Key Points:

• Gov. Katie Hobbs allocates $7.5 million to fix food stamp and unemployment benefit delays
• Funds will address staffing constraints at the state Department of Economic Security
• Arizona’s food stamp error rate is 8.84%, which could lead to increased costs under new federal guidelines

Gov. Katie Hobbs is tapping into federal funds leftover from the COVID-19 pandemic to address ongoing delays in the distribution of food stamps and unemployment benefits in Arizona.

In a press release, Hobbs said the $7.5 million will address “staffing constraints” at the state Department of Economic Security. That includes everything from hiring temporary workers to expanding the agency’s capacity to verify applicants’ income.

The governor blamed at least part of the problem on federal budget cuts.

Those dollars are important because the federal government not only pays for benefits — which are untouched — but also picks up part of the cost of running the food stamp program, formally known as the Supplemental Nutrition Assistance Program.

DES said earlier this month that the number of workers who review food stamp eligibility dropped from 1,370 in July 2024 to 880 this past July.

And an agency spokesman said it was processing an estimated 54,000 new and renewal applications, of which 18,000 were taking more than 30 days.

As of November — when food stamp payments were delayed in a dispute with the Trump administration — DES estimated that about 855,000 Arizonans were getting benefits, roughly one out of every eight people in the state. That includes about 347,000 children.

The average benefit is about $359 per household.

But there’s another issue that hasn’t yet hit Arizona.

Beginning in 2028, President Trump’s Big Beautiful Bill will require states with error rates above 6% to pay a greater share of the program’s administrative costs and fines. The most recent figure for Arizona puts the error rate here at 8.84%.

Hobbs called that part of “the partisan Washington budget.”

The governor said the additional staffing and improved payment accuracy will reduce that rate which represents underpayments or overpayments, something she attributed to “miscalculation, typically due to fluctuations in the recipient’s income.” And while Hobbs said she hopes for improvement, she also noted the national error rate is higher, at 10.93%.

Issues with unemployment benefits are related to — but not directly tied — to the cut in federal dollars affecting food stamp benefits.

Data for the most recent week from DES shows new claims for benefits at more than 2,600, with another nearly 20,000 in ongoing claims.

But it also shows the agency went from answering more than 7,000 calls per week in September to fewer than 500 this month.

Gubernatorial press aide Christian Slater said the additional $7.5 million will also help with that.

Overall, he said that money would allow the agency to hire temporary employees to aid both programs, though he had no immediate answer to how long those staffers would be available.

DES launched a new online platform, CACTUS, or the Comprehensive Arizona Claims Tracking Unemployment Insurance System, in September, where individuals can file first-time claims for jobless benefits and submit their weekly updates, including certifying that they have been looking for work.

In a prepared statement, the governor said she understands “the frustration Arizonans feel with these delays.”

“Families deserve stability, and I’m committed to ensuring they can access the support they need when they need it while protecting critical programs from further federal cuts,” her statement reads.