On Monday, House Republicans put forth what they called a balanced budget of $17.9 billion.
By Tuesday, Gov. Katie Hobbs said the proposal was all but dead.
The leaders of both chambers characterized their budget as uniquely reflective of total conformity with federal tax law — no other states adopted the entire slate of tax cuts — which Hobbs doubted could be accomplished. They estimated tax relief would amount to $1.5 billion over the next three years, and Republicans claim working families would feel the most benefit from the cuts.
“Politics are easy; governing is harder. We chose governing,” said Sen. President Warren Petersen (R-LD14). “We’re moving a budget that cuts taxes, funds core services, shrinks government, includes priorities both sides have raised, and gives Arizona a full path to finish the session.”
As budget talks have failed to progress in a meaningful way, the legislature stagnates under the weight of a bill moratorium.
In a statement issued Tuesday, Hobbs did acknowledge Republicans for working with her to adopt certain components of her preferred budget like middle class tax cuts and reductions to childcare cost. However, she disputed Republican leaders on their claims of fiscal responsibility.
She accused Republicans of siding with “billionaires, data centers, and special interests” as well as “kicking Arizonans off their healthcare and taking food off their tables.” The governor said she won’t engage in negotiations further unless they adopt her preferred budget.
Contentious aspects of the Republican-proposed budget included cuts to state agency budgets, and SNAP and Medicaid program funding.
“Until they also engage in good-faith negotiations rather than attempting to force through a partisan budget, I will be closely monitoring the situation in the coming days to determine whether the legislative majority is willing to negotiate in good-faith bipartisan negotiations and have the bill moratorium lifted,” said Hobbs.
NEW: @GovernorHobbs reacts to the newly released Republican budget: “Just like in Washington, they’re paying for tax breaks for billionaires, data centers and special interests by kicking Arizonans off their healthcare and taking food off their tables.” pic.twitter.com/8UlFIqa5S1
Hobbs also discussed the budget talks during a press conference for a separate topic on Tuesday, Reentry 2030. Hobbs tentatively praised Republicans for some concessions on their part, but generally was critical of them for balking at her $18.7 billion spending plan. A key part of that plan Hobbs hopes to win through in budget talks concerns draining the public land trust to boost K-12 education funding.
“I’m glad to see the Republicans have shown their budget proposal, there’s some things I’m encouraged about in their proposal, but across-the-board agency cuts is not one of them,” said Hobbs. “I’m hopeful that we can get back to the table and start having real conversations about a budget that works for Arizona.”
Legislative leaders have said Hobbs’ proposal is a nonstarter because the Public Land Trust was intended for long-term funding. Hobbs’ plan intends to renew funding through the yet-approved Proposition 123. Senate President Petersen said Hobbs’ plan wasn’t feasible and would push the state $1.5 million further into debt.
“We’re spending about $800 million less than what the governor has proposed, and the governor has proposed to raise taxes,” said House Speaker Montenegro (R-LD29) in an interview with Fox News.
“[H]er math doesn’t work,” said Petersen.
Hobbs has vetoed tax conformity efforts and walked away from budget negotiations multiple times since the start of the year.
The legislature began hearing budget bills on Tuesday during a joint hearing of the Senate and House Appropriations Committees.
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A group of Republican military veterans in Congress, led by Rep. Ryan Zinke (R-MT) and Rep. Rick Crawford (R-AR), has introduced H.Res.932 to denounce what they describe as “dangerous and seditious rhetoric” from six Democratic lawmakers.
The resolution accuses the Democrats of encouraging members of the U.S. military and intelligence community to defy orders from the Commander-in-Chief, potentially violating the Uniform Code of Military Justice (UCMJ).
The measure, co-sponsored by 27 representatives, including freshman Congressman Abe Hamadeh (R-AZ08), highlights a video posted on November 18, 2025, in which the targeted Democrats—Senator Mark Kelly (D-AZ), Senator Elissa Slotkin (D-MI), Rep. Jason Crow (D-CO), Rep. Christopher Deluzio (D-PA), Rep. Maggie Goodlander (D-NH), and Rep. Chrissy Houlahan (D-PA)—urged service members to resist “illegal” orders.
