Kemp signs $36.6B Georgia budget with $300M spending freeze

Final state budget signed by Governor Brian Kemp

Governor Brian Kemp signed a 36.6 billion dollar state budget Tuesday that fully funds K-12 classrooms and public safety while implementing a 300 million dollar spending freeze to offset recent tax cuts.

ATLANTA - Gov. Brian Kemp signed the state's Fiscal Year 2027 budget Tuesday in Atlanta, his final budget as Georgia Governor. 

The budget balances record investments in education and public safety with a $300 million spending freeze.

Georgia state budget signing

What we know:

Kemp signed House Bill 974 on Tuesday, marking the final state budget of his administration. The budget relies on a revenue estimate of $36.6 billion and fully funds K-12 classrooms, the 9-8-8 mental health hotline, and growth in the HOPE Scholarship program. It also includes enhanced retirement benefits for state law enforcement and literacy measures.

Georgia Gov. Brian Kemp signs his final budget at the State Capitol in Atlanta on May 12, 2026. (FOX 5 Atlanta)

Revenue and tax cuts

By the numbers:

The state is addressing a revenue reduction of nearly $1 billion for the coming fiscal year due to tax cuts signed by the governor on Monday. To keep the budget balanced without raising taxes, Kemp is withholding more than $300 million in proposed new spending. Georgia currently holds over $12 billion that has been saved or returned to taxpayers during Kemp's time in office.

Future financial outlook

What we don't know:

It is unclear if the state will need to tap into its reserve funds to meet all obligations during the 2027 fiscal year. Kemp warned that while the state is currently on sound financial footing, an economic downturn could make future budget decisions more painful and reserves could be erased.

Recovery and workforce support

Big picture view:

The budget continues support for the Career Navigator System to help students find healthcare jobs. It also provides ongoing aid for farmers and foresters recovering from Hurricane Helene and recent wildfires. Kemp stated his goal is to keep Georgia the best place to live while maintaining fiscal discipline unlike the government in Washington, D.C.

Georgia Gov. Brian Kemp signs his final budget at the State Capitol in Atlanta on May 12, 2026. (FOX 5 Atlanta)

Legislative next steps

What's next:

State agencies will now begin the fiscal year with the directed withholding of new funds. Kemp’s team will evaluate the state’s financial position during the first half of the year to prepare for the amended budget process.