Governor Katie Hobbs Unveils FY2026 Budget Proposal with Focus on Families, Security, and Economic Growth
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Governor Katie Hobbs Unveils FY2026 Budget Proposal with Focus on Families, Security, and Economic Growth

Hobbs’ plan invests in housing, education, public safety, and healthcare while promising accountability and fiscal responsibility.

PHOENIX, AZ – Governor Katie Hobbs has released her FY2026 Executive Budget proposal, outlining a vision for advancing economic growth, reducing costs for families, and ensuring security and opportunity for all Arizonans. The budget reflects a commitment to fiscal responsibility while addressing key priorities such as housing, education, public safety, and healthcare.

“To realize the Arizona Promise, we must deliver opportunity, security, and freedom for Arizonans,” Hobbs stated. “This budget supports working families, protects our communities, and secures Arizona’s future.”

Highlights of the FY2026 Budget

1. Lowering Costs and Expanding Opportunities for Families

  • $10 million annual tax credit for six years to expand the State Low-Income Housing Tax Credit, fostering affordable housing development statewide.
  • $7 million in funds to support child care affordability and availability through the Bright Futures AZ initiative.
  • $5 million for the Homes for Heroes Fund to combat veteran homelessness.

2. Enhancing Public Safety and Border Security

  • $33.3 million for a 5% pay increase for front-line law enforcement and correctional officers to boost retention.
  • $23.2 million total funding for border security, including $5 million for drug-interdiction efforts and $1 million for a fentanyl awareness campaign.
  • $2 million for naloxone distribution to first responders.

3. Securing Arizona’s Natural Resources and Wildfire Response

  • $30 million for wildfire suppression and $3 million for Colorado River water litigation to safeguard Arizona’s water rights.

4. Reforming Education and Accountability

  • $285.6 million in funding for district and charter schools as required by Proposition 123.
  • Reforms to the ESA voucher program, including scaled income caps to ensure more equitable allocation of resources.

5. Protecting Reproductive Freedom and Healthcare Access

  • $4.2 million to expand family planning services and provide year-long contraception access for Medicaid recipients.

A Vision for Arizona’s Future

Governor Hobbs emphasized the importance of fiscal stewardship, pledging to cut waste and maximize taxpayer dollars. “This proposal is about ensuring every corner of Arizona thrives—families, veterans, communities, and businesses alike,” she said.

The FY2026 budget reflects a balanced approach to addressing immediate needs while laying a foundation for long-term prosperity.