During the week of January 20, 2026, my colleagues and I returned to the Georgia State Capitol for the second week of the legislative session, known as “budget week.” Although the House did not meet in the House Chamber, members of the House and Senate Appropriations Committees held joint hearings throughout the week to review budget recommendations from Governor Brian Kemp, state leaders and agency officials. Passing a balanced budget is the Georgia General Assembly’s sole constitutional responsibility, making these hearings a critical part of the session.
Gov. Kemp opened the hearings by presenting his proposed budgets, which will be introduced as two separate measures: the Amended Fiscal Year 2026 (AFY 2026) budget, covering the remainder of the fiscal year ending June 30, and the Fiscal Year 2027 (FY 2027) budget, which sets spending priorities beginning July 1, 2026. The AFY 2026 proposal is based on a revised revenue estimate of $42.3 billion and includes $3.3 billion in undesignated surplus funds, resulting in a $4.5 billion adjustment—an 11.9 percent increase over the original estimate. The FY 2027 budget reflects a $38.5 billion estimate, a $738 million, or two percent, increase. A video archive of the governor’s presentation may be found here, and his full recommendations are available here.
The governor noted that since 2021, more than $9.7 billion has been returned to Georgia taxpayers through rebates, tax cuts and relief measures. His AFY 2026 proposal includes a one-time $1 billion tax rebate, averaging $250 for single filers, $375 for heads of household and $500 for married couples filing jointly. He also proposes $625 million for a one-time $2,000 salary supplement for full-time state employees and school personnel, including $384 million for K-12 educators, school staff and Pre-K teachers.
Gov. Kemp also addressed the impact of Hurricane Helene and the permanent closure of pulp and paper mills in southeast Georgia. His AFY 2026 proposal includes nearly $11 million to establish the Georgia Forestry Innovation Initiative in partnership with the Georgia Institute of Technology, along with $35 million for a natural gas infrastructure pipeline program to support rural economic development. The Georgia Department of Agriculture and the Georgia Forestry Commission reinforced the importance of these investments during their presentations.
Higher education funding was another major focus. The FY 2027 proposal includes more than $218 million in additional formula funds for the University System of Georgia, reflecting 4.95 percent enrollment growth, and more than $34 million for the Technical College System of Georgia, reflecting a 9.4 percent increase. The budget also provides $58 million to fully fund the Helping Outstanding Pupils Educationally (HOPE) scholarship.
One of the most significant proposals is a one-time $325 million endowment in AFY 2026 to establish the Dedicating Resources to Educationally Advance More Students (DREAMS) scholarship, Georgia’s first need-based financial aid program. The FY 2027 proposal also includes $2.5 million to establish the Georgia Foster Care Scholarship, authorized through Senate Bill 85. Additional investments include $88 million for Maintenance, Repairs and Renovation needs, $88 million for the Daniel Guggenheim School of Aerospace Engineering at Georgia Tech, $3 million for a new college and career academy, and $14 million across both budgets to implement a new Career Navigator application system.
Other priorities include $50 million for the State Housing Trust Fund to address homelessness, $194 million for Department of Corrections upgrades, and more than $2.4 billion to improve freight and commuter transportation corridors statewide.
State Economist Dr. Robert Buschman briefed the committee on revenue trends, noting strong growth over the past five years but warning of slowing job growth and ongoing pressure from rising costs. We also heard that Georgia has made progress toward release from more than 60 provisions of the 2010 Department of Justice Settlement Agreement related to behavioral health. The FY 2027 budget includes $9.3 million to expand housing vouchers for individuals with mental illness.
Due to an approaching winter storm, Gov. Kemp declared a statewide State of Emergency through January 29, 2026. Updates are available on the GEMA/HS website here and on social media at @georgiaemahs.
As budget hearings concluded, House Appropriations subcommittees began detailed reviews. The House Page Program also begins next week; more information is available at https://www.legis.ga.gov/house/page-program. Session updates will be posted on the House website here.
Please don’t hesitate to reach out if you have any questions or concerns about the work happening under the Gold Dome. I can be reached at dale.washburn@house.ga.gov or 404-656-0152.
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