TRANSCRIPT: Governor Hobbs 2025 State of the State Address

Speaker Montenegro, President Petersen, Leaders De Los Santos and Sundareshan, members of the House and Senate, Secretary Fontes, Attorney General Mayes, Treasurer Yee, Superintendent Horne, Mine Inspector Marsh, Corporation Commissioners, Chief Justice Timmer and members of the judiciary, Tribal leaders, honored guests, and my fellow Arizonans: 

It is our honor to mark the opening of the 57th Legislature for its First Regular Session, here on land that will always be connected to the O’Odham and the Piipaash of today’s Salt River Pima-Maricopa Indian Community and of the Gila River Indian Community. 

Before we go further, let me say my heart is with the people of California impacted by the devastating wildfires. I also want to acknowledge the courageous Arizona firefighters who are helping our neighbors battle the flames. To all those fighting the fires, thank you. 

Now, let me extend my congratulations to both the new and returning faces in this chamber. Your dedication to public service is commendable. Let us never forget the honor we have in serving this great state. 

That honor comes from the indomitable spirit of the people who built this land into the thriving culture, economy, and innovative place it is today … 

The ingenious Huhugam people who first engineered central Arizona’s canal systems and the Tribes who continue to lead on water stewardship policies today … 

Individuals and families who built their lives here because they saw the promise of our deserts, our diverse geography, and our stunning open spaces … 

Leaders like Justice Sandra Day O’Connor, Governor Raul Castro, Senators Barry Goldwater and John McCain who guided our state and nation … 

Their spirit carries on today.

It continues with Arizonans like Felicia Siyuja, a member of the Havasupai Tribal Council. When devastating floods swept through Supai Village last summer and collapsed the surrounding trails, Felicia guided more than 100 tourists to Havasupai Elementary School for shelter. Throughout the night, she fielded calls from first responders about people stuck on trails and families looking for loved ones, communicating their names and locations to the Tribe’s rangers. 

Her service and heroism show how even in our most devastating moments, Arizonans are there to offer hope and a helping hand. Felicia, please stand so we can thank you for your bravery and kindness. 

Resilient individuals like these and millions of other good, hard-working people built our beloved Arizona – a special place that values opportunity and freedom. 

A place where entrepreneurs, mom-and-pop businesses, farmers, and international companies launch their next big idea or provide the critical services and products that make our modern way of life a reality … 

A place where your children and grandchildren can triumph beyond our wildest imaginations … 

A place where the promise of tomorrow is as vast as our blue skies and luminous as the Arizona sun. 

This, my friends, is our Arizona Promise. 

The promise that everyday people can find opportunity … security … and freedom. The promise that through hard work and perseverance, you can build a good life for yourself and your family and leave your kids with a better tomorrow. 

For many years we lived by this creed and realized this promise. But for too many, the Arizona Promise has slipped away. 

Our cost of living is too high. People are working harder and struggling more. Our freedoms are under attack. Our sense of security has faltered. 

For too long, politicians have been focused on the wrong things – chasing headlines, playing politics, and looking toward their next election or their next office rather than standing up for the people we represent. 

Since I became Governor, we have made great strides in restoring this Promise. But we still have much to do. 

Our promise means you shouldn’t have to work two or three jobs just to make ends meet …

it means your kids should be able to go to college or trade school without taking on a lifetime of debt … 

it means you should be able to access the medicine and healthcare you need, at a price you can afford … 

it means if you work hard and save, you should be able to buy a home where you and your family can build a life … 

it means if you immigrate to this country, follow the law, pay taxes, and contribute to your community, the Arizona Promise can be yours, too. 

The Arizona Promise is personal to me. I was born right here, at Saint Joe’s hospital in Phoenix. I grew up in Tempe playing at Kiwanis Park. Thanks to scholarships and hard work, I graduated from Northern Arizona University and Arizona State University. As a social worker, I helped homeless youth and domestic violence victims in central Arizona. I met my husband here while volunteering at church. We raised our children here. And now, they are building their lives right here, too. 

Arizona is my home – and, like you, I love this state. 

