Gov. Katie Hobbs signs bill to fund disability services into law, lifting moratorium

PHOENIX – The logjam at the Arizona Capitol cleared up after Gov. Katie Hobbs signed a bill to fund disability services on Thursday.

The Democratic governor announced last Thursday she would veto any new bills sent to her desk until the Division of Developmental Disabilities (DDD) funding crisis was solved through a bipartisan agreement.

By signing the bill into law, she lifted the moratorium.

What led up to Hobbs signing the spending bill for disability services?

The House passed an amended version of supplemental spending bill HB2945 by a 48-11 margin on Wednesday, and the Senate approved it almost unanimously, 28-1, a day later. Republicans control both chambers of the Legislature.

Hobbs expressed her satisfaction with the renegotiated legislation after the House vote.

“This deal ensures critical services for disabled Arizonans will continue, delivers reasonable guardrails for the Parents as Paid Caregivers program, and protects funding to respond to Arizonans’ housing needs,” she said in a press release Wednesday. “It’s time for the Senate to get this negotiated bill on my desk to protect services for these families.”

Parents as Paid Caregivers program was big part of dispute

Hobbs instituted her bill moratorium last week after Republicans introduced HB2945 earlier this month. She said the original version was not acceptable because it would have reduced services for Arizonans with developmental disabilities.

The governor insisted that the Parents as Paid Caregivers program be protected. The program allows parents of minor children with disabilities to be paid through Arizona’s Medicaid system for the care they provide.

“After months of confusion and uncertainty for countless families, tonight we took an important first step towards delivering critical funding to continue vital services for Arizonans with Down syndrome, autism, cerebral palsy and other developmental disabilities,” Hobbs said after the bill was renegotiated. “I am grateful to see House members on both sides of the aisle come together to advance commonsense proposals.”

What did House GOP leader say about disability services spending bill?

Arizona House Speaker Steve Montenegro, who last week blamed Hobbs for the DDD funding crisis, called the compromise “a win for Arizonans.”

“This legislation also includes responsible, commonsense guardrails to provide greater transparency and prevent future funding shortfalls,” he said in a statement.

“We heard from families, providers and budget experts, and we acted to protect essential services and ensure the program’s long-term stability. This is a win for Arizonans and a step toward greater accountability in how public dollars are spent.”

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