Veridus Advisory: AZ Senate Passes '26 Budget

Dear Clients,

Early Friday morning, the Arizona Senate approved a $17.5 billion General Fund budget for fiscal year 2026. Unlike the House’s party-line budget passed last week, the Senate spending plan advanced with bipartisan support as it had been negotiated in concert with Republican and Democratic lawmakers, along with the Governor’s Office. Governor Hobbs has been mum on the Senate plan so far, but Senate leaders indicated the proposal has her support.

Much drama remains, however, as House and Senate Republicans traded barbs via social media. Following adoption of the spending plan, Senate President Warren Petersen (R-Gilbert) tweeted congratulations to his chamber for passing “a real budget. Not a fake budget for optics and talking points that will be gutted by a line-item veto pen …”. It was a not-so-subtle nod to the House plan, which the Senate has refused to consider.

Speaking of the House … the ball is now firmly in its court. Observers were stunned Thursday when House leaders suddenly adjourned until Monday - leaving just seven days until the State’s June 30 fiscal deadline. Doubts are mounting that there are sufficient House votes to approve the Senate package, which was lambasted Thursday by House conservatives and progressives, alike. If the House rejects the Senate plan, the chambers will be in a race against the clock as they seek to negotiate a new plan before the fiscal year expires.

Tick tock.

Sincerely,

The Veridus Team