Arizona Governor Katie Hobbs has officially unveiled her Executive Budget for fiscal year 2026, prioritizing support for working families and general prosperity across the state. As reported by the Office of the Arizona Governor, the proposed budget focuses on economic growth, cost reduction, community safety, border security, and the protection of fundamental freedoms for Arizonans.
"To realize the Arizona Promise, we must deliver opportunity, security, and freedom for Arizonans," Governor Hobbs was quoted saying. The economic measures in the budget plan include a $10 million annual tax credit to bolster low-income housing and doubling the capacity for first-time homebuyer assistance through the Arizona Is Home program with $5 million from the American Rescue Plan Act (ARPA) funds. Additionally, $7 million from the General Fund, supplemented by ARPA funds and other resources, will be allocated to the Bright Futures AZ initiative to ease child care costs.
The safety and security of communities also feature strongly in the budget, which earmarks $33.3 million from the General Fund for a 5% salary increase for law enforcement and correctional officers to improve retention and competitiveness. An additional $5 million from the General Fund will support Arizona's border security and counterdrug task force efforts. A notable $1 million one-time contribution is also being made towards a fentanyl awareness campaign that aims to tackle the ongoing opioid crisis.
In addition to these measures, the budget places an emphasis on water security and wildfire management. Governor Hobbs has proposed a $3 million Colorado River Litigation Fund, specifically designated to defend Arizona's interests in its water source. A substantial $30 million has also been allocated for wildfire suppression, underscoring the importance of keeping communities safe from natural disasters. On the educational front, $285.6 million will be directed to schools, and changes to the ESA program are touted to enable further investment in other critical areas such as healthcare.
Moreover, protecting reproductive rights sits among the budget's initiatives, with $344,000 ongoing from the General Fund and additional federal expenditure authority to broaden family planning coverage for Medicaid recipients. Access to a full year's supply of contraception for Medicaid recipients is also on the Governor's agenda, a commitment reflected through an allocation of $120,000 ongoing from the General Fund.
To view the entirety of Governor Hobbs' FY2026 Executive Budget proposal, visit the official budget document as released on the Office of the Arizona Governor website.
