Arizona Budget Standoff Intensifies As House Moves Forward With Continuation Budget

Arizona Budget Standoff Intensifies As House Moves Forward With Continuation Budget

By Jonathan Eberle |

With less than two weeks before Arizona’s fiscal year ends, a deepening budget dispute between the state House and Governor Katie Hobbs escalated Saturday, as House Speaker Steve Montenegro announced plans to introduce a continuation budget to keep state government running past the June 30 deadline.

Montenegro said the House would move forward with a stopgap measure after determining that the Senate-passed executive budget, negotiated by Hobbs and Republican Senate leaders, lacks sufficient support to clear the House.

“The executive budget plan passed in the Senate does not have the votes in the House—with bipartisan opposition from Republicans and Democrats,” Montenegro said. “Now, with time running out and no viable path forward for their plan, it’s our responsibility to act to prevent a shutdown.”

He added that House Republicans had already passed their own budget last week, which he said focused on public safety, infrastructure, and government accountability—but that proposal was “ignored by the Senate.”

“The House is not going to be forced into a take-it-or-leave-it deal that doesn’t reflect the will of our members or the people we represent,” Montenegro said. “We will do what responsible legislators should do: take action to keep government running and protect Arizona taxpayers.”

A continuation budget, currently being drafted, would maintain current funding levels to preserve essential government operations while lawmakers continue to negotiate. However, the governor swiftly condemned the plan and signaled she would veto any such proposal.

In a statement, Governor Hobbs accused House Republicans of abandoning bipartisan talks and attempting to “jam through an irresponsible and partisan ‘budget.’”

“For months I have worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget,” Hobbs said. “Sadly, House Republican leadership abdicated their responsibility and refused to meaningfully participate in those bipartisan conversations.”

Hobbs warned that the continuation budget would gut pay raises for state troopers and firefighters, slash childcare and education funding, raise taxes on small businesses, and eliminate key investments in veterans’ services and wildfire mitigation.

“Speaker Montenegro knows this, yet he has chosen to continue with this farce as an exercise in pointless political grandstanding,” she said. “His reckless actions jeopardize basic government functions with potentially devastating consequences.”

The governor also criticized House Republicans for seeking an increase in their own per diem pay while proposing cuts to public safety and education programs.

“This irresponsible House Republican budget will raise costs and make our state less safe, less secure, and less competitive,” she added. “It’s time for House Republican leadership to come back to reality, stop wasting everyone’s time, and show some common sense by working with their colleagues in a productive fashion.”

With the June 30 deadline approaching, the battle over Arizona’s budget now hinges on whether either side can reach a new agreement—or whether the impasse will trigger a government shutdown.

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

Arizona Senate Revives Bitcoin Reserve Bill After Reconsideration Vote

Arizona Senate Revives Bitcoin Reserve Bill After Reconsideration Vote

By Matthew Holloway |

A bill to establish a Bitcoin Reserve in the State of Arizona was resurrected in the legislature by the State Senate before the chamber adjourned Sine Die on Friday. House Bill 2324, introduced by Arizona Representative Jeff Weninger, was passed in the Arizona House on its third reading, but was reconsidered in the Senate and advanced 16-14. The bill now returns to the House for consideration before it also adjourns.

The proposed measure would create a “Bitcoin and Digital Assets Reserve Fund” designed to manage all legally forfeited digital assets and currencies.

According to the Senate Fact Sheet, HB 2324 would allow “a court to order a person convicted of an offense for which forfeiture applies to forfeit any digital asset used in, acquired through or traceable to the offense.” I also, “prescribes procedures for a government agency to sell seized digital assets and outlines the allocation of monies acquired from the sale.” And it, “establishes the Bitcoin and Digital Assets Reserve Fund, administered by the State Treasurer, to store, manage and allocate digital assets securely.”

