ESA Entitlement Spending Projected to Hit $1 Billion in FY26, Republicans Continue Holding Programs for Disabled Arizonans Hostage

Phoenix, AZ – Today, Governor Katie Hobbs released budget updates after ADE released December and January ESA numbers showing a dramatic spike in spending on the entitlement program. Due to the spike in entitlement spending, the updated budget now includes $48.4 million in ESA supplemental spending for FY25. As a result, the program will surpass $1 Billion in taxpayer spending for the fiscal year that starts on July 1, 2025.

The spike in ESA supplemental spending comes as Republicans are holding Arizonans with disabilities hostage, opposing supplemental spending on the state’s Division of Developmental Disabilities.

“The legislative majority continues to use Arizonans with disabilities as their political pawns, even as they refuse to put commonsense guardrails on their favorite entitlement program,” said Governor Katie Hobbs. “While they fight to protect the right of the 1% to spend taxpayer dollars on luxury car driving lessons, ski resort passes, and grand pianos, they’re refusing to fund life-saving programs that support the health and independence of the more that 50,000 Arizonans who rely on the Division of Developmental Disabilities.

“Their negligence is inhumane and fiscally irresponsible, putting countless Arizonans with autism, cerebral palsy, Down Syndrome, and other disabilities at risk of institutionalization, which would make taxpayers foot the bill for more restrictive and expensive care. 

“I have now submitted, and updated, a budget proposal that gives pay raises to State Troopers and firefighters, combats Veterans homelessness, secures the border, lowers the cost of child care and housing, and protects critical services for Arizonans with disabilities, including the pre-universal ESA program. I urge the legislature to pass this common sense budget. And if they think they have a better plan to deliver for our constituents, they should show it to the people of Arizona instead of cynically using people with disabilities and their caregivers as hostages to negotiate unclear demands.”

Read more about adjustments to the FY26 Executive Budget here.
Read more about the spike in ESA entitlement spending here.

Republican legislators have proposed 25%-50% cuts to programs that support Arizonans with Down Syndrome, cerebral palsy, autism, and other disabilities, but otherwise have not detailed any further budget requests.

Republicans are weaponizing a routine part of the budgeting process to hold Arizonans with disabilities hostage. In the FY24 budget, Republicans supported a $274.8 million ESA entitlement supplemental. Under Governor Ducey, the below supplemental amounts were included in Executive Budgets:

FY16: $26,000,000
FY17: $117,319,400
FY18: $35,565,700
FY19: $16,427,100
FY20: $48,950,900
FY21: $67,381,900
FY22: $463,090,100
FY23: $691,198,000

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