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OPINION: Arizona and America: A tale of two budgets

By State Rep. Brian Garcia, Senator Lauren Kuby

July 29, 2025

In the past few weeks, both federal and state legislators have crafted and connived government budgets: critical pieces of legislation that fund essential services and determine how your taxpayer dollars are put to use. To us, budgets are moral documents, reflecting the values of those who pass it in a time of moral urgency. That’s why we voted YES on Arizona’s $17.6 billion negotiated, bipartisan state budget while vehemently opposing the Big, Ugly Bill that Republicans and Republicans only passed in Congress at the federal level. Here’s what you need to know.

The federal budget reflects the largest reallocation of wealth in American history, gutting programs and services for working families to pay for tax cuts for the wealthy. Projections show that up to 500,000 Arizonans will lose Medicaid healthcare coverage, over 150,000 will lose Supplemental Nutrition Assistance Program (SNAP) food assistance, and 148,000 children will lose free school lunches. In Legislative District 8, which we represent, the federal budget especially harms Arizona State University students and graduates, as lower-income students will pay higher loans. And $170 billion in Immigration and Customs Enforcement (ICE) funding will continue to terrorize communities in this state and across the country. That’s $75 billion dedicated to going after children alone while charging families $8,500 to reunify with their unaccompanied children—a cruel and inhumane practice that will guarantee family separation. 

One thing is clear: The absurdly named “One Big, Beautiful Bill Act” is really a terrible, horrible, no good, very bad bill. Pure and simple, it is a tax scam that will harm states, counties, cities and threaten the stability and the very lives of the communities we represent. 

On the other hand, Arizona Democrats have been engaged in budget negotiations at the state level, fighting for common-sense programs that serve the people. Thanks to the work of Senate and House Democrats, Gov. Katie Hobbs, and the relentless advocacy of community allies, we secured real investments in education, childcare, health care, and the arts. 

While the federal budget guts Medicaid, SNAP, and school meals, the state budget includes: NO cuts to AHCCCS (Arizona’s Medicaid system) with expanded services for cancer patients, NO cuts to SNAP benefits, and NO cuts to Department of Developmental Disabilities funding. In fact, Democrats secured an historic $3.8 million in funding for school meals to support our public school students. And, for the first time ever, with a $100,000 contribution from the state for traditional healing, Arizona will draw down $222 million in existing federal monies for tribal members and their families. 

While the federal budget attacks our public schools and harms students, the state budget includes NO cuts to K-12 and higher education, provides $16 million in Arizona Promise Higher Ed scholarships, includes $9 million for the Arizona Teacher’s Academy scholarships, and sets aside $66 million in additional funding for K-12 public schools ($8.2 million goes to public schools in Legislative District 8).

And, while the federal budget dramatically increases funding for ICE, Democrats fought and secured only $5 million in increased funding specifically for drug interdiction, NONE of which can be used for ICE operations. In contrast, Legislative Republicans pushed for $50 million funding.

Is the state budget a People’s Budget? Not quite. Republicans still hold majorities in the House and Senate. Because of that, there are zero changes to the reckless Universal Empowerment Scholarship Account — a school voucher scam that drained $1 billion from public schools this year. And, though there is $15.5 million for homeless services and financial assistance to renters and homeowners, there is NO funding for the Housing Trust Fund or the Low Income Housing Tax Credit (LIHTC) to fund affordable housing because Republicans refused to make it a priority. 

In recent years, the combination of the flat tax rate of 2.5% (which primarily benefits the wealthy) and the voucher scam have reduced our revenue by over $3 billion annually. Democrats must gain Legislative seats in 2026 in order to constrain and hopefully repeal the universal voucher program, increase funding for public schools and affordable housing, and enact the people’s priority budget.

However, while the state budget doesn’t contain all of the provisions we wanted, it does what the federal budget does not: It protects our most vulnerable communities and funds critical public services. In our District, we negotiated $2 million additional funding for homelessness services located in Tempe and serving the East Valley, we succeeded in gaining $2 million for the Arts Commission, set to be defunded by the Feds, and $3 million for civil legal aid, for first-time-ever funding in Arizona. 

For that reason, we voted YES on the state budget with our heads held high in hopes that Democrats flip the state Legislature in 2026.

What’s next: The Governor’s Office, Legislative Democrats, and a host of allies are analyzing the ways we can mitigate the cruelty of a federal budget that benefits the wealthy and punishes working families.

Authors

  • State Rep. Brian Garcia

    Representative Brian Garcia, a member of the Pascua Yaqui Tribe, represents Legislative District 8 in the Arizona House of Representatives. Before his election, he served as president of the Tempe Union High School District Governing Board, becoming a vocal advocate for inclusive education and youth empowerment. Garcia is an attorney whose legal work centers on immigration, voting rights, and Indian Law. He brings a deep commitment to equity and tribal representation to the Arizona Legislature.

  • Senator Lauren Kuby

    State Senator Lauren Kuby represents Arizona’s Legislative District 8, which includes the Salt River Pima-Maricopa Indian Community, parts of Tempe, Scottsdale, Mesa, and Phoenix. A sustainability advocate and public policy expert, Kuby is a Global Futures Scientist at Arizona State University. She previously served on the Tempe City Council, including a term as Vice Mayor, where she championed environmental justice, climate action, and affordable housing. Kuby brings decades of experience in civic engagement and community-led policymaking to the Arizona Legislature.

CATEGORIES: GOP ACCOUNTABILITY
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