Republican lawmakers pitch Arizona budget aligned with Trump’s ‘Big Beautiful Bill’

PHOENIX – Republican leaders in the Arizona Legislature on Monday unveiled a state budget proposal. They said the budget would deliver $1.45 billion in tax relief while spending about $800 million less than Democratic Gov. Katie Hobbs’ plan.

Arizona Republicans are delivering a serious, balanced budget for our state that spends about $800 million less than Governor Hobbs’ plan.

This plan cuts taxes, lowers costs for families, and fully funds the core services Arizonans rely on, all while staying within a responsible… pic.twitter.com/cRxSfV4nJ6

— Arizona House Republicans (@AZHouseGOP) April 27, 2026

House and Senate Republicans added their budget would align Arizona tax law with President Donald Trump’s federal tax cuts, better known as the Big Beautiful Bill.

Republicans explained that their budget focuses on eliminating state taxes on tips and overtime pay, expanding dependent tax relief for parents, creating a childcare expense deduction and boosting retirement tax relief for seniors.

Republican leaders also noted the plan would support small businesses and fund core services, including education, public safety and child welfare.

Senate President Warren Petersen and House Speaker Steve Montenegro said the budget is balanced and based on what they called realistic revenue estimates.

“We did it without gimmicks, without inflated projections or money that may never show up,” said Speaker Steve Montenegro in a Youtube video previewing the budget. “In divided government, no side gets everything it wants, but the people of Arizona still expect leaders to do the job and produce a budget that can pass.”

The budget proposal comes after stalled negotiations and bill moratorium

The GOP proposal comes after months of stalled budget talks between the Republican-controlled Legislature and Hobbs, with both sides blaming the other for the impasse.

Negotiations broke down in March over Proposition 123, an expired education funding measure that sent additional money from the State Land Trust to schools.

Hobbs has pushed to revive the measure as part of her budget plan, while Republicans have opposed relying on future voter approval to balance the spending plan.

Earlier this month, Hobbs announced a moratorium on nearly all bill signings until Republicans publicly released their budget proposal and returned to negotiations.

The Governor’s Office released the following statement after Republicans announced their plan Monday:

Gov. Hobbs is glad that, after over 100 days from the start of session, Republicans have finally shown their budget to the people of Arizona. The Governor’s Office is closely examining the details of the Republican budget proposal. It’s disappointing that legislative leadership continues to refuse to negotiate on Prop 123 and put politics ahead of doing what’s right for Arizona students and teachers. Gov. Hobbs wants a budget that cuts taxes for the middle class and lowers costs, invests in public education, secures our water future, protects public safety and ensures that data centers pay their fair share. She looks forward to working across the aisle to deliver a fourth bipartisan, balanced budget that addresses the big challenges Arizonans face.

Republicans previously sent Hobbs two bills to conform state tax law with federal changes and prevent taxpayers from having to refile 2025 returns, but said she vetoed both measures.

The Republicans did not release the actual text of the budget proposal with the news release outlining the plan.

The budget bills are scheduled for a joint hearing Tuesday morning before the House and Senate Appropriations committees at the Capitol.

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