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Arizona Legislature Passes Budget, Blending Hobbs’ Agenda With Some Spending Cuts

June 29, 2025

By Jonathan Eberle |

After weeks of political brinkmanship and competing proposals, Arizona lawmakers have approved a bipartisan state budget that combines Democratic Governor Katie Hobbs’ “Arizona Promise” priorities with over $100 million in conservative-driven spending cuts secured by House Republicans. The compromise averted a potential government shutdown.

The $16 billion spending package reflects a rare show of collaboration in a divided government, incorporating elements from both the governor’s agenda—focused on opportunity, affordability, and social services—and Republican demands for fiscal restraint, public safety funding, and government accountability.

“I am thrilled that the legislature passed the bipartisan and balanced Arizona Promise budget to expand opportunity, security, and freedom in our state,” Hobbs said in a statement. “We showed Arizonans what is possible when we are willing to reach across the aisle and deliver common sense solutions for the people of our state.”

House Republicans, meanwhile, emphasized that the final deal bears the mark of tough negotiations, resulting in meaningful structural reforms and a $100 million reduction in planned spending compared to earlier drafts.

“This revised budget isn’t the one we would have written,” said House Speaker Steve Montenegro. “But with time running out and the risk of a shutdown increasing, we fought for and secured serious improvements. We cut spending, added strong transparency requirements, and locked in public safety pay raises. Those changes matter.”

The final package maintains many of Hobbs’ original proposals while adopting Republican-backed amendments. “This was not a blank check,” said House Majority Leader Michael Carbone. “We held the line on conservative principles, cut unnecessary spending, and demanded accountability. This budget is better because of our efforts.”

While the Arizona Promise budget may carry the governor’s name, its final version reflects the realities of a politically split state government. The result is a package that funds long-term priorities across education, health care, infrastructure, and public safety, while also maintaining fiscal discipline and Republican values like limited government and transparency.

“We’ve led responsibly in a divided government,” Speaker Montenegro said. “We held the line, improved the bill, and protected the priorities of our voters.”

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.

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