Arizona's Children Need Support: Our FY27 Budget Priorities
Every child matters – Children’s Action Alliance stands for this truth. As the legislature and Governor negotiate a state budget, we ask that policymakers remain committed to the children of this state and investments that support them.
The FY27 budget will be difficult to navigate, especially considering the harmful impact of H.R. 1, formally titled the One Big Beautiful Bill. This federal legislation institutes unprecedented cost shifts to states. Just one example of the harm that comes with H.R. 1 is the loss of benefits for many Arizonans who need food assistance. We urge investments to fix this and to avoid similar losses of health care through AHCCCS.
We recognize that developing the budget is a complex process that requires balancing competing priorities within available resources. Lower state revenue estimates were announced just last week, signaling growing budget constraints that will make it harder to address funding needs. Tough decisions will be made, but – especially in the face of rising costs – they should not leave Arizona’s children and families behind.
We call for support of the following budget requests that prioritize investments for children and families:
Child Welfare
Increase Kinship Stipend, $2.2 million
Allows more grandparents and other kin to serve as caregivers for children in difficult times, and to reduce placement of children in congregate care
Restore TANF federally funded cash assistance for kinship caregivers, Federal funds only with no budget impact
Deploys federal funding for children to financially support grandparents and other kin who are stepping up as caregivers in urgent circumstances
Supports families caring for children outside of DCS under the authority of a court order
Early Learning and Education
Child Care Assistance, $160 million
Provide quality, safe child care and promote economic mobility for families
Emphasize reducing the waitlist
Universal School Meals, $3.8 million
Improve student health, academic performance, and overall well-being, while reducing food insecurity for children
Foundational Literacy Coaching, $2 million
Provide support and improve reading proficiency by 4th grade
Proposition 123
Fund K-12 schools with a clean renewal of funding distributions from the State Land Trust
Maintain flexibility for school districts while strengthening funding for K-12 schools
School District Additional Assistance, $29 million
Provide targeted resources for students in low-income families to address resource gaps and promote positive student outcomes
Opportunity Weight Funding, $37 million
Provide targeted resources for students in low-income families to promote positive student outcomes
AHCCCS/Medicaid & SNAP – Implementation of H.R.1
AHCCCS Implementation of H.R. 1, $14.4 million
Provide needed FTE’s and technology to meet new federal requirements and mitigate the loss of benefits to eligible Arizonans due to H.R. 1 administrative hurdles
Navigation Assistance of AHCCCS Requirements, $3.2 million
Help eligible Arizonans access and maintain Medicaid/AHCCCS expert assistance with enrollment
DES Implementation of H.R. 1, $16.6 million
Enhance staffing to meet administrative demands of H.R. 1 so that eligible children and families are not denied critical hunger prevention benefits
As we urge these funding priorities, we recognize that Arizona increasingly lacks revenue because of tax policy choices made by state policymakers. Now, our state has to wrestle with even more tax cuts due to H.R.1 in exchange for massive cost shifts to states and loss of health care and basic needs assistance to hundreds of thousands of Arizonans.
Arizona’s children and families should not pay for the unwise decisions of policymakers at the state and federal level. These priorities matter to children, families, and the future of Arizona.
Please weigh in with your legislators and let them know what budget priorities matter most to you.