Veridus Advisory: AZ House Passes '26 Budget

Tonight, Arizona House Republicans passed a $17.3 billion spending plan for FY 2026. The vote was party-line but approved without objection from Democrats - they boycotted the debate and stayed away in protest against a budget developed without their input. 

The House plan isn’t expected to go any farther than this. The Arizona Senate has developed a budget proposal of its own - including legislators of both parties and Gov. Hobbs - and is expected to begin deliberations early next week.

Even with the Governor’s sign-off, passage of the Senate proposal is in question. Republicans lawmakers enjoy larger majorities than in recent sessions, but GOP legislative leaders will need to make compromises with Democrats to make up for Freedom Caucus opposition to the Governor’s priorities. It figures to be a complicated whip count. 

One way or the other, policymakers need to pass a budget before the fiscal year concludes on June 30. 

Hold on to your hats.