Georgia Gov. Brian Kemp has signed the amended budget for Fiscal Year 2026, outlining $42.3 billion in expenses ending June 20, 2026. The amended version of the budget shows a $4.5 billion increase for the original FY 2026 budget, adjusting spending levels to reflect actual tax collections, enrollment growth and any policy changes for the remaining fiscal year.
House Bill 973 cleared the Georgia General Assembly in late February, predominantly investing in tax relief measures, education, workforce, public safety and infrastructure among other core components. The $38.5 billion reflects a $11 billion increase in spending since the original budget was signed into law.
However, despite a seemingly significant jump, the real annual rate of per-person spending in the state over the past seven years has been sustained at 0.2%. This accounts for the state’s population growing by 7% and the 29% cumulative increase in inflation over the seven-year period.
Among the highlights featured in the amended budget, Georgia included a $2 billion injunction to relieve income and property tax. In addition, the state implemented a historic needs-based education scholarship – the DREAMS Scholarship program – with a $325 million endowment. Other standout elements of the budget include:
- Billions to support state, county and municipal transportation infrastructure projects.
- Development of a Career Navigator tool for students and workers.
- Investing in correctional officers, drone detection systems and bedspace within the Department of Corrections.
- Building new hospitals and expanding state mental health bed capacity.
- Establishing a natural gas infrastructure loan program for rural communities.
The state plans to allocate up to $1 billion for a fourth one-time non-refundable income tax rebate, using part of Georgia’s undesignated surplus balance. HB 973 clears the way for the remainder of the year’s funding, with FY 2027’s budget still on the horizon.
House Bill 974 – covering the budget for FY 2027 – is currently estimated at $38.5 billion. The state anticipates heavily investing in health and education, allocating 75% of the budget to support preK-12 education, higher education and healthcare initiatives. The breakdown for the budget’s major spending categories includes:
- PreK-12 grade education – 39%.
- Healthcare and public health – 21%
- Higher education – 15%.
- Criminal legal – 9%.
- Transportation – 7%.
- Human services – 3%.
- Debt service – 3%.
- Remaining government functions – 3%.
Significant components of the budget will cover student transportation formula grants, increase Medicaid provider and facilities reimbursement and payment rates, providing literacy coaches for elementary schools and supplementing losses in the Supplemental Nutrition Assistance Program (SNAP). The state has also made several cuts to offset expenses, slashing funding increases for the State Health Benefit Plan, Georgia Promise voucher program an eliminating a pilot program that provided opportunities for students living in poverty.
The Legislature is required to have a finalized copy of the FY 2027 budget approved before the end of the session on April 2.
Photo by Nate Hovee from Pexels
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