Arizona's State Historic Preservation Office Faces Shutdown by August Without Emergency State Funding

The Arizona Preservation Foundation today issued an urgent alert warning that the Arizona State Historic Preservation Office (SHPO) will cease operations by August 2025 without immediate state intervention. The impending shutdown threatens to derail major infrastructure projects across the state, undermine tribal consultation processes, and leave Arizona's irreplaceable cultural resources vulnerable to destruction.

SHPO, which employs 12 full-time staff members and operates on approximately $1.1 million annually, faces an unprecedented funding crisis. The office relies on 87% federal funding through Historic Preservation Fund (HPF) grants, with required state matching funds historically provided through volunteer hours from the Arizona Site Steward Program. However, 2025 federal grant reimbursements have not yet been disbursed, and the proposed federal budget would effectively eliminate 2026 funding for all state and tribal historic preservation offices nationwide.

"This isn't just about preserving old buildings," said Jim McPherson, Board President of the Arizona Preservation Foundation. "SHPO is the backbone of Arizona's infrastructure development process. Without it, billions of dollars in critical projects will grind to a halt."

Major Infrastructure Projects at Immediate Risk

The shutdown would disrupt Section 106 compliance reviews for numerous high-priority projects, including:

• NTIA BEAD Broadband Deployment in Tucson's Middle Mile expansion

• Bureau of Reclamation's Colorado River Post-2026 Operations planning

• Interstate 11 and Sonoran Corridor transportation projects

• Phoenix Light Rail Extensions and other transit initiatives

• Rio de Flag Flood Control project in Flagstaff

• Multiple solar energy projects across western Arizona

• Water infrastructure improvements and environmental cleanup efforts

Without SHPO's streamlined review process, these projects would be forced to consult directly with the federal Advisory Council on Historic Preservation (ACHP), triggering delays of months or even years.

Statewide Economic and Cultural Impact

SHPO's efficiency has been remarkable – in fiscal year 2024, the office reviewed 1,451 federal and state projects with an average turnaround time of just 20 days, flagging only 2% for adverse impacts requiring mitigation. The office maintains over 25 federal and state streamlining agreements that would be voided if operations cease.

The shutdown would devastate Arizona's 30 Certified Local Governments, particularly rural communities like Bisbee, Willcox, Douglas, and Jerome, which depend on SHPO for federal planning grants and technical assistance supporting heritage tourism. Additionally, developers would lose access to the 20% federal historic tax credit, a crucial incentive for adaptive reuse projects that prevent demolition and create affordable housing.

"Rural Arizona communities have invested decades building their heritage tourism economies," noted Demion Clinco, CEO of the Tucson Historic Preservation Foundation. "Losing SHPO support would be catastrophic for these towns that depend on their historic character to attract visitors and sustain local businesses."

According to Vic Linoff, Board President of the Mesa Preservation Foundation, “Arizona’s SHPO has long supported preservation efforts in Mesa and the East Valley, including recognition for our work restoring historic neon signage, providing vital grant funding to local governments and property owners, and serving as an invaluable source of expertise and guidance – support now at risk due to federal funding cuts.”

Tribal Consultation and Cultural Resource Protection

SHPO plays an essential role in ensuring meaningful government-to-government consultation with Arizona's tribal nations on projects affecting cultural and sacred sites. The office's elimination would undermine these critical relationships and leave cultural resources across public lands vulnerable to vandalism, looting, and over-visitation.

Immediate Action Required

The Arizona Preservation Foundation and local preservation organizations calls on state leaders to take three immediate actions:

1. Provide Emergency Bridge Funding to sustain SHPO operations through the remainder of fiscal year 2025

2. Establish a dedicated SHPO line item in the FY2026 state budget to ensure operational continuity

3. Invest in modernizing SHPO's GIS and data systems to improve efficiency and service delivery

"Arizona cannot afford to lose this critical infrastructure," emphasized Erin Lindsey, Board President of Preserve Phoenix, the citywide preservation advocacy organization for Arizona’s capital city. “The economic cost of project delays alone would far exceed the modest state investment needed to keep SHPO operational. We're talking about protecting billions in infrastructure investment with a million-dollar solution."

About Us & Available Sources

The Arizona Preservation Foundation is a statewide nonprofit organization dedicated to preserving Arizona's historic places and cultural heritage. Founded in 1979, APF works to protect the state's archaeological sites, historic buildings, and cultural landscapes through advocacy, education, and partnership with local communities, government agencies, and nonprofit organizations throughout Arizona.

Since 1984, the Tucson Historic Preservation Foundation has led efforts to protect and celebrate Tucson’s unique heritage and cultural landmarks. Through advocacy, strategic partnerships, and public programming – including lectures, tours, film screenings, and special access to historic sites – the Foundation works year-round to preserve the city’s architectural and cultural legacy.

The Mesa Preservation Foundation is a 501(c)(3) nonprofit organization dedicated to preserving historic structures and neighborhoods in Mesa and surrounding areas. Since 2011, the Foundation has worked to strengthen communities by fostering appreciation of local heritage, building a sense of place, and supporting economic development rooted in the preservation of distinctive and irreplaceable historic assets.

Preserve Phoenix is the citywide historic preservation advocacy organization for the nation’s fifth-largest city. Founded in 2021, Preserve Phoenix is dedicated to preserving and protecting Phoenix’s historic buildings, neighborhoods, and districts. Through engagement with city and preservation-related groups, educational outreach to policymakers, and public advocacy, Preserve Phoenix works to ensure that the city’s historic fabric is valued, understood, and retained for future generations.

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