As government shutdown looms, AZ governor vetoes House's budgets

Arizona Gov. Katie Hobbs Wednesday vetoed both of the House's budget proposals with just five days left to keep the government running.

The state Senate, which has worked with the Democratic governor and ended its 2025 session June 20 after passing its version of a $17.6 million budget, is hoping for more success if the House passes the Senate budget. In fact, Hobbs said Wednesday she likes the Senate version better.

Hobbs vetoed the 28 bills that made up the House Republican majority’s two budget proposals. The governor previously said she wouldn’t sign a budget that she felt short-changed public safety, child care and veterans.

“For months, I worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced and fiscally responsible budget that the majority of Senate Republicans support,” Hobbs said in a news release. “That budget has pay raises for State Troopers and firefighters, cuts taxes on small businesses, invests in combating Veterans homelessness, and makes childcare more affordable and accessible. It passed the Senate and should be voted on by the House."

She continued: “I have long made clear that both of the partisan and reckless House Republican budgets are unacceptable. They gut public safety, slash healthcare for Arizonans, harm businesses, fail to lower costs, and leave our Veterans out in the cold. These unserious budgets are wrong for the people of Arizona.”

House Speaker Steve Montenegro responded by expressing disappointment Hobbs didn’t support what he called “two responsible budgets” ahead of the June 30 deadline to avoid a government shutdown. Both budgets would have kept “essential state services running,” Montenegro said in a news release emailed Wednesday afternoon to The Center Square.

“The House has done its job, twice,” the Republican speaker said. “We passed a balanced budget that prioritized responsible spending and core needs. When that plan was rejected, we advanced a continuation budget to avoid disruption and allow time for further negotiations. Both were rejected.

“Despite the Governor’s actions, House Republicans will continue working to keep the government operating and protect Arizona taxpayers from the consequences of political brinkmanship."

Republicans have majorities in both the House and Senate, but lack enough seats to override Hobbs' vetoes.