fund receipts above $112,800 are available for mine-land reclamation. Before spending the excess, the State Mine Inspector must report its planned use to the specified state offices. The law does not state how much excess money will be available.

Extra receipts fund county attorney services

In fiscal year 2026–2027, State Aid to County Attorneys Fund receipts above $973,700 fund the county attorney aid program. Before spending the extra money, the Arizona Criminal Justice Commission must report its planned use to the legislative budget committee. The law does not specify how much extra money is available.

Extra receipts support crime victim assistance

In 2026–2027, victim compensation and assistance fund receipts above $6.8387 million go to the crime victims program. The Arizona Criminal Justice Commission must report its intended use to the legislative budget committee before spending the extra money. The provision does not set individual victims’ eligibility or payment amounts.

Extra receipts support domestic violence prevention

Domestic Violence Services Fund receipts above $4.0003 million go to the Department of Economic Security's domestic violence prevention funding. Before spending the extra money, the department must report its planned use to the legislative budget committee. The law does not specify the amount above that baseline.

Funding for Arizona's 2026 elections

The law provides $4 million in state general funds to the Secretary of State in fiscal year 2025–2026. The money covers costs of the 2026 primary and general elections. Money still unspent and uncommitted on June 30, 2027, returns to the state general fund. The appropriation does not change voting eligibility.

Funding for child abuse prevention pilot

The law directs $100,000 from the school safety funding enacted in 2025 to a child sexual abuse and assault prevention pilot. The pilot also covers awareness. This redirects existing funding rather than adding a separate appropriation. The provision does not describe services, participation rules, or household payments.

Gila County communities receive disaster relief

The Department of Administration must distribute $10 million in disaster relief by July 15, 2026. Miami receives $2.5 million, Globe receives $2.5 million, and Gila County receives $5 million. The law funds local governments but does not set household payments or eligibility.

Historical Society gets limited operating support

For fiscal year 2026–2027, the Arizona Historical Society may use up to $549,600 from the state parks revenue fund. This operating support is available only when its donations fund unrestricted balance is below $300,000. Before spending, the society must notify the Joint Legislative Budget Committee and report its planned uses.

Land fund earnings support Arizona prisons

The Department of Corrections receives 100% of earnings and interest from the penitentiary land fund. It also receives 25% from the state charitable, penal and reformatory institutions land fund. Both distributions support state penal institutions and must follow each fund’s governing law and the Arizona Constitution. The law does not state the dollar value of these earnings.

Local police get vehicle theft funding

Arizona provides $4.5526 million for its vehicle theft task force. The insurance department pays 75% of participating sworn local officers’ pay and related employee costs, plus all overtime costs. Another $1.3889 million funds local grants to fight organized car theft operations. Grant decisions must consider areas with greater automobile theft problems. Recipients must use the grants to fight those operations.

Medicaid fraud investigators receive added resources

For fiscal year 2026–2027, the law reserves $204,100 and four full-time-equivalent positions to expand the Medicaid Fraud Control Unit. These resources come from the Department of Law's operating allocation. The unit supports fraud investigations and enforcement in the Attorney General's criminal division. This provision does not impose new duties on Medicaid recipients.

Pinal County cleanup funds support free disposal

The law broadens an existing $50,000 fiscal year 2025–2026 appropriation for Pinal County illegal-dumping signs. The money can also support and expand community cleanup free dump days. Eligible costs include operations, landfill access fees, staffing, outreach, and temporary waste-disposal events. Supported work must aim to reduce illegal dumping in unincorporated Pinal County.

Prison funding and staffing flexibility

The law raises the Corrections Department's fiscal year 2025–2026 operating lump sum from $816.3085 million to $828.1905 million. It separately provides $4.1 million in state general funds for operating expenses that year. Contracted private prisons can use staff vacancy savings for overtime without a penalty or staffing offset; doing so is optional. The department must use available Arizona beds housing Arizona inmates before out-of-state temporary beds. That placement rule does not apply when the out-of-state beds have comparable security and price.

Prison technology and training funds remain available

The Department of Corrections keeps $2 million from its fiscal year 2025–2026 operating budget available for correctional information system upgrades. The law also preserves $650,000 from fiscal year 2023–2024 for inmate dog training. Both amounts are exempt from the usual funding expiration rule. These provisions do not set new spending deadlines.

