Arizona Early Childhood Legislation Update – Key Bills Under Consideration
The Arizona Legislature is currently considering several bills that could significantly impact early childhood education, health services, and family support programs across the state. These proposed legislative measures address critical areas ranging from book distribution for young children to expanded eligibility for healthcare coverage and childcare assistance. With appropriations totaling millions of dollars and policy changes affecting vulnerable populations, these bills represent substantial efforts to strengthen Arizona’s early childhood systems and support families with young children. This summary provides an overview of key bills, their provisions, and recommendations for organizational positioning.
Bill Number: SFY26 Executive Budget Short Title: Bright Futures AZ Sponsor: Governor Katie Hobbs
Co-sponsors: n/a
Assigned Committees: n/a
Bill Summary: The Governor’s proposal to address the child care crisis will expand the capacity of the early childhood system. In collaboration with agency and community partners, the executive budget aims to address the following areas:
- DES Child Care Assistance Program funding
- $112.5M ongoing from the State General Fund (GF)
- $30M ongoing from the Child Care Development Fund (CCDF)
- $48.7M one-time from CCDF
- Preserve the 50% high quality enhancement rate
- Ensure key systems are up-to-date
- Help child care providers sustain operations and Improve health & safety
- Cut the waitlist in half.
- Increasing affordability
- $3M ongoing from GF to to create a public-private partnership to lower the cost of child care (birth-5)
- $3M ongoing from GF to create a grant program to serve school age kids during out-of-school time (5-12yr)
- Increasing availability
- $3.5M one-time from (American Rescue Plan Act of 2021) ARPA for DHS to contract a 3rd party to provide tools and resources for those who wish to be licensed.
- $159,800 ongoing from CCDF for DHS to hire three full-time employees to administer the provider licensure program.
- $1M ongoing from GF to create a corporate tax credit for businesses that generate childcare slots
- $500,000 one-time from ARPA to create a web tool to provide information to families on child care availability
- Supporting Early Childhood Education Workforce Needs
- $1M one-time from ARPA to support early childhood educators with child care scholarships
- Supporting Child Care Providers
- $500,000 one-time from ARPA for child care providers to participate in the Micro-business Loan Program to upgrade facilities, equipment, and support operations
Staff Recommendations: Support. Governor Hobbs has specifically included First Things First in the outlined proposal. As this proposal includes critical investment that will improve and expand the early childhood system, FTF Government Affairs recommends support of the Governor’s Executive Budget.
Bill Number: SB1165
Short Title: BOOK GIFTING FUND; APPROPRIATION
Sponsor: Sen. Annalise Ortiz (D)
Co-sponsors: n/a
Assigned Committees: Senate Appropriations, Senate Government & Senate Rules
Bill Summary: Establishes the Book Gifting Fund, administered by the Arizona Department of Economic Security (DES), with $5 million allocated from the state general fund in FY 2025- 2026. The fund:
- Provides grants to nonprofit organizations that distribute free, age-appropriate books to children from birth to age five.
- Ensures no cost to recipients.
- Exempts funding from state lapsing provisions, meaning the money remains available for book distribution beyond a single fiscal year.
Staff Recommendations: Support – Directly supports FTF’s literacy and early learning priorities. Helps close literacy gaps for low-income children. Potential opposition from legislators concerned about state spending.
Bill Number: SB1305
Short Title: TEMPORARY ASSISTANCE; CHILD ONLY CASE
Sponsor: Sen. T.J. Shope (R)
Assigned Committees: Senate Appropriations, Senate Health & Human Services & Senate Rules
Bill Summary: Modifies Arizona’s Temporary Assistance for Needy Families (TANF) program by:
- Expanding the definition of “child-only cases” to include children living with a nonparent relative who is responsible for the child’s needs but is not receiving cash assistance.
- Clarifying eligibility for TANF cash assistance for children in foster care placements, tribal child welfare systems, and those living with relatives due to abandonment or parental death.
- Requiring benefits to be determined based on available funding, rather than automatic eligibility.
Other Notes: SB 1491 (Alston) has similar language to this bill, but does not require benefits to be determined based on available funding.
Staff Recommendations: Support If passed, this bill would remove some barriers for nonparent relatives to receive cash assistance for their care of dependent children and could increase the number of families receiving cash assistance from the Department of Economic Security. Staff recommends that First Things First monitor this bill and work with partner agencies, such as DES, to identify the potential impact of this bill on families with children ages birth to age five.
Bill Number: SB1314
Short Title: CONTINUATION; ASDB
Sponsor: Sen. Priya Sunareshan (D)
Co-sponsors: Sens. Alston, Bravo, Burch, Diaz, Epstein, Gabaldón, Gonzales, Hatathlie, Kuby, Miranda & Ortiz; Reps. Aguilar & Crews
Assigned Committees: Senate Education & Senate Rules
Bill Summary: Extends the Arizona State Schools for the Deaf and the Blind (ASDB) until July 1, 2033, ensuring continued educational services for sensory-impaired children across the state. Key provisions:
- Repeals the previous termination date of ASDB’s board of directors.
