by Ethan Faverino | Feb 15, 2026 | News
By Ethan Faverino |
Governor Katie Hobbs has vetoed a Republican bill, HB 2785, which would have brought Arizona’s income tax law into full conformity with the federal Internal Revenue Code as reflected in the tax forms already issued by Hobbs’ Department of Revenue for the 2025 tax year.
The legislation, passed on February 11, 2026, aimed to protect Arizona taxpayers from uncertainty, the need for amended returns, potential penalties, and mid-season rule changes during the ongoing filing season.
By aligning state statute with the guidance taxpayers are currently following, HB 2785 would have prevented widespread disruption and costly refiles for Arizonans.
The action comes after Governor Hobbs vetoed an earlier Republican tax conformity package that included targeted relief measures—such as no tax on tips or overtime, deductions for seniors, and replacements for the federal SALT deduction with expanded child tax credits and childcare expense deductions.
Following the first veto, the Governor’s administration issued tax forms assuming full federal conformity (including provisions like deductions for qualified tips, overtime pay, certain vehicle loan interest, and additional charitable contributions for standard deduction filers), while repeatedly declining to clarify her position or support changes.
Department of Revenue testimony highlighted the risks of reversing course now, potentially forcing up to one-third of filers to submit paper-only amended returns, incur additional filing costs, and face unexpected tax liabilities months later.
In a press release, House Speaker Steve Montenegro stated, “Arizona taxpayers did exactly what the government told them to do, and the Governor left them exposed. Her Department of Revenue issued tax forms, told people not to delay filing, and testified that changing course would cause massive disruption. Then the Governor vetoed the Legislature’s solution and refused to explain what comes next.”
“That is the opposite of leadership,” added Montenegro. “The House and Senate acted because families, seniors, and small businesses should not be forced to pay penalties, refile returns, or owe unexpected taxes because the executive branch could not get its act together.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Feb 15, 2026 | News
By Matthew Holloway |
Arizona State Representative Nick Kupper (R-LD25) has introduced a constitutional measure that would ask Arizona voters to decide whether the right to refuse medical mandates should be enshrined in the state Constitution.
Last week, Kupper filed House Concurrent Resolution 2056 (HCR 2056), which, if approved by the Legislature and later by voters, would place a proposed constitutional amendment on the ballot for the next general election.
The resolution would prohibit government entities from “mandating, requiring, coercing, or compelling an individual to accept or receive a medical product or treatment” as a condition of employment, education, access to public facilities, participation in services, or the exercise of any right or benefit.
The proposal defines coercion or compulsion to include penalties, denial of benefits, or other adverse consequences tied to refusing a medical mandate. It also includes exceptions preserving existing authorities, such as court-ordered treatment when a person poses a danger to themselves or others; parental rights in making medical decisions for minors; emergency medical care when consent cannot be obtained; lawful criminal investigations; compliance with federal law; and existing state requirements for diagnostic tests and procedures.
The text of the resolution states directly: “The right to refuse medical mandates is hereby recognized and protected as a fundamental and inherent right of every individual.”
In a statement included with the release, Kupper said the resolution is intended to give voters the opportunity to decide whether medical mandates should remain within the government’s authority. He also stated that the resolution would not prevent the state from “promoting vaccines, offering treatment, responding to emergencies, or providing care,” but said it would “draw a firm line against force and punishment.”
“Across multiple administrations and on both sides of the political divide, we have seen government officials assert sweeping authority over individual medical choices through threats to livelihoods, careers, and basic freedoms,” Kupper explained. “I nearly lost my career and Air Force retirement for refusing an unapproved medical mandate. No elected official or bureaucrat should ever have the authority to force a medical procedure on a free citizen. This resolution gives the people of Arizona the opportunity to decide for themselves whether that power should exist.”
He added, “This is about freedom and informed consent. Adults should be able to make decisions about their own bodies, and parents should have the final say for their children. That principle should not change based on who is in power or what crisis is being used to justify control.”
In a post to X, Kupper wrote, “Arizonans deserve the opportunity to decide for themselves if they want the government to continue controlling their medical decisions or if they want to reclaim their bodily autonomy.”
If HCR 2056 is approved by the Arizona Legislature, the measure would be placed on the ballot for a statewide vote at the next general election.
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.
by Staff Reporter | Feb 15, 2026 | News
By Staff Reporter |
The Maricopa County Board of Supervisors is divided on moving forward with a pathway that may result in the recorder’s removal, even with little time left before the primary election.
The board published a statement Wednesday announcing their vote requiring Recorder Justin Heap to provide a written report and sworn public testimony on February 18.
The board statement accused Heap of “lying to the public” and stonewalling the board.
“He has been unreliable. He has been unprofessional. He has been untruthful. He has been unaccountable,” read the statement. “The Board cannot responsibly set a budget, make policy decisions, or oversee county operations, including an active election in Tempe right now, without complete and truthful information from Mr. Heap.”
The board made its decision during its formal meeting on Wednesday. State law authorizes the board to require any county officer to make reports under oath concerning office duties.
The written report would address key issues identified in Chair Kate Brophy McGee’s letter to Heap last month concerning expenditures and prepayments, signature verification and curing, and the special election board and deputy registrar program.
