Arizona Gov. Katie Hobbs delivers 2026 State of the State address

Arizona Gov. Katie Hobbs delivered her annual State of the State address on Monday at the state Capitol in Phoenix. Here's what she discussed.

BY JEFF VINTON

Jan 12, 2026, 1:40 PM Updated: Jan 14, 2026, 1:08 pm

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PHOENIX — Arizona Gov. Katie Hobbs delivered her annual State of the State address at the state Capitol in Phoenix on Monday afternoon, the first day of the second session of the 57th Arizona Legislature.

The address began at 2 p.m. and took place before a joint session in the House chamber. The speech can be seen here.

The Democratic governor discussed jobs in Arizona, her plan calling for tax cuts for the middle class and how she is pushing to protect the state’s water supply in the speech.

She also announced investments in affordable housing and called for accountability in the state’s Empowerment Scholarship Accounts program.

Arizona Gov. Katie Hobbs ‘proud’ of bills signed into law in 2025

Hobbs comes into 2026 running for reelection and on the heels of a legislative session during which she set a state record for most bills vetoed (174).

However, she told KTAR News 92.3 FM’s Outspoke with Bruce & Gaydos in December that the 265 bills she signed last year, which is the most in her term, were more meaningful than those she vetoed.

“I came into office saying I’m going to be the backstop when I need to and I’m going to protect Arizona’s rights,” Hobbs said. “But I’m also really proud of the fact that I’ve signed a lot more bills into law than I vetoed and that I worked really hard across the aisle to get some really big things done.”

The governor specifically noted three bills as major accomplishments:

SB 1611, also known as the Ag-to-Urban Bill, allows farmers to sell groundwater rights to housing developers. Hobbs hailed it as the most significant legislation for groundwater rights since the Groundwater Management Act of 1980. It was signed into law in June.

SB 1543, also known as the Axon Bill, makes local rezoning an administrative action not subject to referendum petitions. It will allow the Taser maker to bypass local opposition and build a new headquarters in Scottsdale, keeping the company and its more than 5,000 jobs in Arizona. The bill was signed into law in April; however, a citizen group announced in December that it was still pursuing a lawsuit challenging the law.

HB 2704 allocates up to $500 million in public funding over the next 30 years to help pay for renovations to Chase Field, the downtown Phoenix home of MLB’s Arizona Diamondbacks. Hobbs signed the bill into law in June.

In this year’s legislative session, Hobbs said she will push to pass the Middle Class Tax Cuts Package and that more work needs to be done when it comes to two issues: rural groundwater and housing.

“We’ve made progress. There’s more to do,” Hobbs said.