Arizona house
Hobbs Rejects Arizona Budget Proposal, Poses Threat of Government Shutdown

Arizona Governor Katie Hobbs vetoed a continuation budget on Tuesday, criticizing House Republicans for “pointless political grandstanding” just days before the June 30 budget deadline. The House’s stopgap measure was intended to maintain government operations as budget negotiations continued, yet Hobbs labeled it a “sham budget” that jeopardizes essential state services and undermines bipartisan efforts in the Senate.
“For months, I worked with leaders of both parties to craft a bipartisan, balanced, and fiscally responsible budget that enjoys support from many Senate Republicans,” Hobbs stated. “That budget includes pay raises for State Troopers and firefighters, tax cuts for small businesses, investments in combating Veterans homelessness, and enhanced childcare accessibility.”
The veto escalates tensions between the House and the executive branch. House Speaker Steve Montenegro (R-LD29) characterized the continuation budget as a necessary measure to prevent a government shutdown after the Senate’s proposal struggled to gain traction in the House. “We owe it to the people we serve to take the time needed to get this right,” Montenegro remarked. “This continuation budget ensures state services remain funded as we work toward a more responsible solution.”
Hobbs, however, rejected this rationale, accusing House Republicans of risking essential services for political advantage. “Both of the partisan and reckless House Republican budgets are unacceptable,” she asserted. “They jeopardize public safety, reduce healthcare for Arizonans, harm businesses, and neglect our Veterans.”
With the fiscal year ending in just five days and no approved budget in place, Hobbs called on lawmakers to reject political maneuvering and support the bipartisan budget already passed by the Senate. “It’s time for House Republican leadership to move beyond political stunts and collaborate productively with their colleagues to avoid an unnecessary state government shutdown,” she concluded.