HB 2966 Arizona House · 57th Legislature - First Regular Session

health care; FY2026

HB 2966 allocated specific funding amounts for Arizona's long-term care (ALTCS) and hospital programs for fiscal year 2025-2026. It set exact county payments for ALTCS (e.g., Maricopa County $275.2 million) and specified disproportionate share hospital payments (e.g., $28.5 million for the Arizona state hospital). The bill affected all 15 Arizona counties and state hospitals through these budget allocations. It was vetoed by the governor on June 25, 2025, and did not become law. The bill contained no new policies - only defined existing funding levels.

Sub-Topics: Hospitals Long-Term Care

Bill status vetoed 4 of 5 stages cleared

Introduction

Jun 2025

Committee Review

Jun 2025

House Passage

Jun 2025

Senate Passage

Jun 2025

Vetoed

Jun 2025

Introduced Jun 23, 2025 Vetoed Jun 25, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version · 8 edits · Jun 25, 2025

MODERATE

The bill was reformatted from an introduced version to a house engrossed version with significant substantive additions. New sections were added to establish county contributions for acute care hospitalization and medical care, modify the AHCCCS transfer process for federal monies, and include legislative intent statements regarding program implementation and Maricopa county contribution adjustments. These changes expand the scope of county financial responsibilities and clarify how funds are allocated and managed.

Scope change

The bill's scope expanded from primarily addressing ALTCS county contributions and AHCCCS disproportionate share payments to also include county acute care contributions, Proposition 204 administration exclusions, competency restoration exclusions, AHCCCS risk contingency rate settings, and legislative intent statements regarding program implementation.

FISCAL

Added Section 4 establishing county acute care contributions for fiscal year 2025-2026, specifying exact dollar amounts each of the 15 counties must contribute for hospitalization and medical care.

Added Section 4 provisions requiring the state treasurer to withhold funds from counties that fail to provide specified contributions, including interest and retroactive adjustments.

REQUIREMENT

Modified Section 3 to clarify that AHCCCS transfers to counties must comply with section 10201(c)(6) of the Patient Protection and Affordable Care Act regarding counties' proportional share of state contributions.

Added Section 5 excluding county contributions for Proposition 204 administrative costs from county expenditure limitations.

Added Section 6 excluding county contributions for competency restoration services from county expenditure limitations.

Added Section 7 allowing AHCCCS to continue risk contingency rate setting for managed care organizations for the 2025-2026 contract year.

Added Section 8 stating legislative intent that AHCCCS implement programs within available appropriations for fiscal year 2025-2026.

TECHNICAL

Modified Section 4(F) to specify that Maricopa county contributions should be reduced in subsequent years according to GDP price deflator changes.

Floor votes · Senate Jun 25, 2025 · House Jun 24, 2025

How they voted

16–11

Passed · 3 other

Total votes 30

Jun 25, 2025

D Democratic13

11 Nay 2

84% Nay

R Republican17

16 Yea 1

94% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 25, 2025

Vetoed

Vetoed by Governor

executive

Jun 25, 2025

Upper · Passed

PASSED

upper

Jun 24, 2025

Lower · Passed

PASSED

lower

Jun 24, 2025

Lower · Passed

lower

1 primary · 0 co-sponsors