Arizona Senate passes $17.6B state budget, sends it to House as deadline looms

PHOENIX – The Arizona Senate passed a $17.6 billion state budget early Friday after a marathon voting session that started the previous day.

The House must approve the Senate’s 2025-26 budget bill package before it can be sent to Democratic Gov. Katie Hobbs. Both chambers of the Arizona Legislature are controlled by Republicans.

🚨FOR IMMEDIATE RELEASE: Senate Republicans Approve Balanced State Budget with Strategic Investments in Public Safety, Education, Transportation, Water, Public Health

Full press release: https://t.co/Id8jhghFVM@votewarren @TJShope @JohnKavanagh_AZ pic.twitter.com/fI4w7SZw4g

— AZSenateRepublicans (@AZSenateGOP) June 20, 2025

Under state law, the budget for the following year must be signed by June 30.

“This is a true bipartisan budget that the House can get behind and the governor will sign,” Republican Sen. John Kavanagh, Senate Appropriations Committee chairman, said in a press release. “The projects we’re funding are of statewide concern and essential to the continued success of Arizona.”

What’s in the $17.6 billion state budget passed by Arizona Senate?

According to a summary from Senate Republicans, the Arizona budget package (Senate Bills 1735-1750) includes the following spending:

• $78 million for new public safety investments.
• $113 million for new transportation initiatives.
• $280 million for new K-12 education funding.
• $28 million for new higher education funding.
• $180 million for new health and welfare funding.
• $12 million for new water investments.

“We’re … reducing tax burdens on our small business owners and veterans, finishing major transportation projects critical to our economy and fully funding K-12 education while protecting school choice, all without raising or creating new taxes on our hardworking citizens,” Senate President Warren Petersen said in the release.

The House, which is adjourned until Monday, introduced its version of a state budget earlier this month, but Hobbs called it “dead on arrival.”

“In an era of divided government, this budget has a little something for everyone,” Republican Sen. T.J. Shope said in the release about the Senate plan. “State Route 347 through Maricopa will receive the attention it needs, along with more than $100 million for other important roads and highways throughout the state.”

In Arizona budget-related legislation, the Senate approved an amended House bill Thursday night to fund renovations at Chase Field, home of the Arizona Diamondbacks. The House will have to approve the Senate version of HB2704 before it goes to Hobbs’ desk.

State budget negotiations are pushing up against the deadline for a second straight year. In 2024, Hobbs signed the current budget on June 18.

However, that budget had to close a $1.4 billion deficit, adding a degree of difficulty.

CORRECTION: A previous version of this story incorrectly said the Chase Field bill was headed to Hobbs’ desk. It still has to pass the House after the Senate amended it.

Related

Arizona Gov. Katie Hobbs says GOP budget proposal is 'dead on arrival'Arizona Senate passes Chase Field tax recapture bill, which heads back to HouseArizona Gov. Katie Hobbs' 2026 fiscal year budget proposal includes ESA program overhaulChunk of Arizona school funding delayed for June due to $200M state budget shortfallAndy Biggs explains why he picked Sine Kerr as his running mate in bid for governor’s seatAndy Biggs picks Sine Kerr as running mate in 1st Arizona election with lieutenant governor