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House Passes $17.9 B Budget, Gov. Delays Signing Over Cuts

5/3/2026

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Story summary
  • House Republicans approved a $17.9 billion budget that cuts agency budgets by 5% to fund federal tax conformity.
  • Governor Katie Hobbs has not signed the budget, citing lack of Democratic support.
  • Democratic leaders warned the plan could raise employee health-insurance premiums up to 10% and tighten Medicaid and SNAP eligibility.
  • Republicans say the 5% cuts would save about $99 million and make Arizona the only state with full tax conformity.