The Arizona Department of Economic Security is receiving a cash infusion to help reduce wait times for people who rely on assistance programs administered by the agency, whose various benefits programs have been plagued by delays and other issues in recent months.
Gov. Katie Hobbs’ office announced that DES will receive $7.5 million to address wait times for people who receive unemployment benefits and federal SNAP food assistance.
The money was drawn from the state’s remaining pot of federal pandemic relief funds included in the American Rescue Plan Act.
The announcement comes after hundreds of Arizonans have complained about issues with the state’s new unemployment benefits system, which went live in September.
Several beneficiaries told KJZZ that the new system was glitchy, and they could not reach anyone at the agency to help them resolve issues with eligibility applications and claim disputes.
Earlier this year, Hobbs blamed the problems on federal funding cuts that led DES to lay off 5% of its staff over the summer.
“I think it was just coincidental timing, honestly. We don't see that they're tied,” Hobbs said, referring to the rise in complaints that coincided with the launch of the new unemployment system.
The Arizona Republic reported that the SNAP food program has also been beset by delays, with applicants saying it was impossible to get the agency on the phone and they had to wait hours for in-person meetings to get help.
“The governor announced this investment in order to ensure that we are cutting back on the backlog and wait times that we know some Arizonans are experiencing due to the Trump Administration’s attack on these programs,” Hobbs spokesman Christian Slater said.
New funding
The new money will be used to hire 15 temporary workers to assist with claims, help people who call the agency’s hotline and other tasks. It will also fund overtime opportunities for existing staff to process applications and deal with other issues.
It will also help add an additional 100 contracted positions with vendors who work with DES, though the agency and governor’s office did not provide specific information on what services those vendors provide.
According to the governor’s office, the funds will also help improve technology and “third party verification” tools to streamline benefits administration, including creating “user-friendly” tools for SNAP beneficiaries.
“I understand the frustration Arizonans feel with these delays,” Hobbs said in a statement. “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.”
New SNAP rules
In addition to reducing wait times, Slater said the spending could also help the state comply with new SNAP rules included in the tax cut and spending law signed by President Trump over the summer.
“This is really meant to ensure that the programs are running efficiently and effectively and delivering the much needed support that Arizonans deserve,” he said.
The new legislation will penalize states with a SNAP error rate over 6%. That’s the measurement used to show how often states over, or under, pay SNAP recipients.
Under the new legislation, states above the 6% will be on the hook for paying for a portion of the food benefits doled out to their residents. Historically, the federal government paid for 100% of those benefits.
Arizona’s error rate was 8.8% in 2024, below the 11% national average.
But, according to budget analysts at the state legislature, Arizona’s preliminary error rate for 2025 was just over 10%.
And, if the rate remains above 6% in 2026, the state could be on the hook for millions in additional costs.
“If Arizona's error rate is between 8% and 10% in either FY 2025 or FY 2026, the state would be responsible for 10% of the SNAP benefit cost. In that circumstance, the cost would be $139 million in FY 2028. If the error rate between 10% and 13.3%, the state share of benefits would be 15%, which would equate to a projected state cost of $208 million in FY 2028,” according to the Joint Legislative Budget Committee.
Republican Sen. John Kavanagh (R-Fountain Hills) said the state will likely invest money in the next budget to hire more staff to administer the program. He is also sponsoring legislation that would would require the Department of Economic Services to conduct regular reviews using data from other state and federal partners to ensure it is accurately administering SNAP.
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