2026 Legislative Update Week 12

2026 Week 11 Legislative Update

The House and Senate gaveled out Sine Die in the early hours of Friday morning.   Both chambers wrapped up their work for the 2026 Legislative Session around 1:00 AM.  

Legislators voted on dozens of bills and special actions in the final two days of the session.  The hundreds of bills that successfully made it all the way through both chambers by the time the legislature adjourned are now on their way to Governor Kemp’s desk for his consideration.   Governor Kemp and his policy team are now in the 40-day bill review period, during which they are carefully examining each bill to determine which bills the governor will sign and which bills he will veto.  If the governor takes no action on a bill, the bill becomes law.    

Several bills have already received a signature from Governor Kemp, including House Bill 973, the Amended Fiscal Year 2026 budget, House Bill 1000, which will provide a $250 per person income tax rebate to most taxpayers, and House Bill 1199, which suspends the gas tax for 60 days.   

Major bills that did not ultimately make it all the way through the legislative process and to Governor Kemp’s desk this session include: 

• A Senate proposal that would have eliminated the state income tax and sunset all tax credits (Senate Bill 476);  

• A House proposal that would have repealed the homestead property tax (House Resolution 1114);  

• A measure that would have legalized online sports betting in Georgia with approval from voters (House Resolution 450);  

• A bill that would have transitioned Georgia to hand-marked paper ballots by 2028 (Senate Bill 214);  

• A piece of legislation that would have halted future tax incentives for data centers that come to Georgia (Senate Bill 410);  

• A measure that would have exempted cancer treatment facilities from certificate of need requirements (Senate Bill 367); and 

• A bill that would have changed Georgia to Atlantic Standard Time permanently, which is the same as Eastern Daylight Time (House Bill 154).  

Fiscal Year 2027 Budget  

The passage of a balanced budget is the only constitutionally required action item for the legislature each session.  With about 30 minutes left until midnight, the House and Senate voted on the conference committee report for House Bill 974, which reflected the House-Senate compromise for the Fiscal Year 2027 budget.  Highlights of the $38.5 billion spending plan for upcoming fiscal year include: 

• $70.4 million to place a school-based literacy coach in every K-3 elementary school across the state;  

• An additional $100 million to the Employee Retirement System (ERS), with the goal of supporting future cost of living adjustments for retired state employees; 

• $11.2 million to increase graduate medical education opportunities for medical students;  

• $13.6 million for Local Maintenance and Improvement Grants for local infrastructure projects across the state;  

• $9.7 million to expand access to Pre-K programs; and  

• $3.7 million to expand the Department of Public Health’s maternal home visiting program to an additional 33 counties.  

The FY27 budget is now on its way to Governor Kemp’s desk.  While Governor Kemp cannot line-item veto most legislation, he does have the ability to issue line-item vetoes or disregard language on the budget.  

Property Tax Reform 

At the beginning of the session, Speaker Jon Burns (R-Newington) announced that the elimination of property taxes in Georgia would be one of the House’s top priorities for the year.  There were several bills that would have reformed property tax in Georgia, including a Senate bill that sought to cap property assessment increases at three percent or the rate of inflation, and a House bill and corresponding resolution that sought to amend the state constitution to eventually do away with property taxes entirely.   

In the final hours of the legislation, the Senate took a vote on House Bill 1116, the ‘Homeownership Opportunity and Market Equalization Act of 2026.’  The measure would cap the growth of school and local government property tax levies at 3 percent a year or at the rate of inflation.  It would also allow local governments to establish a sales tax to reduce property taxes.  The measure failed on the Senate floor 24 to 28, with several key Republicans voting against the measure.   

Later that night, the Senate stripped language from Senate Bill 33 on the floor and replaced it with their own property tax reform substitute that excluded the levy cap from House Bill 1116.  The version of the measure that was agreed to by the House would limit the annual growth of individual property tax assessments to three percent or the rate of inflation.   It would also create 159 special tax districts, one in each county, to create a Local Homestead Option Sales Tax (LHOST) for the purposes of reducing homestead property taxes.  Senate Bill 33 has been sent to Governor Kemp’s desk for his consideration.  

Income Tax Reform 

Appropriations Committee Chairman Blake Tillery (R-Vidalia) chaired the Special Committee on Eliminating Georgia’s Income Tax during the interim to “chart a realistic and responsible path for moving away from the income tax in Georgia.”  Senator Tillery introduced two bills this session based on the committee’s work: Senate Bill 476, which would reduce the personal income tax rate from 5.19 percent to 4.99 percent for 2026, exempt the first $50,000 of an individual’s income from state income tax, and sunset all tax credits taken against Georgia taxable net income at the beginning of 2032.  An alternative plan from Senator Tillery, Senate Bill 477, sought to reduce the personal income tax rate from 5.19 percent down to 3.99 percent by 2028, establish a flat tax rate of 4.99 percent for corporations and partnerships, and increase the standard deduction.   

A similar proposal from the House,  House Bill 880 by Ways and Means Committee Chairman Shaw Blackmon (R-Bonaire), would reduce the state income tax rate from 5.19 percent to 3.99 percent in 0.10 percent increments annually.  The measure would also increase the personal exemption for dependents, raise the standard deduction, and raise the income exclusion for retirees 65 and older from $65,000 to $70,000 per eligible taxpayer. 

