Hobbs Urges Bipartisan Action as Legislature Delays Major Child Care Plan
Governor Katie Hobbs is calling out to Arizona lawmakers for swift passage of her Bright Futures AZ child care initiative, warning that thousands of working families remain strained as the legislative session concludes.
What the Bright Futures AZ Plan Proposes
In January’s State of the State address, Hobbs unveiled the Bright Futures AZ public–private partnership to reduce child care costs by up to two-thirds, targeting families earning less than $150,000 with children under six azgovernor.gov+6azfamily.com+6youtube.com+6. The proposal includes:
- Matching employer contributions up to $400 per child per month via refundable tax credits,
- Expanding after-school and summer care grants for ages 5–12, and
- Incentivizing child care providers to expand capacity with tax credits bizjournals.com+4azgovernor.gov+4azfamily.com+4azfamily.com.
Additionally, Hobbs’ FY 2026 budget allocates $3 million annually to First Things First and the Arizona Department of Education for this partnership, and $1 million to support early childhood educators childfamilyresources.org+6azospb.gov+6firstthingsfirst.org+6.
Signs of Strain Across the State
More than 2,600 children are currently on waitlists for subsidies from the Department of Economic Security, which provides support to low-income families—demonstrating limited capacity in public assistance firstthingsfirst.org+3abc15.com+3azfamily.com+3. Meanwhile, rural areas face a 37% shortage in licensed child care slots compared to 23% in urban counties abc15.com+14osi.az.gov+14axios.com+14.
Data reveals Arizona families spend between $6,500–$15,000 annually per child on full-day care, exceeding the U.S. average of 7% of median family income, with Arizona closer to 14% azospb.gov+2osi.az.gov+2abc15.com+2.
Hobbs says this burden costs Arizona workplaces nearly $3 billion a year in lost productivity and businesses around $1 billion, due to absenteeism and turnover abc15.com+4axios.com+4azchildren.org+4.
Legislative Push and Roadblocks
Despite bipartisan openness to public safety and education, the Legislature has stalled on Hobbs’ child care measures. House Speaker Steve Montenegro and Senate President Warren Petersen have voiced concerns over new spending and tax-credit costs azfamily.com+3abc15.com+3axios.com+3.
Negotiations remain in flux as lawmakers lean toward conservative budget scenarios, potentially eliminating or scaling back elements seen as tax-heavy. Hobbs insists childcare affordability is a workforce issue—not a partisan one—urging business, labor, and parenting groups to unite in support abc15.com+4azgovernor.gov+4azfamily.com+4.
Why This Matters to Working Families
The lack of affordable child care affects a wide spectrum—from single parents and dual-income households to rural educators and service-sector workers. With a significant portion of eligible families unable to access care, some parents reported delaying work or reducing hours, raising concerns about economic mobility and childhood development .
Quality early education also underpins K–12 readiness and long-term academic achievement, and current capacity shortages limit access to licensed, high-quality care childfamilyresources.org+2osi.az.gov+2firstthingsfirst.org+2.
What’s Coming Next
- Budget Conclusion: The Legislature is expected to finalize the FY 2026 budget by late June, possibly including compromises on child care funding.
- Special Session?: Hobbs has not ruled out triggering a special session to pass key elements if lawmakers remain divided azospb.gov.
- Subsidy Boost: Independent of legislative agreement, $191 million is slated to continue DES child care subsidies into 2026 .
- Rural Investments: Experts urge expanding infrastructure in underserved rural counties, where licensed capacity falls behind need by some 37% .
Final Word
As Arizona closes its session, the fate of Hobbs’ Bright Futures AZ plan remains uncertain. Advocates warn that without expanded support, families and employers will continue bearing heavy costs—and child-care deserts, especially in rural areas, will persist. With the growing consensus that affordable child care is essential to state economic health, the coming weeks will reveal whether policymakers prioritize workforce sustainability—or let momentum lapse.