ICYMI: Governor Katie Hobbs Focuses on Affordability in 2026 State of the State Address

Phoenix, AZ - This week, Governor Katie Hobbs delivered her State of the State address, outlining her plans to make Arizona more affordable for working families. In her speech, Governor Hobbs highlighted new measures to cut taxes for middle class people, lower utility bills, and create more affordable homes.

Axios: Hobbs touts affordability in fourth State of the State address

• What she's saying: Arizonans "don't care if good ideas come from Democrats or Republicans - they care that the people they elect get things done to make their lives better regardless of party affiliation and ideology," the governor said.
• State of play: "Affordability is my top priority. I'm encouraged it's yours as well," Hobbs told lawmakers as she outlined several proposals aimed at addressing the issue.

KGUN9: Governor Katie Hobbs promises new plans for affordable housing in State of the State address

• Arizona Governor Katie Hobbs made affordability the centerpiece of her State of the State address Monday, announcing new initiatives to tackle housing affordability.
• During her speech, Hobbs unveiled the Housing Acceleration Fund, which would combine public and private money to build affordable housing more quickly and invest more than $2 million in the effort. "We've launched a war on the cost of housing and it's starting to pay off," Hobbs said.
• The governor highlighted that Arizona has broken ground on more affordable housing units in the past three years than in any other three-year period in state history.

Arizona PBS: Governor Katie Hobbs' State of the State Address

• "If I had to boil it down to three words, it'd be affordability, affordability, and affordability. And so she really carried that thread through every single part of her speech."

ABC15: 'Families deserve a tax cut now': Gov. Katie Hobbs focuses on affordability

• On the first day of the legislative session, Gov. Katie Hobbs called on state lawmakers to help make life more affordable for Arizonans.
• "If you think billionaires and big corporations should get a tax break before hardworking families - then you need to spend more time with real Arizonans who are struggling to get by," Hobbs said.
• Hobbs also called on state lawmakers to rethink Arizona's approach to data centers.
  "It's time we make the booming data center industry work for the people of our state, rather than the other way around," she said.
• That includes repealing tax incentives to build data centers - a policy Hobbs voted for when she was a state lawmaker. It's an idea with some bipartisan support; a Republican lawmaker is sponsoring a bill to end the tax breaks.
• Hobbs is also proposing data centers pay "their fair share for the water they use," with the money going into a Colorado River Protection Fund aimed at growing conservation efforts.

Arizona Republic: Gov. Katie Hobbs wants to make Arizona more affordable. Can she do it?

• Gov. Katie Hobbs put her focus squarely on making life more affordable for Arizonans feeling the pinch of higher costs in the final State of the State speech of her first term as governor.
• Hobbs spoke about the issue in personal terms, noting that she worked at Pizza Hut to put herself through college and took extra jobs to support her family when she was a lawmaker.
• "Affordability isn't a joke or some hoax," Hobbs said. "It's a real and consequential challenge that families across Arizona must grapple with every day. Pocketbooks are strained, and Arizonans need their elected officials to take action."

Arizona Capitol Times: Hobbs focuses on affordability, bipartisanship in fourth State of the State

• The governor urged the Legislature to make her Middle Class Tax Cuts Package its first priority. Her plan would conform the state's tax code to some of the federal changes made by House Resolution 1, known as the "Big Beautiful Bill," but would leave out tax cuts for corporations and high earners.
• "I recognize that you're not going to agree with everything I say or propose here today, and that's fine," Hobbs said. "However, we should all agree that middle-class families deserve a tax cut now, so Arizonans can get that relief when they file their taxes this spring."

KVOA: Gov. Hobbs' Arizona First Plan aims to reduce costs and improve affordability

• Hobbs' Arizona First Plan includes the Middle Class Tax Cuts Package, which features an increased standard deduction, no tax on tips or overtime, and an additional $6,000 deduction for seniors over 65. Additionally, the plan proposes the creation of the Arizona Affordability Fund to assist families with utility bills and housing costs.
• Hobbs proposed a data center water usage fee to support the Colorado River Protection Fund and announced the Housing Acceleration Fund to increase affordable housing. The fund aims to generate significant financing for housing projects by leveraging public and private dollars.

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