Phoenix, AZ — The Arizona Senate has approved a $17.6 billion state budget for the 2025-26 fiscal year, leaving the fate of government operations in the hands of the Arizona House of Representatives.
The Senate passed the final of 16 budget bills just before 2 a.m. on Friday and voted to end this year’s legislative session. The House now has until June 30 to approve the spending plan to avoid a government shutdown.
The Senate’s budget package includes raises for state law enforcement and firefighters, tax cuts for small businesses and veterans, and major investments in education, transportation, healthcare, and water infrastructure. One significant provision exempts 100% disabled veterans from paying property taxes.
“In the wake of last year’s budget, where Republican lawmakers reduced spending and eliminated a $1.4 billion deficit, we’re now prioritizing resources for public safety, border security, and community protection,” said Senate President Warren Petersen, R-Gilbert.
The budget also provides $280 million in new funding for K-12 public schools, $28 million for higher education, and $180 million for health and welfare programs, including full funding for the developmental disability program at the Department of Economic Security.
Additionally, $113 million is allocated for transportation projects across the state, including $54 million to complete work along State Route 347 through Maricopa. Lawmakers also included $12 million for water conservation efforts, including $2 million for on-farm irrigation projects.
Republicans hold majorities in both chambers, but lack the numbers to override a veto from Democratic Governor Katie Hobbs, who has expressed opposition to elements of the House’s previous budget proposal.
Senate leaders described the newly passed budget as bipartisan and one they believe Hobbs can support. The House has until the end of the month to act, or Arizona risks a government shutdown.
