state budget implementation; FY2026

HB 2973 directs all unrestricted federal funds received by Arizona between July 1, 2025, and June 30, 2026, to be deposited into the state general fund for essential government services, applying retroactively from June 30, 2025. It also modifies rules for the budget stabilization fund, eliminating the requirement for the legislature to appropriate funds to it for fiscal years 2025-2026 through 2027-2028. Additionally, for 2025-2026, the fund is no longer limited to 10% of general fund revenue, and the state treasurer cannot transfer surplus funds back to the general fund. The bill focuses on state budget management for the 2026 fiscal year.