State land earnings support prison operations

Corrections receives 100% of earnings and interest from the penitentiary land fund. It also receives 25% from the state charitable, penal and reformatory institutions land fund. The money must support state penal institutions. Both distributions must follow each fund's enabling act and the Arizona Constitution. The law does not state the dollar amounts.

Water rights claimants get university assistance

The University of Arizona receives $500,000 to help claimants in the court process that determines water rights. The money must support claimants in Arizona’s general stream adjudication. The law does not set a payment or water-rights award for any claimant.

Arizona funds contractor oversight and hearings

For fiscal year 2026–2027, the Registrar of Contractors receives $14.3282 million from the Registrar of Contractors Fund. This includes $1.0176 million for Office of Administrative Hearings costs. The law authorizes 103.6 full-time-equivalent staff positions. The money funds agency operations, not household payments.

Nicotine rule funding stays available longer

The law keeps $2.9 million in fiscal year 2025–2026 records-system modernization funding available through June 30, 2028. The Department of Liquor Licenses and Control may also use it to put alternative nicotine product regulations into effect. This provision does not itself create new household or business requirements.

Professional licensing boards receive operating funds

For 2026–2027, the law funds three professional licensing boards from their named board funds. Barbering and Cosmetology receives $3.2623 million, including $235,000 for a licensing specialist, customer service representative, and quality assurance specialist. Behavioral Health Examiners receives $2.7669 million and authorization for 27 full-time-equivalent positions. Chiropractic Examiners receives $660,600 and authorization for six full-time-equivalent positions. The money supports board operations and regulatory work.

Water facilities gain cybersecurity grant access

The law provides $11.5 million for Cyber Ready Arizona. The Department of Homeland Security may consider water and wastewater facility applications alongside existing eligible recipients. Up to $500,000 can cover administration, and no more than $11 million can buy cybersecurity tool licenses. Except for the administrative allowance, the money cannot fund permanent state or local government positions. The program supports cybersecurity for essential water services, not direct household payments.

Adult services funds stay available

The law keeps $5 million of adult services funding available beyond the usual expiration deadline. The provision does not state a new expiration date or create direct household payments.

Arizona funds cooling centers for residents

Arizona provides $400,000 for cooling centers that offer heat relief. The money remains available through October 31, 2027. It supports center access rather than cash payments to people who use them.

Children’s health plan funds remain available

Child Safety can retain $43.7875 million from its 2024–2025 comprehensive health plan services appropriation until June 30, 2027. The law keeps this existing money available for health services for children in the department’s care.

Funding for Arizona Alzheimer's research

The law provides $4.125 million for an Alzheimer's research grant to a tax-exempt 501(c)(3) nonprofit. The nonprofit must be headquartered in Arizona and have operated there for at least 10 years. Its participating institutions must work together statewide using their different research strengths. They must teach residents about Alzheimer's disease, research progress, and disease-management resources. Grant terms cannot add requirements absent from earlier agreements between the department and the nonprofit.

Funding for behavioral health professional oversight

The law provides $150,000 for the Board of Behavioral Health Examiners' operating costs in fiscal year 2025–2026. The money comes from the board's fund. It does not create a direct household payment.

Funding for problem gambling services

The law provides $4 million for the Department of Gaming's problem gambling services in fiscal year 2026–2027. It does not set individual eligibility rules, payment amounts, or direct household payments.

Funding supports people who are deaf-blind

The law provides $350,000 for support services for people who are deaf-blind in fiscal year 2026–2027. The Commission for the Deaf and the Hard of Hearing receives the funding. The law does not set a payment or service amount for each person.

Prison health funding requires treatment safeguards

Corrections must use $15 million for hepatitis C medicine and medication-assisted treatment for substance use disorder. Another use requires a spending plan for legislative budget committee review. The contracted health provider can receive up to $45.0977 million only after signing a contract change requiring more staff. The change must require quarterly staffing reports and payments tied to staffing levels. It must also impose automatic fines or sanctions for unfilled jobs.

Qualifying Mesa food bank receives funding

The Department of Administration must give a qualifying food bank a one-time $3 million payment for a capital need. It must be a registered, tax-exempt 501(c)(3) nonprofit whose core mission is feeding hungry people. It must have been established between 1980 and 1999 and be headquartered in Mesa. It must also be located in a county with more than 4 million people. The money goes to the food bank, not directly to households.

