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Budget Battle Brewing at the AZ State Capitol

  • Arizona faces a potential government shutdown on July 1, the start of fiscal 2026, due to a budget impasse at the state Capitol.
  • The deadlock arises as House Republicans decline to approve the $17.6 billion spending plan that the GOP-led Senate passed with backing from Governor Hobbs.
  • House Speaker Montenegro proposed a stopgap budget to maintain government functions beyond the June 30 deadline, but Governor Hobbs vowed to reject any partisan funding plan of that kind.
  • Governor Hobbs warned that any partisan continuation budget would be vetoed outright and instructed state agencies to begin preparing for potential shutdown effects, including furloughs among some of the state's 34,000 employees.
  • This stalemate risks halting much of state government, disrupting vital services, and highlights deep divisions calling for bipartisan cooperation to avoid unprecedented shutdown consequences.
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Arizona Daily Independent broke the news in on Saturday, June 21, 2025.
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