Gov. Katie Hobbs says budget deal is close, faults Congress for deep SNAP cuts

Gov. Katie Hobbs signaled Thursday that a deal on Arizona’s next state budget is within reach with only “very minor sticking points” remaining between her office and Republican legislative leaders.

“We’ve been meeting regularly, I think sometimes twice a day,” Hobbs told KTAR News 92.3 FM’s Outspoken with Bruce & Gaydos.

Her remarks echoed Senate President Warren Petersen, who told KTAR’s News 92.3 FM’s Arizona’s Morning News a day earlier that the two sides were “pretty much 99% of the way there.”

“The last 1% can be the hardest,” Petersen said Wednesday.

The Senate president did indicate a solution had been reached on Proposition 123, which the governor has wanted included in the budget. Voters would have to approve it in November.

Hobbs declined to detail what is holding up a final deal but acknowledged compromise was essential.

“I put out my budget in January. That is my vision, my plan,” Hobbs said. “I know that there’s going to be compromise.”

The governor emphasized that she remains focused on a tax cut she has supported throughout the session.

“One of the things I’ve championed from day one of this legislative session is a $600 million middle class tax cut,” Hobbs said. “This tax cut would give Arizonans a higher standard deduction, a tax credit for seniors and no tax on tips and overtime. I think we’re going to get to agreement on that.”

The new budget must be in place before the next fiscal year starts July 1.

Republicans passed a $17.9 billion spending plan earlier this month, but Hobbs vetoed it, calling it “unbalanced and reckless.”

Hobbs criticizes Washington, GOP gubernatorial candidates for SNAP cuts

Hobbs gave an impassioned critique of federal cuts to the Supplemental Nutrition Assistance Program. Arizona’s SNAP enrollment has fallen from about 900,000 in 2025 to roughly 500,000 this year.

That 55% drop is far deeper than any other state.

“This is something that’s personal to me,” Hobbs said of her past financial struggles. “This is a direct result of Washington’s chaos and the cuts that politicians in Washington, D.C., including Andy Biggs and David Schweikert, voted for to cut half a million Arizonans off of their nutrition assistance.”

When asked whether Biggs and Schweikert knew the scope of the impact, Hobbs was emphatic.

“I 100% think they knew that,” Hobbs said. “My office, from the second that bill was introduced, was sharing with our entire congressional delegation the numbers of people in Arizona that would be impacted, including specific to each congressional district.”

While Arizona is adding additional funds to support food banks and address application backlogs, Hobbs explained that state resources cannot make up for the federal cuts.

“We can’t backfill this,” Hobbs said. “We don’t have the resources.”

Hobbs responds to Congressman’s critiques

Hobbs, who narrowly defeated Republican Kari Lake in 2022, is seeking a second term in 2026. She learns her GOP challenger after the July 21 primary.

She released a campaign ad this week, citing her own financial struggles.

“My husband and I struggle too, raising our kids. We lost a home to foreclosure. I’ve taken second and third jobs to make sure we had what we needed, including driving for Uber,” Hobbs said. “This is what I’m hearing most from Arizonans, is that they are feeling the struggle of rising costs.”

She pushed back on criticism from Rep. David Schweikert, who told Outspoken with Bruce & Gaydos a day earlier that Arizona ranked 45th in affordability and added that the governor “sets much of the tone and policy.”

“It is Washington’s cost-hiking, job-killing agenda that is hurting Arizonans,” Hobbs said. “It is the tariffs that David Schweikert partially owns (and) that Andy Biggs owns.”

KTAR News 92.3 FM’s Kylie Werner contributed to this report. 

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