Safety and transfer support for hospitals

The law provides $1.5 million in grants to help rural hospitals install radiation protection systems. The systems must serve heart catheterization rooms where live X-ray imaging is used. It also provides $500,000 for AZ REACH medical transfer services at Arizona hospitals with fewer than 20 beds. These funds support hospital equipment and transfers, not household payments or specified patient charges.

Schools receive suicide prevention coordinator support

Health Services must use $100,000 of its operating funds for a suicide prevention coordinator. The coordinator assists school districts and charter schools. Health Services must consult Education and report on the coordinator's 2026–2027 accomplishments by September 1, 2027.

Summer food benefits receive administration funding

The law provides Economic Security $1.7618 million from the state general fund for summer food benefits administration in 2025–2026. The money remains available until October 31, 2026. This funds administration without changing household eligibility or food benefit amounts.

Tribal aging agencies receive service funding

The Department of Economic Security must distribute $1 million from its adult services funding to two tribal aging agencies. The Inter Tribal Area Agency on Aging receives $500,000. The Navajo Nation Area Agency on Aging also receives $500,000. This supports aging services rather than direct household payments.

Veterans homes get expanded funding support

The law provides $3 million from the state general fund to cover an operating shortfall at state veterans’ homes. The money must go into the State Homes for Veterans Trust Fund. Veterans’ Services may also use a prior $1 million appropriation from 2022–2023 for tribal members receiving services in those homes. That expanded use adds no new funding, and the provisions do not specify changes to residents’ charges or services.

Homeless service funding stays available longer

The law keeps $15.5 million in previously approved funding for coordinated homeless services available through June 30, 2027. This preserves money for services rather than creating an individual cash benefit or new eligibility rule.

Homeless veterans funding stays available longer

The law keeps earlier funding for homeless veterans services and the homeless veterans strategic plan available through June 30, 2027. The provision does not state the amount preserved or create direct payments to veterans.

Arizona libraries receive state grant funding

For fiscal year 2026–2027, the Secretary of State receives $651,400 for library grants. The money supports recipient libraries. The law does not set a direct payment amount for households.

Charter school oversight receives operating funds

The State Board for Charter Schools receives $2.8111 million from the state general fund for 2026–2027. The law authorizes 25 full-time-equivalent positions. This funds board operations, not direct payments to schools, students, or families.

Extra grant receipts support workforce services

Workforce Investment Act grant receipts above $87.1092 million are available for Workforce Innovation and Opportunity Act services. Before spending the extra funds, the Department of Economic Security must report their intended use to the legislative budget committee. The provision does not state the amount of extra receipts or any individual payment.

Foster youth education fund receives money

The Governor's Office receives $1.5 million for deposit into the Foster Youth Education Success Fund in 2026–2027. The money supports foster youth education. This provision does not set individual award amounts or eligibility rules.

Grants support geography and graduate jobs

The Arizona Department of Education awards $100,000 to a statewide geographic alliance to support geographic literacy. It also awards $500,000 to a nonprofit for the JOBS for Arizona graduates program. These grants do not establish household payments or individual eligibility rules.

Mentor teachers get funded training support

The Arizona K-12 Center receives $2.2927 million for the Arizona mentor teacher program. The money must support program implementation and mentor training prescribed by the State Board of Education. It does not provide direct payments to teachers.

One wrestling-focused school receives a grant

The law provides $250,000 from the state general fund for one Arizona school in 2026–2027. The Superintendent of Public Instruction administers the grant. The school must teach grades six through twelve and include wrestling in its mission. The law does not establish student payments or tuition benefits.

Public schools receive community garden funding

The 2026–2027 budget provides $600,000 for community gardens on public school campuses. The provision does not state each school’s share or provide direct payments to families.

School safety grants prioritize campus officers

The law directs the $50 million school safety increase appropriated in 2022–2023 first to schools waiting for campus officers. These grants cannot replace local government funding for school resource officers. If officer grants cost less than $50 million, the education department may fund school counselors and social workers with the remainder.

Technical students get exam and equipment support

The 2026–2027 budget provides $1 million to reimburse covered certification exam fees for eligible career technical education district participants. It does not state each participant’s reimbursement amount or eligibility rules. A separate $1 million funds equipment and other soft capital expenses in technical education districts with fewer than 2,000 average daily membership pupils. Qualifying districts share that equipment funding in proportion to their average daily membership.

