Arizona House Passes GOP Budget, Hobbs Signals Openness to Negotiation
The Arizona House of Representatives passed a $17.9 billion budget proposal on April 29, 2026, crafted by Republican lawmakers. While the plan faces opposition from Governor Katie Hobbs regarding cuts to social programs, both sides have indicated a willingness to resume budget negotiations.
Budget Highlights and Key Provisions
The Republican budget aims to achieve full federal tax conformity, a goal Governor Hobbs has previously vetoed. To fund this conformity, the plan includes cuts to various state agency budgets. Key features of the proposed budget include:
- $66 million in funding for public schools.
- $23 million to backfill federal funding for the Victims of Crime Act.
- Full funding for the state’s Division of Developmental Disabilities.
- Tax cuts on tips and overtime.
- Increased child tax credits.
Hobbs’ Concerns and Potential Vetoes
Governor Hobbs has expressed concerns over the proposed cuts to Medicaid and SNAP (Supplemental Nutrition Assistance Program) benefits, characterizing the plan as prioritizing “special interests and billionaires over everyday Arizonans.” She has not lifted her moratorium on bill signings, but has signaled a willingness to discuss the budget further.
Senate Action and Next Steps
The Arizona Senate is scheduled to consider the budget package on Monday, May 4, 2026. Senate Republicans have already voiced their support for the proposal in a Joint Appropriations Committee meeting. Kim Quintero, Senate Majority Director of Communications, stated the Senate plans to vote on the package later that day. [Arizona Capitol Times]
Previous Vetoes and Tax Conformity
Governor Hobbs has twice vetoed previous attempts at achieving full federal tax conformity. The current proposal represents a renewed effort by Republican lawmakers to align Arizona’s tax code with federal regulations. [AZ Free News]
GOP Focus on Tax Relief
State Speaker of the House Rep. Steve Montenegro emphasized that the budget prioritizes Arizonans by providing approximately $1.5 billion in tax relief over the next three years. State Senate President Warren Petersen added that Arizona is positioned to be the only state fully adopting the Trump tax cuts into state law. [Fox 10 Phoenix]
Moratorium and Ongoing Discussions
Despite the passage of the budget in the House, Governor Hobbs has not yet committed to ending her moratorium on bill signings. Negotiations are expected to continue as both sides seek a compromise that addresses their respective priorities. [KJZZ]