On May 29, 2026, the Florida Legislature adopted a state spending plan totaling $114.5 billion, a figure that Republican leaders say trims overall state expenditures from the prior year while funding key programs. The measure cleared the Senate unanimously and passed the House by a 99-6 margin. Lawmakers said the budget addresses a range of priorities — from education and healthcare to environmental restoration — but it also leaves several contentious policy fights unfinished, most notably a governor-driven proposal to expand homestead exemptions that will be debated in a special session.
The budget was the product of a post-regular-session conference and triggered a 72-hour period before final passage. It will now head to the governor, who retains line-item veto authority and has publicly discussed using vetoes as a lever to shape legislative behavior. With a special session scheduled to consider property tax changes, legislators left Tallahassee knowing additional negotiations and political pressure lie ahead.
What the budget funds and omits
The appropriation package steers money to traditional state responsibilities and targeted initiatives. Education and K-12 scholarships received a combined increase, and the budget raises the Base Student Allocation while adding sizeable teacher salary investments. Healthcare represents the largest share of spending at roughly $49.2 billion, including Medicaid and KidCare funding as well as rate increases for nursing homes and new investments for developmental disability services.
Criminal justice and corrections also saw significant allocations: the Department of Corrections received about $4.05 billion, funding a new prison hospital and dorm space, plus pay raises that lift the minimum correctional officer wage to $24 per hour. Meanwhile, environmental funding includes major outlays for Everglades restoration — more than $638 million — and money to complete portions of the Everglades Agricultural Area reservoir project.
Notable inclusions and political flashpoints
The final agreement contains several politically charged line items: a $50 million appropriation to support a new Tampa Bay Rays stadium project near Hillsborough College, $250 million for an emergency fund under the governor’s control used for immigration enforcement, and $4 million related to compensation for the Groveland Four. Conversely, some conservation priorities did not receive full funding: the budget omits direct support for the Florida Forever land-acquisition program while allocating substantial sums for the Rural and Family Lands Protection Program.
Tax package and the looming property tax referendum
The budget passed alongside a roughly $300 million tax cut package, which drew sharp critique from Democrats who argued the reductions favor special interests over ordinary homeowners. The enacted tax measures include targeted exemptions such as a multi-year sales tax break on certain home hardening materials and continuation of seasonal holidays, but they do not include a suspension of the state gas tax this year — a proposal the governor had championed in 2026.
Most politically explosive is Gov. Ron DeSantis’ proposal, filed as a constitutional amendment in the Senate as SJR 2F, to raise the homestead exemption to $150,000 of assessed value starting Jan. 1, 2027, and to $250,000 beginning Jan. 1, 2028. Opponents ranging from county officials to education advocates warn the change would shift costs to local governments and shrink the funding base for public schools. To place the amendment on the November ballot, each chamber would need a 60% supermajority vote.
Political reactions and procedural steps
Local governments and education groups reacted strongly. The Florida Association of Counties called the plan a potential tax shift, emphasizing that property tax decisions are typically local and closely tied to municipal services. The Florida Education Association warned of harmful impacts on school funding, while the Florida Chamber of Commerce said it would study the proposal’s fiscal effects. Legislators from both parties reported intense conversations and no clear consensus, with leaders signaling the June special session will be the battleground for the proposal.
Veto threats and what comes next
The governor’s willingness to use vetoes has been publicly underscored; he has described line-item vetoes as a tool to influence legislative priorities. Several lawmakers expressed concern that those threats could undermine confidence in locally funded projects included in the budget. As the bill moves to the governor’s desk, municipal leaders and program beneficiaries face uncertainty about which line items will survive.
Lawmakers must reconvene for the three-day special session starting June 1 to debate the homestead exemption measure. If the Legislature approves placing the change on the ballot and voters approve it this fall by the required margin, the amendment would alter the way property tax relief is delivered across Florida. Meanwhile, the enacted budget will govern state spending for the fiscal year beginning July 1, 2026, unless significant vetoes alter its allocations.
Summary
In short, the May 29, 2026 budget locks in spending across education, health, corrections and the environment while leaving major policy fights unresolved. The next chapter—centered on property tax reform and potential gubernatorial vetoes—will determine how much of this plan endures and who ultimately bears the fiscal consequences of any changes.
