The Arizona House Committee on Appropriations on Tuesday adopted the Olson “strike‑everything” amendment to Senate Bill 14‑70, cutting the fiscal 2026 state general fund appropriation tied to Medicaid expansion by $108,000,000 and freezing new enrollments for the expansion population created by Proposition 204.

The amendment also shifts $75,000,000 from the hospital assessment fund to cover the state’s non‑federal share of traditional Medicaid costs. Committee members voted to return SB 14‑70 as amended with a due‑pass recommendation.

Why it matters: sponsor Representative Olson said the change is aimed at limiting state spending growth and preparing for possible reductions in the federal Medicaid match. "We may have to absorb substantial savings in this program. Let's put a freeze on new enrollments for the Medicaid expansion population so that if we have to absorb these reductions in the federal match, we're in a much better position to do so," Olson said during the hearing.

How supporters framed it: Olson and other backers described the move as fiscal prudence. Olson pointed to the state budget’s growth rate and the uncertain outcome of a congressional budget reconciliation process that a House bill — as discussed by witnesses and committee members — would direct roughly $880 billion in Medicaid savings nationwide. Olson said it would be better to avoid enrolling people now only to remove benefits later if federal funds are reduced.

Concerns raised: Representative Gutierrez responded that the amendment “preemptively give[s] up millions of federal funds in drawdown” and called the measure "careless," saying the federal bill was not yet law and that preemptively cutting state‑level drawdown could hurt Arizonans who rely on the program. Representative Willoughby said she opposed using hospital assessment funds without hospitals’ consent and asked for further amendments to address that concern.

Formal action: the committee adopted the Olson amendment and then voted to give SB 14‑70 as amended a due‑pass recommendation. The committee recorded a roll tally that returned the bill as amended with a recommendation to pass (tally reported in committee: 10 yeses, 7 noes, 1 not voting).

What the amendment does and does not do: according to committee staff, the amendment reduces the state appropriation by $108 million, freezes enrollment of people eligible for expansion under Proposition 204, and shifts $75 million from the hospital assessment fund to cover non‑federal Medicaid costs. Olson and staff said the measure does not remove benefits from people already enrolled; it pauses adding new enrollees from the expansion population.

Next steps: SB 14‑70 as amended moves forward with the committee’s due‑pass recommendation. Any further adjustments could be made on the House or Senate floor or by later legislative action, the chair noted.

Ending note: supporters framed the amendment as a preemptive, temporary fiscal measure tied to federal uncertainty; critics warned it risks foregoing federal funds and could disproportionately affect low‑income Arizonans if the freeze reduces access.