Heap will also be required to provide the identities of the provisional voters his office said were disenfranchised; records of requests by his office for federal funds, legislative appropriations, or county funds; communications with the Maricopa County Attorney’s Office concerning the distribution of mail-in ballots to voters who didn’t request them in the 2025 special election in Congressional District 7; and records of the reassignment of the space in the Maricopa County Tabulation and Election Center from the Maricopa County Sheriff’s Office to his office.
Although the supervisors voted unanimously to impose these requirements on Heap, not all supervisors supported the official statement condemning Heap.
Supervisor Mark Stewart said the statement wasn’t approved by him. Not only that, Stewart said, but the remarks were disrespectful and potentially damaging to current negotiations with Heap.
“We are in active negotiations on the Shared Services Agreement, and my focus remains on reaching a constructive resolution that delivers results for the people we serve,” said Stewart.
Other supervisors fanned the flames of the statement.
Supervisor Debbie Lesko shared her remarks from Wednesday’s meeting, in which she said she endured over a year of frustrations with Heap. Lesko lodged multiple accusations against Heap, such as that he had something to hide.
“I feel Recorder Heap has left us no alternative,” said Lesko.
The only alternative for the board would be to continue negotiations with the recorder’s office through public discussions and the court.
This pathway by the board may lead to the largest county in the state and fourth-largest county in the nation without its elections leader with a few months left to go before elections begin. The primary election was moved up from August to July recently.
Should Heap refuse to comply with Wednesday’s order, the board may opt to remove the recorder from office with just five months to go before the primary elections.
This latest action by the board appears to be their response to the Maricopa County Superior Court striking down the board’s attempt to subpoena three staff members within Heap’s office. This court restraining order occurred within the case initiated by Heap last summer to restore elections powers to his office.
AZ Free News reached out to Heap regarding the board’s decision. As of this report, no response has been received.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Staff Reporter | Feb 14, 2026 | News
By Staff Reporter |
Karrin Taylor Robson announced the suspension of her gubernatorial campaign on Thursday.
Robson cited concerns about the possible effects of “a divisive Republican primary” as the November 2026 election approaches as her reason for stepping out of the race.
“It only weakens our conservative cause and gives the left exactly what they want: a fractured Republican Party heading into November,” said Robson. “With so much on the line in 2026, I am not willing to contribute to that outcome.”
Robson shared an endorsement from President Donald Trump with another primary opponent, Congressman Andy Biggs, this go around.
Trump handed Robson the endorsement first in December 2024 during Turning Point USA’s annual “AmericaFest” convention in Phoenix. When Biggs announced his run early last year, Trump made an unusual but not altogether unprecedented decision and put up a second endorsement for Biggs: the less moderate Republican and former Freedom Caucus chair.
When he announced his dual endorsement, Trump said he had endorsed Robson because there were no other candidates at the time.
“I like Karrin Taylor Robson of Arizona a lot, and when she asked me to Endorse her, with nobody else running, I Endorsed her, and was happy to do so,” said Trump. “When Andy Biggs decided to run for Governor, quite unexpectedly, I had a problem — Two fantastic candidates, two terrific people, two wonderful champions, and it is therefore my Great Honor TO GIVE MY COMPLETE AND TOTAL ENDORSEMENT TO BOTH. Either one will never let you down. MAKE AMERICA GREAT AGAIN!”
Trump split his endorsement in the 2024 congressional race between Blake Masters and now-Rep. Abe Hamadeh.
About a month after Trump split his endorsement between Robson and Biggs, three key allies from Trump’s circle split from Robson’s campaign. Two of those individuals served as Robson’s advisors after playing key roles in engineering Trump’s successful 2024 reelection. Sources said the allies left after Robson refused to run campaign ads with Trump’s endorsement immediately; instead, Robson waited until after Biggs got his endorsement to announce.
Robson, a former Arizona Boards of Regents member appointed by former Gov. Doug Ducey, made an unsuccessful primary run against failed Republican candidate Kari Lake in the 2022 gubernatorial election. That year, Lake was the sole Republican gubernatorial candidate to enjoy Trump’s endorsement.
With Robson out of the race, that leaves Biggs, Congressman David Schweikert, and local business owner Scott Neely gunning to win the primary in July.
Republican leaders responded to Robson’s campaign suspension with gratitude for her service to the state. Right-wing political and grassroots leaders also signaled Robson’s suspension as a unifying call to back Biggs in the race. Robson didn’t endorse another candidate.
State Senate President Pro Tempore T.J. Shope (R-LD16) told Robson he would continue to work with her on policy, and further expressed his endorsement of Biggs.
Likewise, Turning Point USA affiliates and leaders issued statements thanking Robson and encouraging voters to get behind Biggs.
A majority of the latest polls predicted Biggs would have double-digit leads in the upcoming primary election over Robson.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Feb 14, 2026 | News
By Matthew Holloway |
In a 5-4 party-line vote Tuesday, the Republican-led Arizona House Ways and Means Committee advanced legislation that would temporarily freeze most municipal and county tax, fee, and utility rate increases for four years.