That love never diminished when I was a kid and my family had to rely on food stamps. It never diminished when my husband and I lost our home during the Great Recession. Or when I took a second job driving for Uber so I could buy Christmas presents for my kids. And it never diminished in the face of any of the countless other battles middle class families like mine confront. 

That’s why every day, I wake up and fight for this state. That’s why I will never give up on the Arizona Promise. 

Since I became Governor, we have achieved much together by finding common ground, but we must do more. 

As we go forward, let us work together to make that promise a reality – today and for years to come. 

Having grown up in this state and raised my family here, I’ve witnessed how having a home represents more than four walls and a roof. The home I grew up in was somewhere we made memories. It made so much of our lives possible. 

It’s why a safe place to rest your head at night … to celebrate your children’s birthdays … to build a life … is a pillar of the Arizona Promise.

The home where I made my memories – where I had a safe place to rest my head – was purchased by my parents for forty thousand dollars. They bought it back when working class families could afford to buy a home in this state and live their Arizona Promise. 

But today, the high cost of housing is forcing that Promise out of reach. From Flagstaff to Sierra Vista, housing shortages and out-of-state speculators are driving up the price of housing. 

To combat this, we are taking action. 

A few weeks ago, I helped Maria Magdalena Contreras move into her new home. Maria is a widow and hardworking mom of four kids. As a medication technician, she helps keep our seniors healthy. After renting for eight years, Maria was finally able to buy a home thanks to down payment assistance from our Arizona Is Home program. She now has a place of her own … a place to hang a photo of her beloved children … and a place to one day pass down to them. 

Maria’s story signifies the perseverance of so many Arizonans who work hard and save for years, but for whom homeownership remains out of reach. We owe it to them to create more opportunities to find a home, access support if they need it, and live in the community they want. 

During my time as Governor, we have lowered costs by cutting government red tape and making historic investments in affordable housing programs. But, make no mistake, we must do more. 

First, we must extend the State Low-Income Housing Tax Credit. This program has enabled the development of affordable homes across Arizona – from Prescott Valley to Tucson. 

Second, let’s address the proliferation of vacation rentals owned by out of state corporations looking for a quick buck. These housing speculators are buying up properties and turning family homes into party houses, making housing less affordable in the process. Party houses are causing chaos in our communities. We must end the top-down government mandate that denies our neighborhoods a voice. Arizonans want family homes, not party houses. 

Third, let’s continue to foster generational wealth. Last year, I announced the Arizona Is Home program, and I’m proud to share with you today that we will double the number of first-time homebuyers who receive assistance. 

Finally, we must further cut the red tape that’s driving up the cost of housing. I’m proud of the progress we’ve made expanding access to casitas and building duplexes and triplexes in our downtowns. But Arizonans are depending on us to find more common sense solutions that don’t expose our neighborhoods to untested experiments. 

By taking these common sense actions, we can lower the sky-high cost of housing and help families thrive.

But there is yet more we can do – more we must do. No man or woman who served our nation and protected our freedoms should be forced to live on the street. 

That’s why today I am issuing a challenge to lawmakers and elected officials across the state to fully commit to ending veteran homelessness in Arizona in the next decade. 

My executive budget will include a down payment to jumpstart this effort, with the creation of the Homes for Heroes Fund. But it will take all of us – state and local governments, non-profits, veterans organizations, and others – to see this commitment through. Let’s work together to ensure our veterans have a place to call home. 

While we tackle homelessness and the cost of housing, our families are burdened by other costs. We must also do more to help them afford day-to-day life. 

When I travel across the state and speak to parents, I hear one thing time and again: child care costs are out of control. 

● On average, an Arizona family pays nearly 15 thousand dollars per year for child care. That’s more than students pay for in-state tuition to our public universities. ● More than 75,000 Arizona children – 1 in 4 – have parents who need childcare, but can’t access it. 

● And every year, child care disruptions cost our state billions of dollars in economic activity. 

I was a working mother who raised two kids. I understand these challenges intimately. That’s why I am putting forward the Working Families Child Care Act to lower the cost of caring for your kids by two-thirds. Through partnerships with employers, we can make life easier for families who are struggling with the high cost of raising a child. 

Hardworking families will win. Employers will win. And, most importantly, our kids will be better off because they have the care they need to learn, play, and thrive. 

