Arizona House-Senate Budget Deadlock Threatens Government Shutdown

Arizona is facing a potential government shutdown as the state legislature remains deadlocked over the fiscal year 2025 budget, which must be approved before the July 1 deadline. The Senate passed a $17.6 billion budget plan with bipartisan support but adjourned sine die without coordinating with the House, which has yet to take up the Senate's budget and had earlier approved a competing plan that is $300 million less. House Speaker Steve Montenegro criticized the Senate's approach as a partisan 'farce' and indicated the House will draft a continuation budget to keep state operations running past the deadline while negotiations continue. Governor Katie Hobbs supports the Senate-approved budget, but the House lacks sufficient votes to pass it, and there is bipartisan opposition in the chamber. Senate Republicans expressed frustration over the Senate adjourning without the House, warning that if the House amends the budget and the Senate does not reconvene, a shutdown could occur. The impasse jeopardizes government functions and critical funding for areas such as first responders, education, veterans programs, and infrastructure.