The bill now concurred upon by the Senate must also pass the Arizona House before moving to Governor Katie Hobbs’ desk where its fate is uncertain. According to Coin Telegraph, the first $300,000 in digital assets from a criminal forfeiture would head to the Attorney General’s office, from whence any mount over $300,000 would be divided with 50% going to the Attorney General, 25% to the state general fund, and 25% to the new digital assets reserve fund. While Hobbs has vetoed three Cryptocurrency bills, she has also signed HB 2749 into law which permits the state to hold unclaimed cryptocurrency and establish a Bitcoin reserve fund that wouldn’t utilize any state funding or taxpayer dollars.

At the time, Hobbs stated, “Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” and described the cryptocurrency-related legislation as “risk(s),” and “untested.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Biggs Maintains Commanding Lead In Arizona Governor Primary According To Latest Polling

Biggs Maintains Commanding Lead In Arizona Governor Primary According To Latest Polling

By Matthew Holloway |

Arizona Republican Congressman Andy Biggs continues to enjoy a comfortable advantage in the upcoming primary contest for the 2026 Gubernatorial Election with what pollster NextGenP described as a “massive lead.” The poll, conducted over June 17-18 of 1,380 likely Republican Primary voters, placed Biggs at a commanding 48.6% over fellow Republican Karrin Taylor-Robson who polled at 26%, barely edging out “Other” and “Undecided” with a combined 25.5%.

The poll has a margin of error of ± 2.6% at the 95% confidence level.

In net favorability polling, the survey was even more decisive with Biggs maintaining a 48% approval rating while Robson held onto just 21%, a difference 27 points. Total approval for Biggs sat at 66%, while total approval for Robson polled at 49%.

“With more than a year until Election Day, Andy Biggs continues to lead with a formidable 22.6-point lead with nearly half the electorate already in his corner. His +48% net favorability and 95% total name ID underscores his strong position, especially compared to Robson’s +21% net favorability,” NextgenP Managing Partner Gregg Pekau said. “But with nearly 18% of voters still undecided and 7.7% favoring other candidates, the field remains fluid-and there’s plenty of time for dynamics to shift.”

Partner at NextgenP Luke Mosiman emphasized the importance of the poll’s sample size saying, “With a sample size of 1,380 likely Republican primary voters, this poll carries real statistical weight. In a landscape often shaped by smaller, less reliable snapshots, these numbers give a much more grounded view of the race—showing Andy Biggs with a 22.6-point lead and nearly half the electorate behind him. That kind of margin, backed by solid data, can’t be easily dismissed.”

Another recent poll from American Commitment at the end of May also showed Biggs with a commanding lead with 57% support versus just 25% support for Robson.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Trump-Backed Resolution Copper Project Gains Momentum

Trump-Backed Resolution Copper Project Gains Momentum

By Matthew Holloway |

The Resolution Copper project, a joint venture of BHP and Rio Tinto, issued a statement Tuesday welcoming the republication of the Final Environmental Impact Statement (FEIS) by the U.S. Forest Service (USFS) for its proposed underground mine 60 miles east of Phoenix near Superior, AZ.

The proposed development of the largest untapped copper deposit in the world relies on a major land-swap between the Rio Tinto, BHP, federal and state governments to proceed.

Initially the FEIS for the project was released by the Forest Service in 2021, but was later withdrawn by the agency to provide additional time for the USFS to study the objections of tribal governments and the overall community.

The proposed mine is controversial and would ultimately transform the Oak Flat parcel southwest of Superior, currently forest service land, into a 1.8-mile-wide crater between 800 and 1,115 feet deep, in exchange for 6,005 acres of land to be transferred by BHP and Rio Tinto local, state and federal governments and agencies.

“As part of the land exchange, Resolution Copper has committed to initiatives that support cultural preservation, recreation, education, employment, economic development, and nature through long-term partnerships with Native American Tribes and local communities. This includes significant funding in a long-term Native American Trust Fund and Emory Oak restoration,” Resolution Copper stated. “Other commitments focus on conservation and monitoring of seeps and springs; restoration and preservation of creeks, rivers, and watersheds; and habitat enhancement for biodiversity.”

