More Than 400,000 Arizonans Lose SNAP Benefits as State Grapples With Federal Changes and Budget Constraints

Arizona's SNAP Program Experiences Largest National Decline

More than 400,000 Arizonans have lost their Supplemental Nutrition Assistance Program benefits since July, the largest drop in the nation, according to a study released Thursday by the Center on Budget and Policy Priorities.

The decline represents nearly 47 percent of Arizona's SNAP participants and includes about 180,000 children. Fewer than 490,000 recipients remain as of February, down from 598,852 in December.

Federal Policy and State Response

The sharp reduction comes as Arizona implements changes mandated by President Trump's "One Big Beautiful Bill Act," which expanded work requirements and shifted more program costs to states. The federal law requires states to reduce payment error rates below 6 percent or face penalties ranging from 15 to 100 percent of benefit costs.

Arizona's error rate was 8.8 percent in the 2023-2024 budget year. For the last fiscal year, officials projected it would reach 10.4 percent. Despite remaining below the national average of 10.9 percent, the state could face penalties of $195.4 million in the 2027-2028 fiscal year if the error rate stays at 8.8 percent, according to the state Office of Strategic Planning and Budgeting.

"Arizona is just the alarm bell," said Joseph Palomino, executive director of the Arizona Center for Economic Progress. "This is likely going to happen in every state."

Staffing and Technology Challenges

Even before implementing HR 1 requirements, Arizona's Department of Economic Security laid off about 500 employees in the summer of 2025, blaming federal budget cuts. About 160 eligibility specialists lost their jobs, representing a 40 percent decline since July 2024.

The department processed an estimated 54,000 new and renewal applications during this period, with 18,000 applications taking more than 30 days to process.

In December, Governor Katie Hobbs allocated $7.5 million in unused federal COVID-19 funds to address staffing constraints. Most of the money was used to hire more than 100 temporary workers and increase overtime to handle SNAP cases.

"It is important to note that we believe most of the impact of the changes from HR 1 has been realized, and we will begin to see consistency in the SNAP caseload in the months ahead," said DES spokesman Brett Bezio.

Long-Term Budget Planning

For the coming budget year, Governor Hobbs has requested an additional $48.4 million for the agency, including 146 new employees. Officials hope the investment will help reduce processing delays and ensure the state meets error rate requirements.

The state currently spends $70 million annually to administer the $2 billion program, according to 2023 federal data. Hobbs' budget proposal includes hiring 146 new employees to strengthen capacity.

Political Context

Every Republican in Arizona's congressional delegation voted for HR 1, including its food stamp provisions. Republican Congressman David Schweikert criticized the decline, saying it demonstrates "management failures" by Governor Hobbs.

Governor Hobbs' administration blames federal policies for increasing bureaucracy and red tape across states. Press secretary Liliana Soto stated the administration is taking necessary steps "to avoid staggering fines of hundreds of millions of dollars that would further endanger food assistance for vulnerable Arizonans."

Human Impact

Charisma Garcia, a 25-year-old mother of two, has tried for months to obtain a SNAP interview. After weeks of calling the agency and receiving recorded messages, she recently waited in line at an Arizona Department of Economic Security office in south Phoenix before being told in-person interviews were no longer being conducted.

Garcia's 3-year-old sometimes pats his belly when hungry for fruit. At times, he hasn't received fruit in the food bank boxes his family receives.

"I'm in a pinch," Garcia said. "I'm struggling."

She is now looking for work as a cook after being laid off from a car wash in January. Her family lives with her grandparents, where groceries are shared among six people.

State Budget Backdrop

The SNAP crisis unfolds against a broader backdrop of state budget challenges. In 2021, the Arizona Legislature and then-Governor Doug Ducey passed a 2.5 percent flat income tax that largely benefited the wealthy. The measure has forced more than $1 billion in spending cuts and fund swaps in subsequent years to balance the state budget.

Ducey defended the flat tax as necessary to ensure Arizona remains competitive and "a jobs magnet and generator of opportunity."

The state's aging technology infrastructure also contributes to processing delays. Officials describe the system as "1980s technology" that slows application processing and contributes to the high error rate the state must reduce to avoid federal penalties.

Looking Ahead

Governor Hobbs has asked for an additional $48.4 million in her 2027 budget proposal to help the Department of Economic Security administer SNAP. Officials predict applications will slow as the state continues to verify income under the new federal requirements.

"Arizona's outsized reductions are a clear outlier, demonstrating the management failures of this governor," Schweikert said.

Meanwhile, DES officials predict the caseload decline will stabilize as other states fully implement HR 1 provisions and Arizona continues its error rate reduction efforts.