The resolution argues that such statements, made without evidence of unlawful directives from the Trump administration, undermine the constitutional chain of command and place troops at risk.
“Congressman Hamadeh has joined sixteen fellow military veterans in Congress in condemning the six Democratic legislators who engaged in wildly inappropriate and potentially seditious conduct by encouraging our military and intelligence personnel to defy their commander-in-chief for political purposes,” stated the Office of Congressman Abe Hamadeh in a tweet on December 4, 2025.
Congressman Hamadeh has joined sixteen fellow military veterans in Congress in condemning the six Democrat legislators who engaged in wildly inappropriate and potentially seditious conduct by encouraging our military and intelligence personnel to defy their commander-in-chief for… https://t.co/G8hM3ziopw
— Office of Congressman Abe Hamadeh (@RepAbeHamadeh) December 4, 2025
Rep. Zinke echoed these sentiments in his own announcement: “Today, @RepRickCrawford and I, joined by 16 fellow veteran lawmakers, introduced a resolution condemning the Members of Congress who publicly urged our military and intelligence professionals to refuse orders from the Commander in Chief. By encouraging personnel to independently judge the legality of orders, these individuals are promoting disobedience for political purposes and at the peril of our service members, without being able to point to a single piece of evidence of illegal orders being issued. The U.S. military code is clear on this, and as veterans themselves, they all should have known better.”
The resolution emphasizes core constitutional principles, noting that the President’s role as Commander-in-Chief is enshrined in Article II, Section 2 of the U.S. Constitution. It also cites UCMJ Article 92, which criminalizes the failure to obey lawful orders, and warns that encouraging insubordination is a federal offense.
The document points out that orders are presumed lawful unless “obviously unlawful,” and criticizes the Democrats for insinuating otherwise without proof.
When pressed for evidence of unlawful orders from President Trump, Senator Slotkin admitted she was “not aware of things that are illegal,” with other participants in the November 18 video making similar concessions.
Despite this lack of proof, the group claimed the Trump administration is “pitting the military and intelligence community against American citizens.”
The resolution concluded with, “The House of Representatives denounces the dangerous and seditious rhetoric spewing from these six Members of Congress that has led to an environment placing troops and their loved ones at risk of harm, compromising and undermining the national security of the United States and the peaceful coexistence and respect deserved by our brave men and women serving in the military and the intelligence community.”
In a follow-up tweet on December 6, 2025, the Office of Congressman Abe Hamadeh urged caution: “The Congressman’s Democratic colleagues should be more careful when making incendiary accusations about the conduct of our military and law enforcement personnel. These performative confrontations may be good for their fundraising, but they’re not good for our country.”
The Congressman's Democratic colleagues should be more careful when making incendiary accusations about the conduct of our military and law enforcement personnel.
These performative confrontations may be good for their fundraising, but they’re not good for our country.
— Office of Congressman Abe Hamadeh (@RepAbeHamadeh) December 6, 2025
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
A group of 13 House Republicans, including Arizona’s Juan Ciscomani (AZ-06), have issued a letter to House Speaker Mike Johnson (R-LA), commending his leadership during the ongoing government shutdown and calling for immediate action to pass a short-term continuing resolution (CR) to reopen the government.
The lawmakers, led by Reps. Jeff Van Drew (R-NJ) and Jen Kiggans (R-VA) emphasized the urgent need to end the government shutdown, which is causing harm to American families, military personnel, federal law enforcement, border agents, and public servants who support veterans and seniors nationwide.
“Every day the shutdown continues to hurt the very people we were elected to serve,” the letter states. “Keeping the government closed helps no one and undermines the safety and stability of our country.”
The group opposes using the government funding debate to address healthcare issues, arguing that such tactics prolong the shutdown and distract from the immediate priority of restoring government operations.
