Senate & House Republicans Reach Bipartisan Deal, Governor Expected to Sign
- Arizona Senate Republicans
- Jun 26
- 1 min read
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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