Arizona's Department of Economic Security to lay off 500 workers due to federal funding cuts

Arizona's Department of Economic Security plans to lay off 500 employees due to funding shortfalls from the federal government, particularly the elimination of grants for unemployment insurance. The layoffs will affect workers who assess eligibility for essential programs like SNAP, TANF, and Medicaid, which are critical for low-income families. DES Director Michael Wisehart disclosed the layoffs at a workforce-development summit, describing it as one of the toughest decisions of his career. With a workforce of 9,000, DES plays a vital role in providing social services and workforce assistance. The agency also managed federal funding during the COVID-19 pandemic, distributing unemployment and childcare benefits.

Wisehart emphasized the agency's struggle to cope with financial challenges driven by unexpected federal cuts. He indicated that further adjustments, including team reorganizations, might be necessary. The layoffs highlight the ongoing impact of federal budget decisions on state-level social services.