The lawmakers stressed that Congress must focus on passing a CR to fund the government, as the House did on September 19, despite the Senate Democrats’ repeated rejection of the measure 11 times as of Monday, October 20th.
Once the government is reopened, the lawmakers urged Speaker Johnson to prioritize the expiration of the enhanced Affordable Care Act (ACA) premium tax credits.
“We stand firmly behind you as you lead our Conference toward ending the government shutdown,” the lawmakers wrote. “Once the government is reopened, we are ready to work with you to advance healthcare solutions that protect families and lower costs.”
The letter shows the alignment with President Trump’s commitment to preserving healthcare access while addressing the affordability crisis caused by “short-sighted Democratic policymaking.”
“Let us be clear,” the lawmakers wrote. “Significant reforms are needed to make these credits more fiscally responsible and ensure they are going to the Americans who need them most. Our Conference and President Trump have been clear that we will not take healthcare away from families who depend on it. This is our opportunity to demonstrate that commitment through action.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
Two House Republicans and one Democrat from Arizona wrote to IRS Commissioner Daniel Werfel asking the agency to reconsider its decision to subject the Arizona Families Tax Rebate Program to federal income taxation.
Representatives David Schweikert, R-Ariz., Juan Ciscomani, R-Ariz., and Greg Stanton, D-Ariz., sent the letter Wednesday.
“We urge the IRS to reconsider its determination and provide expedited relief to compliant Arizonan taxpayers who have already filed their 2023 tax returns,” the three wrote.
More than 700,000 Arizona taxpayers were eligible to receive a one-time tax rebate as the state continues to recover from historic inflation levels that placed severe financial strain on families across the state, according to the representatives’ news release.
“The country is poorer now than it was three years ago, and Arizonans are no different, facing the brunt of financial pressure with supermarket prices now nearly 25% higher than in January 2020, for example,” the letter says. “State officials acted in good faith with the reasonably available information to provide more than 700,000 households with much-needed relief from price increases on everyday goods and services.”
Tax rebates enacted by 21 states were determined to be tax exempt in guidance issued by the IRS in February 2023, Schweikert, Ciscomani, and Stanton wrote. Though Arizona’s tax rebate wasn’t signed into law for another three months, the IRS extended its decision to make the rebate taxable past the period when the state issued payments, according to the letter.
“In December 2023, the IRS relayed its decision orally through a video meeting, providing no written explanation until February 15, 2024, eighteen days after the start of tax season, and only in response to a letter from the Arizona Attorney General challenging the decision,” the letter says.
Arizona taxpayers are estimated to owe $20.8 million in extra federal taxes due to the IRS’ inconsistent rationale in failing to specify the factual and legal basis for the 21 states’ rebates and payments that were deemed nontaxable in 2022, according to the representatives.
“The inconsistency and delay in communication have resulted in undue financial strain on Arizonans,” the letter says.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
Arizona House Republicans are voicing extreme displeasure with President Biden’s border policies.
On Friday, Arizona House Speaker Ben Toma and 30 of his colleagues in the chamber sent a letter to President Joe Biden, demanding that the Democrat Commander in Chief “reverse your policy and put a halt to the wide-open door for so-called ‘asylum-seekers.’”
🚨FOR IMMEDIATE RELEASE🚨 Arizona House Republicans Condemn President Biden’s Closure of Lukeville Port of Entry, Refusal to Defend State from Border Crisis
The reason for the letter stemmed from the decision from U.S. Customs and Border Protection (CBP) to close the Lukeville Port of Entry earlier this week. The Lukeville section of the border, inside the Tucson Sector, has recently become the epicenter of the historic crisis, seeing thousands of illegal aliens pour into the United States through gaps in the fence. In their letter, the Arizona lawmakers wrote that “the closure has caused an immediate collapse of economic activity and legal movement through that critical port of entry,” adding that “Arizonans along the way to Lukeville will needlessly suffer as businesses shutter in communities such as Gila Bend, Ajo, and Why.”
