PHOENIX — Gov. Katie Hobbs is sending $7.5 million to the Arizona Department of Economic Security to help address long wait times for food assistance and unemployment benefits.
The agency has a backlog of applications for SNAP, and Arizonans who are denied unemployment benefits are waiting up to a year for their appeal hearings.
DES had to lay off employees last summer because of federal funding cuts. Hobbs is using leftover federal stimulus money to help address the resulting staff shortages.
“Programs like SNAP and unemployment insurance help families put food on the table and keep the lights on during times of economic uncertainty," Hobbs said in a statement Tuesday. “I understand the frustration Arizonans feel with these delays. Families deserve stability, and I’m committed to ensuring they can access the support they need when they need it while protecting critical programs from further federal cuts.”
Money for temporary workers
The funding will add 100 temporary customer service contractors who can answer inquiries and 15 temporary agency workers who can help with claims and appeals.
Hobbs has said there are no easy answers to the backlogs because DES has fewer employees and the state doesn't have the money to backfill the lost federal funding.
"The agency ... was already strapped, and so there's not a lot of wiggle room to move people around," she told ABC15 last week.
ABC15 previously reported DES slashed staffing last summer due to federal funding cuts.
Earlier this month, ABC15 learned DES had a backlog of 18,000 SNAP applications more than 30 days old. Federal law requires states to provide benefits to eligible households within 30 days of applying.
And the backlog for unemployment claims stretches back to one year. Hobbs has said the DES division that handles unemployment was hit with layoffs of nearly 80%.
Funding to increase accuracy in SNAP payments
The $7.5 million will also help reduce the error rate for SNAP — that is, overpayments and underpayments.
President Donald Trump's One Big Beautiful Bill increases the penalties for states with error rates over 6%, meaning Arizona could face hundreds of millions in fines.
Arizona's error rate in fiscal year 2024 was 8.84%, well below the national average of 11%. Payment errors typically occur because of fluctuations in a recipient's income.
The new funding will help improve payment accuracy with enhanced technology and third-party verification for SNAP, Hobbs' office said.
The looming budget battles
The governor has said Arizona doesn't have the money to cover all of the federal funding cuts from Washington.
Passing tax cuts at the state level that match the tax breaks in the One Big Beautiful Bill will also mean less revenue for the state budget.
The Legislature will also need to address a projected budget shortfall for the state's disability services program, which is also administered through DES.
And both Democrats and Republicans are focused on how to help families struggling with high costs.
"If you look at the plan the legislative Republicans introduced ... affordability is at the top of their agenda, too, so I think we can work together to get some things done," Hobbs said last week.
