Georgia lawmakers approve income tax rebate, teacher bonuses in amended 2026 state budget
Georgians will soon be getting income tax rebates after lawmakers approved the state's midyear budget.
House Bill 973, the amended Fiscal Year 2026 Budget, passed on Wednesday and now heads to the governor's desk for him to sign.
"Today, we saw major legislative action on my top priorities - saving taxpayers money and investing in a safer, more prosperous Georgia," Kemp wrote on X. "The Amended FY26 budget will provide $2 Billion in income tax and property tax relief, endow the first state needs-based scholarship of its kind, make historic investments in transportation, and much more."
During his final State of the State address, the governor announced plans to spend $1.17 billion from the state's budget surplus for income tax rebates.
The rebates would amount to $250 for single filers and $500 for married couples and families.
"We must continue doing everything in our power to allow the hardworking men and women of our state to keep more of their hard-earned money in their pocket in the years to come," Kemp said. "Because as I've said before: that's your money - not the government's."
Added into the House's budget and approved by the Senate was about $850 million for a homeowner relief grant program, which would work out to around $500 per homeowner.
The House also passed HB 1001, which sped up Georgia's planned income tax cuts, bringing the Peach State's flat tax rate down to 4.99%.
Small cuts to teacher bonuses and infrastructure investment
In his final term, Kemp has pushed for additional one-time bonuses for teachers and university and state employees. While the governor wanted a $2,000 bonus, the Senate reduced the payment to $1,275.
Kemp's push for a need-based scholarship program known as Georgia DREAMS was also cut down, reducing the amount from $325 million to $145 million.
While the Legislature approved Kemp's proposal to expand Interstate 75's express lanes in Henry County, one of metro Atlanta's worst traffic chokepoints, they reduced the funding from $1.8 billion to $1.68 billion.
"Road congestion doesn't care if you're a Republican or a Democrat behind the wheel, only that you're running late to work or an appointment. It costs commuters time with their loved ones and money, it costs businesses valuable production output, and it costs the entire state potential economic development projects," Kemp had said during the Georgia Chamber of Commerce's annual Eggs and Issues event.
More funding was given to improve Georgia 316, a highway between Atlanta and Athens, road improvements by local governments, and repairs and replacement for rural bridges.
The Associated Press contributed to this report.