US EditionGov. Hobbs vetoes GOP budget bill, announces her proposal on tax cuts package
Governor Hobbs vetoed a GOP tax bill, proposing a $17.7 billion budget and $200 million in middle-class tax cuts with new fees on sports betting and ESA reforms.
- On Jan. 16, 2026 Gov. Katie Hobbs vetoed the Republican-backed tax plan and unveiled her Middle Class Tax Cuts package with $250 million in cuts.
- Republican majority in the Arizona Legislature passed identical tax-conformity bills on Jan. 15 that mirror the Big Beautiful Bill, while Gov. Katie Hobbs favors a narrower, middle-class-focused approach.
- Hobbs' budget reins in ESA vouchers by proposing to bar households making more than $250,000 per year, saving $89.3 million and affecting 11,000 students.
- The dispute has left taxpayers confused about filing, and Arizona Department of Revenue officials warned retroactive changes would require a $20 million infusion and 200 staffers.
- Her budget debut begins a monthslong negotiation at the Capitol that must win majority support and be signed by the June 30 deadline, counting on a $760 million windfall from the Big Beautiful Bill and assuming Proposition 123 renewal.
12 Articles
12 Articles
Hobbs Proposes $17 Billion Arizona Budget Focused on Cost Relief and Middle-Class Tax Cuts
Governor Katie Hobbs has introduced a $17 billion executive budget proposal for Arizona’s 2026–2027 fiscal year, laying out a financial roadmap that centers on affordability, middle-class tax relief, and tighter oversight of state programs. The proposed plan devotes substantial resources to easing living costs for Arizona families, with initiatives addressing housing, utility bills… Source
Hobbs unveils $18.7B budget built on border aid, tax hikes
PHOENIX – Gov. Katie Hobbs rolled out her fourth executive budget proposal Friday with a spending plan that focused on bread-and-butter affordability issues she believes are critical for helping Arizonans–and to help the Democrat to win a second term.
Hobbs Vetoes Tax Relief Bill
On Friday, Arizona Gov. Katie Hobbs surprised no one when she announced that she vetoed a tax plan aimed at providing relief for Arizona's families. The Legislature sent the first bill passed this legislative session to Hobbs’ desk on Thursday. Republicans said the plan would deliver Arizonans $1.1 billion in tax relief over three years....
Gov. Hobbs vetoes Senate bill, introduces another to benefit Arizonans
PHOENIX (KVOA) - Gov. Katie Hobbs introduced a bill aimed at reducing taxes for middle-class residents, alongside Democratic Senate Leader Priya Sundareshan and Democratic House Leader Oscar De Los Santos.
Hobbs’ executive budget focuses on federal uncertainty, affordability and efficiency
Key Points: Gov. Katie Hobbs’ executive budget focuses on House Resolution 1, affordability initiatives and government efficiency The budget hinges on creating new revenue streams and a reimbursement for border spending from the federal government Hobbs’ proposal kicks off the budget process during what will likely be a tense legislative session Gov. Katie Hobbs released her $17.7 billion budget proposal today with a focus on affordability an…
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