Arizona Governor Halts Bill Signings Until Legislature Shows Budget Plan

Governor Announces Legislative Moratorium in Escalating Budget Standoff

Governor Katie Hobbs announced Monday she will veto every bill sent to her desk until Republican lawmakers publicly release their budget proposal and return to budget negotiations.

The Democratic governor signed 32 bills and vetoed 20 others before declaring that all future legislation will be dead on arrival unless the legislative majority shows Arizonans their budget plan.

Until the legislative majority shows us their plans for a balanced budget that works for middle-class Arizonans, their bills will be dead on arrival, Governor Hobbs said in a statement.

This marks an escalation in the months-long standoff over state spending. The moratorium comes 87 days after Hobbs released her executive budget, which called for middle-class tax cuts and $1.5 billion in funding for public schools through Proposition 123.

Two Public Safety Exceptions

The governor said the moratorium will not apply to two critical public safety measures. She is ready to sign SB 1503 regarding first responder death benefits and another bill allocating $4.75 million from the Highway Patrol Fund to the Department of Public Safety.

I understand that public safety cannot wait for obstructionist politicians in the legislature to get their act together, Governor Hobbs wrote. I am ready to sign those bills as soon as they reach my desk to support our State Troopers and first responders.

GOP Leaders Call It Political Theater

Arizona House Speaker Steve Montenegro (R-29) and Senate President Warren Petersen (R-2) responded by calling the governors action political theater. Montenegro said it was Hobbs who walked away from budget talks three weeks ago.

Governor Hobbs quit the budget talks more than three weeks ago after it became clear her numbers did not add up, and now she is trying to distract from that failure with a bill-signing freeze, Montenegro said in a statement.

Arizona needs a balanced budget built on honest numbers, not press stunts and invented revenue. House Republicans are at the Capitol, doing the work and ready to govern, he added.

Petersen and Montenegro issued a joint statement earlier this month saying Hobbs budget proposal would drain a voter-protected education fund, pile on $1.5 billion in new debt and rely on numbers that simply do not add up.

Budget Negotiations Stall Over Prop 123

Negotiations stalled on March 20 after GOP leadership told the governors office that Prop 123 was taken off the table. The governor had previously paused talks on March 20 due to Republican refusal to discuss Proposition 123.

On March 19, Republican budget negotiators notified the governors office that Prop 123 is off the table for the session. The governor had argued that the measure would deliver $1.5 billion to Arizona public schools without raising taxes.

On March 30, Republicans changed their explanation for taking Prop 123 off the negotiating table and claimed they will show their budget plans within the next month. Twenty-four days after promising a budget in the coming weeks, Republicans have made no progress on showing Arizonans their budget.

Timeline of the Standoff

The timeline of budget negotiations has been contentious throughout the session:

• April 8: Governor Hobbs unveiled her executive budget calling for middle-class tax cuts and $1.5 billion for schools
• February 19: Republicans claimed to have presented a balanced budget plan to the governors office, though they kept it secret from the public
• March 12: Senator Hoffman tweeted if Republicans surrender on Prop 123, they will effectively underwrite the governors reelection campaign
• March 19: Republican budget negotiators told the governors office Prop 123 is off the table
• March 20: The governors office paused negotiations due to Republican refusal to discuss Prop 123
• March 20: Republicans also called on the governor to show their budget to the public
• April 13: Governor Hobbs signs 32 bills, vetoes 20, and announces moratorium

This Is Not the First Time

This is not the first time Hobbs has issued a legislative moratorium. In April 2025, the governor took a similar step, vowing to veto all legislation until the Republican-controlled Legislature passed a bipartisan plan to fund the Division of Developmental Disabilities. She lifted that moratorium a week later after signing a compromise spending bill into law.

The current standoff has drawn comparisons to the previous governors budget freeze. State agencies have begun to feel the pressure as the legislative gridlock continues.

What Comes Next

Arizonans are now waiting to see whether the Republican leadership will follow through on their promise to present a budget plan to the public. Governor Hobbs has made it clear her door is open for negotiations, but she will not sign any bills until she sees the numbers.

The Republican majority has 60 days to pass a budget or face a governor-driven shutdown. With the moratorium now in place, any legislation Republicans push through must be considered public safety must-pass bills.