Arizona Gov. Katie Hobbs signed HB 2945 on April 24, 2025, sending about $122 million in emergency funding to the Division of Developmental Disabilities, which would have run out of money in May, KJZZ reported. The legislative summary shows $109.2 million from the state's Prescription Drug Rebate Fund, $403 million in federal Medicaid spending authority for the program, and $13.1 million for a state-funded services line.
New rules for paid parent caregivers
The bill also set guardrails on the Parents as Paid Caregivers program, according to the legislative summary:
- a cap of 40 hours of care a week per child, to start by July 1, 2025
- an electronic visit verification system showing whether a parent or another worker provided care
- no billing for care while the child is at school or in a clinical setting, or for ordinary household chores
- a special audit of the program by the state Auditor General
Why this mattered for providers and DSPs
The deal ended weeks of warnings that provider agencies could go unpaid. The parent caregiver limits also affected agencies that employ parents as caregivers, and meant some families would need other DSPs to fill hours above the cap. The Auditor General's later review found the program's cost controls had not been fully put in place.