Arizona’s $18.3 Billion Budget: What Physicians Need to Know

Governor Hobbs Signs Bipartisan Budget, Preserves GME Funding as Legislature Adjourns

After months of contentious negotiations, Governor Katie Hobbs and Republican legislative leaders reached a bipartisan agreement on an $18.3 billion state budget. Both chambers passed the package with strong bipartisan support last Thursday. The legislature then adjourned sine die on Saturday after debates over outstanding items bled into the early morning. Hobbs signed the budget into law that same day.

The final budget includes significant tax cuts and spending restraints alongside targeted healthcare investments. The budget also provides funding for senior services, food assistance programs, and civil legal aid aimed at preventing evictions. 

Several governor-proposed priorities — including new revenue measures and expanded community assistance programs — did not survive negotiations. Legislative leaders from both parties characterized the agreement as imperfect but preferable to earlier proposals that would have imposed deeper cuts across state agencies.

The Arizona Medical Association’s Advocacy Team represented the physician community’s interests throughout the months-long budget debate, most notably lobbying for the preservation of critical graduate medical education funding, which was at risk of being swept. 

Learn more about the budget and what it means for physicians on ArMA’s website.