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.
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.”
“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.”
Senator Ruben Gallego lionized a California Senator detained for disrupting an immigration-related media event by the Trump administration.
California Senator Alex Padilla was detained for disrupting a news conference on immigration by Department of Homeland Security (DHS) Secretary Kristi Noem in Los Angeles amid the ongoing anti-ICE protests and riots.
Federal agents removed and handcuffed Padilla on the belief he was an unidentified man breaching the news conference. While the senator admitted he wasn’t originally included or expected in the news conference, he claimed he did identify himself.
“After identifying myself and trying to ask a question, I was aggressively pushed out of the room, forced to the ground, and handcuffed,” said Padilla.
If that’s what they do to a United States Senator with a question, imagine what they can do to any American that dares to speak up. We will hold this administration accountable. pic.twitter.com/ZMExvMmZfE
— Senator Alex Padilla (@SenAlexPadilla) June 12, 2025
Videos of the incident show Padilla initially interrupted the news conference without identifying himself, walking quickly toward Noem at her podium while interrupting her with questions. Reports also indicate Padilla’s attire didn’t confirm his insistence after interrupting Noem and while being detained that he was, in fact, a U.S. Senator.
New video showing Senator Padilla was being disruptive and was removed.
This is all a theater. He should not have assaulted the officers.
Gallego sided with Padilla’s version of events. The senator called the arrest a “raw abuse of power,” implying a pattern of the current administration acting unlawfully in regard to immigration.
“They shoved, pinned, and handcuffed Senator Padilla – for asking a question to protect his community,” said Gallego. “A sitting U.S. Senator.”
They shoved, pinned, and handcuffed @SenAlexPadilla —for asking a question to protect his community. A sitting U.S. Senator.
— Senator Ruben Gallego (@SenRubenGallego) June 12, 2025
Noem said in interviews that Padilla was arrested for interrupting the news conference without identifying himself and engaging in troubling behaviors. Noem shared that she met with Padilla after his arrest to hear his concerns.
“This man burst into the room, started lunging towards the podium, interrupting me, and elevating his voice, and was stopped, did not identify himself, and was removed from the room,” said Noem.
After he interrupted our press conference with law enforcement, I met with Senator Padilla for 15 minutes. We probably disagree on 90% of the topics but we agreed to exchanged phone numbers and we will continue to talk—that is the way it should be in this country.
The arrest preceded a federal court order reverting California National Guard authority back to California Governor Gavin Newsom starting Friday. The Trump administration appealed.
Gallego chose to raise awareness of Padilla’s arrest as an injustice before upcoming anti-ICE protests nationwide on President Donald Trump’s birthday — Flag Day — which many believe will devolve into violence, given the recent riots in Los Angeles and spurts of violence emerging at anti-ICE demonstrations locally, like the incident on Tuesday in Peoria in which protesters assaulted an officer.
The organization behind the coordinated protests that have many concerned, No Kings, has listed dozens of protests across Arizona for Saturday: Anthem, Buckeye, Bullhead City, Casa Grande, Cottonwood, Douglas, Flagstaff, Gilbert, Glendale, Globe, Green Valley, Kingman, Maricopa, Mesa, Nogales (two), Oracle, Oro Valley, Page, Patagonia, Payson, Peoria, Phoenix (two), Prescott, Safford, Scottsdale (two), Sedona (two), Show Low, Sierra Vista, Sun City, Surprise (two), Queen Creek, Tempe, Tucson, Vail, Williams, and Yuma.
In a pre-mobilization call on Thursday, No Kings insisted their protests remain peaceful.
Governor Katie Hobbs offered public support for the anti-ICE rioters in California. Hobbs condemned President Donald Trump’s deployment of the National Guard to control the days-long rioting in the state. The governor called the president’s actions “ineffective and dangerous,” and disrespectful of local law enforcement.
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Governor Katie Hobbs has named Brigadier General John Conley as the new Adjutant General of Arizona and Director of the Department of Emergency and Military Affairs (DEMA).
In his new position, Brig. Gen. Conley will oversee the full scope of DEMA operations, including Arizona’s Army and Air National Guard units, Joint Task Force, Administrative Services, and the state’s Division of Emergency Management. The appointment comes as Arizona continues to contend with challenges related to border security, emergency preparedness, and the flow of illicit drugs into the state.
