Arizona Proposition 317, a legislatively referred statute, would designate drug cartels as terrorist organizations under state law and direct the Department of Homeland Security to address related threats including human smuggling and trafficking. The Republican-led legislature approved the referral in 2025 along partisan lines, building on voter approval of Proposition 314 in 2024. Opponents, including Democratic lawmakers and groups such as the ACLU of Arizona, highlight the measure’s broad definitions that could extend beyond major organizations and raise questions about enforcement scope or asylum implications. With the November 3, 2026, vote approaching, trader sentiment at near-even odds reflects uncertainty over turnout among border-security voters versus those prioritizing narrower statutory language, alongside potential shifts from campaign activity or new polling on criminal justice measures.