One year after President Donald Trump signed the Working Families Tax Cut Bill into law, U.S. Rep. Andy Biggs (R-AZ05) defended the legislation as a cornerstone of the nation’s economic recovery, arguing it prevented what he described as a massive tax increase while expanding tax relief for families, workers, and small businesses.
In an exclusive interview with AZ Free News earlier this week, Biggs, who is also running for Arizona Governor, said the legislation’s most immediate accomplishment was preserving tax relief that otherwise would have expired.
“I think what you’re seeing is, the biggest success, is you stopped a $4 trillion tax increase,” Biggs said. “That would have been economically really, really bad for the country—maybe the death knell.”
Biggs said extending the 20 percent deduction for qualifying small businesses and preserving immediate business expensing provisions were among the bill’s most significant accomplishments. He also pointed to Treasury Department estimates indicating many families could see larger tax savings.
“According to the Treasury Department, the average family is going to see somewhere north of $2,000,” Biggs said, adding that other estimates range between $1,500 and $2,000. “That provides money to the economy and stimulus to the economy and helps the working men and women of this country.”
The congressman said some provisions are only beginning to show their long-term effects, particularly expanded domestic energy and natural resource development.
“I think people are getting… that a lot more federal land is being opened up for oil, gas, coal, minerals, whatever those natural resources are,” Biggs said. “Years from now, looking back, people will say, ‘Man, that really was one of the most critical things that could have happened for us.'”
Biggs also cited provisions eliminating federal taxes on tips, reducing taxes on overtime income, and providing tax relief for seniors receiving Social Security benefits as measures designed to increase disposable income while stimulating economic activity.
Critics of the legislation, such as Arizona Senate Minority Leader Priya Sundareshan (D-LD18), have argued it disproportionately benefits higher-income Americans and could increase the federal deficit, as reported by The Center Square. Biggs rejected both claims.
“The problem that we have is not a revenue problem in Washington, D.C.,” Biggs said. “It is a spending problem.”
He argued that economic growth generated by lower taxes ultimately produces additional federal revenue.
“What you do get is more economic activity,” Biggs said. “More taxes ultimately get paid and go into the federal government.”
Looking ahead, Biggs said a future Republican Congress should consider additional tax reductions for businesses while encouraging domestic manufacturing and development of critical mineral resources.
“If you want to stimulate jobs,” he said, “you’d find a way to reduce some of the corporate tax policy… and pass those along to sole proprietors and small firms as well.”
Although Biggs described the legislation as comprehensive, he said one area he wished Congress had addressed more aggressively was healthcare policy.
“One thing that we didn’t take care of, in my opinion… is we did nothing really on healthcare costs in the One Big Beautiful Bill,” Biggs said.
He said he had introduced legislation to expand Health Savings Accounts and increase their portability, adding that Rep. Eric Burlison of Missouri had proposed similar but broader reforms.
“I would have liked to see us do more on tax policy related directly to healthcare as well,” Biggs said.
Speaking with KTAR’s Mike Broomhead Monday, Biggs also discussed fraud in Medicaid and the Indian Health Services program. In a post to X sharing a clip he wrote, “When we root this waste out, we’ll get taxpayer dollars back in the pockets of Arizonans so families and businesses can thrive.”
There’s still billions of fraud in Arizona, especially in Medicaid and our Indian Health Services program.
When we root this waste out, we’ll get taxpayer dollars back in the pockets of Arizonans so families and businesses can thrive.
Looking ahead to a possible Biggs administration, he said future state tax policy should continue focusing on healthcare affordability and higher education while complementing the broader economic approach established by the federal legislation.
“The affordability of housing” remains Arizona’s largest economic challenge, Biggs said, arguing that utility costs, water policy, and management of state trust lands all play significant roles in addressing long-term affordability.
Biggs, who declined to seek another term in Congress to run for Governor, said Arizona has already incorporated many of the federal tax provisions into state law, though he criticized Gov. Katie Hobbs for initially vetoing related legislation before later signing it.
Arizona Republican House and Senate leaders announced a compromise budget agreement with Democratic Governor Katie Hobbs on Tuesday and introduced a series of budget bills for consideration in both chambers.
According to a press release by the GOP Senate Caucus, the budget, totaling $18.29 billion, is designed to deliver approximately $1.45 billion in tax relief to Arizonans over a four-year period and to limit state spending growth to 3.05%. The agreed-upon budget also “rejects or modifies more than $3 billion in proposed executive tax increases, fees, and spending expansions over the next three years.”
