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ArizonaHB 4156Fifty-seventh Legislature - Second Regular SessionHouseWALLET

capital outlay; appropriations; 2026-2027

Sponsored By: Sponsor information unavailable

Signed by Governor

2026-2027adoa (see also: department of administration)adot (see also: department of transportation)advs (see also: department of veterans' services)airport planning and developmentappropriationarizona exposition and state fair boardarizona game and fish departmentarizona pioneers' homearizona state parks boardcapital outlaydema (see also: department of emergency and military affairs)department of administration (adoa)department of emergency and military affairs (dema)department of health services (dhs)department of public safety (dps)department of transportation (adot)department of veterans' services (advs)dhs (see also: department of health services)doc (see also: state department of corrections)dps (see also: department of public safety)highway constructionstate buildingsstate department of corrections (doc)

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 1 costs, 3 mixed.

Major funding for roads statewide

The law provides $432,663,000 in FY 2026–2027 to plan and build state highways, buy rights‑of‑way, pay engineers, and cover bond debt. It also funds earlier project lists, such as $60.91 million to add lanes on I‑10 (SR 85 to Citrus Rd), $35.5 million for a Lake Havasu emergency bridge, and $59.8 million to extend SR 24 in Queen Creek. In FY 2025–2026, ADOT also receives targeted funds, including $10.839 million for SR 347 work and $1.5 million to design lane widening. For many FY 2025–2026 local distributions, ADOT must send an intergovernmental agreement by September 15, 2025 and, if signed, distribute money by November 1, 2025. One design project requires a $900,000 local match before spending.

More state grants for airports

The law provides $29,048,900 from the state aviation fund in FY 2026–2027 to plan, build, and improve state, county, and city airports. ADOT must report on all aviation grant awards and distributions by December 31, 2026. This appropriation is not subject to Joint Committee on Capital Review.

Upkeep and upgrades for state buildings

The law funds building renewal and capital work across state facilities. In FY 2026–2027, it provides $15,154,000 to Administration, $15,652,200 to Corrections (up to $4,570,000 for required construction), and $24,574,100 to Transportation. It also funds FY 2023–2024 projects such as $5,000,000 for EV charging, $66,783,600 to replace prison cooling with HVAC, $48,650,600 for security and fire systems, and $7,000,000 for the Verde River project. For FY 2025–2026 and FY 2026–2027, it adds items like $8,500,000 for Yuma prison safety systems, $6,850,000 for dam repairs, $4,700,000 for hatchery repairs, $2,400,000 for Tucson Veterans’ Home HVAC (reverts if no federal grant), $3,905,900 for State Fair capital, $11,000,000 for hatchery repairs, $3,552,200 for State Parks, $5,038,000 for a DOT materials lab in Kingman, and $4,944,000 to replace fueling facilities. The State Parks Board must establish a new state park at the Verde River headwaters and report plan changes tied to federal Land and Water Conservation Fund grants. Administration may use up to 5% for project management and cannot use other monies for state employee pay without review, except inmate construction services.

Cuts and transfers from highway funds

The law cuts some earlier highway project funds and shifts money out of the highway fund. It reduces FY 2022–2023 funding by $1,052,600 for U.S. Route 89, by $1,819,000 for SR 69 in Prescott Valley, by $6,052,200 for SR 95 in Mohave County, and by $765,600 for SR 186 and Business Route 10 in Willcox. It transfers $2,500,000 from the State Highway Fund to the State General Fund by June 30, 2026. It also transfers $17,371,900 from the highway fund to the general fund between July 1, 2026 and June 30, 2027.

Riggs Road overpass gets multi-year plan

The law reshapes funding for the Riggs Road and SR 347 overpass. It reduces earlier appropriations by $25.0 million (FY 2020–2021) and $24.0 million (FY 2022–2023), and transfers $24.0 million from the highway fund to the general fund by June 30, 2024. It adds $41.4 million in FY 2025–2026 and $49.0 million in FY 2027–2028 for design, land, utilities, environmental work, and construction. It also provides $1.5 million (highway fund) and $1.901 million (general fund) in FY 2023–2024 to finish design, secure right‑of‑way, and improve the SR 347 corridor and nearby intersections.

Conditional funding for new veterans home

The law sets aside $25,000,000 in FY 2027–2028 to build a veterans’ home in northwest Arizona. The state cannot spend this money unless the U.S. government commits at least 65% of total costs. Veterans’ Services must submit the site and a feasibility analysis to the Veterans’ Service Advisory Commission and get Joint Committee on Capital Review review before spending. The appropriation does not lapse. The act also reduces an earlier appropriation and replaces it with this conditional plan.

Transportation project reports and no-lapse rules

The law tightens and adjusts oversight for ADOT projects. ADOT must report within 30 days after each quarter on the cost and status of FY 2022–2023 projects, including any impacts from higher concrete prices. ADOT must send a report to the capital review committee before moving money between listed projects. Some listed ADOT appropriations are exempt from committee review, but certain appropriations are kept from lapsing until a project is done or stands a full year with no activity. The I‑10 lane‑addition funding from 2025 is also exempt from lapsing.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • David Livingston

    28 • House

  • Julie Willoughby

    13 • House

  • Michael Carbone

    25 • House

  • Neal Carter

    15 • House

  • Steve Montenegro

    29 • House

Roll Call Votes

All Roll Calls

Yes: 31 • No: 5

House vote • 6/11/2026

THIRD: Passed

Yes: 23 • No: 5

House vote • 6/10/2026

C&P

Yes: 8 • No: 0

Actions Timeline

  1. Signed by Governor

    6/13/2026Governor

  2. Senate First Reading

    6/11/2026Senate

  3. Third Reading: Passed

    6/11/2026House

  4. Miscellaneous Motion: Passed

    6/11/2026House

  5. Third Reading: Passed

    6/11/2026House

  6. Committee of the Whole: do pass

    6/11/2026House

  7. House Second Reading

    6/10/2026House

  8. undefined: C&P

    6/10/2026House

  9. undefined: DP

    6/10/2026House

  10. House First Reading

    6/9/2026House

Bill Text

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