University exchanges receive targeted international funding

Arizona State University receives $250,000 for cultural and academic exchanges involving faculty, students, and institutions in Eastern Europe. The University of Arizona receives $250,000 for academic exchanges between university students and institutions in Kazakhstan. Each appropriation is reserved for its stated exchange program. The law does not set individual student payments.

Arizona allows temporary reimbursement grant financing

Beginning April 1, 2027, the Department of Economic Security may use up to $25 million from the budget stabilization fund for reimbursement grants. It must first notify the directors of the Joint Legislative Budget Committee and the Governor’s budget office. The amount used must be fully repaid by September 1, 2027, through the fiscal year 2026–2027 closing process. The money cannot fund additional program spending.

Arizona funds trade and industry development

The law provides $15.05 million to the Arizona Commerce Authority for fiscal year 2026–2027. This includes $2 million for advanced air mobility and $500,000 for the Arizona Competes Fund. It also funds trade offices and economic development work. Of the general fund amount, $10.5 million comes from withholding tax revenues. The funding does not guarantee jobs, household payments, or small-business aid.

Arizona funds veterans services and support

For fiscal year 2026–2027, the Department of Veterans’ Services receives $72.8016 million for operations and services. This includes $11.8147 million from the general fund and $60.9869 million from the State Home for Veterans’ Trust Fund. The law provides $1.2261 million for a nonprofit serving Arizona’s military and veteran population. Up to $76,500 of that allocation can fund a department specialist working with the nonprofit. Before spending it, the department must report to the Joint Legislative Budget Committee on non-state matching grant money.

Arizona funds water management and systems

For fiscal year 2026–2027, the Department of Water Resources receives $33.8448 million from the general fund and specified water-related funds. The law also transfers $500,000 from the Water Supply Development Revolving Fund to the Small Drinking Water Systems Fund. These provisions fund water management and add money for small drinking-water systems. They do not set household payments, water rates, or terms for system support.

Arizona pays horse racing safety assessment

For fiscal year 2026–2027, the Department of Gaming receives $2 million to pay the Horseracing Integrity and Safety Authority. The money must pay the Authority’s calendar year 2026 assessment. It cannot be used for another purpose.

Counties get service and retirement support

Arizona provides $7.6507 million for essential county services: $500,000 goes to Graham County, and the rest is shared equally among counties under 900,000 people. Another $3 million is shared equally among counties under 300,000 people, solely for required employer contributions to elected officials’ retirement plans. Both population tests use the 2020 census. The law also distributes $377,100 to specified counties to fully cover corrections officer retirement plan employer contribution rate increases. Those allocations range from $4,400 for La Paz County to $134,400 for Maricopa County.

County fairs receive agricultural promotion funding

Arizona deposits $6.0295 million into the County Fairs Livestock and Agriculture Promotion Fund, administered by the Governor’s Office. The money supports county fairs and livestock and agricultural promotion. The appropriation must go into that designated fund.

Extra funding for child support operations

The child support enforcement division can use state shares of retained earnings, fees, and federal incentives received above $17.6156 million. The extra money funds operating costs and can support added full-time-equivalent positions. Before spending it, the Department of Economic Security must report its planned use to the legislative budget committee. This authority does not create a new household payment or duty.

Marked state funding stays available

State appropriations marked with an asterisk remain available as continuing funding. They do not expire under the cited state budget rule. This applies only to marked appropriations and does not create household payments.

State agencies get operating cost support

For fiscal year 2026–2027, fleet operations funding rises $6.1906 million, including $5.6906 million in state general funds and $500,000 from other funds. Fleet replacement rises $2.9642 million, including $1.9642 million in state general funds and $1 million from other funds. Agency risk management funding rises $12.8973 million, including $9.8973 million in state general funds and $3 million from other funds. Rent adjustments receive $137,000—$87,000 in state general funds and $50,000 from other funds—for agencies moving to or within state-owned or lease-purchase buildings. Accounting system charge funding rises $2.7603 million, including $1.2603 million in state general funds and $1.5 million from other funds; these adjustments do not establish household aid.

State technology funds get longer spending windows

Fiscal year 2026–2027 automation project funds remain available until June 30, 2028. Specified technology appropriations from fiscal years 2023–2024 and 2024–2025 remain available until June 30, 2027. Covered projects include tax modernization, Medicaid mainframe replacement, related modules, and systems integration. They also include health applicant identity checks, Medicaid fraud prevention, and concealed weapons tracking. These extensions add spending time, not new funding.

