The Arizona Legislative Session is Over: Governor Katie Hobbs Signs the Bipartisan Budget

For the second time in two weeks, the Arizona State Senate approved a bipartisan budget measure supported by Governor Katie Hobbs.

After approving the budget, the Senate declared sine die and ended the 2025 Arizona legislative session.

Speaking on the approval of the budget and end of the session, Senate Democratic Leader Priya Sundareshan said:

“I would like to congratulate our House friends for putting on an excellent show these last few weeks. As it turns out, third time’s the charm, We legislators have one constitutionally required duty and thanks to bad press and a well-established deadline, the House has finally come to the conclusion this chamber landed on weeks ago...While my no vote remains unchanged, this is a good day for Arizona, despite the long-winded grandstanding that we’ve been forced to sit through. On the House side,…some there demanded that we accept a shutdown or cave to the fringe members in this legislature. Arizona will not shut down. I am so proud of my caucus who all session and at the budget negotiating table who stood together, fought for our shared principles, and was able to claw back unnecessary additional funding used to backfill and supplement what is the federal government’s responsibilities and its current and ongoing overreach in lawlessness as it relates to immigration… So we must be extremely careful how any of this funding is spent. My caucus successfully secured, the needed one-time funding for the opportunity. weight and the district additional assistance. We’ve lifted the AEL for the next two fiscal years, and we’ve rescued important programs from the chopping block. From the beginning, we have prioritized state Investments for child care and services for those most in need. And although they are small wins, we are proud of the inroads that we made to provide relief to those struggling…Thank you to my caucus members who have secured these Investments with your votes. I also want to make it very clear that the budget we see here today, despite the changes made in the house, is nearly identical to what we’ve already voted on. The political theater over this past month has shown how disastrous it can be when those in power refuse to accept reality… The session was long. The work was important. Some important work remains unfinished, so I look forward to celebrating a long-awaited siny day with you all And returning in January. Hopefully, no sooner…”

On signing the budget, Governor Katie Hobbs issued a press statement that read:

“I am thrilled that the legislature passed the bipartisan and balanced Arizona Promise budget to expand opportunity, security, and freedom in our state. By working together, we have secured pay raises for state police and firefighters, made child care more affordable and accessible, taken action to stop drug smuggling and human trafficking, and invested in public education from kindergarten through higher ed. We showed Arizonans what is possible when we are willing to reach across the aisle and deliver common sense solutions for the people of our state. I look forward to signing this budget into law and delivering these big wins for the people of Arizona.”

The Governor and her team also highlighted the below Democratic funding priorities secured in the budget.

“MORE ABOUT THE BIPARTISAN ARIZONA PROMISE BUDGET:
Keeping Arizona Safe and Securing the Border
Highlights:

• 5% pay raises for state troopers.
• $8 million for the Governor’s SAFE Initiative to secure the border by helping local law enforcement fight drug smuggling and human trafficking.
• $10 million for the Governor’s SAFE Initiative to support sheriffs in their county jail coordinated reentry programs.
• $1.6 million for the DPS Anti-human Trafficking Fund Deposit.
• $20 million to backfill federal cuts to the Victims of Crime Act, supporting victims of sexual assault, domestic violence and other violent crimes with counseling and legal services.

Lowering Costs and Creating Opportunity for Every Arizona Family
Highlights: 

• $44.9 million from the General Fund and $81 million ($30 million ongoing and $51 million one-time) in federal funds to cut the child care waitlist in half and expand childcare access. This is the largest investment of general funds for child care since the Great Recession.
• $3.8 million to eliminate co-pays for reduced-price school meals, providing 10 million free meals to working class children.
• $2 million for the Governor’s Homes for Heroes initiative to reduce veteran homelessness.
• Full primary residence property tax exemption for 100% disabled Veterans.
• $16.5 million for coordinated housing homelessness services through DES, including eviction prevention and shelter operations supporting youth and families.

Securing Arizona’s Water Future and Building a Resilient Arizona
Highlights:

• 15% pay raises for state firefighters.
• $30 million to the Wildland Fire Suppression Fund to prevent and fight wildfires.
• $3 million to the Colorado River litigation fund to ensure Governor Hobbs can fight for Arizona’s fair share of Colorado River water.
• $11.2 million to continue covering costs for Arizona communities battling wildfires.
• $2.9 million to expand access to the outdoors through grants for park, waterway recreation, and trail developments, and growth of the Family Campout program. 

Expanding Access to Health Care
Highlights:

• Fully funds DDD for over 60,000 people, protecting health care for Arizonans with autism, cerebral palsy, epilepsy and intellectual disabilities.
• $4 million for a Graduate Medical Education Rural Incentive Program, expanding access to health care for rural Arizonans through the development of rural residency programs.
• $300K to add cochlear implants and outpatient speech therapy as covered AHCCCS services.
• $100K to expand Medicaid to cover Traditional Healing services for Tribal members by drawing down over $200 million in federal funds.
• $4.2 million to support critical access to hospitals in rural and underserved areas.

Providing a Quality Education for Every Arizonan
Highlights:

• Fully funds K-12 education and waives the Aggregate Expenditure Limit for two years to prevent a K-12 school funding cliff.
• $297 million to build new K-12 schools and improve existing school facilities.
• $24 million to support SPEED bonding that will allow ASU, NAU, and UofA to unlock $325 million in bonding capacity for capital projects, including initiatives like a new medical school and nursing school.
• $54 million for the Arizona Promise Program, the largest investment to date in the program that will provide scholarships for working class students ($16.3 million one-time general fund, $20 million ongoing general fund, $17.7 million one-time other funds).
• $3 million for the Arizona Community College Promise Program, providing the first ever funding to this program that will create a scholarship program for working class students at the state’s community colleges.”

Arizona Secretary of State Adrian Fontes also praised the budget, writing in an office press release:

“This budget demonstrates Arizona’s ongoing commitment to safe, fair, and secure elections. The investments in our voter registration system and special election funding ensure our democracy remains resilient and accessible for every Arizonan.”