Arizona’s Governor Hobbs Outlines Ambitious Plans Amid Democratic Legislative Control
Governor Katie Hobbs has set her sights on overhauling the Empowerment Scholarship Accounts (ESA) program, among other initiatives, as Democrats assume control of Arizona’s Legislature. The governor made her intentions clear during a rally at the Carpenters Local 1912 union hall, where she addressed supporters with an ambitious agenda.
Hobbs criticized the ESA program, calling it an “out-of-control entitlement program” and vowed to curb its mismanagement. Originally created in 2011 for students with special needs, the program has expanded significantly. It now includes various groups such as foster children and those from military families, with no restrictions since 2022, leading to a surge in voucher usage from 12,000 to over 100,000, at a cost exceeding $1 billion annually.
The governor has long opposed the universal vouchers, attempting to repeal them in her 2023 State of the State speech without success. Her revised strategy includes means-testing and stricter oversight of purchases made with voucher funds, proposing to save taxpayers $150 million annually. However, previous attempts at reform faced resistance from Republicans.
With her party in the legislative majority, Hobbs is pushing forward again, aiming to allocate “$1 billion to our public schools without raising taxes.” This funding relies on extending Proposition 123, which allocated funds from a special trust to public schools but expired in 2025. Efforts to renew it have struggled so far.
Water policy is another key focus for Hobbs. Arizona has joined Nevada in a lawsuit against federal agencies over Colorado River water allocations. The governor argues that the Bureau of Reclamation unfairly favors Upper Basin states. Furthermore, Hobbs intends to shield Arizona’s water resources from exploitation by out-of-state corporations, a move that may require significant changes to state water laws.
Hobbs has already taken action by canceling state land leases to Fondomonte, a company exporting alfalfa to the Middle East. However, this company still operates on privately owned land. Arizona Attorney General Kris Mayes has also filed a lawsuit against Fondomonte, alleging it violates state nuisance laws, though its success remains uncertain.
To address groundwater management, Hobbs could instruct the Department of Water Resources to evaluate basins for “active management area” designation, limiting new pumping. Yet, expanding the 1980 Groundwater Code to rural areas faces opposition, not only from Republicans but also from family farms wary of increased oversight.
As Democrats hold the reins of Arizona’s government, Governor Hobbs’ ambitious plans face numerous challenges but reflect a significant shift in the state’s legislative priorities.
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