Gov. Katie Hobbs blames Trump’s Iran policy for high Arizona gas prices, defends budget veto

Arizona Gov. Katie Hobbs pushed back against Republican criticism over the state’s rising gas prices, blaming the Trump administration’s military involvement in Iran rather than state policy for prices that average roughly a dollar more per gallon than a year ago.

In an interview with KTAR News 92.3 FM’s Outspoken with Bruce and Gaydos, the Democratic governor responded directly to U.S. Rep. Andy Biggs, a likely Republican challenger in this year’s gubernatorial race, who has accused her of failing to take action to ease costs at the pump.

“Gas right now is high across the entire country,” Hobbs said. “That is because of the war in Iran, which last I checked, I had nothing to do with. The president caused this.”

Hobbs said she had successfully secured a federal waiver from the Environmental Protection Agency exempting Arizona from costly summer-blend fuel requirements, a waiver Biggs has claimed she failed to obtain.

The waiver, granted nationally, took effect May 1.

The governor said she supports a federal gas tax holiday but rejected suggestions that she favors doubling Arizona’s state gas tax, currently 18 cents per gallon. She said a temporary suspension of the state gas tax remains on the table in ongoing budget negotiations.

“Nothing is off the table,” Hobbs said. “This is a conversation for budget negotiations.”

A budget veto and a ticking budget clock

Hobbs defended her recent veto of the Republican-led legislature’s budget proposal.

She cited concerns over across-the-board agency cuts she said would harm public safety, including reductions to the Department of Forestry and Fire Management ahead of what forecasters predict will be a severe wildfire season, as well as cuts to the Department of Child Safety and border security funding.

“This is a conversation for budget negotiations, which I’m happy to report that we had a meeting with the budget negotiators today,” Hobbs said. “Hopefully we’re going to see that moving forward.”

The fiscal year ends on June 30. That is when state agencies run out of money without a new budget.

“Last year, we were close to that deadline, and I think that there were some Republicans in the legislature that were eager to try to force a shutdown because they thought it would look bad on me,” Hobbs said. “They sent me a budget much like the one I just vetoed this week, and I vetoed that one and forced them back to the table, and we were able to come together in a much closer time crunch and pass a budget that was bipartisan and balanced and funded a lot of priorities. And I am confident we’re going to be able to do that again this year.”

Gov. Katie Hobbs remains noncommittal about a 2026 debate

When it came to debates, Hobbs declined to commit to debating her eventual Republican opponent.

“The last several debates I’ve watched have really devolved into a circus,” Hobbs said, citing the 2022 Republican gubernatorial primary debate and recent California gubernatorial debates.

“I am happy to put my record of delivering on those issues for Arizonans up against any opponent any day,” Hobbs said.

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