As a government shutdown looms, Arizonans demand government action

As Arizona faces a defining budget decision and a potential government shutdown, community members feel like their voices aren’t being heard. 

The state could see a government shutdown starting July 1 because lawmakers haven’t agreed on a new state budget. The Republican-led Senate and Democratic Gov. Katie Hobbs back a bipartisan $17.6 billion deal, but the Republican-led House pushed a temporary funding plan with massive spending cuts that Hobbs vetoed on Wednesday. 

Without a signed budget or stopgap measure implemented by June 30, most state agencies would be forced to close.

And constituents aren’t happy. People like Paola Campos, Luis Guerra, and Magdalena Marin believe the state government should invest in resources and benefits that help in their everyday lives.

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Fully funding programs like Arizona Health Care Cost Containment System (AHCCCS), Arizona’s Medicaid agency, means the difference between piling hospital bills or receiving care for Campos, a Tucson resident.

“I do depend on it, like if I ever need to go to urgent care or make an appointment with my doctor, and to know that I might be able to lose it, that is … disappointing,” Campos said in an interview.

Guerra, a South Phoenix resident, wants to see investments in direct rental assistance and Medicaid—his sister receives AHCCCS, and there’s no “Plan B” if she loses her health coverage. 

“If something were to happen to us, right now, we’re paying so much in rent that we don’t know if at one point we’re gonna start missing payments, so if we get evicted, where are we gonna get that help?” Guerra said in an interview. 

Marin, a Phoenix resident, wants lawmakers to push for policies that center on community benefits, she said in an interview.

Her daughter will soon be starting high school, and she dreads the lack of investment in local public schools. She wants to see more education funding for after-school programs, extracurricular activities—things that will keep students focused on education. 

Marin’s husband also depends on Medicaid to afford a prescription he needs to stay alive, and many of her neighbors receive healthcare from AHCCCS—cuts to the program would be devastating for her family and community. 

Meanwhile, the Republican-led legislature continues to fight over budget negotiations, and Arizonans like Campos, Guerra, and Marin feel left out and left behind. 

What’s going on with the state budget?

The state House of Representatives approved its own budget on June 13, with a $17.3 billion price tag, which passed 31-0, with no debate and no Democrats present. 

Senate Republicans then introduced a budget proposal on June 16, which they spent considerable time negotiating with Hobbs. By June 20, the Arizona State Senate passed its bipartisan budget and adjourned “sine die,” declaring it was done for the session.

The Senate’s $17.6 billion budget, which has Hobbs’ approval, includes over $250 more for Medicaid, and nearly $100 more for K-12 funding, compared to the House’s proposal. But it does not renew the Low-Income Housing Tax Credit program or allocate any new funds into the Housing Trust Fund.

Democrats who voted against the budget, like Sen. Analise Ortiz (D-Maryvale) pointed out its lack of funding for affordable housing programs, and how it diverts money to local police to conduct illegal immigration law enforcement. 

The state House worked on a scaled-down “skinny” budget plan that would greatly reduce the state’s spending, but keep the government running for the next year—however, it did not have Hobbs’ support. Her budget priorities include increased investments in childcare programs,

“This budget cuts funding for K-12 schools and free school meals, slaps veterans in the face by cutting services, and denies the brave women and men of law enforcement pay raises, it also denies firefighters pay raises,” said House Minority Leader Oscar De Los Santos, in a June 24 House Rules Committee. “Perhaps most importantly, though, it has 0% chance of ever being signed into law.” 

Living United for Change in Arizona (LUCHA), an advocacy organization fighting for social, racial, and economic justice has spent this year’s legislative session advocating for a “people first economy,” that prioritizes working Arizonans’ needs like affordable housing, healthcare, and childcare, Gina Mendez, organizing director at LUCHA, told The Copper Courier. 

READ MORE: ‘Hands Off Our Budget:’ Progressive groups demand lawmakers prioritize working families over billionaires

On June 17, LUCHA hosted a popup event at the Arizona State Capitol, where they showcased a community art installation depicting the organizations’ fight to keep tax dollars away from immigration enforcement, and instead invest in programs that help the community.     

A community art installation is showcased at a popup event hosted by Living United for Change in Arizona’s (LUCHA) on June 17, 2025 in Phoenix, Arizona. (Sahara Sajjadi/The Copper Courier)

Funding for direct housing and utility assistance are vital for the community, Mendez said. “A lot of our community members are renters, so with the cost of living going up, utilities are expensive, and so multiple members are working two jobs, so anything honestly that can help.”

These budget negotiations shouldn’t just be “business as usual,” said Alex Ray Sanchez, communications coordinator at LUCHA, “the threats facing our communities are very real, but there is another path, the one we’re fighting for, that leads us towards shared prosperity, towards fully funded schools, affordable housing, accessible healthcare, clean water, and a fair tax system that works for all of us, not just the 1%.” 

“One path…more corporate tax breaks, more cuts to health care and education and more attacks on immigrant neighbors,” Sanchez added. 

Editor’s note: This story has been updated to reflect Hobbs’ veto of the House budget plan on Wednesday.