Arizona funds utility oversight and filings

For fiscal year 2026–2027, the Arizona Corporation Commission receives $39.5256 million and authority for 303 full-time-equivalent staff positions. The total includes $417,800 for same-day corporation filing service. It also includes $1 million for utility audits, studies, investigations, and hearings. The law funds regulatory work but does not set household utility savings.

Arizona funds biomedical research with reporting

Arizona provides $2 million to a nonprofit medical research institute headquartered in the state. It must apply genomic technologies and sequencing to clinical care, have helped Arizona investigate disease outbreaks, and collaborate with specified in-state research, health, and industry partners. The institute must commission a spending audit and submit it to the health department by February 1, 2028. A separate $3 million allocation supports an Arizona nonprofit medical research foundation collaborating with universities, hospitals, and biotechnology and health research centers. That foundation must report spending and results to Northern Arizona University, which must forward the report to specified state offices by February 1, 2027.

Arizona funds Medicaid mainframe modernization

Arizona transfers $12.94 million from the general fund in fiscal year 2026–2027 to modernize the Medicaid system’s mainframe. The money goes to the project’s subaccount in the automation projects fund. This funds agency technology work, not new member payments. It does not change Medicaid eligibility.

Food benefit administration funds stay available

The $10.8 million fiscal year 2026–2027 appropriation for implementing federal Public Law 119-21 for SNAP remains available until June 30, 2028. Fiscal year 2026–2027 summer food benefit administration funds remain available until October 31, 2027. These extensions support program administration. They do not change household eligibility or food benefit amounts.

Funding for Medicaid systems and applications

For fiscal year 2026–2027, the law provides $51.5 million for Arizona Medicaid to carry out Public Law 119-21. Of that total, $4 million in state general funds and $24.4 million in spending authority must support technology upgrades. The upgrade funding is exempt from Information Technology Authorization Committee review, and the appropriation remains available through June 30, 2028. The law also provides $97.0745 million for Department of Economic Security eligibility work through intergovernmental agreements. State general funds can support other benefit eligibility work based on Arizona's work-time sampling survey; these allocations do not themselves change who qualifies.

Funding for medical training across Arizona

For fiscal year 2026–2027, medical training programs in counties below 500,000 residents receive $14.1523 million: $5 million in state general funds and $9.1523 million in spending authority. Programs in counties above 500,000 residents receive $11.3218 million: $4 million in state general funds and $7.3218 million in spending authority. These amounts cover direct and indirect training costs; state general funds can add to, but cannot replace, voluntary local payments. Smaller-county awards must prioritize hospitals in counties with a larger share of residents in health-worker shortage areas. Arizona Medicaid can also spend medical education receipts above $569.1768 million, including federal matching funds, after notifying legislative and Governor's budget offices.

Medical training funds last longer

Arizona’s Medicaid agency can use remaining medical training funds for programs run by community health centers and rural health clinics. It must first fund all eligible graduate medical education programs in counties with fewer than 500,000 residents. The 2026–2027 medical training appropriations remain available until June 30, 2028. Medical training funds appropriated in 2024 remain available until December 31, 2026; these extensions add no new funding.

Nursing facilities can receive additional payments

For fiscal year 2026–2027, Arizona Medicaid can spend nursing facility supplemental receipts above $91.4553 million, including federal matching funds. Before spending the extra money, the agency must notify the legislative budget committee and the Governor's budget office. The law does not specify how much extra money is available or establish a household payment.

Trauma treatment training for health professionals

The law sets aside $450,000 from veterans' trauma treatment services for grants to contractors qualifying under Arizona Medicaid law. The grants fund trauma-treatment training for Arizona-licensed doctors, nurse practitioners, physician assistants, psychologists, and behavioral health professionals. The money supports provider training rather than direct household payments.

Private prisons can fund overtime from vacancies

Private prison vendors with Arizona contracts can use savings from vacant staff positions to pay overtime costs. That use does not trigger a penalty or staffing offset. The law does not set an overtime payment amount.

School building debt payments receive funding

The Division of School Facilities receives $9.9381 million for debt payments on new school facilities in fiscal year 2026–2027. The money covers school financing costs, not direct household payments.

