by Ethan Faverino | Jul 14, 2026 | Economy, News
By Ethan Faverino |
Arizona taxpayers could face nearly $200 million in additional costs if the state fails to reduce its Supplemental Nutrition Assistance Program (SNAP) payment error rate in the coming years.
Data from the U.S. Department of Agriculture shows Arizona’s SNAP payment error rate reached 10.8% in Fiscal Year 2025, ranking 33rd nationally and rising from 8.84% in Fiscal Year 2024.
Under changes enacted through the One Big Beautiful Bill Act (H.R. 1), states with SNAP payment error rates below 6% by Fiscal Year 2028 will avoid cost-sharing requirements with the federal government.
States with error rates between 6-8% must provide a 5% match, those between 8-10% a 10% match, and states exceeding 10% a 15% match.
If Arizona’s error rate remains at 10.8% in Fiscal Year 2028, the state would be subject to the highest matching requirement.
Based on Fiscal Year 2025 figures, eight states recorded error rates below 6% (Idaho, Nebraska, Nevada, South Dakota, Utah, Vermont, Wisconsin, and Wyoming), while six fell between 6-8%. Another 16 states posted rates between 8-10%, and 20 states exceeded 10%.
Zach Milne, senior economist at Common Sense Institute Arizona said the state has a strong incentive to improve its performance.
Mile told The Center Square, “Improving program accuracy strengthens program integrity and helps the state avoid potentially significant federal cost-sharing penalties.”
He described Arizona’s elevated error rate as a relatively recent development, noting that the state’s rate stood at 5.2% in Fiscal Year 2019 — below the new federal threshold.
The Arizona Legislature passed several measures during the 2026 session aimed at lowering the state’s SNAP payment error rate, but they were vetoed by Governor Hobbs.
Senate Bill 1002 would have expanded eligibility verification tools for the Arizona Department of Economic Security, while Senate Bill 1331 proposed work requirements for SNAP recipients age 60 and younger.
Senate Bill 1334 would have barred the department from seeking work-requirement waivers for able-bodied adults without dependents. House Bill 2206 sought to require the state to reduce its SNAP payment error rate to below 3% by 2030.
In her veto messages, Hobbs argued that the legislation duplicated ongoing efforts by the Department of Economic Security to improve accuracy, including enhanced eligibility verification, additional staffing and training, and investments in technology.
“SNAP is the most robust and effective anti-hunger tool we have in Arizona-I know this firsthand,” Hobbs said in her veto letter of the three Senate Bills. “It’s also the most secure, thanks to strong anti-fraud measures and oversight. Instead of creating more needless frustration for Arizona families, I invite you to join me in actually lowering costs for them.”
She also criticized H.R. 1 for imposing unfunded mandates that she said have strained agency resources, noting that she allocated $7.5 million to increase the department’s capacity. Hobbs maintained that the vetoed bills would have added further unfunded requirements without providing resources for implementation or modernization.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by George Khalaf | Jun 25, 2026 | Opinion
By George Khalaf |
Arizona taxpayers work hard for every dollar they send to the government. They expect those dollars to be spent wisely, transparently, and honestly. When government fails to protect taxpayer money from waste, fraud, and abuse, it goes beyond just a financial problem. It is a betrayal of the public trust.
Over the past two years, Arizonans have learned disturbing details about widespread fraud within our state’s Medicaid system. Investigations have uncovered billions of dollars in questionable spending, fraudulent billing schemes, and the exploitation of vulnerable individuals who were supposed to be receiving treatment and care. Reports indicate that taxpayers may have lost billions while bureaucrats failed to ask basic questions or exercise proper oversight.
The media rarely covers these stories. Bureaucrats hate being watched. And way too many politicians would rather stay quiet than cause a stir. But that silence is exactly how fraud keeps growing. But we cannot shrug this off and move on. What we need is real accountability.
One elected leader who deserves tremendous credit for refusing to look the other way is Senator Carine Werner (LD4). Through multiple legislative oversight hearings, Senator Werner has demanded answers from state agencies, pursued whistleblower testimony, and insisted that government officials be held accountable. While many were content to issue statements and move on, she rolled up her sleeves and did the hard work of oversight. Her efforts have brought much-needed transparency to a scandal that should concern every Arizona taxpayer.
