Georgia Senate Proposes Budget with Income and Property Tax Cuts

Plan also trims state employee bonuses and includes new mental health hospital

Published on Feb. 22, 2026

The Georgia Senate has unveiled a $42.3 billion spending plan for the amended fiscal year 2026 budget that includes both income and property tax cuts, as well as a new mental health hospital. The proposal differs significantly from plans previously announced by Governor Brian Kemp and the state House of Representatives.

Why it matters

This budget proposal reflects the Senate's priorities, which may diverge from the Governor's and House's visions for the state's spending. The inclusion of both income and property tax cuts signals the Senate's focus on providing tax relief to Georgia residents, while the new mental health hospital indicates a commitment to improving the state's healthcare infrastructure.

The details

The Senate's $42.3 billion budget plan includes income and property tax cuts, as well as a reduction in the state employee bonuses proposed by Governor Kemp. The proposal also calls for the construction of a new mental health hospital, which would expand the state's capacity to address mental health needs.

  • The Senate unveiled its proposed amended fiscal year 2026 budget on Wednesday, February 18, 2026.
  • The budget proposal differs from plans previously announced by Governor Brian Kemp and the state House of Representatives.

The players

Blake Tillery

Chair of the Senate Appropriations Committee, State Senator from Vidalia, Georgia.

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What’s next

The budget proposal will now move through the legislative process, with the House and Senate needing to reconcile any differences between their respective plans before sending a final budget to the Governor for approval.

The takeaway

The Senate's budget proposal reflects its own priorities, which may not align with those of the Governor or the House. This sets the stage for negotiations and compromises as the state works to finalize its spending plan for the upcoming fiscal year.