Georgia Senate Approves Mid-Year Budget Focusing on Tax Breaks and Mental Health

Taxpayers, rural drivers, and the mentally ill among the winners in the $42.3 billion amended budget

Published on Feb. 20, 2026

The Georgia Senate has approved a $42.3 billion mid-year budget that includes several key changes from the initial proposal by Governor Brian Kemp. The budget features a $1.2 billion rebate to taxpayers, a $850 million property tax grant for homeowners, and a $409 million investment in a regional hospital for the mentally ill. However, the Senate reduced funding for some of Kemp's other priorities, such as a $325 million endowment for a need-based scholarship program and a $50 million grant to address homelessness.

Why it matters

The mid-year budget amendments reflect the Senate's priorities, which include providing tax relief to Georgians and improving mental health services in the state. These changes could have significant impacts on residents, especially in an election year when affordability is a key issue. The budget also highlights the ongoing negotiations between the legislative chambers as they work to finalize the state's spending plan.

The details

The Senate's version of the budget keeps Kemp's $1.2 billion rebate to taxpayers, but adds an $850 million property tax grant for homeowners. It reduces Kemp's proposed $2,000 one-time pay supplement for state employees to $1,250, and trims his $325 million endowment for a need-based scholarship program to $100 million. The Senate also shifted $15 million to the Department of Veterans Service and allocated $409 million for a new regional hospital for the mentally ill.

  • The Georgia Senate approved the $42.3 billion mid-year budget on Friday, February 20, 2026.

The players

Brian Kemp

The Governor of Georgia who proposed the initial budget blueprint that the Senate made changes to.

Blake Tillery

The Republican state senator from Vidalia who is the chairman of the Senate Appropriations Committee and helped craft the Senate's budget proposal.

Burt Jones

The Republican lieutenant governor of Georgia who is running for governor and said the investment in mental health services is a non-partisan issue.

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What they’re saying

“We are laser focused on affordability.”

— Blake Tillery, Chairman, Senate Appropriations Committee (Capitol Beat)

“This is not a partisan issue.”

— Burt Jones, Lieutenant Governor (Capitol Beat)

What’s next

The budget will now go to a conference committee where lawmakers will negotiate the final details before passing the mid-year amendments. They will then turn their attention to the full budget for the next fiscal year starting in July.

The takeaway

The Senate's mid-year budget reflects its priorities of providing tax relief to Georgians and investing in mental health services, even as it trims funding for some of the governor's other initiatives. This budget negotiation process highlights the ongoing dialogue between the legislative and executive branches as they work to finalize the state's spending plan.