Senate Republicans Pass Bills to Restart Stalled Homebuilding, Address Water Challenges
FOR IMMEDIATE RELEASE
Thursday, February 26, 2026
PHOENIX, ARIZONA—Senate Republicans are taking action today to protect Arizona's water future, restart stalled homebuilding, and deliver practical, locally driven solutions to groundwater challenges, passing a package of legislation focused on responsible water management and economic growth across the state.
The Senate approved SB 1200, sponsored by Senate Natural Resources, Energy & Water (NREW) Committee Chairman T.J. Shope, providing relief for housing projects halted after the Hobbs Administration paused approvals for new assured water supply certificates tied to groundwater in 2023. That policy froze development in some of the fastest-growing communities in the Valley, including Buckeye and Queen Creek, worsening Arizona's affordable housing shortage. The legislation allows certain pending applications to be reviewed again under clear standards, helping responsible projects move forward while maintaining long-term water protections. The governor-backed pause stopped approvals for subdivisions relying solely on groundwater after deeply flawed forecast modeling projected a shortfall in the Phoenix area's required 100-year water supply, effectively halting new homebuilding in those communities.
The Senate also passed SB 1447, sponsored by Senator Shope, which strengthens Arizona's ability to manage groundwater responsibly in agricultural regions by continuing funding for well improvements and irrigation efficiency projects. The bill ensures fees already paid by large groundwater users are reinvested into infrastructure that helps farmers and irrigation districts deliver water more efficiently, conserve supplies, and maintain Arizona's agricultural economy while adapting to changing water conditions.
Lawmakers additionally approved SB 1559, sponsored by NREW Vice Chairman Tim Dunn, establishing Natural Resource Conservation District (NRCD)-led rural groundwater management work groups made up of local stakeholders, agricultural producers, and conservation experts. Rather than imposing top-down mandates crafted in Phoenix, the measure empowers rural communities to study groundwater conditions, collaborate on solutions, and provide recommendations directly to state leaders, ensuring policies reflect local realities and protect rural economies.
The package also includes SB 1560, sponsored by Senator Dunn, which places a reasonable cap on loans issued through the state's Water Supply Development Revolving Fund so that financing for water infrastructure projects is distributed fairly across Arizona. By preventing a single large project from consuming a disproportionate share of available funding, the bill helps smaller cities and rural communities access resources needed to develop new water supplies and strengthen long-term reliability.
"These bills reflect what responsible water policy should look like — protecting our resources while allowing Arizona communities to grow and thrive," said Senator Shope. "When Governor Hobbs stalled housing and created uncertainty for families and local economies, Senate Republicans stepped in with practical solutions that keep safeguards in place while getting projects and communities moving again."
"Arizona's water challenges aren't solved by heavy-handed decisions or one-size-fits-all policies," said Senator Dunn. "This package focuses on real solutions — supporting agriculture, empowering rural communities, and making sure every region of our state has a fair opportunity to secure reliable water supplies for the future."
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus