PHX Reporter

Arizona State Rep. Matt Gress (R-Phoenix) said today that Gov. Katie Hobbs (D-Ariz.) is choosing to prioritize illegal immigrants over Arizona citizens.

His comments come after Marge Zylla, the governor’s legislative and fiscal affairs director, presented the governor’s proposed budget before a hearing of the Joint Appropriations Committee in the Arizona legislature.

“The Governor's representative spoke loud and clear: Hobbs repeatedly chooses to prioritize illegal immigrants and their needs above Arizonans,” Gress, vice chair of the House Appropriations Committee, told PHX Reporter. “House Republicans stand ready to protect Arizona taxpayers and push back against the Governor's extreme ideas."

Gress specifically referred to his questioning of Zylla over funding provided through the Arizona Housing Trust Fund (HTF). That fund is primarily designed to fund low-income housing initiatives for Arizona citizens. 

Following is a transcript of the exchange between Gress and Zylla:

Rep. Gress: “On the Housing Trust Fund, is it going to be the executive’s position to allow these dollars like you did last time, to be used for illegal migrants who would’ve otherwise been deported?” 

Rep. Zella: “Mr. Chair/Rep. Gress, I’m not aware of anything in that realm.”

Rep. Gress: “Are you aware that in the last allocation of that funding, which impacted my legislative district, the Department of Housing prioritized proposals serving unsheltered persons who are impacted by one of the following challenges: 'The’Zone’; the expiration of the Public Health Act; Title 42 as it pertained to the border between Arizona and Mexico, which impacted those who crossed the border and would’ve otherwise been deported; and, the close of sober living homes and residential facilities. Will the executive continue to prioritize those three categories as part of the Housing Trust Fund?”

Rep. Zylla: “Mr. Chair/Rep. Gress, so the housing trust fund has specific grants for specific uses all throughout Arizona. For ones that are coupled with federal resources, then the requirements for the usage would align with those federal requirements.”

"The Zone" referenced by Gress is a large homeless encampment in downtown Phoenix, spanning several blocks near the Human Services Campus. There were an estimated 900 to 1,000 individuals residing there at its peak. The area has faced significant public health and safety challenges, including crime, drug use, and unsanitary conditions. In 2022, a lawsuit from nearby property owners prompted the city to address the encampment's impact on the surrounding community. In 2023, Phoenix began dismantling The Zone as part of a court-ordered cleanup effort, offering residents shelter options and support services to mitigate the displacement caused by the action.

In 2023, Hobbs allocated $60 million, initially intended to address homelessness, to also support housing and resources for undocumented immigrants, reported AZ Free News reporter Corinne Murdock.

“$20 million of the $60 million was deployed immediately in early June through the Arizona Department of Housing (ADOH),” wrote Murdock. “The agency neglected to mention in its press release that illegal immigrants would also benefit from the millions.”

“The funds are dispersed through ADOH’s newly-established Homeless Shelter and Services (HSS) Fund,” Murdock reported. “ADOH advised applicants that it would prioritize those who served those impacted by the court order for the city of Phoenix to clean up its mass homeless encampments in Freddy Brown v. City of Phoenix, the expiration of Title 42 which enabled the expedited expulsion of illegal immigrants, and the closure of sober living homes and residential facilities.”

Hobbs’ proposed budget has an estimated $17.7 billion in spending. Those expenditures “fall $846 million short of the Joint Legislative Budget Committee’s estimates, and her projected revenue eclipses the budget committee’s by $360 million,” reported the Tucson Sentinel, and Zylla “couldn’t explain why the governor’s projections stray so far from the legislature’s.”

“Your’e submitting to us a deficit budget,” Gress said to Zylla.

Gress was first elected in 2022 to represent Arizona's Legislative District 4. He is a former public school teacher and budget expert with a background in local government and public finance. Gress has served as a school board member and the state's budget chief, focusing on education funding, border security, public safety, and reducing living costs.