PHOENIX — After heated budget negotiations, Arizona Governor Katie Hobbs signed a $17.6 billion budget into law on June 27. The legislation passed just three days before a June 30 deadline that would have threatened the possibility of a government shutdown.
Most of the provisions in the bill—nicknamed the “Arizona Promise” by the governor— passed with easy bipartisan support in the Senate. Most of the delay in its passage, though, occurred to the House, where two conservative budgets were presented to the Governor but were both vetoed.
Appropriations Chair David Livingston, of Peoria, told the Arizona Republic that Republicans won amendments to the budget bill that reduce spending, saying, “For Republicans, that’s a big win.”
Hobbs received full or partial funding for most of her priorities, including child-care programs for low-income working families, an Arizona Promise scholarship program for low-income university students, and $500,000 to end veteran homelessness in the next decade.
“I am thrilled that the legislature passed the bipartisan and balanced Arizona Promise budget to expand opportunity, security, and freedom in our state,” Hobbs said in a statement released by her office.
Republicans pushed for infrastructure spending, including $54 million for improvements to State Route 347, and $27 million to widen Interstate 10 from Citrus Road to State Route 85 in the West Valley.
Republicans also pushed for tax cuts. Among the tax cuts that made it into the bill is an exemption from property taxes for veterans who are 100% disabled, a doubling of the business equipment exemption for small businesses, and the creation of a new agency—the Office of Defense Innovation—intended to attract defense-related federal funding to Arizona.
One of the more controversial items added to the bill would increase election-related funding for the Maricopa and Yuma county recorders. No other county recorders were included in this provision. Also removed from the bill was language that would have prevented county supervisors from interfering with the spending of funds.
The bill provides funding for the SAFE Initiative, which supports local law enforcement with border security and drug interdiction as well as county jail coordinated reentry programs. Funds are also included for real-time data sharing among law enforcement, 911 dispatch call takers, and the DPS Anti-human Trafficking Fund Deposit. The victims and survivors of crime were also prioritized in the bill.
Other provisions include a 15% pay increase for firefighters, a one-time 4% bonus for corrections officers, and a 5% pay increase for Arizona State Troopers and support staff.
Notably, funding was also allocated for those with disabilities after 60,000 Arizonans lobbied to keep disability funding. Lawmakers were reportedly convinced by a 13-year-old named Grace Haley of Chandler. “If we push and we stand up for ourselves and we advocate, we could get more done than we thought we could,” Haley told 12 News in an interview.
The bill had opponents on both sides of the political aisle. Five Senate Republicans and nine House Republicans ultimately voted against the bill, citing concerns about spending. Meanwhile, seven Senate Democrats and seven House Democrats voted against the bill as well. Their main issue involved certain immigration provisions.
The bill authorizes $24 million for border security, but some Democrats believed these funds would not be used at the border. Border crossings are down, they argued, and this funding would therefore be used elsewhere. One Democrat — Elda Luna-Nájera of Phoenix — told the Arizona Republic, “Hardworking members of our community are being disappeared.”
The Arizona legislature also passed several other key bills just before finishing the 2025 session. SB1082 (“The BAN Act”) bans ownership of Arizona property by any government body or agent that is an adversary of the United States. This includes Russia, China, Iran and North Korea.
“I’m proud to sign the BAN Act into law that will stop the governments of foreign adversaries like Russia, Iran, North Korea, and the Chinese Communist Party from owning land in Arizona,” Hobbs said in a statement. “I’m confident this legislation will protect our military bases and critical infrastructure during a time of escalated foreign threats. I’m thankful for the bipartisan work it took to pass this important piece of legislation that will help keep our state safe from those who seek to do us harm.”
Another key piece of legislation that took quite a bit of negotiating was SB1611, which creates an “Ag-to-Urban” Groundwater Conservation Program. The goal of the bill, which achieved bipartisan support, is to enable developers to convert water-intensive farmland into housing.
“Arizona’s economic competitiveness depends on long-term water security,” said Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry in a statement. “This legislation delivers real conservation while providing the business community with the certainty it needs to keep building and growing. It’s a smart, bipartisan, market-based solution that reinforces Arizona’s leadership in sustainable development and responsible water management — and it’s yet another example of the state’s strong stewardship as we head into critical Colorado River negotiations.”