The push for accountability extends beyond Medicaid. Republicans in the House and Senate have also raised important concerns about ensuring public assistance programs are administered responsibly and that benefits are directed to those who genuinely qualify, including SNAP, which provides food assistance to every corner of this state. Programs designed to help struggling Arizonans who have no other avenue to meet their basic needs must be protected from abuse and mismanagement. Taxpayers have every right to expect strong verification standards, accurate eligibility determinations, and regular oversight of how public dollars are spent.
As I have conversations all over Legislative District 3, I hear the same frustration from voters. People are tired of government waste not being addressed while families continue to hand over their hard-earned money every April. They want leaders who will protect taxpayers with the same care they use to manage their own personal finances.
I’ve said repeatedly that government should be focused on delivering results in a few limited areas, not protecting and growing bureaucracy. Every dollar wasted by government is a dollar that cannot be used for public safety (a key focus that needs to be invested in), infrastructure, water security, education, or sent back to Arizonans in the form of needed tax relief. Taxpayers deserve to know where their money is going and whether programs are actually working.
When elected to represent LD3 in the Arizona House, I will make accountability a top priority. That means supporting aggressive legislative oversight – and leading it when necessary, demanding transparency from state agencies, strengthening protections for whistleblowers, and ensuring fraud investigations receive the resources necessary to follow the facts wherever they lead. It also means asking tough questions about spending and insisting that agencies justify how taxpayer dollars are being used, or face significant cuts.
Arizonans are tired of the excuses. We need a real change in culture and elected officials from the top down who will demand audits, push back against resistant agencies, tighten the rules, and stop treating taxpayer money like some endless slush fund.
As a member of the State House, I pledge to support the efforts already begun by vigilant legislators. I will fight to expose waste, stop fraud, eliminate abuse, and ensure taxpayer dollars are treated with the respect they deserve.
George Khalaf is a candidate for the Arizona House in Legislative District 3. You can follow him on X here.
by Warren Petersen | Feb 12, 2026 | Opinion
By Sen. Warren Petersen |
Over the past couple of months, the nation’s eyes have (rightfully) been turned to the State of Minnesota, as concerned citizens have unearthed what appears to be significant abuses of taxpayer dollars going to seemingly fraudulent daycare and healthcare centers run by Somali immigrants. These discoveries have exposed Minnesota Democrat officials, who have (at the least) looked the other way as this fraud was ongoing and escalating.
Minnesota isn’t the only state where we are seeing this rampant misuse of hard-earned taxpayer dollars.
Over the past three years, Arizona has been governed by a Democrat Governor and Attorney General, Katie Hobbs and Kris Mayes. These two have combined to cultivate a culture of corruption in the Grand Canyon State that rivals the illegal shenanigans from Minnesota. There have been several instances of this abuse and chicanery from the Governor’s Office that the Attorney General’s Office has clearly provided cover for during this term in office.
Whether in Minnesota or Arizona or any other state or jurisdiction across the country, American taxpayers deserve honest, transparent public servants, who are committed to putting the interests of citizens above the political elite. Thankfully, for the people of Arizona, the Republican-led state legislature has worked to hold these lawless Democrats accountable to the rule of law, though Hobbs and Mayes continue to stonewall our efforts and perpetrate new avenues of corruption.
Inaugural Fund
Fresh off taking the oath of office, Hobbs proved herself unable to provide complete transparency to citizens with her inaugural fund. Arizona Governors have historically raised money to cover the expenses of their inaugurations, then transferred the excess funds to the state. However, Hobbs was reticent to share certain information of her donors and then withheld more than one million dollars from the state, forcing a clash with the legislature. This breakdown in transparency from the Governor’s Office led to legislation that codified the precedent predating Hobbs into law to mandate reporting of all future inauguration expenses and funds raised. The bill’s passage was overwhelmingly bipartisan – a rare feat in Arizona’s divided government, proving that Democrats understood the mess Hobbs had created for herself.