Let’s work together to lower costs and support families who are raising the next generation of Arizonans. 

But lowering costs alone will not bring about the Arizona Promise. We must embrace a vision of economic opportunity. 

Whether you’re chasing your dream job in a trade or launching the next big thing, you should have the chance to succeed and build a better life for yourself and your family. 

When we create opportunity, Arizonans like Orrin Bates succeed.

Orrin has always enjoyed learning how things work. As a kid, he helped his dad fix things in the garage. As a boy scout, he earned his first merit badge in electricity. Inspired by his scout leader who was an electrician, Orrin pursued an apprenticeship at Phoenix Electrical JATC. 

His hard work paid off when he was named Apprentice of the Year and graduated from the program last month. The money he earned helped him buy his first home, where he hopes to raise a family one day. He’s excited to get started as a Journeyman Inside Wireman and put his electrical skills to work. Orrin, please stand. Join me in acknowledging Orrin for his hard work and congratulating him on his recent engagement! 

Through our BuildItAZ initiative, we’re creating opportunities for thousands of talented, driven individuals like Orrin. We’re investing in our construction and trades apprenticeship programs – including the one Orrin completed – that will, in turn, help more people build high-demand skills. 

It’s the right thing to do – because we should expand pathways to having a good job with good wages. 

And it’s the smart thing to do – because we’re meeting the needs of our growing state, providing companies with top-notch talent, and supporting families. 

Just look at the opportunities we’re creating in the semiconductor industry. 

Last year, I stood in front of you and called for the continuation of the Arizona Commerce Authority because I know it's essential to growing business and creating jobs in this state. 

Fast forward to last week: I announced a historic investment through the CHIPS and Science Act to create Arizona’s first national laboratory and one of America’s three flagship semiconductor research and development facilities. It’s an investment made possible because of the Commerce Authority, which partnered with Arizona State University to bring this enormous opportunity to our state. 

Thanks to this historic project and support from public and private sector partners, Arizona stands as the epicenter of America’s semiconductor industry – an industry putting thousands of people to work in our communities. 

Whether it’s the opportunities in the trades, the pathways created through our world-class universities, or the possibilities for ambitious entrepreneurs, Arizona offers a model for the nation. 

Today, we have more Arizonans working than ever before … 

We are the top market in the nation for manufacturing expansion … 

We rank in the top 10 states for private sector wage growth …

And since I became Governor we’ve created nearly 200,000 jobs. 

Through successful public-private partnerships and bipartisan collaboration, we are creating good-paying jobs that support industries critical to our national security and economic future. We are leading America’s manufacturing renaissance. 

However, we can’t judge our success by the expansion of large companies alone. 

Arizona’s economy thrives because of small businesses like the one founded by Alexa Rodriguez. After discovering her passion for entrepreneurship, she started an online boutique selling crafts that honor her Mexican heritage. While starting a business was hard, Alexa learned that securing a loan through traditional channels was even harder. 

That changed when she got a loan through our Microbusiness Loan Program, which is designed to provide financial support for our state’s smallest businesses. The loan has helped her scale up her operation, allowing her to make more products and sell directly to customers at a mall kiosk. Through the program, she’s also getting financial education and training so she can execute on her future plans. Alexa, please stand. Join me in congratulating Alexa on pursuing her dream and on her success as an entrepreneur. 

Delivering on Arizona’s Promise means creating more opportunities for individuals like Orrin and Alexa in communities and industries across our state. 

Beyond these efforts, however, the best way to ensure we have a strong, thriving economy is by acting decisively to support our public K-12 schools. 

We must address the impending expiration of Prop 123, which provides critical funding for public schools and teachers. 

Renewing it is essential. If we fail to act, we are throwing away an opportunity to fund teacher pay raises and give Arizona’s children the opportunity they deserve – all without raising taxes on a single Arizonan. 

When Prop 123 originally passed, it was a bipartisan success and proved that Republicans and Democrats could come together and do the right thing for our students, teachers, and parents. 

So let’s put our kids first again and provide the certainty they and our schools need. Let’s address the Aggregate Expenditure Limit to make sure schools stay open … Let’s pass a Prop 123 extension to fund our schools without raising taxes.

