FOR THIRD READ                                                                                                      AS PASSED BY HOUSE

ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

FACT SHEET FOR H.B. 2968

human services; FY2026

Purpose

Makes session law changes relating to human services necessary to implement the FY 2026 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.

H.B. 2968 contains the budget reconciliation provisions for changes relating to human services.

Provisions

1. Continues to require the Department of Economic Security (DES) in FY 2026 to screen and test each adult recipient who:

a) is eligible for Temporary Assistance for Needy Families (TANF) cash benefits; and

b) DES has reasonable cause to believe engages in the illegal use of controlled substances.

2. Continues to render any TANF recipient who tests positive for the use of a controlled substance that was not prescribed for the recipient by a licensed health care provider as ineligible to receive TANF benefits for a period of one year.

3. Becomes effective on the general effective date.

House Action

APPROP         6/24/25      DP       11-6-0-2

3^rd Read          6/24/25                  31-25-4

Prepared by Senate Research

June 24, 2025

MM/KS/ci