Arizona funds newer tax agency systems

For fiscal year 2026–2027, the law provides $3.6568 million for tax system modernization and $1.425 million for cloud migration. The upgraded system must capture individual and corporate return data and support searches and reports. It must include an individual income tax model to estimate proposed laws’ fiscal effects, using only data the system captures. Tax information must follow state and federal privacy laws, with data available within 24 months after each tax year ends. These projects do not change tax rates, tax rules, or filing duties.

Prison contracts and healthcare funding decline

The law lowers 2025–2026 private prison per-day payment funding from $269.3592 million to $266.9567 million. It lowers contracted inmate healthcare funding from $380.9789 million to $371.4994 million. The provisions do not identify changes to prison capacity, specific health services, or affected patients.

Water agencies face targeted spending limits

The Department of Water Resources must reserve $1.3177 million for rural water needs assessments and sustainable supply plans. Studies must cover areas outside active management areas; the money cannot pay other department operating costs. The $2.5912 million assured and adequate water supply line is limited to purposes in Arizona statutes 45-108 and 45-576 through 45-579. The $1.9579 million water adjudication support line is limited to purposes in statutes 45-256 and 45-257(B)(4). The department cannot transfer money into or out of either of those last two lines.

Less funding for college wrestling scholarships

The law cuts $250,000 from fiscal year 2025–2026 state funding for Maricopa County Community College District wrestling scholarships. It does not state how many students lose aid or how award amounts change.

Less funding for live remote classes

Beginning July 31, 2026, the law cuts $200,000 from earlier funding for live, remote instructional courses. It removes $100,000 each from the Superintendent of Public Instruction’s fiscal year 2023–2024 and 2024–2025 appropriations. The law does not specify how course access changes.

Schools receive less basic aid funding

The law cuts $31.859 million from fiscal year 2025–2026 general fund appropriations for basic state aid formula costs. The reduction applies to funding for the Superintendent of Public Instruction. It does not specify resulting changes to school services or household costs.

Teacher training pilot funding is cut

Beginning July 31, 2026, the law cuts $1.1443 million from earlier funding for the high-quality teacher professional development pilot. It removes $344,300 from the fiscal year 2019–2020 appropriation. It also removes $400,000 each from the fiscal year 2020–2021 and 2021–2022 appropriations. The law does not specify changes to services for teachers or students.

Counties must protect local probation spending

Counties must maintain fiscal year 2019–2020 spending for each probation program to receive state probation money. State funding cannot replace county dollars. In fiscal year 2026–2027, specified adult and juvenile probation funds must pass through to county probation departments. Covered lines include supervision, treatment, diversion, crime reduction, community punishment, interstate compact, and incentive payments. Other money intended for county probation must move to the proper budget line before spending.

State agencies pay scheduled legal charges

For fiscal year 2026–2027, the law sets legal counsel charges for 33 listed state agencies and departments. Charges for Department of Law counsel range from $600 to $677,400. These are payments between state entities, not fees charged to households.

State agencies receive lower overhead allocations

For 2026–2027, fleet operations funding falls $5.1959 million: a $5.2059 million general fund cut offset by $10,000 from other funds. Fleet replacement falls $5.1224 million: $2.4224 million from the general fund and $2.7 million from other funds. Risk management falls $25.8883 million: $19.9996 million from the general fund and $5.8887 million from other funds. Retirement adjustment funding falls $3.4073 million: $3.1358 million from the general fund and $271,500 from other funds. These agency funding changes do not establish changes to household costs, insurance coverage, or individual retirement benefits.

State cuts and reclaims prior appropriations

Beginning July 31, 2026, the law cuts $5.0378 million from a 2021–2022 general fund appropriation for retiring financing agreements. On that date, the Treasurer’s appropriation under Laws 2022, chapter 313, section 130 returns to the state general fund. The Treasurer amount is not stated, and neither provision specifies a direct household service or payment change.

State funds cover prior financial obligations

The law provides $2.0187 million from the Risk Management Revolving Fund to the Department of Administration in fiscal year 2025–2026. The money can only cover disallowed costs tied to excess retained earnings and statewide technology charges, plus interest on prior-year disallowed costs. It can also fund fiscal year 2024–2025 fund transfers. This provision addresses state financial obligations, not household payments.