Vicky Peacey, General Manager of Resolution Copper said, “Through this process, we have deepened our relationships with local communities and Native American Tribes, including our senior leaders spending time with Tribal leaders to listen and build mutual understanding. We welcome the opportunity to continue these conversations as we move into the next phase of permitting. Working together, mining can co-exist with cultural heritage, recreation, and nature, while delivering new economic opportunities in rural Arizona.”

“This project has undergone one of the most comprehensive environmental and social reviews in U.S. history,” she added. “The republication of the FEIS reflects the thorough work by the USFS, local communities, and Native American Tribes and the seriousness with which all stakeholders have approached this process. We remain committed to earning trust through transparency, engagement, and responsible development as we move forward.” In PR posts to social media, Resolution Copper boasts the prospects of adding $1.2 Billion to Arizona’s economy and thousands of jobs in Superior and Magma, AZ, totaling $270 million in annual salaries.

In a statement posted to X, U.S. Secretary of Agriculture Brooke Rollins expressed the Trump administration’s support for the proposal early in the week, noting that the republication of the withdrawn FEIS is “an important step in advancing President Trump’s goal of emergency and mineral independence by boosting domestic mineral production.” Rollins added, “The Resolution Copper project is a prime example of how we can harness America’s abundant resources to fuel growth in rural America, reduce our dependence on foreign imports, strengthen our supply chains, and enhance our national security.”

The U.S. Department of Agriculture detailed in a Tuesday release that the land transfer cannot occur until August 19, 2025, or 60 days after the Federal Register notice is published per a ruling from a U.S. District Court on June 9th. It added that, if approved, the mine is projected to generate $149 million in annual payroll, with approximately 1,500 jobs, providing between $80 and $120 million a year in estimated state and local tax revenue as well as $200 million a year to the federal government. The final environmental impact statement is expected to be posted to the Federal Register, along with the draft decision record from the USFS on June 20th.

The public has 45 days to make any objections to the decision and the USFS must respond and address any objections within 90 days, meaning the project could see final approval as soon as November 2nd.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Border Patrol Takes Down Cartel Safe House Near Arizona-Mexico Border

Border Patrol Takes Down Cartel Safe House Near Arizona-Mexico Border

By Matthew Holloway |

Near the Arizona-Mexico border, just inside Mexican territory, a joint operation between U.S. Customs and Border Protection (CBP) Tucson Sector and Mexican authorities located and raided a cartel safe-house which stored military-grade machine-guns, ammunition, heavy ordinance, stolen vehicles, and drugs.

In a release to social media on Monday, U.S. Border Patrol Chief Michael W. Banks described the May 23rd raid in cooperation with Mexican federal officers. Banks wrote in a post, sharing images of the seized weapons and drugs, “USBP agents in Tucson shared intel with the Government of Mexico (GoM) that led to a successful raid south of the border.” He added that the Mexican authorities seized “4 AK-47s, 3 mortar grenades, 3 stolen vehicles, 3,250 rounds of ammo, 62 magazines, 27 tactical vests, [and] 16 sacks of marijuana.”

Banks assessed the raid saying, “This joint effort dealt a serious blow to cartel operations—removing weapons, resources, and mobility from criminal hands.”

Chief Patrol Agent (CPA) of the U.S. Border Patrol Tucson Sector Sean McGoffin commented on the raid as well, crediting the CBP’s Casa Grande International Liaison Unit for contributing to the raid in a statement posted to X. He wrote, “Government of Mexico officials acting on information from the Casa Grande Border Patrol station found and dismantled a cartel ‘Rip Crew’ in Mexico during a mirrored or parallel patrol just south of the border.

“Four rifles, tactical gear, a dodge truck, and ammunition were seized from two criminal operatives. These cartel bandit factions are known to victimize migrants near the border region.