Speaker Toma said, “Securing the border is supposed to be the federal government’s job. But the willful inaction by President Biden is causing irreparable harm. Arizona’s Democratic leaders, Governor Hobbs and Attorney General Mayes, also ignore calls to defend the state and hold the federal government accountable. When Republicans in the Legislature specifically funded a mission of the National Guard to provide support to law enforcement on the border, Governor Hobbs cut that mission short to instead aid the transportation and housing of illegal aliens. Arizonans can count on House Republicans to pursue meaningful policy and budgetary solutions in the upcoming legislative session to protect Arizona’s border, border communities, and the people we are elected to represent.”
The letter from the Arizona legislators included several reasons why the state of Arizona – and other neighboring states – have been negatively affected by the border crisis. It noted that “border states in particular are significantly harmed by your administration’s failed policies every day. Our law enforcement agencies at the border are overextended. Health care providers in border communities are overworked to such an extent that they are struggling to provide essential services to the residents of their community in need of care.”
As they closed the letter, the Arizona State Representatives warned that they would “hold (President Biden) accountable for your refusal to protect this nation and its people.”
Over the course of this year, Arizona Legislative Republicans have repeatedly directed their ire to national and local Democrats over the unprecedented situation at the border. Earlier this fall, soon after the horrific terrorist attack in Israel on October 7, Senate President Warren Petersen issued a statement, saying, “Our own country must remain vigilant, as our wide open border, ignored by Joe Biden and Democrats, remains one of the greatest threats to our national security.”
In May, freshman Representative Austin Smith visited the border to gain first-hand knowledge. After his trip, he posted, “Eye opening experience down here on the border. Joe Biden and Mayorkas are derelict in their duty to our country. Absolutely shameful.”
Eye opening experience down here on the border. Joe Biden and Mayorkas are derelict in their duty to our country. Absolutely shameful.
God bless the Cochise County Sheriff’s Department. They are doing everything they can to keep Arizona and the United States safe.
A smaller coalition of state representatives, led by Gail Griffin, also sent a letter to Governor Hobbs in May, calling on Arizona’s chief executive “to take immediate action and activate all state resources to keep our communities safe from these dangerous and unprecedented threats.” The group of five legislators pointed to a February 22 legal opening from then-Attorney General Mark Brnovich, which documented “the federal government’s failure to uphold its duty to defend the States from invasion – particularly at Arizona’s border with Mexico – by drug cartels and gangs’ violence, lawlessness, and trafficking of deadly illicit drugs, such as fentanyl.”
— Arizona House Republicans (@AZHouseGOP) May 12, 2023
Back in February, Representative Tim Dunn reacted to the president’s State of the Union address, stating that it failed “to address the emergency effecting the southern border. This can end by changing his policy. This allows fentanyl to come to your neighborhood. Secure the border protect our airways from China and open up oil exploration to curb inflation.”
Biden State of the Union speech fails to address the emergency effecting the southern border. This can end by Changing his policy. This allows fentanyl to come to your neighborhood. Secure the border protect our airways from China and open up oil exploration to curb inflation. pic.twitter.com/9U29v3pchc
Though the border crisis appears to be worsening by the day, legislative Republicans have effectively made the point that the reality for Arizonans could be more daunting if not for their check on the Democrats in the state – especially Governor Katie Hobbs. When Hobbs signed the state budget compromise in May, Senate President Petersen highlighted that his members “prevented the Governor and Democrat Legislators from advancing their extremist agenda…we’re not getting rid of state funded border security resources to keep our communities safe.” In the upcoming session, starting next month, expect Republicans to continue to introduce bills and policies that would give the Grand Canyon State more ability and resources to combat the many scourges of the border crisis.
FOR IMMEDIATE RELEASE: Senate Republicans Reduce Spending, Provide Historic Tax Rebates to Families, Protect School Choice and Stop Democrats' Extremist Agenda with 2023-2024 Budget pic.twitter.com/1nJvW6hehc
