Week 2 Legislative Session Recap 2026

On Tuesday, January 20, 2026, my colleagues and I returned to the Georgia State Capitol for the second week of the legislative session, beginning “budget week.” While we did not convene in the House Chamber, the House and Senate Appropriations Committees held joint hearings where Governor Brian Kemp, state leaders and agency officials presented budget recommendations for the current and upcoming fiscal years. The Georgia General Assembly’s sole constitutional obligation is to pass a balanced budget, underscoring the importance of this week’s work.

The hearings began with Gov. Kemp presenting his recommendations, which will be incorporated into two bills: 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, establishing spending for the year beginning July 1, 2026. The AFY 2026 proposal reflects a revised revenue estimate of $42.3 billion, including $3.3 billion in undesignated surplus funds, resulting in a total adjustment of $4.5 billion, or an 11.9 percent increase. The FY 2027 budget is based on 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 here.

Gov. Kemp highlighted that since 2021, more than $9.7 billion has been returned to Georgia taxpayers through rebates and tax relief. 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 allocates $625 million for a one-time $2,000 salary supplement for state employees and school personnel, including $384 million for K-12 educators, school staff and Pre-K teachers.

The governor noted the impact of Hurricane Helene and permanent pulp and paper mill closures on the timber industry. To support recovery, his AFY 2026 proposal includes nearly $11 million for the Georgia Forestry Innovation Initiative with the Georgia Institute of Technology and $35 million for a natural gas infrastructure pipeline program. The Georgia Department of Agriculture and the Georgia Forestry Commission emphasized the importance of these investments.

For higher education, Gov. Kemp’s FY 2027 proposal includes more than $218 million in formula funding 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 9.4 percent growth. The proposal also allocates $58 million to fully fund the Helping Outstanding Pupils Educationally (HOPE) scholarship.

A major announcement was 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 aid program. The FY 2027 proposal also includes $2.5 million for the Georgia Foster Care Scholarship, created 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 to implement a Career Navigator application system.

Other investments include $50 million for the State Housing Trust Fund, $194 million for Department of Corrections upgrades, and more than $2.4 billion for transportation projects.

State Economist Dr. Robert Buschman reported that revenues have increased by $9 billion over five years, though job growth has slowed and inflation continues to strain household budgets.

We also learned that Georgia has moved 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 for housing vouchers to support individuals with mental illness.

Due to an approaching winter storm, Gov. Kemp declared a statewide State of Emergency through January 29, 2026. Updates are always available at the GEMA/HS website here and on social media at @georgiaemahs.

As hearings concluded, House Appropriations subcommittees began detailed budget review. The House Page Program begins next week; information and applications are available at https://www.legis.ga.gov/house/page-program.

Thank you for the opportunity to serve as your state representative. I can be reached at karen.mathiak@house.ga.gov or (404) 656-0213.