Arizona Governor Urges Federal Leaders on Colorado River, Citing National Security and Economic Risks

## Governor Makes Case That Arizona's Water Supply Is Critical to National Defense

PHOENIX — Gov. Katie Hobbs has made her most direct pitch yet to the Trump administration, arguing that Arizona's water supply from the Colorado River underpins the nation's defense, food production and technology sectors.

The Democratic governor said Arizona uniquely can make an "economic case, that national security case" for federal intervention in Colorado River negotiations, as seven Western states remain deadlocked over how to divide a shrinking river.

"No other state can make that economic case, that national security case that Arizona can make on Colorado River water," Hobbs told KTAR 92.3 FM.

She cited three Arizona industries dependent on groundwater:

• Arizona-made semiconductors
• Tomahawk missile production
• The state's role supplying 90% of the nation's winter leafy greens

## Federal Government Considering Massive CAP Cuts

The U.S. Bureau of Reclamation is weighing a series of proposals that would cut deliveries of Central Arizona Project water by anywhere from 32% to 98%.

The most drastic proposal would reduce Arizona's allocation of Colorado River water to 15% of the CAP's current capacity, or about 232,000 acre feet.

"The potential collapse of the Central Arizona Project due to continued low Colorado River flows could be a game-changer for Arizona's water use and policies," said Brad Udall, a Colorado State University water researcher.

"It will affect Arizona water users and uses, Arizona politics, Arizona growth, and Arizona's sense of itself," Udall said.

## Arizona Business Community Promises Water Conservation

Arizona's business community has already made commitments to water conservation as the federal government considers reducing the state's allocation.

Intel has decreased its freshwater withdrawal by 30% since 2020 while bringing two new semiconductor factories online by investing in water treatment and reclamation facilities.

"Not only do we reduce and reuse water, but we also restore more water than we consume," said Kelly Osborne, Intel Senior Technologist. "Intel has a net positive goal for water, so water that we actually lose to evaporation, we work with nonprofits within our watersheds to go then restore water to the river."

## Business Leaders Urge Elected Officials to Focus on Long-Term Solution

Greater Phoenix Leadership President Neil Giuliano said the business community wants to help elected officials spread the message about the Colorado River crisis without spooking investors or average citizens.

"If the business community can help our elected officials ignore the political noise and just work on your long-term obligation, I think we'd be helping if we can do that," Giuliano said.

The state has retained the high-powered law firm Sullivan and Cromwell to represent its position in a potential court battle, but more needs to be done at the local and business levels to conserve water, find alternative supplies and communicate Arizona's position.

## Governor Blames Republicans for Budget Impasse

On the state budget, Gov. Hobbs rejected claims by Republican legislative leaders that she walked away from negotiations.

"I'm going to set the record straight right here," she said. "I put out my budget in early January as required. My budget's been on the table, my priorities everyone in Arizona can see them."

She accused Republicans of blocking progress without offering an alternative.

"All the Republicans in the legislature have done is say, That's not a balanced budget, we can't do that. Then they keep sending me irresponsible tax breaks for special interests and billionaires without showing Arizonans how they're going to pay for I don't know how to negotiate with people who won't show us a plan of how they want to balance the budget," she said.

The budget impasse also blocks any suspension of the state gas tax, which Hobbs said requires legislative action. She pointed to gas prices, tariffs, Medicaid cuts and the elimination of ACA tax credits as compounding cost pressures on Arizona consumers.

## What's Next

Governor Hobbs is banking on President Donald Trump to blunt Colorado River cuts in federal negotiations. She has been very vocal on asking the federal government to step in and support Arizona's position, making sure that the state gets the share of Colorado River water that it is owed.

Federal negotiations on Colorado River water allocations remain deadlocked as drought conditions continue across the Southwest.