Governor Hobbs’ Budget Prioritizes Economic Development

PHOENIX, AZ (January 17, 2025) - Governor Katie Hobbs today released her fiscal year 2026 Executive Budget proposal, which emphasizes key priorities including education, water security, and public safety. In addition, the Governor's budget shows strong support for continuing Arizona's unprecedented economic momentum, including additional funding for key state economic development initiatives.

"We're incredibly grateful for Governor Hobbs' strong leadership and support of advancing Arizona's economic momentum," said Sandra Watson, President and CEO of the Arizona Commerce Authority. "Governor Hobbs's proposed budget would enhance Arizona's competitiveness and help ensure we remain a top destination for businesses and people alike. We look forward to working with the Governor and our legislators to enhance our premier business environment, grow job training pathways, and create further economic opportunities for our residents."

In her State of the State speech on Monday, Governor Hobbs highlighted Arizona's major economic development expansions taking place, including the state's recent selection for a flagship semiconductor prototyping and research and development facility under the CHIPS Act.

"Through successful public-private partnerships and bipartisan collaboration, we are creating good-paying jobs that support industries critical to our national security and economic future. We are leading America's manufacturing renaissance," she said.

The Governor's fiscal year 2026 (FY26) executive budget funds important priorities including K-12 education, university and community college training programs, affordable childcare initiatives, and water security. In addition, the budget includes:

• A $10 million one-time deposit from the General Fund to the Arizona Competes Fund (ACF) "to further invest in maintaining Arizona's desirability as a destination for businesses and economic activity" as well as restoring annual deposits going forward;
• And a $5 million one-time deposit from the General Fund to the Major Events Fund "to provide grants to local organizing committees to support the competitive bid process and operation of major events."

During calendar year 2024, the Arizona Commerce Authority and economic partners successfully won over 100 competitive projects from companies that committed to creating more than 25,800 projected new jobs and investing over $53.6 billion in the state.

Read more about the Governor's FY26 Budget HERE.

Media Contact

Alyssa Tufts, Arizona Commerce Authority, [email protected]

About the Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is the state's leading economic development organization with a streamlined mission to grow and strengthen Arizona's economy. The ACA uses a three-pronged approach to advance the overall economy: attract, expand, create - attract out-of-state companies to establish operations in Arizona; work with existing companies to expand their business in Arizona and beyond; and help entrepreneurs create new Arizona businesses in targeted industries. For more information, please visit azcommerce.com and follow the ACA on X @azcommerce.