I will not waver in my commitment to creating more opportunities for Arizonans – because every individual who works hard should have a chance to get ahead. 

A truly thriving economy means security for our families and neighbors. That’s why safe communities are a core pillar of the Arizona Promise and why I’ve made border security a top priority. 

At my direction, the Arizona National Guard is at our border to support U.S. Customs and Border Protection and stop the flow of dangerous drugs into our state. When I visited the Port of Nogales in November, I saw the critical work that these men and women are doing to protect us. They direct traffic through x-ray machines. They break down vehicles. They assess every potential threat coming into our state. They are Task Force SAFE. 

And one of its members is Staff Sergeant Everett Griggs. Staff Sergeant Griggs is a 17-year member of the Arizona National Guard and veteran of the United States Air Force. For Staff Sergeant Griggs, the mission of Task Force SAFE is personal. He told me how proud he is to play a role in keeping his family and neighbors safe. Most of all, he is driven by his wife Shauna and his three children: Preston, who wants to serve his country as a helicopter pilot in the military, Everett III, an aspiring NBA player, and 7-year-old Peyton, who loves to dance. Staff Sergeant Griggs, please stand so we can show our gratitude for your dedication to keeping our state and our families safe. 

We must remain vigilant in protecting Arizonans from the cartels who seek to do us harm. The fentanyl crisis is one of the greatest threats to public safety in our state’s history and requires a collaborative approach across state, local, and federal governments. 

When we work together, we protect Arizona families. 

Since July, the Arizona National Guard and CBP have seized more than 8 million fentanyl pills and more than 2,000 pounds of meth, cocaine, heroin, and fentanyl powder. 

That means 8 million pills out of our communities … 

8 million pills that didn’t destroy fathers, mothers, sons and daughters, brothers and sisters, friends, and grandchildren. 8 million pills that are no longer funding the cartels who are shoving poison into our neighborhoods. 

I will continue working with this legislature to protect our border because until all Arizonans feel secure in their communities, we will not be able to deliver on our Promise of freedom and opportunity. 

In this effort, we must better support members of law enforcement who are on the frontlines keeping us safe.

Officers like Captain Trevor Graff and Sergeant Becky York, who are Arizona State Troopers. They also happen to be married. Every day they wake up, put on their uniforms, and bravely protect our families. But their selflessness extends far beyond that. 

Last year, Captain Graff and Sergeant York chose to foster two children, a baby girl and a baby boy who had been exposed to dangerous drugs. They were born addicted to fentanyl, meth, and cocaine, putting them at higher risk of medical issues. 

Thanks to the paid family leave my administration put into place, these foster parents were able to bond with their new babies, take them to critical doctor visits, get them healthy, and see them crawl for the first time. Captain Graff and Sergeant York, please stand so we can acknowledge and thank you for your service. 

Paid family leave was the right thing to do so that parents can take care of their families. 

But we must do more for the brave men and women who protect us every day. That’s why my executive budget will include a 5 percent pay increase for our frontline law enforcement – including state police and correctional officers. 

It’s why my executive budget will also include a pay raise for the state firefighters who run toward danger and keep Arizonans safe every day. 

These well-deserved raises will not only reward our hardworking state law enforcement and firefighters, but also help us recruit and retain the best. Our state police pay raise will mean more violent criminals in jail, less crime in our communities, and a greater sense of safety for Arizonans. 

It’s time to put our money where our mouth is. If we care about keeping our communities safe, if we care about supporting our officers, and if we care about public safety, then we should fund the police and our firefighters. 

The Arizona Promise also means freedom – the freedom and the ability to make your own medical decisions and access the healthcare you need, when you need it. 

My commitment to protecting this freedom is ironclad. As a mother and social worker, I’ve witnessed firsthand what can happen when that freedom is stripped away. 

Look at the facts: In Arizona, our maternal death rate quadrupled from 1999 to 2019 … and today we have a higher rate of preventable maternal deaths than the U.S. average. 

As a mother, I find it unacceptable that any baby should lose their mom to a preventable condition. Or that parents have to struggle to get healthcare for their kids.

That’s why I’m proud we worked together to provide 19,000 more children with health insurance through our KidsCare program. 

