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Montenegro, Lake Decry Hobbs’s ‘Blackmail’ over Missing $122M

Threatens 100% veto unless Republicans replace $122M Hobbs Admin ‘misplaced’

Speaker of the House Steve Montenegro March 16, 2025. (Photo: Kevin Sanders for the Arizona Globe)

Arizona Governor Katie Hobbs has intensified a political standoff by announcing she will veto all new legislation not on her desk until the Republican-controlled Legislature agrees to a bipartisan funding solution for the state’s Division of Developmental Disabilities (DDD). The agency, which supports nearly 60,000 residents with conditions such as autism and Down syndrome, faces a $122 million shortfall that could halt services by May 1. The Arizona Globe first reported on the missing budget allocation on March 3, 2025.

Hobbs criticized the current Republican proposal to replace the misallocated funds, which includes cuts to the “Parents as Paid Caregivers” program, calling it “unserious and a complete nonstarter.”

In 2021, Governor Doug Ducey (R) employed a similar tactic by vetoing 22 bills and declaring he would not sign any additional legislation until the legislature passed the state budget, using his veto power to pressure lawmakers into action.

House Speaker Steve Montenegro (R-29) condemned Hobbs’ veto threat as “political blackmail,” stating, “Her decision to hold every bill hostage because she didn’t get her way on a blank check is not leadership.”

Similarly, House Appropriations Committee Chair David Livingston (R-28) likened Hobbs’ actions to “the whining of a child,” asserting, “She will not get her way.”

Governor Hobbs maintains that the Republican proposal would reduce services for disabled Arizonans and add bureaucratic hurdles, ultimately paving the way to end the Parents as Paid Caregivers program. She emphasized the urgency of the situation, stating, “Families are at the brink.” However, it was her own administration’s failure to allocate the budgeted funds properly in the first place.

Kari Lake chimed in, “Only someone as incompetent as @KatieHobbs could ‘lose’ 350 million dollars. Hobbs agreed to a budget & then ripped it up & gave her agencies the green light to start overspending like drunken sailors.” She continued, “Now, critical state services are threatened because a crooked election put someone who can’t even balance a checkbook in charge of a state. My prediction? This story is only going to get worse the more we learn about it.”

The governor’s moratorium excludes legislation currently on her desk, sparing two hot-button bills—Axon and Stolen Valor—from her political pressure.

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Christy Kelly: Kelly is a political writer and analyst on law and culture, with a JD/LLM in Mediation. She’s a girl mom of three, wife to Curtis, and founder of Humanity Assemble. When she’s not writing or mediating, she’s hiking desert trails—where quiet skies and rugged paths help her make sense of a noisy world. Follow Kelly on Twitter / X. Email tips to Kelly.writes@icloud.com
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