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The Arizona State Historic Preservation Office (SHPO) is facing an operational crisis. Due to federal grant delays and a lack of dedicated state funding, SHPO will run out of operational funds by August 2025. Without immediate gap funding and a FY2026 appropriation, the program will effectively be eliminated, jeopardizing Arizona’s compliance with federal law, stalling critical infrastructure projects, and endangering irreplaceable cultural resources.
Funding Structure & Vulnerability
SHPO operates with 12 full-time employees (FTEs), supported 87% by federal Historic Preservation Fund (HPF) grants – approximately $1.1 million annually. Only two staff are funded through State Lake Improvement Funds. SHPO’s required 40% state match has been met since 2009 using in-kind volunteer hours from the Arizona Site Steward Program (500+ volunteers monitoring archaeological sites).
It is our understanding that there is no current line item in the State FY26 Budget to support SHPO, that 2025 HPF grant reimbursements have not yet been disbursed to Arizona, and that the proposed Trump Administration’s budget would effectively eliminate 2026 funding that all SHPOs and Tribal Historic Preservation Offices (THPOs) rely on. Without immediate state action, Arizona's SHPO will be forced to cease operations within months.
SHPO’s Essential Role in Arizona
In FY2024, SHPO:
- Reviewed 1,451 federal and state projects under Section 106 of the National Historic Preservation Act (NHPA)
- Delivered reviews in an average of 20 days
- Flagged only 24 projects (2%) for adverse impacts requiring mitigation
- Maintains over 25 federal/state streamlining agreements – which will be voided if SHPO cannot function
SHPO supports timely permitting for projects in energy, transportation, mining, telecommunications, housing, and water infrastructure. It ensures tribal consultation and cultural resource protection across Arizona.
Infrastructure Projects at Risk
Section 106 compliance will be disrupted for projects like these:
Without SHPO review, these projects will be forced to consult directly with the federal Advisory Council on Historic Preservation – triggering months-long delays and derailing timelines.
Statewide Impacts
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Tribal Consultation Undermined: SHPO plays a key role in amplifying tribal voices and ensuring meaningful, government-to-government consultation on cultural and sacred sites.
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Local Governments Defunded: Arizona’s 30 Certified Local Governments (CLGs), especially rural towns like Bisbee, Willcox, Douglas, and Jerome, will lose access to federal planning grants and SHPO technical assistance, imperiling heritage tourism.
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Downtown Revitalization Stalls: Without SHPO, developers will be unable to access the 20% federal historic tax credit – a key incentive for adaptive reuse of commercial buildings – leading to demolition, blight, and housing loss.
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Heritage Site Degradation: With no SHPO support for public land managers, cultural resources across Arizona will suffer from vandalism, looting, and over-visitation, harming domestic and international tourism.
Actions Needed
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Immediate State Gap Funding: Allocate emergency bridge funds to sustain SHPO operations through the remainder of FY25.
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Establish a SHPO Line Item in the FY26 State Budget: Ensure continuity of operations by providing a sustainable state match for federal grants.
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Modernize SHPO’s GIS and Data Systems: Invest in digital infrastructure to reduce staff workload, accelerate reviews, and better serve agencies and the public.
What You Can Do
Write to Governor Hobbs and your state senator and representative to let them know that federal funding delays and the lack of a dedicated state appropriation threaten to dismantle our historic preservation infrastructure. The state must act now – to preserve SHPO’s essential functions. Without action, the cost to Arizona’s communities, infrastructure, tribal nations, and cultural legacy will be immeasurable. Sample email/letter here.
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