- Arizona’s SB1373 is one vote away from creating the U.S.’s first Bitcoin reserve.
- Governor Hobbs has linked her veto threat to unresolved disability funding.
- Republicans demand reforms to disability services before restoring funding.
Arizona’s Strategic Bitcoin Reserve bill (SB1373) is one vote away from becoming the first law of its kind in the U.S. The measure would allow up to 10% of the state’s surplus funds, including pension assets, to be held in Bitcoin and approved digital assets.
After clearing five key stages, the bill now faces a roadblock. Governor Katie Hobbs has warned she will veto all bills not yet on her desk unless lawmakers resolve a $122 million funding gap for disability services.
SB1373 Clears House Committee, Heads to Final Reading
SB1373 passed its latest hurdle on April 17, receiving approval from the House Committee of the Whole. It is now awaiting a Third Reading vote in the Arizona House of Representatives before it can be sent to Governor Hobbs.
If signed, Arizona would become the first state to formally hold digital assets in treasury reserves. No other state-led Bitcoin reserve proposal has reached this level of progress in 2025, per Bitcoin Laws tracking.
Hobbs Demands Disability Funding Before Any Bills Move
Governor Hobbs has issued a freeze on all unsigned bills, linking her veto threat directly to a stalled disability services budget. She insists that lawmakers pass a clean funding bill for the Division of Developmental Disabilities (DDD) before sending her any legislation.
The DDD program serves over 59,000 Arizonans, including those with autism and cerebral palsy. Lawmakers have yet to agree on how to patch a major shortfall caused by federal funding changes.
Republicans Demand Reforms, Hobbs Refuses Conditions
Republican legislators are pushing for reforms within the state’s disability program before funding is restored. They want new oversight and structural changes to improve efficiency. Their goal is to ensure taxpayer money is used effectively for vulnerable populations.
Governor Hobbs has rejected these conditions, emphasizing that immediate, unencumbered support is needed. She argues that adding conditions would delay aid for families in need. Hobbs believes the focus should be on direct relief without further bureaucratic barriers.
This standoff has created a political deadlock, affecting more than just the disability program. Even if SB1373 passes, it may be held up by the ongoing budget dispute. The situation underscores the clash between fiscal politics and urgent humanitarian needs.