“Brigadier General Conley is a distinguished leader, accomplished lawyer, and dedicated public servant,” said Governor Hobbs in a statement. “As The Adjutant General and Director of DEMA, Conley will build on our efforts to secure the border and protect Arizona communities.”
Brig. Gen. Conley has more than 30 years of commissioned service in both the Army and Air National Guard. For the past 14 years, he has held key roles within the Arizona National Guard, including his most recent position as Director of Administrative Services for DEMA. There, he managed critical support functions such as personnel, finance, and mission planning for the Guard and Emergency Management Division.
Conley also previously served as the senior legal advisor for the Arizona National Guard, overseeing Judge Advocates and legal personnel across all service components. His work included the development of military cyber operations, where he played a pivotal role in establishing interagency cybersecurity partnerships with the FBI and the Arizona Department of Administration.
“I’m honored that Governor Hobbs has selected me to lead the Arizona National Guard and DEMA,” said Conley. “Throughout my career, I have been driven by a desire to defend our country and to keep people safe. I look forward to continuing to serve Arizonans alongside the exceptional men and women of DEMA.”
Conley’s appointment comes at a time when Arizona faces heightened scrutiny over border security and public safety.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
Arizona’s embattled Democratic Governor Katie Hobbs is facing new scorn and a veto override threat from Speaker of the Arizona House of Representatives Steve Montenegro after what Rep. Michael Way (R-LD15) called her “most disgraceful veto yet,” of the Antisemitism in Education Act. The act, known also as HB 2867, was passed by the legislature on June 4th. If enacted, it would have “prohibit(ed) teachers, administrators, and university faculty from promoting antisemitism or forcing students to support antisemitic viewpoints in exchange for credit or advancement.” It also would have prohibited the use of public funds for “antisemitic instruction, training, or programming.”
The seemingly straightforward bill, sponsored by Way, was expected to meet with Hobbs’ approval with the Republican saying Wednesday, “This should be an easy decision for the governor. The Legislature has done its job. The public supports this. Now it’s up to the governor to do hers and show that Arizona won’t tolerate antisemitism in public education.”
But this wasn’t to be. Hobbs panned the bill, armed with a letter from Lori Shepherd of The Tucson Jewish Museum & Holocaust Center in which she emphasized inviting students “to ask tough questions about the legacy of the Holocaust today… that often touch on the history of Zionism, the founding of the State of Israel, and the persistence of global antisemitism.”
Hobbs claimed, “This bill is not about antisemitism; it’s about attacking our teachers.” She added, “It puts an unacceptable level of personal liability in place for our public school, community college, and university educators and staff, opening them up to threats of personally costly lawsuits.”
She contended the bill, “sets a dangerous precedent that unfairly targets public school teachers while shielding private school staff,” and characterized it as an attempt by the legislature to “single out and attack our public education system.”
Rep. Way quickly took to X to express his outrage writing, “In her most disgraceful veto yet, Governor Hobbs struck down a bipartisan bill to stop antisemitism in Arizona schools. I am deeply disappointed by her decision—paying lip service to opposing antisemitism while backing away from a law with real teeth. Instead of standing with Jewish students and faculty, she sided with those who promote hate and hostility on campus. This bill was aimed at prohibiting the teaching of egregious and blatant antisemitic content. To suggest that it threatened the speech of most Arizona teachers is disingenuous at best. House Republicans acted to confront antisemitism—Hobbs’ veto protects it. I will continue to stand with the Jewish community in Arizona and in my district to ensure taxpayer dollars are never used to fund violent political indoctrination.”
Katie Hobbs has issued hundreds of misguided vetoes to date, but THIS one bolstering the hateful teachings of antisemitism in public school classrooms takes the cake. Every child deserves a quality education free of the abhorrent rhetoric that promotes hostility toward our Jewish… https://t.co/d9wIzlN254
Speaker Steve Montenegro addressed the veto as well just over an hour later in a statement posted to X, vowing to move to a veto override before the end of the legislative session. He wrote, “Katie Hobbs has issued hundreds of misguided vetoes to date, but THIS one bolstering the hateful teachings of antisemitism in public school classrooms takes the cake. Every child deserves a quality education free of the abhorrent rhetoric that promotes hostility toward our Jewish communities. This veto is beyond the pale, and the House WILL proceed with a veto override before this session adjourns.”