- Amends Arizona statutes to set a new sunset date of July 1, 2033.
- States legislative intent: ASDB exists to maintain and improve educational opportunities for children with sensory impairments.
Staff Recommendations: Support – ASDB is set to sunset in 2027. The issue has attracted support from Democrats such as Governor Katie Hobbs and member Sundareshan and attention from some Republicans, including Matt Gress and Jake Hoffman. Staff recommend that First Things First monitor the bill and engage with elected officials to understand the issue and the level of threat to ASDB’s potential closure.
Bill Number: HB2174
Short Title: ELIGIBILITY DETERMINATIONS; DEVELOPMENTAL DISABILITIES
Sponsor: Rep. Julie Willoughby (R)
Assigned Committees: House Health & Human Services & House Rules
Bill Summary: Repeals Arizona Department of Economic Security (ADES) preadmission screening requirements and the requirement for the Arizona Health Care Cost Containment System (AHCCCS) to determine an individual is eligible for the Arizona Long-Term Care System (ALTCS). Requires the ADES to determine eligibility for developmental disabilities programs, services and facilities pursuant to state law only for persons first denied by ALTCS. Repeals the ability of the AHCCS to enter into an interagency agreement to determine eligibility for developmental disabilities programs, preadmission screening, and post-eligibility treatment of income and resources, except as permitted by this legislation. Prohibits ADES from requiring a person with developmental disabilities to apply for developmental disabilities programs, services, and facilities pursuant to state law as a condition of applying for eligibility pursuant to this legislation.
Staff Recommendations: Neutral- Monitor At this time, there is no indication that there will be a negative impact on families’ ability to access developmental disability services, however, should preadmission screenings be eliminated, there is a concern that DES will require more costly documentation from families trying to access services
Bill Number: HB2399
Short Title: APPROPRIATIONS; CHILD CARE DEVELOPMENT CENTERS
Sponsor: Rep. Walt Blackman (R)
Assigned Committees: House Appropriations, House Health & Human Services & House Rules
Bill Summary: appropriates $6 million from the state general fund in FY 2025-2026 to the Department of Economic Security (DES) for child care development centers. The funds will be distributed as follows:
- $2 million to the Snowflake-Taylor facility.
- $2 million to the Show Low facility.
- $2 million to the Apache Junction facility.
The bill aims to enhance the operation of these specific child care facilities, though it does not specify exact uses (e.g., capacity expansion, workforce development, or quality improvements). Staff Recommendations: Support. CAA was initially going to work with a sponsor on a bill similar to this, but the sponsor ran this bill instead. While the investment into rural communities aligns with FTF priorities, the concern we have is that the bill does not clarify how the funds will be used (e.g., workforce development, classroom expansion, tuition assistance)
Bill Number: HB2593
Short Title: PRESCHOOL; CHILDREN WITH DISABILITIES; ELIGIBILITY
Sponsor: Rep. Brian Garcia (D)
Co-sponsors: Reps. Austin, Blattman, Connolly, Contreras P, De Los Santos, Gutierrez, Hernandez A, Hernandez L, Kuby, Liguori, Marquez, Sandoval, Simacek, Tsosie, Villegas & Volk; Sens. Epstein & Kuby
Assigned Committees: House Appropriations, House Education & House Rules
Bill Summary: Modifies the mandate for public schools to offer educational programs for preschool children with a disability and expands which preschool children with a disability count for the purposes of calculating average daily membership by:
- Maintaining the requirement that school districts make available an education program for children with disabilities, as defined in section 15-761, while eliminating the requirement that the program must serve children with one of five specified disabilities: hearing impairment, visual impairment, developmental delay, preschool severe delay, or speech/language impairment. Section 15-761 includes these five disabilities plus nine additional categories of disabilities.
- Allowing all preschool children with a disability to count when calculating average daily membership who meet any of the 14 categories of disability already listed in section 15- 761 instead of just the five categories of hearing impairment, visual impairment, developmental delay, preschool severe delay, and speech/language impairment.
Staff Recommendations: Support. This bill aligns with FTF priorities and will expand the list of allowable developmental disabilities that preschool programs can serve. Counting these students for the purposes of a school’s average daily membership (ADM) will bring more funding to preschool programs in school districts.
Bill Number: SB1276
Short Title: CHILDREN’S HEALTH INSURANCE PROGRAM; ELIGIBILITY
Sponsors: Sen. Brian Fernandez (D)
Assigned Committees: Senate Appropriations, Senate Heath & Human Services & Senate Rules
Bill Summary: Beginning September 30, 2025, a person under 19 years of age whose gross household income is at or below 250 percent (increased from 225%) of the federal poverty level, is eligible for the Children’s Health Insurance Program (KidsCare).
