Petersen, Shope Clash with GOP House Leaders over Budget

Arizona’s Republican-led Senate is moving forward with what leaders are calling a balanced and bipartisan budget, aiming to avoid a looming government shutdown and provide strategic investments in key areas without raising taxes. However, across the Capitol, House Republicans—surprisingly backed by the Freedom Caucus—have passed their own version of the state budget, which is packed with conservative priorities and features major political messaging.

The Senate proposal, set for debate in the Appropriations Committee on Tuesday, includes funding increases for public safety, infrastructure upgrades, water conservation, and public health, according to a press release. Crucially, they claim it does not include a $100 million tax extension that was part of the House’s plan.

“This is a bipartisan budget the Republican majority can fully support and the governor will sign,” said Senate President Warren Petersen. “We’re protecting the interests of Arizona by boosting pay for public safety personnel, investing in infrastructure, and securing our water future—all without raising taxes.”

Senate leaders are positioning their plan as a pragmatic path forward in an era of divided government.

“This budget is viable, unlike the fantasyland budget proposed in the House,” said Senate President Pro Tempore T.J. Shope. “Republicans can’t get everything they want, and neither can Democrats. We did very well with protecting and funding our Republican priorities.”

Meanwhile, the Arizona House passed its own version of the budget last week, heavily influenced by the Freedom Caucus and packed with conservative policy provisions that Senate leadership and the Governor’s office have rejected outright.

House GOP Senior Advisor Jordan Kittleson called the House proposal “a strong, conservative budget that delivers wins for the grassroots.” He credited Speaker Steve Montenegro and House Leader Michael Carbone for working in a “unifying fashion” alongside the Arizona Freedom Caucus.

The House-passed budget includes these Freedom Caucus wins:

• A 2.5% tuition cut and a 3-year freeze on tuition and fees for in-state university students
• Election integrity measures, including $4M for the Maricopa County Recorder and a ban on County Boards of Supervisors interfering with their operations
• Stripping Secretary of State Adrian Fontes of major funding requests and requiring legislative approval before he can spend federal funds
• A ban on tuition subsidies for illegal immigrants
• A ballot referral banning mileage tracking or taxation by the government
• Funding for ASU’s Center for American Institutions and a new Teacher’s Academy at Grand Canyon University
• Restrictions on family court lobbyists and salary hikes

“We’re unstoppable when we’re together. No intermissions,” Kittleson posted on X. “This is exactly what thousands of grassroots patriots voted for.”

However, despite the enthusiasm from House conservatives, Senate Appropriations Chairman John Kavanagh warned that the House plan includes “unconstitutional policy measures” and stated that Governor Hobbs has made it clear she will veto it.

“With the possibility of a government shutdown in a matter of days, we must move forward with our conservative spending plan,” Kavanagh said of the Senate’s proposal.

The Senate version is scheduled for a floor vote Wednesday before being sent to the House. In the meantime, House Republican leadership launched a media blitz aimed at selling their plan. With time running out, the negotiations are at a critical point, and it remains unclear whether the House or Senate version will prevail