The legislative GOP leadership and Gov. Hobbs have been embroiled in tense on-again-off-again negotiations since January, with Hobbs announcing a full moratorium on signing legislation, vetoing nearly all bills sent to her desk from April 13 until May 14, including a proposed Republican budget containing over $1 billion in tax relief.
🚨FOR IMMEDIATE RELEASE: Arizona Becomes Only State in the Nation to Deliver Historic Trump Tax Cuts As Part of Bipartisan FY 2027 Budget Agreement
“Arizona is leading the nation once again,” Senate President Warren Petersen (R-LD14) said in a statement. “For years, Arizona has built a reputation as one of the best places in America to live, work, raise a family, and start a business. This budget strengthens that foundation. Families are facing higher costs for groceries, childcare, housing, and everyday necessities, and we wanted to provide real relief. By adopting President Trump’s tax cuts at the state level, expanding tax relief for families, and protecting educational freedom, we’re helping Arizonans keep more of their hard-earned money while ensuring our state remains economically competitive.”
Looks like we have a deal on the budget. Arizona will be the first state in the nation to deliver the full Trump tax cuts! Proud of my colleagues in the House and Senate. Expecting to vote it out on Thursday. And this time, it will get signed.
The budget reportedly incorporates full conformity with the tax cuts of the One, Big, Beautiful Bill Act passed in 2025, which included several of President Trump’s major federal tax provisions, including:
No tax on tips, no tax on overtime,
An increased standard deduction,
A new childcare deduction,
An enhanced child tax credit,
Expanded charitable giving deductions,
Property tax relief for disabled veterans.
In a statement to AZ Free News, Arizona House Speaker Steve Montenegro (R-LD29) said, “Republicans came into this session focused on affordability, responsible spending, public safety, school choice, and protecting taxpayers from new taxes and fees. This agreement reflects those priorities and shows what can be achieved through serious negotiations in divided government. The process still needs to play out, but this is a responsible budget agreement that moves Arizona in the right direction and puts families and taxpayers first.”
According to the Senate GOP Caucus, the budget agreement will also address the ongoing controversy of data center development in the state through the imposition of “a three-year moratorium on the issuance of new certificates for the data center sales tax exemption while explicitly allowing construction of new data centers to continue.”
In addition to implementing the $1.45 billion in tax relief, the budget will also include:
$112 million for corrections operations,
A 4% correctional officer stipend,
$23 million for victims of crime assistance,
$58 million for child safety operations, including foster care coaching and guardian contract costs,
$25.5 million for county support programs, probation services, coordinated reentry efforts, and sheriff assistance,
$10 million for wildfire suppression efforts,
$4.3 million for rural hospitals.
Reforms packaged with the FY2027 budget also include eligibility verification requirements for Medicaid and SNAP benefits, and protections for the Empowerment Scholarship Account program.
Governor Hobbs praised the bipartisan agreement, saying, “This bipartisan, balanced budget agreement will put Arizona first and deliver opportunity, security and freedom to communities throughout the state. With this agreement, we are delivering a $1.4 billion tax cut for working-class families, investing in job creation, education and water security while tightening our belts, and securing a moratorium on the data center tax exemption so we can develop a responsible path forward that protects our water future and lowers utility bills for Arizona families.”
She added, “This bipartisan compromise shows what we can do when we put common sense before political games and focus on delivering real results for our communities. It will put money back in the pockets of Arizona families and lower costs, make our communities safer, and protect the vital services that Arizonans rely on. In the coming days, I look forward to working with legislators in both parties to pass this bipartisan budget agreement that will make Arizona stronger, safer, and more prosperous.”
House and Senate versions of the budget bills will be considered during a Joint Senate & House Appropriations Committee hearing Wednesday, with final votes set for Thursday.
Arizona House Republicans announced passage of a state budget proposal this week, saying it delivers significant tax relief while reducing overall spending compared to Governor Katie Hobbs’ plan.
In a press release, House GOP leaders said the budget includes what they described as one of the largest tax cuts in Arizona history while maintaining funding for core government services.
The proposal has advanced through a series of budget-related bills in the House and Senate, including House Bill 4140, which implements key components of the fiscal year 2026–2027 budget.
According to the release, the proposal is designed to provide cost-of-living relief for families, seniors, workers, and small businesses and would spend approximately $800 million less than Hobbs’ budget.
Republican lawmakers said the plan maintains a balanced budget while prioritizing affordability, drawing a contrast with Hobbs’s budget plan.