“Historically, the exploitation of migrants by cartels is multi-faceted, by stealing from people that aim to illegally cross into the U.S, or by targeting other competing cartels and their human ‘Cargo’. Great job Casa Grande International Liaison Unit for getting info to our partners in Mexico.”

In a subsequent post to X, McGoffin again praised an International Liaison Unit (ILU), this time from the Sonoita Border Patrol Station, for “forging new alliances to combat organized crime in the #border region.” He explained that two agents from the unit “have fostered relationships with Government of Mexico officials from the Municipality of Santa Cruz, Sonora, Mexico, to increase law enforcement presence south of the border.”

The chief said, “The area south of #Sonoita, Arizona has been exploited by criminal organizations in the past due to its remoteness from other Mexican towns. The newly appointed Mexican officials of the area have pledged to increase patrols and collaboration with Border Patrol to ensure safety and security for the ranching communities on both sides of the border.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

APS Requests 14% Rate Hike For Residential Customers

APS Requests 14% Rate Hike For Residential Customers

By Matthew Holloway |

Only weeks after refusing to comply with an Executive Order to reactivate the Cholla Power Plant in Northern Arizona, Arizona Public Service (APS) has filed documents with the Arizona Corporation Commission (ACC) requesting an increase in the state-regulated electrical utility’s revenue of $579.5 million. That equates to a jump in residential electrical rates of approximately 14.5%. The hike would represent a 30% increase in residential rates since 2023.

The utility is also seeking permission from the Commission to unilaterally adjust prices annually using “rate design schedules.” APS justified this request to the ACC in the 2,323-page application docket claiming, “The costs to ensure reliable service to customers have rapidly increased due to high rates of inflation, persistently high interest rates, and continued supply chain and trade policy volatility.”

The utility alleged that a “significant revenue deficiency … based on the 12-month period that ended on December 31, 2024 (Test Year), demonstrates that APS’s current rates do not recover sufficient revenue to ensure reliable service.”

Notably, APS and its parent company, Pinnacle West Capital Corp., did have enough revenue to give Governor Katie Hobbs $250,000 for her inauguration and even bankrolled her legal battle with Kari Lake to the tune of $100,000.

“The tremendous growth across APS’s service territory shows no sign of letting up, with the Company’s infrastructure and reliable energy supply providing the backbone of this historic expansion,” APS said. “And yet, with high rates of inflation, persistently high interest rates, and continued supply chain volatility, the costs to serve current APS customers (let alone prepare for growth) are substantially higher than when the test year concluded in the Company’s last rate case.”

Just one year ago, the ACC approved a rate increase for residential customers of approximately 8 percent. That was followed by significant turnover in the commission with Republican newcomers Rachel Walden and Rene Lopez joining incumbent Lea Márquez Peterson to defeat the Democrat nominees and lock down all five seats for the GOP.

In the upcoming 2026 election, Arizona Reps. David Marshall and Ralph Heap are challenging incumbent commissioners Chairman Kevin Thompson and Vice Chairman Nick Myers. During a Tuesday presser, Marshall and Heap accused the commissioners of excessive price hikes and blocking President Donald Trump’s energy agenda.

“We have some families now who have to make a decision. Do I buy less groceries so I can pay my power bills? Or just deal with it or go without power,” Marshall told reporters.

“The Corporation Commission may not always make the headlines,” he added. “But the decisions made there affect every one of us every single day.”

In a statement responding to the primary challenge from Reps. Marshall and Heap, Commissioners Thompson and Myers defended their record saying, “We’ve taken steps to ensure our utilities are planning responsibly and not chasing costly, agenda-driven energy mandates. That’s why we required APS to prove in its 2023 Integrated Resource Plan that it has enough reliable and dispatchable generation to replace retiring plants. And it’s why we initiated the termination of Kris Mayes’ Renewable Energy Standard, which was an outdated mandate that artificially inflated utility costs by forcing ratepayers to subsidize unreliable, high-cost sources like wind and solar.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.