Universities face targeted funding spending limits

Northern Arizona University's Economic Policy Institute and the University of Arizona's Center for the Philosophy of Freedom must keep funds and donations separate. Each may fund only direct operations, not university indirect costs, and cannot replace existing state or outside support. Both must report funding, faculty, participation, and activity information to designated lawmakers and the legislative budget committee director by October 1, 2026. The University of Arizona must reserve $1.2178 million for Geological Survey purposes and cannot transfer it elsewhere.

University civic school faces funding controls

Arizona State University’s School of Civic and Economic Thought and Leadership must keep allocated funds and donations in a separate account. That money pays only for the school’s direct operations, not university indirect costs. The school must remain one stand-alone academic unit, and its funding cannot replace existing state or outside funding. It must report funding, faculty, courses, enrollment, and activities to legislative recipients by October 1, 2026.

Adaptive college sports funding requires donations

The law provides $160,000 for intercollegiate wheelchair and adaptive sports at universities overseen by the Arizona Board of Regents. Before spending state money, a university must collect an equal amount in nonstate gifts, grants, or donations. Funds can pay for participant scholarships, equipment, uniforms, travel, and tournament fees. They cannot pay for administration, staff pay, or employee-related costs.

Career completion grants have funding limits

The law provides $1 million for career technical education completion grants, available until June 30, 2028. Students must complete at least 50% of the program before high school graduation. They must successfully finish the district program afterward; grants are awarded only after completion. Awards are reduced proportionally if requests exceed the available funding.

Student grants require matching college funds

The law provides $1.2208 million for student grants through the Leveraging Educational Assistance Partnership Program. Each participating public or private college must match its state funding dollar for dollar. Board administrative costs must come from those matching funds. Those costs cannot exceed 12% of the fiscal year 2026–2027 appropriation.

Arizona prisons must use local beds first

The Department of Corrections must use all available Arizona prison beds housing Arizona inmates before using out-of-state provisional beds. The law also permits out-of-state provisional beds when their security level and price are comparable. This governs prison placement decisions, not household payments.

Border enforcement receives staff and grants

The gang and immigration enforcement team receives $26.0148 million for 2026–2027. Of that, $14.1609 million funds 100 Public Safety personnel; at least 50 must be sworn immigration-enforcement and border-security officers. Changes to the team's mission or funding allocation require legislative budget committee approval. Another $13.2329 million funds local border drug-interdiction positions, prosecution and detention grants for specified border-related crimes, and optional related equipment. Public Safety must submit a spending plan for that local support by September 1, 2026.

Medicaid funds shift to tobacco enforcement

In 2026–2027, Arizona's Medicaid agency must transfer up to $1.2 million from traditional Medicaid services to the Attorney General. That money funds e-cigarette enforcement and tobacco settlement litigation. Another $836,000 from the same line goes to Revenue for enforcement tied to the March 13, 2013 settlement agreement. The transfers support enforcement while redirecting money from the Medicaid services line.

State reimbursements return to general fund

State agencies must promptly deposit federal reimbursements received in fiscal year 2026–2027 for border security spending into the general fund. They must also notify the specified state fiscal and budget offices in writing. A separate rule applies when a municipality assumes its Central Arizona Project water allocation and repays past district payments. In fiscal year 2026–2027, an equal amount returns to the general fund in the year that repayment is collected. These rules direct state revenue; they do not set household payments or water rates.

Long-term care funding flexibility and controls

Federal funds passed from Arizona’s Medicaid agency to Economic Security for developmental disability long-term care do not count toward the long-term care spending limit. This preserves spending room without setting a new individual benefit. Any range in annual preliminary estimates of long-term care payments to health plans cannot exceed 2%. Economic Security must submit a report for legislative budget committee review before changing those payment rates.

Sponsors & Cosponsors

Cosponsors

David C. Farnsworth
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 57 • No: 11

House vote • 6/11/2026

Third Reading: Passed

Yes: 49 • No: 9

Senate vote • 6/10/2026

Appropriations, Transportation and Technology: DP

Yes: 8 • No: 2

Actions Timeline

Signed by Governor
6/13/2026Governor
Third Reading: Passed
6/11/2026House
Third Reading: Passed
6/11/2026Senate
Committee of the Whole: do pass amended
6/11/2026Senate
Senate Second Reading
6/10/2026Senate
Rules: PFC
6/10/2026Senate
Appropriations, Transportation and Technology: DP
6/10/2026Senate
Senate First Reading
6/9/2026Senate

Bill Text

Chaptered Version
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Introduced Version
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Senate Engrossed Version (06/11/2026)
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