House Bill 4030 and House Concurrent Resolution 2052, sponsored by Committee Chair Justin Olson (R-LD10), would limit local government charges to levels approved in fiscal year 2025–2026 budgets for a four-year period beginning July 1, 2026, and ending June 30, 2030.
Under the proposal, cities and counties would be prohibited from raising existing fees or tax rates, creating new tax classifications, or expanding tax bases during the moratorium period. The measures would preserve voters’ authority to approve increases at the ballot box. HB 4030 would enact the moratorium through statute. HCR 2052 would refer the policy to voters at the next general election.
The legislation includes enforcement provisions aimed at preventing local governments from restructuring or renaming charges, altering rate schedules, or modifying classifications in a way that would effectively increase revenues beyond fiscal year 2025–2026 levels.
In a statement, Olson said the measures are intended to provide cost certainty for residents amid ongoing inflationary pressures.
“These bills do exactly what families expect when the cost of living keeps climbing: they stop government from reaching deeper into their pockets,” Olson said. “While Arizona families are cutting back, local governments should not be hiking fees, raising taxes, or quietly inflating utility bills. HB 4030 and HCR 2052 put a hard check on that behavior and give taxpayers certainty and relief.”
“This comes down to discipline and fairness,” Olson explained. “Local governments already approved their budgets. This bill just requires them to live within the revenues generated by existing tax rates. If a city or county wants more money, they can make their case to voters and earn the support of a strong supermajority. What they cannot do is quietly raise costs on families whose budgets are already stretched thin.”
The proposal also follows recent disputes between state lawmakers and municipal governments over local authority, including 2025 legislation involving Axon’s planned headquarters development in Scottsdale that resulted in the Legislature preempting certain local actions.
Arizona’s Constitution grants charter cities broad authority over local affairs, including taxation and fee structures, under its home-rule provisions (Arizona Constitution, Article XIII, Section 2). Arizona courts have historically recognized broad municipal autonomy in matters deemed “purely local,” as the Arizona Supreme Court noted in State ex rel. Brnovich v. City of Tucson (2017).
In recent years, several Arizona municipalities have approved utility and service rate increases, citing infrastructure needs and inflationary pressures. For example, the City of Phoenix approved water and wastewater rate adjustments in 2023 and 2024 to address infrastructure and operational costs, according to the City of Phoenix Water Services Department. Tucson Water has also adopted phased rate increases in recent budget cycles, per city rate information.
If approved by both chambers and signed by the governor, HB 4030 would take effect as statute. As a concurrent resolution, HCR 2052 would bypass the governor and instead be placed on the ballot for voter consideration. Both measures now advance to the full House.
Supporters argue the measure would provide temporary cost certainty for residents, while opponents of similar proposals in past sessions have raised concerns about potential constraints on municipal budgeting and infrastructure funding.
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.
by Ethan Faverino | Feb 14, 2026 | Economy, News
By Ethan Faverino |
The latest survey from the National Federation of Independent Business (NFIB) reveals that small business optimism in the U.S. dipped slightly at the start of 2026. The Small Business Optimism Index declined by just 0.2 points in January to 99.3, yet it remains above the 52-year average of 98.
Among the index’s 10 key components, 7 declined, while only 3 improved. The positive standout shift came in expectations for real sales volumes, which jumped by 6 points, with a net 16% of owners now anticipating stronger sales in the coming quarter.
However, uncertainty notably climbed, as the Uncertainty Index increased by 7 points to 91. Much of this rise stemmed from more owners expressing doubt about whether the current environment favors business expansion.
“While GDP is rising, small businesses are still waiting for noticeable economic growth,” stated NFIB Chief Economist Bill Dunkelberg. “Despite this, more owners are reporting better business health and anticipating higher sales.”
In Arizona and similar regions, a cautious mood persists, with many business owners hesitant to pursue expansion. NFIB Arizona State Director Chad Heinrich noted that ongoing tax-related uncertainties are adding to these concerns, while NFIB data shows taxes are the leading problem for 18% of business owners.
“The optimism index remains stable, but small business owners remain cautious about the future and whether it’s a good time to expand their operations,” explained Heinrich. “The limbo Main Street Arizonans find themselves in this tax season only exacerbates their uncertainty. Small business owners need tax conformity from policymakers now.”
A new addition to this month’s report, the Small Business Employment Index, registered 101.6 in January—down nearly a point from December but still 1.5 points above its historical average of 100 and marginally higher than the 2025 average. This suggests the labor market for small businesses remains relatively balanced.
According to the NFIB Monthly Jobs Report, overall business conditions showed improvement in owners’ self-assessments, with 14% now rating their operations as excellent (up 5 points) and fewer classifying them as only fair (down 7 points to 27%).
Investment activity picked up as 60% of owners reported capital expenditures over the past six months—the highest share since late 2023—mostly directed toward new equipment.
On the labor front, challenges eased somewhat, with businesses citing labor quality as their top issue; the share fell for the third straight month to 16%, and unfilled job openings dropped to 31% (still above the long-run norm).
Inflationary pressures linger, however, as 26% of owners reported raising prices in January, and 32% plan increases in the next few months.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
