Veridus Advisory: Governor Hobbs Delivers 2025 Agenda In State of the State Address

Dear Clients,

Today, the 1st regular session of the 57th Legislature convened at the Arizona State Capitol. Lawmakers took their oaths of office during swearing-in ceremonies in the House and Senate, followed by Governor Katie Hobbs’ delivery of her third State of the State address. The approximately 45-minute speech highlighted accomplishments earlier in her term and served as a roadmap of sorts for her policy priorities over the coming year. 

Among highlights, Governor Hobbs announced:

• An array of proposals to improve housing affordability, including extending the State Low-Income Housing Tax Credit and creating a Homes for Heroes fund to reduce homelessness among veterans;

• A new plan she is calling the Working Families Child Care Act, which she said would cut the cost of child care by two-thirds; and

• An across-the-board, 5% pay hike for frontline law enforcement.

The Governor also called for legislation guaranteeing the right of every Arizona woman to access contraception and fertility treatment; reaffirmed the need to extend Proposition 123 funding for education; and demanded reforms to the state’s ESA program, which she said has “ballooned into a billion-dollar boondoggle increasingly scamming Arizonans.”

No surprise, Governor Hobbs’ remarks received a chilly reception by GOP legislative leaders. House Speaker Steve Montenegro (R-Goodyear) said the Governor’s agenda “does not align with the priorities of most Arizonans.”

On Friday, the Governor will issue her fiscal 2026 Executive Budget. Traditionally, that plan serves to kickstart spending negotiations with lawmakers.

We will keep you updated with the latest. 

Sincerely,

The Veridus Team