Arizona Gov. Hobbs opens 2026 legislative session with State of the State Address

Affordability a main theme in Gov. Hobbs' address

Lawmakers in Arizona have returned to the State Capitol for a new legislative session, and Governor Katie Hobbs encouraged lawmakers to pass a tax cut for Arizona families during her annual State of the State Address.

PHOENIX - On Jan. 12, lawmakers across Arizona returned to the state capitol to open a new session for the 57th Arizona Legislature.

The new session kicked off with the annual State of the State Address, which was delivered by Governor Katie Hobbs. During her speech, she tried to appeal to all Arizonans, and said she wants to cut taxes for the middle class.

What She Said:

During her speech, Gov. Hobbs said affordability is her number one priority. She is encouraging lawmakers to pass an over $200 million tax cut for Arizona families, and said that would include cutting taxes on overtime and tips.

"Put the middle class tax cut package on my desk immediately. I'll sign it," said Gov. Hobbs, during her address. "Deliver an over $200 million tax cut for hard-working Arizona families. We can immediately increase the standard deduction that 88% of Arizona tax filers use. We can cut taxes on overtime and tips. We can give our seniors a break. We can put more money in the pockets of Arizona families, care for their children, and pay their utility bills." 

The address also gave Gov. Hobbs time to reflect on the progress that her administration has made, such as working with companies like TSMC and Dutch Brow to grow the state's economy. She also proposed that data centers pay their fair share for the water they use.

The other side:

Following Gov. Hobbs' speech, State House Speaker Steve Montenegro (R) reacted to her speech.

"For the last three years, we've sent her bills that would bring tax relief for everyday Arizonans. In fact, she's called herself the ‘veto queen.’ Bills that would lower the tax burden and curb spending who are struggling with affordability, but she's vetoed those as well," State House Speaker Montenegro said.

Dig deeper:

More than 200 bills have already been reported to have been filed ahead of the session, plus nearly a dozen ballot measures which would not require the governor's approval, and go to the voters in November to decide whether they should become law.

Some of the big issues lawmakers are expected to tackle this session include, conforming the state tax code with the federal government's H.R.1 – more commonly known as the "Big Beautiful Bill." Both parties are expected to push different affordability and healthcare issues.

Big picture view:

This will be a major year for lawmakers with every legislative seat up for reelection, along with key state offices such as governor, secretary of state, attorney general and all congressional districts.