Veridus Advisory: AZ House Appropriations Committee Advances '26 Budget

Dear clients,

On Wednesday afternoon, Republican leaders of the Arizona House of Representatives introduced a 14-bill budget package for fiscal 2026. The $17.3 billion General Fund spending plan was approved by the House Appropriations Committee on a party-line vote today, but its fate is murky as House Republicans are attempting to advance a budget package reportedly without input from House Democrats, the Arizona Senate or Governor Hobbs. A bipartisan, Senate-Hobbs plan is expected to be introduced separately in the coming days.

A State budget for FY 2026 must be approved before the end of the fiscal year, June 30.

The House GOP has coined its plan a “law and order budget.” Key provisions include:

• A 5% pay increase for state troopers and correctional officers;

• Nearly $100 million for roads, bridges and infrastructure;

• Reduction of public university tuition by 2.5%, as well as implementation of a three-year tuition freeze;

• Full funding of the Department of Developmental Disabilities’ “Parents as Paid Caregivers” program;

• A slew of added registration and monitoring requirements for enrollees in State welfare programs, including food stamps, TANF and Medicaid; 

• Reallocation to legislative appropriation (rather than gubernatorial) for billions of dollars in unrestricted, non-earmarked funds the State receives each year from the federal government.

The full House is scheduled to consider the budget plan tomorrow afternoon. House Republicans have a 33-27 majority, though absences are expected and Capitol observers remain doubtful any Democrats will support the proposal. That leaves a very narrow path for House passage, though Rep. Matt Gress (R-Phoenix) - who reportedly played a lead role in crafting the plan - said he is optimistic. 

“Our plan is to get it out of the House this week,” Rep. Gress said. “We believe we have the votes.”

We will keep you apprised of the latest budget developments.

Sincerely,

The Veridus Team