“Arizona Republicans are delivering one of the largest tax cuts in state history, and our proposal has the votes to pass both chambers,” Arizona Senate President Warren Petersen (R-LD14) said in a statement.
“For months, Governor Hobbs told us full conformity to federal tax relief, including tax cuts for tipped workers, hourly employees, seniors, and small business owners, was impossible. It’s not,” he continued. “Under President Trump, Washington delivered relief for working Americans, and Arizona Republicans are making sure our taxpayers receive those same Trump tax cuts here at home. Republicans balanced the budget with honest numbers, protected core priorities, and provided real relief for families still struggling with higher costs. Arizona is leading the nation as the only state we are aware of advancing the full Trump tax cuts into law. Despite the Governor’s stunts, Republicans stayed at work and got the job done for our citizens.”
The budget proposal comes amid an ongoing policy dispute between the Republican-controlled legislature and the governor over taxes and spending priorities. Earlier in the session, Republican leaders advanced tax proposals they described as among the largest in state history, while Hobbs outlined a separate approach focused on targeted relief and new revenue mechanisms.
Arizona House Speaker Steve Montenegro (R-LD29) said in a statement, “House and Senate Republicans put forward a serious budget built on facts, not wishful thinking.”
He added, “It delivers major tax relief, eases cost pressures on Arizona families, fully funds core state services, and spends far less than the Governor’s proposal. It does not rely on gimmicks, inflated projections, or money that may never show up to balance the budget. In divided government, responsible leadership means facing the math, making hard choices, and protecting taxpayers. Republicans have done that, putting a workable budget on the table and giving Arizona a clear path to finish the session responsibly. The proposal is ready to move, and so is the Legislature. It is time to pass the bills and deliver for Arizona.”
In a post on X, Montenegro and Petersen said the proposal delivers tax relief, reduces spending, and fully funds core state services.
Arizona Republicans are delivering a serious, balanced budget for our state that spends about $800 million less than Governor Hobbs’ plan.
This plan cuts taxes, lowers costs for families, and fully funds the core services Arizonans rely on, all while staying within a responsible… pic.twitter.com/cRxSfV4nJ6
— Arizona House Republicans (@AZHouseGOP) April 27, 2026
Additional details on specific tax provisions and final budget allocations are expected to be addressed as the proposal moves through the legislative process and negotiations continue with the governor’s office.
In the first week of the State Legislature’s session this year, Republicans delivered a major win on our longstanding promise to provide historic relief to millions of hard-working taxpayers in the form of a $1.1 billion tax cuts package. Our action follows years of escalating costs brought about by the failed policies of the Biden-Harris Administration, where Americans struggled to pay bills, put food on the table, and save for their children’s future. The plan would have aligned Arizona’s tax code with the federal reforms championed by President Donald J. Trump and congressional Republicans just this last year, targeting relief where it is needed most and reasserting the Grand Canyon State as one of the most affordable and competitive in the country.
Unfortunately, without much thought, Democrat Governor Katie Hobbs vetoed our package within hours of its passage through both chambers of the Arizona Legislature, denying real, practical relief to the taxpayers she took an oath to serve.
The governor’s veto was cruel and callous toward the people she claims to represent. It also came just weeks after she essentially claimed credit for the recently enacted federal tax cuts that were predominately due to Republicans’ foresight and execution. Her previous words rang hollow with one stroke of her pen, just as tax season is getting under way for Arizonans looking for real leadership from their state leaders.
Governor Hobbs’ veto was not so surprising; she has shot down a historic number of commonsense bills throughout her three-plus years in office. We had hoped, however, in the spirit of bipartisanship, doing the right thing, and putting taxpayers first, that the governor would sign this legislation. Unfortunately, the governor resorted to her partisan roots and adhered to the demands of the radical liberal extremists who control her every move in office.
The historic relief package sent to Governor Hobbs’ desk this month would have provided incredible results for Arizona families and job creators and again positioned our state as a national leader on this front. Our bill would have increased the child tax credit, created a new deduction for childcare expenses, and provided meaningful help for working families, seniors on fixed incomes, and job leaders across the state. Most importantly, the legislation would have given clarity to taxpayers looking to plan ahead and expecting consistency between their federal and state forms and returns.
All these efforts went for not, though, when Governor Hobbs immediately rejected this package.