This year, I will build on our success and take action to save the lives of new moms by making our 12-month postpartum coverage permanent. 

I also call on this Legislature to expand access to family planning services to keep moms healthy. 

I believe it’s a moral responsibility to ensure women and their families can access the care they need without government overreach. 

I’m proud to have signed the repeal of the draconian 1864 total abortion ban, but unfortunately, some continue to attack women’s freedoms, no matter the consequences. 

I proudly stood with the overwhelming majority of voters to enshrine the right to abortion in our state constitution. Arizonans made their voices loud and clear: We want our freedoms protected. 

I have been steadfast in calling for the end of the abortion reporting law that requires government surveillance of pregnant women – and I again call on this Legislature to get rid of this unnecessary, invasive report for good. 

Further, I call on this Legislature to do what’s right for Arizona women and families by taking common-sense actions: 

Put a bill on my desk to guarantee the right to contraception – because every woman has the right to make their own private medical decisions without the government getting in the way. 

And pass legislation to protect a woman’s right to access fertility treatment, because every Arizonan should be able to decide how and when to start a family, on their own terms. 

For one Arizonan named Nicole, cancer nearly put motherhood out of reach. When she was diagnosed with leukemia at age 27, her immediate thought was: Will I be able to have kids? Before starting chemo and undergoing a bone marrow transplant, she froze her eggs. Today, 

Nicole is 6 years cancer-free and thanks to IVF, she has a beautiful daughter. She hopes IVF is protected so other women will have opportunities like her. 

There are thousands of Arizona women, couples, and families like Nicole who deserve to have their rights protected and the opportunity to build the life they want. 

That’s why these aren’t just policy positions – they’re actions that embody the fundamental values of freedom and family. 

Arizonans have spoken clearly. It’s our responsibility to deliver on their mandate.

One of our sacred freedoms is the right to clean water for all. We must protect Arizona’s most precious resource: water. 

I will never stop fighting for our water rights, because access to water is fundamental to preserving the Arizona Promise. Whether that means combatting federal overreach, out-of-state interests, or exploitation from big corporations that hurt local farmers. 

Securing our water future is essential to preserving our way of life. 

Whether it’s our use of canals and dams to provide water to millions of people … or the passage of the visionary Groundwater Management Act … or the hard work of farmers, ranchers, Tribal nations and the men and women of the Arizona Department of Water Resources, we have always led the nation in water innovation and conservation. 

But some still lack access to this fundamental resource. Judy Elthsosie from the Black Falls community of the Navajo Nation has lived her entire life without running water. A cistern that once stored rainwater grew algae, making it unusable. When she needs water, she drives 30 miles, making as many as three trips a week in the summer months. Having reliable access to clean drinking water would be life-changing, she says. 

In November, I signed historic water settlements with leaders from four Tribal Nations – ending decades of litigation and finally settling their water rights. Now, it’s time for Congress to do their part and pass these settlements so that Judy, her community, and future generations have access to the safe, clean water they deserve. 

In addition to those settlements, I have taken decisive actions to ensure Arizona’s water future and defend our state’s groundwater from irresponsible developers who are focused only on short-term profits. Through the work of my Water Policy Council, we created a program to build the housing communities need to grow, while protecting the groundwater they rely on. 

And now, I’m proud to announce the Arizona Water Company and EPCOR have taken the first steps to obtaining designations of Assured Water Supply using alternatives to groundwater. Arizona communities from Sun City to Casa Grande will be able to grow while using less groundwater. And that’s just the beginning of this innovative program. 

When we fail to take action to protect our groundwater, big corporations will recklessly over-pump this finite resource regardless of the people and communities they hurt. 

Take for example Janet Randall — the land beneath her home is sinking. She first noticed things like doors not closing … then came the cracks in the floor … then a layer of bricks collapsing in her living room. Now, you can see daylight through the kitchen wall.

In her community and across Cochise County, wells have gone dry, forcing residents to make an impossible decision: pay big bucks to deepen their well … or move. Local family farmers are being squeezed and feeling the consequences of over-pumped groundwater. 

