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Arizona

Arizona, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.

State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.

2025 State Early Childhood Policy Environment and Progress

Early Childhood Landscape:

Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children.

Young Children in Low-Income Households: Declining

Approximately 42% (305,000) of the state’s children 0-8 live in households below 200% FPL (2022). This number represents a decrease from 48% (363,000) in 2017.¹

Racial Disparity Among Young Children Living in Low-Income Households: High

Black, Hispanic/Latino, and/or Native children aged 0-8 are significantly more likely to be living in households below 200% FPL than are Asian and non-Hispanic White children.²

(NOTE: Selecting for age 0-8, state, and race can yield small cell sizes that can make percentages less accurate. Bars marked with S indicate data with extremely small cell sizes, which is not displayed. Bars marked with C should be interpreted with caution. Though the cell sizes are larger, they still fall below a threshold of reliability.)

Advocacy Landscape:

State General Fund Appropriations: Growing

Arizona’s governor signed the state’s fiscal 2026 budget into law 1n June of 2025. General fund spending in the enacted budget totals $17.6 billion in fiscal 2026, including $16.53 billion in ongoing expenditures and $1.04 billion in one-time expenditures. This reflects an 8.1 percent increase in general fund spending, including a 6.5 percent increase in ongoing expenditures, compared to fiscal 2025 levels. The enacted budget assumes ongoing net general fund revenue (after urban revenue sharing and newly enacted revenue changes) of $16.6 billion (a 3.9 percent increase over fiscal 2025), a beginning balance of $1.1 billion, and other one-time revenues and transfers of $93 million. The fiscal 2026 enacted budget projects a $209 million general fund ending balance and an ongoing (structural) balance of $60 million.³

Key Revenue Sources After Federal Transfers:⁴

- - - General Sales Taxes ($2,246per capita)
    - Property Taxes (5$1,275 per capita)

State Budget Rules:⁴

Arizona uses an annual budget. The legislature must pass a balanced budget, but it can carry a deficit into the following year. Arizona limits spending growth based on personal income growth with a binding rule that requires a legislative supermajority or a vote of the people to override it. A supermajority is similarly required for any legislation that increases taxes or revenues. Arizona also places limits on the total authorized debt the state can incur but not on debt service.

Permanent State Funding Streams Dedicated to Early Childhood: Yes

In a 2006 ballot initiative, Arizona voters approved a tobacco tax increase dedicated to funding early childhood services. A First Things First state board and local regional partnership councils share the responsibility of ensuring that these early childhood funds are spent on strategies that will result in improved education and health outcomes for children younger than age 5.⁵

Political Alignment: Divided

During the 2025 session, the state’s Senate and House were both Republican controlled. The state’s governor was a Democrat.⁶

Types of Ballot Measures Available:⁷Five

- Legislature-initiated state statute: Appears on a state’s ballot as a ballot measure because the state legislature in that state voted to put it before the voters.
- Voter-initiated state statute: Earns a spot on the ballot when sponsors collect signatures according to the laws governing the initiative process in Arizona.
- Legislature-initiated constitutional amendment: A constitutional amendment that appears on a state’s ballot as a ballot measure because the state legislature in that state voted to put it before the voters.
- Initiated constitutional amendment: An amendment to a state’s constitution that comes about through the initiative process.
- Veto referendum: When someone in Arizona disagrees with a statute or legislative bill enacted by the state legislature, signatures can be collected to force the issue to a vote. If enough signatures are collected, the bill is placed on the statewide ballot.

Early Childhood Policy Advocacy Organizations Include:

Early Childhood Policy Advocacy Multi-State Initiatives Include:⁸

2025 Policy Progress:

Highlights from the state’s early childhood policy advocacy community include:⁹

As a result of the loss of pandemic funds, Arizona was required to implement a waiting list for the Child Care Assistance Program in August of 2024. A priority of early childhood advocates was to bring awareness to the waiting list and advocate for a significant state investment in the Child Care Assistance Program to eliminate the waiting list. They held a press conference, had media coverage (print, video), and had many meetings with legislators. This resulted in a $44.9 million appropriation from the state–the largest state investment in over 15 years. This is expected to release half of the families from the waiting list so working families can access quality child care.

Advocates also worked with policymakers to pass SB 1333, which strengthens oversight of congregate care placements and reinforces efforts to place children in family-like settings whenever possible. The bill ensures children with behavioral needs are not turned away from care when appropriate services are available, supporting more timely and appropriate placements for youth with behavioral health challenges.

The 2026 budget includes a proposal from the governor’s Bright Futures AZ initiatives for a $3-million appropriation to support an out-of-school grant program (youth ages 5-12) for eligible families. Thirty percent of these funds are reserved for rural communities.

Advocates continue to work with policymakers to increase the number of quality child care facilities in rural and underserved communities by investing in child care construction projects. In addition to the funds set aside for rural areas for the out-of-school grant program, $1.5 million was also approved to build a child development center in the Town of Taylor, a rural community in northern Arizona.

Ongoing Grantee Areas of Advocacy:

Our lead ally in Arizona, Children’s Action Alliance (CAA), seeks to influence policies and decisions affecting the lives of Arizona children and their families. Their research, publications, media campaigns, and advocacy are aimed at a future where: all children have health insurance, a place to call home, enter school ready to learn and succeed, and no child is raised in poverty, hungry, abused. or neglected. CAA is also a partner with the Arizona Early Childhood Alliance (AZECA), which includes many cross-sector early childhood champions who work together to give all children in Arizona a great start in life.

Children’s Action Alliance is working to advance early childhood policies in several areas:

Early Care and Education

Child Care

Child Care Workforce

K-3 Education

Preschool and Pre-K

Child and
Maternal Health

Early Intervention (Age 0 – 3)

Infant and Child Mental Health

Maternal and Child Health

Family
Supports

Child Welfare

Family Economic Security

Home Visiting

Paid Family Medical Leave

Early Childhood Infrastructure

Cost Modeling

Data Systems

Early Childhood Finance

Early Childhood Governance

Click here and here for more information on advocates’ policy agenda.

Arizona Advocacy Snapshot:

Arizona Allies Continue Fight Against Funding for Developmentally Inappropriate Online Early Learning Programs

June 11, 2021

Early childhood advocates in Arizona successfully blocked state funding for an online preschool program in 2020, and they are continuing to fight against additional attempts to fund these programs this year. While there is a huge need for expanded access to preschool in the state, advocates argue that online learning programs are developmentally inappropriate for young learners and a poor use of scarce resources.

NOTES:

¹Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024.

²National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.

³National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2026.

⁴Urban Institute, State Fiscal Briefs, April 2025.

⁵Alliance for Early Success, State Examples of Dedicated Funding Streams, 2025

⁶National Conference of State Legislatures, 2025 State & Legislative Partisan Composition, January 31, 2025.

⁷Ballotpedia, Ballot Measures by State, Kids Count Data Center, 2025.

⁸Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.

⁹Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2025.