A Crisis That Never Should Have Happened
Arizonans with disabilities, nearly 60,000 strong, were left hanging by a thread in early 2025 as the state’s Division of Developmental Disabilities faced a $122 million shortfall. Families, caregivers, and advocates watched in horror as essential services teetered on the brink of collapse. The crisis, which could have halted payments by May 1, wasn’t caused by some unforeseen catastrophe. It was a failure of leadership and priorities, with political finger-pointing drowning out the urgent needs of the vulnerable.
Governor Katie Hobbs took to X, pleading for unity and accusing Republican lawmakers of playing 'political games.' Yet her administration’s own mismanagement contributed to the mess. The shortfall stemmed from rising enrollment and the expiration of federal pandemic funds, issues that demanded proactive planning, not last-minute scrambling. Arizonans deserve better than a government that lurches from crisis to crisis, leaving the most vulnerable to pay the price.
This wasn’t just a budget hiccup; it was a wake-up call. Disability services, like any critical program, require disciplined, transparent funding, not reactive patches. The fact that it took months of public outcry and legislative wrangling to secure a fix exposes a deeper problem: a system too bogged down by politics to deliver for those who need it most.
Thankfully, a bipartisan bill, HB 2945, signed in late April 2025, pulled Arizona back from the edge. But the scars of this ordeal linger, and the question remains: how do we prevent this from happening again?
The Real Cost of Political Gridlock
The disability funding crisis laid bare the consequences of partisan bickering. Republican lawmakers, wary of dipping into the Housing Trust Fund, clashed with Hobbs over funding sources. Meanwhile, families who rely on the Parents as Paid Caregivers Program faced sleepless nights, unsure if they could continue caring for loved ones. This wasn’t abstract policy debate; it was real people, real lives, caught in the crossfire of ideological standoffs.
HB 2945, which tapped prescription drug rebates to close the gap, proved that compromise is possible. The bill also introduced reforms to the caregiver program and mandated a special audit to ensure accountability. These are steps in the right direction, but they don’t erase the months of uncertainty or the distrust sown among Arizonans. The legislature’s delay, while rooted in legitimate fiscal concerns, amplified the perception of callousness toward the disabled.
Contrast this with the swift, decisive action conservatives championed during the Trump administration’s first term. Tax cuts in 2017 spurred economic growth, proving that disciplined fiscal policy can generate resources without bloating government. Arizona’s leaders should take note: prioritizing efficiency and accountability prevents crises, while endless debates over funding sources only deepen them.
The Bigger Picture: Fiscal Responsibility Saves Lives
Arizona’s disability funding saga is a microcosm of a national challenge. States across the U.S. are grappling with budget pressures as federal pandemic aid dries up and Medicaid costs soar. In Indiana, a $1 billion Medicaid shortfall in 2024 forced tough choices. California, despite its wealth, struggles to keep pace with rising demand for disability services. The lesson is clear: unchecked spending and reliance on temporary federal handouts create unsustainable systems.
Nationally, Congressional Republicans have proposed bold reforms to rein in Medicaid’s runaway growth, including per-capita caps and reduced federal match rates. These measures, part of a broader push to extend the 2017 tax cuts, aim to restore fiscal sanity while giving states flexibility to prioritize local needs. Critics claim these cuts would gut services, but they ignore the alternative: a ballooning federal deficit that destabilizes the very programs the disabled rely on.
Arizona’s bipartisan fix, while necessary, sidestepped the root issue. Long-term stability demands structural reform, not one-off bailouts. Streamlining programs, rooting out waste, and fostering economic growth through pro-market policies ensure that funds are there when they’re needed most. That’s not ideology; it’s common sense.
Challenging the Narrative of Endless Spending
Some argue that the solution to every social program’s woes is simply to pour in more money. They paint any call for fiscal restraint as heartless, claiming it abandons the vulnerable. But this narrative falls apart under scrutiny. Throwing cash at problems without addressing inefficiencies or planning for sustainability only kicks the can down the road, setting up future crises like the one Arizona just endured.
The disability rights movement, born from gritty activism in the 1960s and cemented by the 1990s ADA, wasn’t about demanding blank checks. It was about dignity, access, and opportunity through smart policy. Today’s advocates, while rightly vocal about funding, risk losing sight of that legacy by framing every budget fight as a moral absolute. True compassion lies in building systems that last, not ones that collapse under their own weight.
Arizona’s experience proves that disciplined governance, not emotional appeals, delivers results. The bipartisan compromise of HB 2945 wasn’t a triumph of big spending; it was a pragmatic fix that balanced immediate needs with accountability measures. That’s the model we need, not a cycle of panic and bailouts.
A Path Forward for Arizona and Beyond
Arizona’s disability care crisis was a preventable failure, but it also offers a roadmap for better governance. First, lawmakers must prioritize transparency and foresight in budgeting. The $122 million shortfall didn’t appear overnight; it was the result of ignored warnings and delayed action. Second, reforms like those in HB 2945, which tightened oversight of the caregiver program, must become the norm, not the exception. Waste and mismanagement have no place in programs serving the vulnerable.
Nationally, the conservative vision of fiscal discipline and state flexibility offers hope. By capping federal Medicaid spending and empowering states to innovate, we can create leaner, more effective systems that don’t leave families in limbo. Arizona’s compromise shows that pragmatism can bridge divides, but only if leaders reject the temptation to score political points at the expense of the disabled.
No More Excuses
Arizonans with disabilities deserve a government that plans ahead, not one that scrambles to clean up its own messes. The passage of HB 2945 was a victory, but it’s not enough. Every state, every leader, must learn from this near-disaster and commit to sustainable, accountable funding for essential services. The stakes are too high for anything less.
As the nation debates healthcare and social programs, let’s champion policies that empower states, reward efficiency, and protect the vulnerable without bankrupting future generations. Arizona’s crisis wasn’t just a local failure; it was a warning. Fiscal responsibility isn’t optional. It’s the only way to ensure that those who need help most get it, now and for years to come.