This law approves state spending on building repairs, highways, airports and other capital projects for the 2026-2027 budget year, and changes several earlier project budgets, including widening how State Route 347 and Riggs Road overpass money can be used and delaying funding for a northwestern Arizona veterans' home by 1 year.
Official title: capital outlay; appropriations; 2026-2027
- September 12, 2026
- On or before June 30, 2026: $2,500,000 transfer from state highway fund to general fund
- From July 1, 2026 through June 30, 2027: $17,371,900 transfer from state highway fund to general fund
- June 30, 2027: Tucson veterans' home HVAC money reverts if no federal grant is awarded
- June 30, 2028: Grand Canyon airport terminal money reverts if no FAA grant is received
What changes
-
NowFor 2026-2027, the state appropriates $432,663,000 from the state highway fund for statewide highway construction, $29,048,900 for airport projects, and money for major maintenance and repair of state buildings. Building repair money includes $15,154,000 to the Department of Administration, $15,652,200 to Corrections and $24,574,100 to Transportation. Up to $4,570,000 of the Corrections money may go to new facilities needed under the Jensen v. Thornell inmate health care lawsuit. Other projects include a $5,038,000 materials lab in Kingman and $11,000,000 in fish hatchery repairs.
BeforeSeveral earlier State Route 347 and Riggs Road appropriations were limited to specific tasks, such as studying the overpass, final design and right-of-way, improving the Casa Blanca Road intersection, or designing wider lanes. The $49,000,000 set for 2027-2028 was 'to construct' the overpass.
NowSome of this money, including money first set for the Casa Blanca Road intersection and for designing wider lanes, may now be used for design, right-of-way acquisition, utility relocation, natural resource recovery and construction to improve State Route 347, including the Casa Blanca Road and cement plant access intersection and an overpass at Riggs Road. Other money, including the $49,000,000 for 2027-2028, the $41,400,000 for 2025-2026 and a $1,500,000 supplemental amount, may be used for design, right-of-way acquisition, utility relocation, natural resource recovery and construction of the Riggs Road overpass.
Before$25,000,000 for a veterans' home in northwestern Arizona was set for budget year 2027-2028.
NowThe $25,000,000 is moved to budget year 2028-2029. It still cannot be spent unless the federal government has made irrevocable commitments to fund at least 65% of total costs.
BeforeEarlier highway projects had larger budgets. $5,000,000 was set for electric vehicle charging and advanced fuel equipment at Transportation fleet facilities.
NowSome earlier highway budgets are reduced, and the $5,000,000 fleet charging item is removed. For example, State Route 95 repaving in Mohave County drops from $46,700,000 to $44,965,700, and U.S. Route 191 between mileposts 163 and 173 drops from $22,152,000 to $16,239,900. $17,371,900 and $2,500,000 are moved from the state highway fund to the state general fund.
BeforeMoney for the Grand Canyon airport terminal renovation and for HVAC replacement at the Tucson veterans' home went back to the state on June 30, 2026 if the needed federal grant was not received.
NowThe deadline is now June 30, 2028 for the airport terminal and June 30, 2027 for the Tucson veterans' home HVAC.
Who it affects
- Drivers and communities near the listed highway projects, including State Route 347 near Riggs Road
- Veterans in northwestern Arizona and residents of the Tucson veterans' home
- Arizona Department of Transportation
- Department of Administration, Department of Corrections and other state agencies receiving building money
- Department of Veterans' Services
- Cities, towns and counties receiving project money
What you need to do
Nothing.
What the law doesn't answer
- Which specific state buildings will receive repair money
- Why earlier highway project budgets were reduced
- When the State Route 347 and Riggs Road overpass work will be finished
- Where in northwestern Arizona the veterans' home will be built
- Which specific highways the $432,663,000 statewide construction money will fund
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.