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 Staff Reporter | Feb 1, 2026 | Education, News
By Staff Reporter |
Arizona Senate Republicans are refusing to let a parental rights bill die under Gov. Katie Hobbs’ heavily-used veto pen.
Senate Republican leadership revived the legislation through a concurrent resolution, passed out of committee on Wednesday. This legislative pathway allows the slim Republican majority to avoid another inevitable veto from the governor.
SCR 1006 from Senate Majority Leader John Kavanagh (R-LD3) directly challenges the supremacy of transgender-affirming policies and practices within schools.
“Parents have a fundamental right to know what’s happening with their kids at school, and students deserve privacy and safety. No 14-year-old girl should be forced to stand naked in a shower with an 18-year-old man who thinks he’s a girl,” said Kavanagh. “Families shouldn’t be sidelined, and schools shouldn’t be forced into confusion. This reflects what most Arizonans already believe, and it gives them the final say.”
If passed, the resolution would have voters decide whether to require schools to obtain parental permission prior to engaging in transgender-affirming behaviors: referring to a minor student by a name other than the one listed on school records, or referring to a minor student using pronouns that differ from that student’s biological sex.
Voters would also decide whether public schools must provide reasonable accommodations: access to a single-occupancy or employee restroom or changing facility for any individual unwilling to use the facility designated for their biological sex.
Lastly, voters would decide whether individuals could sue public schools for subjecting them to transgender-affirming policies, such as encountering an individual of the opposite sex in a restroom or changing facility designated for their biological sex, or being required to share sleeping quarters with a person of the opposite sex.
Gov. Hobbs vetoed two bills that contained these legislative provisions last year (SB 1002 and SB 1003). In identical letters, Hobbs said the state had more pressing matters than asserting parental rights over transgenderism within schools.
“[These] bill[s] will not increase opportunity, security, or freedom for Arizonans. I encourage the legislature to join with me in prioritizing legislation that will lower costs, protect the border, create jobs, and secure our water future,” said Hobbs.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Warren Petersen | Jan 30, 2026 | Opinion
By AZ Republican Lawmakers |
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.
by Matthew Holloway | Jan 18, 2026 | News
By Matthew Holloway |
Gov. Katie Hobbs has vetoed Republican-backed tax conformity legislation approved Thursday by the Arizona Legislature.
The bill, SB 1106, would have provided $1.1 billion in tax relief over three years while maintaining a balanced state budget.
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.
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.”
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.”
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.
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 | Nov 12, 2025 | News
By Staff Reporter |
Arizona may be the next state to adopt drug injection sites following Governor Katie Hobbs’ veto.
Safe injection sites, overdose prevention centers, safer drug consumption services, supervised injection services—all descriptors for locations or facilities where drug addicts can inject illegal drugs while medical personnel watch to ensure an overdose doesn’t occur. In the event of an overdose, personnel intervene to reverse it.
Arizona doesn’t have any drug injection sites—yet. It also doesn’t have a ban on them, and it won’t for the foreseeable future under this current administration.
Earlier this year, Governor Katie Hobbs vetoed HB2798, a bill that would have prohibited local governments from allowing the development of any drug injection sites. Hobbs indicated the injection sites were part of “common sense solutions” for drug addiction.
“These sites are nonexistent in Arizona,” said Hobbs. “I encourage the Legislature to seek common sense solutions to actually help Arizonans struggling with substance use disorder.”
Hobbs’ veto rationale wasn’t widely shared by others in her party. Other states banned drug injection sites before they came into existence. Pennsylvania, for example, passed a ban in 2023 with the support of Governor Josh Shapiro, also a Democrat. So did California.
State-supplied overdose reversal kits are widespread in the state already, even and especially in places where minors frequent. Arizona schools have received tens of thousands of overdose kits in recent years to address the growing trend of minors abusing drugs. Libraries across the Valley also received more than their fair share.
The lawmaker behind the rejected bill, Republican State Rep. Matt Gress, said Hobbs should be replaced for killing his legislation.
Gress paired his commentary with recent footage of an injection site from Canada in Vancouver, British Columbia.
“Arizona deserves a better governor,” said Gress.
Those who spoke out against the bill during committee hearings included the Southwest Recovery Alliance (SRA).
SRA’s executive director Arlene Mahoney opposed the bill language referring to drug injection sites as “narcotics injection sites” rather than “overdose prevention centers,” which advocates often prefer.
“I think the name ‘narcotics injection site’ incites a lot of fear into people and it doesn’t encompass what an overdose prevention center actually provides. It’s an integrative healthcare facility that offers, yes, a safe place for people to consume pre-obtained drugs inside a facility which they would be doing in parks and other places anyways,” said Mahoney.
Mahoney was a social worker and co-investigator on a federally funded study on methadone application at the University of Arizona’s Harm Reduction Research Lab from last year to August.
In 2023, the Biden administration issued a $5 million grant to study the effectiveness of overdose prevention across 1,000 participants at two safe injection sites in New York City and one in Providence, Rhode Island, over the course of four years.
The first injection site in the United States was authorized to launch by New York City in 2021.
Apart from New York and Rhode Island, few legally sanctioned drug injection sites exist because of concerns with federal drug laws.
The city council of Denver, Colorado, attempted to implement a drug injection site in 2018, but the Trump administration warned the site would be illegal.
However, after the Biden administration showed a friendliness to the concept, more drug injection centers are emerging.
In 2022, San Francisco launched a social services resource facility, the Tenderloin Center, that quickly devolved into a drug injection site. The transition to the latter caused the site’s closure after less than a year.
The Tenderloin Center racked up a serious bill: $22 million to service around 400 people daily for 11 months. That’s about $72,400 a day—just under $200 per person if, indeed, an average of 400 people used the center daily.
Last year, Vermont established operating guidelines for drug injection centers after its legislature authorized and funded a drug injection center in the city of Burlington. The city launched its drug injection pilot program earlier this year.
Minnesota has authorized state funding for drug injection centers, but hasn’t granted legal authorization for them.
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