Arizona SNAP Recipients Plummet After HR 1 Federal Law Changes

Arizona Sees Largest Food Stamp Reduction in Nation as Federal Requirements Tighten

Arizona is experiencing the sharpest decline in food stamp recipients in the United States, with a 32 percent drop in participation since federal law HR 1 was enacted, according to a new study.

The Center for Budget and Policy Priorities report found that SNAP participation dropped by 2.5 million people nationwide since the federal law and its new requirements were enacted in July and December. But Arizona's numbers are strikingly different from the national average.

While the USDA reports a 6 percent drop nationally, Arizona has seen a 32 percent decline in the Supplemental Nutrition Assistance Program that provides benefits averaging $312 per month for all households and $520 for households with children.

More recent figures from the state Department of Economic Security show an even steeper 47 percent decrease, a reduction of more than 400,000 people, including 180,000 children, leaving fewer than 490,000 recipients as of February.

HR 1 and Error Rate Penalties Drive Cuts

The federal law, dubbed the Big Beautiful Bill by President Trump, contained significant changes to the SNAP program, including expanding work requirements to cover able-bodied single adults up to age 65. It also shifted more of the costs of administering the program to states.

States that do not bring their error rates below 6 percent face penalties requiring them to pick up anywhere from 15 percent to 100 percent of the actual cost of benefits. Until now, these costs were fully paid by Washington.

Arizona had an 8.8 percent error rate in the 2023-2024 budget year, but for the last fiscal year it was projected to be 10.4 percent. A report by the state Office of Strategic Planning and Budgeting pointed out that while this is still below the national average of 10.9 percent, the consequences could be severe.

If the error rate remains at 8.8 percent, the state could have to cover $195.4 million in the 2027-2028 fiscal year. If the error rate hits 10 percent, that figure could reach nearly $300 million.

Staffing Shortages Complicate Implementation

Gubernatorial press aide Christian Slater explained that part of the problem stems from staffing issues at the Department of Economic Security. Before HR 1, about 500 workers at the agency, roughly 5 percent of the workforce, were laid off in the summer of 2025, a move the state blamed on other federal budget cuts.

The number of workers reviewing food stamp eligibility dropped by 1,370 in July 2024 to just 880 this past July. The agency is processing an estimated 54,000 new and renewal applications, of which 18,000 are taking more than 30 days to complete.

Slater noted that Arizona, aware of the penalties for not getting its error rate down, went proactive in doing greater checks to ensure only those eligible under the new HR 1 rules are receiving aid. But with fewer staff, that resulted in some applications and renewals being delayed or denied outright when people could not provide the required information, with people dropping off the rolls.

In December, Governor Katie Hobbs responded by earmarking $7.5 million in unused federal COVID-19 funds to address what she called staffing constraints at DES. That included hiring temporary workers to expand the agency's capacity to verify applicants income.

Political Fallout and Future Uncertainty

Every Republican in the state's congressional delegation voted for HR 1, including the food stamp provisions. Republican Congressman David Schweikert commented on the sudden drop in SNAP recipients, saying states were incentivized to reduce errors and manage benefits efficiently.

But Schweikert took aim at Governor Hobbs, stating that Arizona's 10.4 percent error rate in the most recent fiscal year meant the state had to do a lot more culling of ineligible recipients. He said Arizona's outsized reductions demonstrate the management failures of this governor, who is hoping to oust Hobbs in November.

Despite these efforts, the data shows continued sharp decline. DES spokesman Brett Bezio stated that the state believes most of the impact of the changes from HR 1 has been realized, and will begin to see consistency in the SNAP caseload in the coming months.

Bezio also noted that Governor Hobbs has requested an additional $48.4 million for the agency for the coming budget year, including 146 new employees. He said this should cut delays as well as help ensure the state gets below the error rate at which point there would be penalties.

Agriculture Secretary Brooke Rollins, announcing a 3.3 million reduction in SNAP recipients nationally, called it a signal that the federal government is once again working for the American public.