Arizona Gov. Hobbs announces bill moratorium over disability services funding dispute with GOP

PHOENIX – Arizona Gov. Katie Hobbs said Thursday she won’t sign any new bills until the Republican-controlled Legislature passes an acceptable bipartisan plan to fund a state agency that provides services for people with disabilities.

The bill moratorium applies to legislation that hasn’t yet reached the Democratic governor’s desk. She plans to act in the coming days on bills already transmitted. Hobbs said she’ll veto all future bills until the disputed situation is resolved.

“Business as usual cannot continue until Arizonans with developmental disabilities and their caretakers have the certainty they need,” Hobbs said in a press release.

Republican and Democratic leaders responds to governor’s bill moratorium

House Speaker Steve Montenegro blamed Hobbs for the Division of Developmental Disabilities (DDD) funding crisis and criticized her approach.

“Gov. Hobbs’ decision to hold every bill hostage because she didn’t get her way on a blank check is not leadership — it’s political blackmail,” Montenegro said in a statement. “She created this crisis by foolishly expanding the DDD program without legislative approval or funding in place, and now she’s throwing a tantrum because the Legislature is doing the responsible thing: funding services while putting guardrails in place to keep the program from collapsing.

Meanwhile, House Democratic Leader Oscar De Los Santos said he supports Hobbs’ bill moratorium.

“Gov. Hobbs showed strong leadership today with her decision to veto any bills that cross her desk until Republicans work with Democrats on a real bipartisan emergency fix — with no poison pills or ruthless power grabs — before funding for the Division of Developmental Disabilities runs out in May,” De Los Santos said in a statement.

Background of dispute over DDD funding

For her part, Hobbs accused GOP Reps. David Livingston and Matt Gress of orchestrating “manufactured chaos.”

“While they leverage a crisis of their own creation to engage in political warfare, Arizonans with autism, Down syndrome, cerebral palsy and other disabilities are the ones harmed by their partisan attacks,” the governor said. “That’s unacceptable to me, and after meeting with families dependent on these critical services, I know it’s unacceptable to the nearly 60,000 Arizonans who rely on the Division of Developmental Disabilities to live their lives with independence and dignity.”

It’s shameful that a few, extreme Republican legislators are holding funding for Arizonans with disabilities hostage to their political theater.

Business as usual cannot continue until Arizonans with developmental disabilities and their caregivers have the certainty they need.

— Governor Katie Hobbs (@GovernorHobbs) April 17, 2025

Livingston introduced a supplemental spending bill to fund the DDD earlier this month. HB2945 advanced through the House appropriations and rules committees this week.

“What we’re doing today is stepping up with a responsible, fully funded solution that protects families, restores order and keeps this from happening again,” Montenegro said in a statement after the bill was introduced on April 7. “We’re bringing compassion and common sense back into the process. Families deserve stability — not budget chaos and political excuses.”

Hobbs said she heard from affected families and organizations who expressed concerns about the plan.

“It reduces services for disabled Arizonans, adds red tape and paves the way to ending the Parents as Paid Caregivers program altogether,” the governor said in an April 9 press release. “It slashes funding for down payment assistance for middle class families. And this reckless Republican proposal will enable attacks on other critical Medicaid programs in the immediate future.”

Hobbs addressed DDD funding in her annual budget proposal

Hobbs said she included a plan to fully fund the DDD in her budget proposals earlier this year and criticized Republicans for waiting so long to offer a response.

While announcing her bill moratorium Thursday, Hobbs called the GOP bill “unserious and a complete nonstarter.”

“I am ready to negotiate with anybody who is willing to discuss a serious supplemental funding bill,” the governor said. “In the coming days, I will continue working toward real solutions, starting with the serious proposals already put forward.”

Montenegro, meanwhile, accused Hobbs of being the one who is unwilling to negotiate.

“If Gov. Hobbs was serious about protecting families, she’d stop the partisan press releases, stop the threats and finally come to the table,” he said in his latest statement. “Until then, she’s the one playing political games — at the expense of every Arizonan waiting for her to do her job.”

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