Arizona Faces Possible Government Shutdown Amid GOP Budget Divide

Arizona Faces Possible Government Shutdown Amid GOP Budget Divide

Disagreement in the Republican-controlled House stalls bipartisan $17.6B budget as June 30 deadline looms

PHOENIX — A rift among Republican lawmakers has pushed Arizona to the brink of a government shutdown, with just days remaining before the state’s new fiscal year begins.

The Republican-led Senate passed a $17.6 billion bipartisan budget last week that appears to have the support of Democratic Gov. Katie Hobbs. But over the weekend, Republican leadership in the House signaled the bill doesn’t have enough votes to pass.

With the legal deadline to pass a budget falling on June 30, the stalemate has left Arizona’s government operations in limbo.

To avoid a shutdown, House Speaker Steve Montenegro floated the idea of passing a continuation budget, allowing negotiations to continue while keeping the government open. However, Gov. Hobbs quickly rejected the proposal, warning that any “partisan continuation budget” would face an immediate veto.

“I remain committed to conversations about improving our bipartisan budget,” Hobbs said, “but I will not accept a plan that fails to reflect true cooperation.”

Senate President Warren Petersen said the deal was designed to balance priorities evenly among the House, Senate, and governor’s office, calling the compromise “about as good as you can get” under a divided government.

The House is scheduled to reconvene Monday afternoon to determine its next steps. If a resolution isn’t reached, Arizona could face a shutdown for the second consecutive year.

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