New Initiatives for ADVS in Governor's FY26 Budget
The Governor’s Office has proposed four new initiatives for ADVS in the FY26 Governor’s Budget:
Homes For Heroes- The Executive Budget includes $5 million one-time from the General Fund to the newly established Homes for Heroes Fund at the Arizona Department of Veterans Services (ADVS). This investment will facilitate the development of a statewide, cross-jurisdictional plan by the end of FY 2026, with the goal
of effectively reducing veteran homelessness in Arizona over the next decade. Implementation of the state plan will begin in FY 2027, with an emphasis on housing solutions (including rental assistance), social services, counseling, veteran treatment courts, and other evidence-based programs designed to effectively address and reduce veteran homelessness. In addition to coordinating the initiative at ADVS, funds would be used for grants to partner with community-based organizations to build capacity to offer services and execute on this work through FY27.
Aligned with the Department’s strategic goal of reaching near functional zero for unsheltered homelessness among veterans, these funds will allow cross-jurisdictional collaboration with other state agencies and initiatives - including the Arizona Department of Housing, Arizona Department of Economic Security, and the Governor’s Interagency and Community Council on Homelessness and Housing - tribal governments, local jurisdictions, and federal partners.
State Home For Veterans Trust Fund-
The Arizona Department of Veterans’ Services (ADVS) operates four veterans’ homes, in Phoenix, Tucson, Yuma, and Flagstaff. These institutions provide residential care for qualified veterans, using revenues from the U.S. Department of Veterans Affairs and other insurance providers to fund
operations.
In recent years, the State Home for Veterans Trust Fund has experienced a declining balance due to multiple factors, including a decrease in census during the pandemic. The Executive has allocated $1 million in ARPA monies, and the Executive Budget includes a $1 million supplemental from the General
Fund in FY 2025.
These investments will fortify the State Home for Veterans Trust Fund balance, ensuring that ADVS can continue to serve and provide care to Arizona’s veterans. It is expected that revenues will increase in FY2026, as the newly opened Flagstaff Home begins to grow its census, which will result in additional
federal dollars flowing to the home for its operations.
Tucson Veterans Home HVAC Replacement- The Executive Budget includes $1.9 million from the General Fund to serve as a State match to draw down an additional $3.5 million in federal monies to replace the HVAC system at the Tucson Veterans’ Home. The Tucson Home serves 115 veterans, with a capacity of 120. Failures to the system can cause discomfort to residents and, if the system is not repaired quickly enough, could result in having to relocate residents while repairs are made. This funding will allow ADVS to proactively replace the system while also reducing the anticipated cost of future repairs.
Veteran Home Pay Package- The Executive Budget includes $1.2 million ongoing at ADVS from the State Home for Veterans Trust Fund to provide a targeted 10% salary increase for Nursing Assistants, Licensed Practical Nurses, Geriatric Licensed Practical Nurses, Nursing Supervisors, and Geriatric Veterans Services Nurses.
These proposals are not official until the General Appropriations Act passes the Legislature later this year.