AZ HB2148

Establishes legislative authority to appropriate "noncustodial federal monies," which includes block grants, general revenue sharing funds, and federal funds where Arizona has broad spending discretion or must provide at least 1% state matching funds

Excludes federal monies for the Department of Emergency and Military Affairs and federal research grants awarded to state universities or the Arizona Board of Regents from these appropriation requirements

Requires budget units receiving noncustodial federal monies to maintain separate accounts for proper accounting, budgeting, and auditing

Allows the legislature to make lump sum appropriations for unanticipated federal funds received when the legislature is not in session, with proposed expenditures subject to Joint Legislative Budget Committee review

Mandates that if federal funds received exceed appropriated amounts, total program funding remains at legislature-designated levels, with excess credited to the appropriate budget unit account; effective date is December 31, 2027