The governor’s negative action on our bill shows yet again that there are inherent differences between our two parties on the all-important issue of taxes and spending. Republicans believe that Arizonans should keep more of what they earn, and that government should spend within its means—instead of inflating its budgets on the backs of hard-working citizens. Democrats, on the other hand, believe that they are entitled to more of your money to fund socialist projects and programs—like many of the ones in California, New York, and Illinois. There’s a reason why so many Americans are fleeing the aforementioned states (and others) and migrating to Arizona and other Republican-led bastions of freedom: it’s because our states are taking action to cut taxes for families and businesses alike.
In short, Republicans believe that government exists—and works—for the people who elect us at the ballot box. It’s your money, and it’s your government. We are the stewards of your hard-earned dollars, which means it is our job to ensure that government lives within its constitutional jurisdictions and sets up future generations of Americans for success and prosperity. These principles were at the heart of the Arizona tax relief package.
Despite this setback, Arizona legislative Republicans will not cease our efforts to lower taxes and keep our state affordable for all. Over the past two decades, we have authored and passed many pieces of legislation to cut taxes and reduce the cost of living, including a historic flat income tax, tax rebates, and relief for renters and small businesses—among many other cost-saving actions. We will not stand by and admit defeat when a Democrat governor places her special interest friends above hard-working taxpayers. Rather, we will redouble our efforts to put more money into the pockets of the proud men and women we humbly serve.
Contributors to this op-ed include: Senate President Warren Petersen, Senate Finance Committee Chairman J.D. Mesnard, Senate Majority Leader John Kavanagh, and Senate Appropriations Chairman David Farnsworth.
The legislation would have aligned Arizona’s tax code with recent federal changes and included provisions eliminating state income tax on tips and overtime pay, increasing the standard deduction, expanding the child tax credit, creating a deduction for childcare expenses, and providing additional tax relief for seniors.
Hobbs vetoed the bill without releasing a formal veto message as of the time of publication.
In response, House Speaker Steve Montenegro (R-LD29) issued a statement criticizing the governor’s decision and warning of potential impacts on taxpayers as the filing season approaches.
“Governor Hobbs’ veto of our tax relief act is a failure of leadership that will create unnecessary confusion and disruption for millions of Arizona taxpayers,” Montenegro said in a statement released Thursday.
🚨Governor Hobbs vetoed tax relief for Arizona families!
She vetoed: ❌ A higher standard deduction ❌A childcare deduction ❌ A larger child tax credit ❌ No tax on tips ❌ No tax on overtime ❌ Tax relief for seniors
Montenegro said House and Senate Republicans passed the legislation early to provide clarity and certainty for families, seniors, small businesses, employers, and tax preparers. He added that the bill conformed Arizona law to federal tax changes and removed provisions the governor had previously opposed.
“The Governor admitted swift action was needed. She asked for a bill to be sent quickly. We did exactly that,” Montenegro said. “What she did not do was offer a plan of her own. No bill. No alternative. No solution.”
Montenegro also listed several provisions included in the legislation that were rejected through the veto, including increases to the standard deduction, a childcare expense deduction, an expanded child tax credit, elimination of state taxes on tips and overtime, and additional tax relief for seniors.
Montenegro said the veto would lead to confusion for taxpayers, adding, “The chaos ahead is not accidental. It is the direct result of Governor Hobbs’ decision to veto a responsible tax conformity bill with no replacement plan.”
The veto also prompted reaction from other Republican lawmakers. State Rep. Nick Kupper (R-LD25) criticized the decision in a post on X. Kupper wrote, “Of course @GovernorHobbs vetoed the tax cuts we sent her because she doesn’t give a crap about working families. If she can’t give more handouts to non-working people then she won’t like whatever we send her.”
Of course @GovernorHobbs vetoed the tax cuts we sent her because she doesn’t give a crap about working families.
If she can’t give more handouts to non-working people then she won’t like whatever we send her. https://t.co/pIpaE6bO5k
Arizona Congressman and 2026 gubernatorial candidate Andy Biggs, said, “Katie Hobbs vetoed a $1.1 BILLION tax cut for Arizona seniors, families, and workers. She is a weak and ineffective governor keeping Arizona from its full potential. She has no vision for the state. She has no ability to lead.”
Katie Hobbs vetoed a $1.1 BILLION tax cut for Arizona seniors, families, and workers.
She is a weak and ineffective governor keeping Arizona from its full potential.
Republicans do not hold the votes necessary to override the governor’s veto, leaving tax conformity unresolved unless lawmakers and the governor reach an agreement later in the legislative session.
