Hobbs had bipartisan wins in 2025, but fell short on some goals
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Gov. Katie Hobbs is touting some big bipartisan wins, but has unfinished business in the wake of the 2025 legislative session.
The big picture: Now in her third year as governor, Hobbs sat down with Axios last week to discuss the legislative session, saying, "We got a lot of big things done." She touted achievements like funding for developmental disabilities services and a hard-fought bipartisan budget deal, as well as:
Ag-to-urban: The legislation allows farmers to sell agricultural water rights to housing developers in the Phoenix area and Pinal County, opening the door for more housing in fast-growing Buckeye and Queen Creek affected by Hobbs' 2023 moratorium on groundwater certifications for new subdivisions.
- Hobbs said it might be the most significant groundwater legislation in Arizona since 1980.
Axon: After opponents of the Taser-maker's proposed Scottsdale headquarters referred a zoning change to the ballot over planned apartment units, Hobbs signed legislation cancelling the election, ending a potential risk of the company relocating out of state.
Diamondbacks: A drawn-out fight over public funding for improvements to Chase Field ended with a bipartisan agreement to provide $500 million in tax revenue generated by the Diamondbacks, and penalizing the team if it leaves before 2050.
- Hobbs disputed critics' characterization of the bill as a taxpayer giveaway to the team, saying it's mutually beneficial for the Diamondbacks to remain in Phoenix.
Yes, but: The governor fell short on some noteworthy agenda items in her State of the State address.
- She called on lawmakers to expand Arizona's low-income housing tax credit, but the Legislature failed to renew it. Arizona will become the first state to abolish such a program in December.
- Lawmakers didn't support her proposed public-private partnership in which the state and private businesses would help pay for employee child care, though she said other changes would significantly cut the state's low-income child care waitlist.
The intrigue: With her reelection looming in 2026, the Democrat took steps that could endear her to Arizona's Republican-leaning electorate.
- After vetoing legislation supported mostly by Republicans to restrict the Chinese government from owning land in Arizona, Hobbs pushed an alternative that passed on a bipartisan vote.
- Hobbs signed bipartisan legislation requiring pornography websites to verify users' ages, similar to a bill she vetoed last year.
- Hobbs said she heard from parents who were concerned about what their children could access online, telling Axios, "This is the right balance to protect them."
What she's saying: "I'm always focused on doing what's right for Arizonans. That can sometimes look political, and there are political ramifications of every action that an elected official takes," Hobbs said.
Between the lines: Hobbs broke the single-session veto record (143) she set two years ago, rejecting 174 bills.
- That says a lot about the Republican-controlled Legislature's propensity for sending her bills she's already vetoed, she said.
- "I will continue to be a backstop when legislators are trying to impose extreme ideology on Arizonans," Hobbs told Axios, citing issues like voting and access to reproductive health.
What's next: Off-session, Hobbs said she'll look to priorities like re-establishing the low-income housing tax credit, pushing additional groundwater reforms, and getting a plan to renew the K-12 education funding measure Proposition 123 to the ballot.