Arizona governor Katie Hobbs reaches budget deal with lawmakers

Published June 10, 2026 8:09 AM MST

Governor Katie Hobbs and state lawmakers say they have reached a budget deal for Arizona.

By the numbers:

Some concessions were made on both sides, as the Republicans are in control of the State Legislature while the governor is a Democrat.

The $18.3 billion plan adopts the federal tax cuts put in place by President Donald Trump. Adopting the cuts means no one will have to refile their taxes. The bill also includes a three-year moratorium on tax breaks for data centers, while construction on those facilities can continue.

All state agencies, except for public safety, will have to cut spending by 2.5%.

Meanwhile, the controversial Empowerment Scholarship Account, also known as the school voucher program, will remain in place, and no changes are being made to that. However. Two groups are working to get competing propositions on the ballot this year, which could impact that program in the future.

What's next:

Vote on this bill could come as early as June 11. The state was facing a June 30th deadline to approve a state budget.

The Source: Information for this article was gathered by FOX 10's Irene Snyder.

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