Arizona directs federal money to services and sets rainy-day rules

Arizona must deposit unrestricted federal money into its general fund, the state's main operating fund, and use it to pay for essential government services. The requirement applies to money received by the state of Arizona. The requirement covers federal money received without restrictions on its use. Section 2 applies retroactively starting July 1, 2026, and covers money received through June 30, 2027.

The law provides temporary exceptions for Arizona's budget stabilization fund, its rainy-day savings. These exceptions govern lawmakers and the state treasurer's handling of Arizona's rainy-day savings. For fiscal year 2026–2027, the fund can exceed 10% of revenue in the state's main operating fund. During that fiscal year, the state treasurer cannot transfer surplus rainy-day savings into the state's main operating fund. The exception to required deposits and withdrawals applies in fiscal years 2026–2027 and 2027–2028.

The state department responsible for government technology must develop a statewide data plan. It can require shared technology practices, delegate technology duties, and arrange technology services. Standards and delegated duties cover state offices called budget units. Service agreements can cover state agencies and local governments. Service agreements must require repayment of costs set by the department unless lawmakers have set aside money for those services.