Arizona Legislature Approves Budget, Avoids Shutdown, and Adjourns Sine Die
With just days remaining before the June 30th deadline, the Arizona Legislature passed the $17.6 B bipartisan appropriations package, averting a government shutdown.
The legislative budget process is often marked with some tension and angst due to divided government, but this year took the cake on “how the sausage is made”. The House initially passed its $17.3 B budget, feeling good about the package that funded education, key infrastructure projects, and considered major impacts from federal government cuts. However, optimism was limited: House Democrats abstained from voting, and Governor Hobbs expressed strong disapproval—threatening a veto over the House Republicans’ spending decisions.
To avoid a government shutdown, the House subsequently proposed a continuation budget to ensure state agencies and government employees could keep the lights on past June 30th. Ultimately, the Senate advanced both House proposals, passing on party line votes, and sent the bills to Governor Hobbs. She swiftly vetoed both versions and restated that the budget passed by the Senate was the proposal that was negotiated in a bi-partisan manner and included crucial allocations for childcare, public safety, and other key areas of focus for Arizonans.
Ultimately, the House added minor amendments to a handful of the budget reconciliation bills (BRBs) from the Governor/Senate budget package, passing them out of the House with a supermajority vote in the wee hours of Thursday night. The Senate promptly approved the amended bills. The budget received her signature by Friday afternoon and the 57th Legislature-First Regular Session adjourned Sine Die on June 27th.
Throughout this process, the business community remained an influential voice at the Capitol, advocating for key policy and budget priorities. Several highlights include:
- $1.5 millionto continue student access to dual enrollment programs
- $24 millionfor SPEED bonding, enabling ASU, NAU, and UofA to access $325 million in bonding capacity for major capital projects, such as new medical and nursing schools
- SB 1215: Establishes guardrails to protect businesses in third-party litigation cases
- SB 1611: Modernizes Arizona water policy to meet the needs of a growing state
- HB 2704: Ensures that Chase Field maintains its facility, supporting ongoing economic development in downtown Phoenix
The Greater Phoenix Chamber proudly hosted the 2025 Legislative Wrap Up Breakfast, bringing together business leaders and policymakers for a dynamic conversation on the First Regular Session of Arizona’s 57th Legislature.
Attendees heard firsthand from Senate President Warren Petersen, Senate Minority Leader Priya Sundareshan, and State Representative Justin Wilmeth, who shared thoughtful reflections on this year’s biggest legislative developments. From tackling Arizona’s growing energy needs to advancing sustainable infrastructure, panelists discussed the opportunities and challenges shaping our state’s future.
We were also honored to present the 2025 Public Service Legacy Award to Michael Hunter, former Chief of Staff at the Arizona House of Representatives, recognizing his decades of service and lasting contributions to public policy.
Thank you to our panelists, sponsors, and attendees for making this event a success and helping us keep the business community informed and engaged. #LWU2025