Senate & House Republicans Reach Bipartisan Deal, Governor Expected to Sign

FOR IMMEDIATE RELEASE                                                                                               Thursday, June 26, 2025

Senate & House Republicans Reach Bipartisan Deal, Governor Expected to Sign

 

PHOENIX, ARIZONA – A big victory for Arizona as the Republican-led Arizona Senate and House announce this evening they've come to an agreement on a balanced 2025- 2026 state budget that will be enacted upon the governor's signature.

 

"We were able to reach a consensus to fund the core functions of government. I appreciate the collaboration with the House over the past few days to get this spending plan across the finish line," said Senate President Warren Petersen. "We have delivered a balanced budget with bipartisan priorities funded, like K-12 schools, transportation, public safety, and protecting our small businesses. We believe this is a bipartisan spending plan that will get signed."

 

New Funding Highlights of the $17.6 billion State of Arizona Budget for 2025- 2026:

A.    Public Safety- $92 million in new investments

• 5% pay raises for all sworn state law enforcement officers

• 15% pay raises for state firefighters

• $30 million for fire suppression

• $27 million for new vehicles, equipment, and building repairs/ upgrades for Department of Public Safety

• 4% one-time bonus for correctional officers

• $5 million for local border security support for county sheriffs

• $4 million to help address human trafficking

• $3 million in grants to law enforcement for fentanyl interdiction

• $3 million for School Safety Interoperability

  
  

B.    Infrastructure- $119 million in new transportation initiatives

• $54 million to finish major projects along State Route 347

• $27 million to begin construction on I-10 widening between Citrus Road and State Route 85

• $27 million for local projects throughout the state

  
  

C.    K-12 Education- $281 million in new funding

• $183 million included for school building renewal grants used for school capital repairs

• $66 million for additional district and charter additional assistance for district schools and charter schools to use on equipment and other soft capital

• Fully funds K-12 supplemental for FY 2025 for Empowerment Scholarship Accounts, district schools, and charter schools

  
  

D.    Higher Education- $29 million in new funding

• Includes $16 million for in-state scholarships through the Arizona Promise Program

E.    Health & Welfare - $182 million in new funding

• Fully funds the developmental disability program at Department of Economic Security for the next fiscal year

• $5 million for secure behavioral health facilities capital costs

• $4 million for graduate medical education

  
  

F.    Water- $12 million in new investments

• $5 million for a Gilbert wells project

• $3 million for a Kingman wells project

• $2 million for Agriculture and Water Innovation Fund Deposit

• $2 million for on-farm irrigation projects

  
  

G.   Tax Breaks

• Exempts veterans who are 100% disabled from property taxes

• Increases the business personal property tax exemption from $270,000 to $500,000, reducing administrative burdens on small business owners

• Increases the deduction for adoption expenses from $5000 to $10,000

To see an entire list of the 2025- 2026 budget bills, visit azleg.gov.

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus kquintero@azleg.gov