Hobbs Pay to Play
Likely the most egregious action of Hobbs’ administration to-date, the alleged pay-to-play scandal will define the culture of corruption surrounding her administration. Almost two years ago, The Arizona Republic reported that a for-profit, state-contracted group home operator, Sunshine Residential Homes, received a significant rate increase approval from the Hobbs-led Department of Child Services (DCS). Leading up to this rate increase, the group donated to Hobbs’ inaugural fund – after its request for a rate increase had been denied by the outgoing Republican administration. The reporting showed that Hobbs had not approved rate increases to any other group homes, nor were the rate averages for these group homes comparable with Sunshine Residential Homes. Additionally, DCS ended state contracts with 16 group homes, making the arrangement with Sunshine all the more suspicious.
Attorney General Kris Mayes did go through the motions of announcing an investigation into this alleged pay-to-play, but she attempted to order Maricopa County Attorney Rachel Mitchell and the Arizona Auditor General off the case – despite those offices being asked to investigate the uncovered scheme by state legislators. Mayes was soundly rebuked by Arizona Treasurer Kimberly Yee, who also requested that the Maricopa County and State Auditor General investigations continue. The Democrat Attorney General was also accused of a conflict of interest in that she was again shielding her same-party official from the full weight of accountability under the law. There have been no updates from Mayes’ office into the status of this investigation in almost two years, leading credence to the idea that this was a cover-up meant to protect Hobbs and her administration. Compounding the shady behavior from her administration, Hobbs vetoed a bill during last year’s legislative session meant to fool-proof future executives from exploiting any perceived loopholes to perpetuate this kind of abuse.
SNAP
The Supplemental Nutrition Assistance Program (SNAP) program doles out almost $100 billion annually to Americans to purchase food. However, like many government programs, this one is rife with fraud and theft. According to the U.S. Government Accountability Office, there were over $320 million in stolen benefits between October 2022 and December 2024. Additionally, the U.S. Department of Agriculture reported in 2023 (during the Biden administration) that approximately twelve percent of these benefits were fraudulent. The politics and policies of this bloated program aside, it is undeniable that SNAP needs more oversight and guardrails to ensure that taxpayer dollars are being stewarded appropriately.
Hobbs and Mayes disagree. Mayes sued the Trump administration over its commonsense efforts to request more information from states on SNAP beneficiaries. Hobbs, for her part, refused to acquiesce to the administration’s data requests. These two are politicizing an issue that should enjoy consensus across party lines. No government official should be standing in the way of efforts to root out fraud in any public program, where taxpayer dollars are at risk for abuse. Every taxpayer dollar should be protected to the highest level. Unfortunately, for Arizona, Katie Hobbs and Kris Mayes don’t want the federal government – and the taxpayer – to find out exactly how much fraud is in our state; and that’s a shame.
Mayes Pay to Play
U.S. Congressman Abraham Hamadeh has asked the U.S. Department of Justice to investigate an alleged pay-to-play bribery scheme involving Kris Mayes and outside political organizations. The allegations claim Mayes received political benefits in exchange for official actions targeting political opponents.
Shady Operator
Late last year, a top official in Mayes’ State Government Division was arrested for “controlling and trafficking stolen property.” Mayes’ office had been warned by the City of Peoria nearly two years earlier about serious allegations against this official – including fraud, conversion, and breach of fiduciary duty – yet Mayes kept her in a position of authority leading up to her arrest.
Arizona has long been known for its rugged independence and spirit of doing the right thing. Unfortunately for our state and its proud history, that reputation is being shattered by the culture of corruption from Hobbs and Mayes. Democrats across the country – from Arizona to Minnesota – have proven themselves incapable of governing our states – the laboratories of democracy – as the people rightly expect and deserve. It will be up to the voters to course correct this November and usher in legislators and executives who can – and will – steward the peoples’ money as it was intended.
Warren Petersen is the President of the Arizona State Senate and represents Legislative District 14.
by Matthew Holloway | Feb 7, 2026 | News
By Matthew Holloway |
A slate of bills designed to strengthen oversight of Arizona’s Supplemental Nutrition Assistance Program (SNAP) advanced Monday as House Republicans moved to implement federal reforms enacted under H.R. 1. The bills include new work requirements, stricter eligibility verification, and measures to reduce payment error rates
The actions follow a separate advancement of Medicaid and health-related bills tied to federal H.R. 1 reforms by the Arizona House Health and Human Services Committee, part of a broader state response to changes enacted under the federal budget reconciliation act.
House leaders said the measures correspond to provisions in the federal law signed into effect on July 4, 2025, which included updates to SNAP work requirements, eligibility criteria, and administrative rules.