Mark and Rhona came to Willcox with a dream to farm, and through hard work they made that dream a reality. There's a lot Mark and Rhona would like to do to grow their business: upgrade equipment…purchase attachments for their tractor…hire more workers. But over the years, the 

water in their well has gone down…and down…and down. So instead, they had to drain their savings and borrow tens of thousands of dollars to drill a new well with a new pump…a debt they will be paying off for years. 

To fight the dangerous consequences of excessive groundwater pumping, something had to be done to help Janet, Mark, Rhona, and their entire community. That’s why I designated the Willcox Groundwater Basin an Active Management Area. 

As I said when I stood before you last year, we must act now to protect Arizona’s water. And when the Legislature did not, I did. 

I remain committed to true, bipartisan reform to protect our groundwater. But mark my words, if this Legislature fails to act. I will… Again. 

Further, any bills that attack our assured water supply program, undermine our water future, or are political cover for this Legislature’s lack of action on water security, will meet my veto pen. 

Finally, securing our long-term water supplies means defending Arizona’s rightful share of the Colorado River. 

Whether I’m meeting with farmers from Yuma, communities across central and southern Arizona, or other governors, my message is the same: I will always stand up for Arizona’s water rights. 

I’m proud to have secured a deal that protects Arizonans from forced cuts to our water use through 2026, but the deadline is close and we have more to do. 

The solutions to our water challenges won’t come from Washington, D.C. They will come from Western states working together, not against each other. 

Arizona has led the nation in water management for generations. Now it's our responsibility to continue that legacy, ensure our water future, and protect the Arizona Promise for those who follow in our footsteps. 

Our children deserve the best public education.

From Page to Douglas, more than 90 percent of our K-12 students go to public school. That’s why our path forward demands bipartisan solutions to create and sustain the world-class schools our children and parents deserve. 

Public education is the key to opportunity … security … and freedom. It is the Arizona Promise. Success means outstanding teachers in every classroom … 

It means smaller class sizes to enable meaningful engagement and learning … It means equipping kids with the tools to succeed … 

And it means bringing overdue accountability to the ESA program that costs taxpayers nearly 1 billion dollars every year. 

Members of this Legislature must ask themselves: 

● Do we finally put guardrails around ESAs to protect against fraud, waste and abuse – or do we continue to write a blank check with taxpayer money? 

● Do we lower costs by investing in child care and housing – or do we continue to subsidize the rich? 

● Do we provide lifesaving care to new mothers and their children – or do we continue paying for grand pianos to sit in multi-million-dollar homes? 

● Do we give our police a raise and secure our border – or do we continue to pay for ski resort passes? 

The current program is unchecked, flawed, and rife with exploitation. 

Three years ago, it went far beyond its original purpose, which was to support kids with special needs and military families. 

Today, it has ballooned into a billion-dollar boondoggle increasingly scamming Arizonans. Other entitlements funded by taxpayers have strict oversight and income requirements. 

Yet the ESA program has the privilege of virtually no safeguards. My executive budget offers a balanced solution that supports families and finally brings real and effective guardrails to ESAs. 

The solution is simple: 

● Institute responsible income caps 

● Ensure taxpayers know where their money is going 

● And create real accountability for taxpayer dollars 

It’s time to bring common sense to this program. It’s time to bring the same fiscal responsibility to ESAs that we demand from every other program in state government.

The Arizona Promise depends on it. 

In his opening message to the first regular session of the 35th Legislature, Governor Bruce Babbitt delivered the following words: 

“The task is not an easy one; the role of the critic is always easier than that of the problem-solver … I am confident that we can preserve that which is good in our heritage while accepting the challenge of the future.” 

As we work, debate, and craft solutions together in the months ahead, let’s remember those words. 

Arizonans are counting on us to be their voice. 

…to lower costs. 

…to support our schools and secure our border. 

…to defend their freedoms and keep their communities safe. 

…to deliver the Arizona Promise. 

We are all Arizonans. We love this state: The people. The natural beauty. The opportunity. The freedom. 

We know what is possible when we put our differences aside and do what’s right – no obstacle is too great and no divide is too wide to overcome. 

Thank you for your commitment to serving, to building a better state today and for the future, and for helping to restore the Arizona Promise. 

Now let’s get to work. 

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