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Republican House Whip Aligns With Democrats, Governor Hobbs To Oppose Emergency Disability Funding

April 19, 2025

By Staff Reporter |

The Arizona Republican House Whip sided with Democratic lawmakers and Governor Katie Hobbs against the codification of a key emergency funding bill for disability services in the state. 

Most House and Senate Republicans support removing over $100 million in emergency funding from the Housing Trust Fund and the Prescription Drug Rebate Fund and giving it to the Division of Developmental Disabilities (DD). Several Republican lawmakers along with their Democratic counterparts and Hobbs reject the legislation (House Bill 2945 and Senate Bill 1734). Democrats want to pull funding from the general fund instead.

Governor Hobbs issued a moratorium on all legislation until Republicans agreed to find another avenue for funding DD. Hobbs expressed gratitude for the existence of “bipartisan opposition” enabling Democrats to retain a negotiations foothold.

Hobbs called Republicans “extreme” and accused them of “political theater.”

Hobbs would be alluding to House Majority Whip Julie Willoughby. Willoughby joined Reps. Justin Olson and Jeff Weninger as the sole “no” votes on House Bill 2945 against majority Republican support within the House Appropriations Committee.

Willoughby introduced an amendment to House Bill 2945 that drew Democratic support. Willoughby said in her presentation of the amendment that she worked with Democrats to craft it.

Willougby’s amendment would have dropped the original bill’s requirement for the Arizona Healthcare Cost Containment System Administration (“Administration”) to obtain legislative approval via statute for any Centers for Medicare and Medicaid Services (CMS) renewal request or termination request for any waiver or waiver amendment. Willoughby said the legislative approval was overly burdensome and would require the legislature to convene for every waiver request, even for simple extensions.

It would have also eliminated the original intent to have the Administration submit a waiver amendment request to CMS to reduce parents as paid caregivers program care services per week per child limit to 20 hours. It would have limited the new federal money reporting requirements to only the Department of Economic Security (DES) and Access rather than all state agencies.  Additionally, it would have not pulled $10 million from the Arizona Competes Fund but instead increased by $10 million the funding pulled from the Prescription Drug Rebate Fund. 

House Appropriations Chair Steve Livingston said he liked some aspects of Willoughby’s amendment, but suggested it would be better suited for consideration in a Committee of the Whole (COW) amendment.

In Willoughby’s closing explanation of her “no” vote on House Bill 2945, Willoughby said she would continue to fight for the Democrat-supported changes in her amendment and apologized extensively for the bill.  

“People have continuously asked me to not move this amendment. What hill do you die on? And I choose you as my hill to die on,” said Willoughby. “I’m sorry this is happening to you. With my whole heart I’m sorry.” 

Willoughby said she opposed the bill as against her pro-life beliefs as a Republican.  

“I’m pro-life, and I’m pro-life through the entire spectrum of life, from the moment of conception until the last breath you take, and this is my moment to help support you in a way I haven’t had to before,” said Willoughby. 

The House Appropriations Committee rejected Willougby’s amendment during its hearing on Tuesday. 

Supporters of Willoughby’s olive branch to Democrats sent flowers to the lawmaker.

Where Willoughby sought compromise, other Arizona House Republican leaders took Hobbs to task for her administration’s management of DD that ultimately led to its budget shortfall. House Speaker Steve Montenegro said Hobbs’ desired funding pathway would ensure “no oversight, no reforms, and no accountability” for DD administration. 

“Governor Hobbs’ decision to hold every bill hostage because she didn’t get her way on a blank check is not leadership—it’s political blackmail,” said Montenegro. “She created this crisis by foolishly expanding the DD program without legislative approval or funding in place, and now she’s throwing a tantrum because the Legislature is doing the responsible thing: funding services while putting guardrails in place to keep the program from collapsing.”

Without approval of emergency funding by the end of this month, DD won’t be able to pay caregivers and services will cease.

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