“H.R. 1 made it clear that work expectations and eligibility rules matter again,” Committee Chairman Rep. Selina Bliss (R-LD1) said. “Our SNAP reforms reinforce responsibility while protecting parents, seniors, and the disabled. This package keeps the program strong so it can continue serving families who qualify and rely on it.”
Key bills advanced under the SNAP reform package include measures to tighten employment and training provisions for SNAP participants, adjust work requirement waivers, and increase data verification for eligibility determinations. The bills advanced with a ‘Do Pass’ recommendation 7-4.
One bill, HB 2206, would require the Arizona Department of Economic Security to reduce the SNAP payment error rate to 3 percent — a target state lawmakers say could reduce improper payments and lower the risk of federal cost-sharing penalties tied to high error rates under H.R. 1.
Failure to act, Republican lawmakers said, could expose Arizona to federal penalties related to improper payments and high error rates, effectively shifting more program costs onto state taxpayers. According to legislative budget estimates, the reduction would save taxpayers tens of millions of dollars annually.
“SNAP should be a hand up, not a blank check,” House Majority Leader Michael Carbone (R-LD25) said. “When benefits flow to people who no longer qualify or who do not even live here, the program is weakened for families who truly need help. These bills tighten eligibility, reinforce work expectations, and protect taxpayers while keeping SNAP available for the vulnerable.”
Mandatory employment and training requirements for certain SNAP recipients are addressed in HB 2442, which would align Arizona law with updated federal work provisions enacted under H.R. 1. The bill requires eligible participants to engage in job readiness, employment, or training activities as a condition of receiving benefits, reflecting federal standards adopted through the reconciliation package.
HB 2448 focuses on waivers and exemptions for work requirements, narrowing the circumstances under which SNAP recipients may be exempted from employment obligations. The legislation responds to federal changes limiting broad waiver authority and seeks to ensure exemptions are applied more narrowly and in accordance with updated eligibility rules.
Expanded eligibility verification requirements for SNAP and other public assistance programs are proposed under HB 2797, which applies additional data checks to confirm income, employment status, residency, and overall eligibility. The bill also directs suspected fraud cases to be referred for further review, including potential federal prosecution.
The committee’s agenda also included adjustments to employment reporting requirements for able-bodied adults without dependents and limits on backdoor waivers unless approved by the Legislature.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Ethan Faverino | Jan 23, 2026 | Economy, News
By Ethan Faverino |
Arizona State Representative Leo Biasiucci (R-LD30) has introduced House Bill 2839, bipartisan legislation that would prohibit cities and towns across Arizona from imposing transaction privilege taxes or similar local taxes on food items that are eligible for purchase with benefits from the Supplemental Nutrition Assistance Program (SNAP) and the Special Nutrition Program for Women, Infants, and Children (WIC).
“In her State of the State address, Governor Hobbs said she wants to lower taxes for hardworking Arizona families,” stated Rep. Biasiucci. “I’m taking her at her word and answering that call by introducing HB 2839. This bill removes local taxes from the one thing every family needs to survive—food.”
HB 2839 amends ARS Section 42-6015 to clarify that municipalities may not levy transaction privilege, sales, use, franchise, or other similar taxes on SNAP and WIC-eligible food items, regardless of whether the purchaser participates in those programs.
These federal programs cover basic, essential foods such as fruits, vegetables, meats, dairy, breads, and other necessities for “home consumption.” Taxing these items increases costs for families already facing tight budgets, and the bill aims to provide tax relief by extending the exemption uniformly.
“Taxing SNAP and WIC food purchases is wrong. These are necessities, not luxuries,” added Biasiucci. “If the Governor is serious about lowering taxes, this bill should be an easy yes. If she vetoes it, that will speak volumes. Arizonans will know exactly where she really stands when she talks about tax relief for families.”
The legislation would apply retroactively to taxable periods beginning on or after the first day of the month following the general effective date, ensuring swift relief if enacted. Supporters highlight that approximately 70 Arizona municipalities currently impose some form of tax on food, and this measure could help families save hundreds of dollars annually on groceries.
Representative Biasiucci is joined by a bipartisan group of co-sponsors, including four Democratic representatives, fifteen Republican representatives, and one Democratic senator.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
