PHOENIX - eTradeWire -- 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 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.

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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, triggering delays of months or even years.

SHPO's efficiency has been remarkable – in FY2024, 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.

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The shutdown would devastate Arizona's 30 Certified Local Governments, particularly rural communities, 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.

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.

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

• Provide Emergency Bridge Funding to sustain SHPO operations through the remainder of FY2025
• Establish a dedicated SHPO line item in the FY2026 state budget to ensure operational continuity
• Invest in modernizing SHPO's GIS and data systems to improve efficiency and service delivery