The bill proposes:
- Raising the income eligibility threshold for CHIP from 225% to 250% of the Federal Poverty Level (FPL) starting October 1, 2025.
- Ensuring more low-income children qualify for affordable health coverage.
- The funding source for the expansion is not explicitly mentioned in the bill but would likely rely on federal-state cost-sharing.
Other Notes: HB 2460 (Stahl-Hamilton) changes the threshold to 300% of the federal poverty level. In 2024, 2 bills were run (HB2781 and SB1478) with substantively similar language. These bills did not receive a hearing.
Staff Recommendations: Support.
- High alignment with FTF’s priorities in early childhood health and education.
- Expands access to healthcare for children who are at risk of being uninsured.
- Strong evidence-based support from research on child health outcomes.
- Potential funding concerns could make legislative approval challenging.
Bill Number: HB2460
Short Title: CHILDREN’S HEALTH INSURANCE PROGRAM; ELIGIBILITY
Sponsors: Rep. Stephanie Stahl Hamilton (D)
Co-sponsors: Reps. Abeytia, Aguilar, Austin, Blattman, Cavero, Contreras P, Crews, De Los Santos, Garcia, Gutierrez, Hernandez A, Hernandez L, Liguori, Luna-Nájera, Márquez, Sandoval, Simacek, Villegas; Sens. Alston, Bravo, Epstein, Gabaldón
Assigned Committees: Senate Appropriations, Senate Heath & Human Services & Senate Rules
Bill Summary: Beginning October 1, 2025, a person under 19 years of age whose gross household income is at or below 300 percent (increased from 225%) of the federal poverty level, is eligible for the Children’s Health Insurance Program (KidsCare).
The bill proposes:
- Raising the income eligibility threshold for CHIP from 225% to 300% of the Federal Poverty Level (FPL) starting October 1, 2025.
- Ensuring more low-income children qualify for affordable health coverage.
- The funding source for the expansion is not explicitly mentioned in the bill but would likely rely on federal-state cost-sharing.
Other Notes: SB 1276 (Fernandez) changes the threshold to 250% of the federal poverty level. In 2024, 2 bills were introduced (HB2781 and SB1478) with substantively similar language. These bills did not receive a hearing.
Staff Recommendations: Support.
- High alignment with FTF’s priorities in early childhood health and education.
- Expands access to healthcare for children who are at risk of being uninsured.
- Strong evidence-based support from research on child health outcomes.
- Potential funding concerns could make legislative approval challenging.
Bill Number: HB2648
Short Title: CHILD CARE; ASSISTANCE; ELIGIBILITY
Sponsors: Rep. Sarah Liguori (D)
Co-sponsors: Reps. Abeytia, Austin, Blattman, Connolly, Contreras P, Garcia, Márquez, Peshlakai, Simacek; Sen. Ortiz
Assigned Committees: House Health & Human Services & House Rules
Bill Summary: Modifies child care assistance eligibility by:
- Allowing full-time students in accredited programs to receive child care assistance without a work requirement.
Other Notes: The bill was brought forth by the Women’s Foundation.
Staff Recommendations: Support. This bill aligns with FTF Public Policy Priority 3: Access to Quality Early Learning. As this is an AZECA priority bill, FTF should support its community partners.
- Directly aligns with FTF’s commitment to child care access and affordability.
- Expands support to students pursuing education, helping break cycles of poverty.
- May face funding challenges, but aligns with long-term economic benefits.
Bill Number: HB2643
Short Title: APPROPRIATIONS; CHILD CARE ASSISTANCE
Sponsor: Rep. Sarah Liguori (D)
Co-sponsors: Reps. Abeytia, Austin, Blattman, Connolly, Contreras P, Garcia, Márquez & Simacek
Assigned Committees: House Appropriations, House Health & Human Services & House Rules
Bill Summary: Allocates $211 million to child care assistance through the Department of Economic Security (DES) for FY 2025-2026:
- $120 million from the state general fund.
- $91 million from the federal Child Care and Development Fund (CCDF).
- Funding is exempt from lapsing provisions, ensuring continued availability beyond the fiscal year.
Note: The FTF State Board has approved support of funding towards the DES Child Care Assistance Program
Staff Recommendations: Neutral- Monitor. The Governor has released her executive budget request, which includes an appropriation for $112.5 million to DES. Thank you for your continued attention to these important legislative matters affecting Arizona’s children and families. We will monitor these bills closely as they progress through committee hearings and floor votes, providing updates on any significant developments. Your support remains crucial as we work to ensure positive outcomes for our state’s youngest residents and the programs that serve them