ARIZONA: Governor Hobbs Vows to Veto All Bills After Walking Away From Budget Talks With GOP Legislature

Arizona Gov. Katie Hobbs (D)  said she will veto all legislation reaching her desk after walking away from budget negotiations with the Republican-controlled Arizona Legislature, escalating a standoff over the state budget.

In a statement posted Monday on X, Hobbs said she would block all bills until legislative Republicans present a public budget proposal and engage in negotiations.

“Today, I promised to veto all bills that come to my desk and again invited legislative Republicans to show their budget plans to the people of this state,” Hobbs wrote. “I’m ready to talk, but I can’t negotiate with politicians who refuse to show the public their plans.”

Today, I promised to veto all bills that come to my desk and again invited legislative Republicans to show their budget plans to the people of this state. I’m ready to talk, but I can’t negotiate with politicians who refuse to show the public their plans.

The legislative…

— Governor Katie Hobbs (@GovernorHobbs) April 13, 2026

Hobbs said she is seeking a “bipartisan, balanced budget” and called on the legislative majority to formally release its proposal and enter negotiations. She also outlined priorities, including tax reductions, more than $1 billion in public school funding, and measures to lower costs for Arizona residents.

The governor criticized Republican lawmakers for what she described as a lack of engagement in budget discussions, stating that they had “failed to come to the table with real proposals” and had instead focused on other legislative priorities.

Arizona House Speaker Steve Montenegro issued a statement in response, accusing Hobbs of abandoning negotiations, using a veto threat to pressure lawmakers, and basing her proposal on numbers that “did not add up” and included “invented revenue” to fund her policy goals.

In a statement posted on X by the Arizona House GOP, Montenegro said: 

“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. 

That is political theater. 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. The Governor can end her sideshow anytime by coming back to the table, doing her job, and dealing with reality.” 

“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. That is political theater. Arizona needs a balanced budget built on honest numbers,… https://t.co/9GnnP1YI5f pic.twitter.com/0j7Cl915DZ

— Arizona House Republicans (@AZHouseGOP) April 13, 2026

In a March joint statement with Senate President Warren Petersen, referenced by Montenegro, Arizona Republican leaders said Hobbs’ proposal “to dramatically increase withdrawals from Arizona’s Public Land Trust … relies on unrealistic assumptions, including sustained high investment returns with no economic downturn for two decades, while dramatically increasing withdrawals beyond historical levels.” 

“The broader budget follows the same pattern, layering in $1.5 billion in new debt, higher taxes and fees, and questionable revenue projections to cover increased spending. That is not a balanced budget.”

The dispute comes amid broader tensions between the governor and the Republican-led Legislature over policy priorities and the budget process. Hobbs has issued a high number of vetoes during her tenure, setting state records for rejected legislation in recent sessions. 

Reporting from KJZZ shows the governor has continued vetoing bills during the current legislative session, adding to a growing list of rejected measures in 2026. 

Republican lawmakers have also reintroduced dozens of previously vetoed bills this session, with one analysis reported by AZ Capitol Times finding at least 87 proposals brought back after earlier rejection. 

The governor’s decision to veto all incoming legislation marks a significant escalation in the standoff and could impact the progress of unrelated bills moving through the legislative process.

No timeline has been announced for when budget negotiations may resume.