AZ Legislative Update – House Passes Continuation Budget As Deadline Looms to Avoid a Shutdown
Posted by [email protected] on Jun. 25, 2025 / Subscribe 0
Last night, the Arizona House of Representatives passed its continuation budget, which would extend current-year funding levels into FY 2026. The move is part of an ongoing standoff with Governor Katie Hobbs, who has made clear she will veto the continuation budget if it reaches her desk.
The Arizona Senate is now weighing whether to pass the House’s continuation plan, not as an endorsement, but as a strategic step. By sending the budget to the Governor and triggering a veto, Senate leadership may be aiming to force the House to reconsider and ultimately accept the previously negotiated bipartisan budget agreement supported by both the Senate and Governor Hobbs.
With just days remaining before the start of the new fiscal year, pressure is building to reach a resolution and avoid a potential government shutdown. Governor Hobbs and the Arizona Department of Administration has instructed all state agencies to prepare contingency plans. That includes classifying programs and personnel into “essential” vs. “non-essential” and laying the groundwork for possible furloughs of some of the 34,000 state employees.
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