Ultimately the House and Senate came to an agreement with the substitute version of House Bill 463.   The measure, which is now on its way to Governor Kemp’s desk, would decrease the state income tax rate from 5.19 percent to 4.99 percent for 2026.  The income tax rate would continue to decrease 0.125 percent annually until it reaches 3.99 percent as long as certain revenue triggers are met each year.  The legislation would also increase the standard deduction for a single taxpayer from $12,000 to $15,000 with increases of $375 annually until the deduction reaches $18,000, and for a married couple filing jointly, the standard deduction would increase from $24,000 to $30,000 with annual increases of $750 until the deduction reaches $36,000.  The measure would also exclude up to $1,750 each of overtime pay and cash tips from tax.  

Additionally, the measure would increase the maximum amount allowed to be held in the Revenue Shortfall Reserve from 15 to 20 percent of the previous year’s net revenue and would allow undesignated surplus funds over 20 percent of the previous year’s net revenue to be used for tax relief.  Several tax credits would be eliminated under the legislation, including but not limited to, those for eligible teleworking expenses, a tax credit for personal protective equipment manufacturers, and a tax credit for electric vehicle chargers.  

The Senate voted 33 to 20 to approve the version of House Bill 463 sent back over to them by the House.  The measure is now on its way to Governor Kemp’s desk for his consideration.  

Governor’s Tax Relief Legislation  

After passing unanimously in both chambers this session, House Bill 1000 has already been signed by Governor Kemp.  The measure will provide a one-time tax credit for all Georgia taxpayers who filed returns in 2024 and 2025.  Single taxpayers will receive $250, married taxpayers filing jointly will receive $500, and taxpayers filing as heads of household will receive a $375 tax rebate. 

House Bill 1001 would accelerate the reduction in the state income tax from 5.19 percent to 4.99 percent for 2026.  As part of previously passed legislation that also flattened Georgia’s state income tax, the state income tax rate was in the process of decreasing 0.1 percent each year until it reached 4.99 percent.  The measure was tabled by the Senate in the final days of the legislative session.  However, as part of another piece of legislation passed by the General Assembly this session, the income tax rate will go down to 4.99 percent for 2026 and will continue to decrease in 0.125 percent increments in subsequent years (House Bill 463).  

Childhood Literacy 

The House and Senate came to a final agreement on the literacy bill, House Bill 1193, on Legislative Day 39.   The measure, which was a top priority for House Speaker Jon Burns (R-Newington) this session, is now on its way to Governor Kemp.   

The bill would establish funding for school-based literacy coaches in public schools for grades K-3 and create regional literacy coaches through educational service agencies.  It would mandate the development of unified literacy plans for local school systems and would create the Georgia Literacy Coordinating Committee and the Georgia Literacy Task Force to oversee literacy initiatives.  The bill would also create a literacy coaching endorsement for educators and emphasize evidence-based practices in literacy instruction.   The bill would also outline the responsibilities of the Department of Education and the Professional Standards Commission in developing training programs for teachers.  It would require local school boards to adopt high-quality instructional materials aligned with the science of reading and mandate annual reporting on literacy initiatives.   

The measure has been sent to Governor Kemp’s desk for his consideration.  

School Choice 

House Bill 328 authored by Representative Kasey Carpenter (R-Dalton) and carried in the Senate by Senator Shawn Still (R-Suwanee), would increase the annual cap of the student scholarship organization (SSO) tax credit program from $120 million to $150 million to allow more students to receive SSO scholarships to attend private school.  Earlier this session, the Senate added language from Representative Rick Townsend’s (R-Brunswick) House Bill 565, which would increase the public school PEACH tax credit cap from $15 million to $25 million, and Representative Bethany Ballard’s (R-Warner Robbins) House Bill 1220, which makes eligibility changes to the SSO program for students with documented disabilities and students from military families. 

In the final version of the bill agreed to by the Senate late on Legislative Day 40, provisions from several additional bills were included.  The ‘Christmas tree’ bill also ended up including language from: 

• House Bill 1259, which would prohibit local school systems from providing virtual instruction to out-of-system students if their College and Career Ready Performance Index average is below 65 for the previous two school years;  

• House Bill 583, which would prohibit TSPLOT funds from being used to provide free or reduced fares for public transit services; and  

• House Bill 1377, which would require a county to wait eight years after a failed TSPLOST referendum to resubmit the question to voters.  

On the last night of the session, the Senate voted 30 to 22 to agree to the changes made to the bill by the House, sending it to Governor Kemp’s desk for his consideration.  

Next Generation 9-1-1 

House Resolution 1243 by Representative Chuck Martin (R-Alpharetta) would amend Georgia’s Constitution to establish the Georgia Next Generation 9-1-1 Fund, which would be exclusively allocated for the expansion, maintenance, and operation of 9-1-1 systems across the state, including the transition to Next Generation 9-1-1.  It would not increase 9-1-1 fees.  Because the resolution seeks to amend Georgia’s Constitution, legislative passage requires two-thirds approval by both the House and Senate, and then approval by a majority of Georgia’s voters via a ballot question.  The House approved the resolution unanimously earlier this session.  The Senate voted along party lines earlier this month, meaning the resolution failed to meet the required two-thirds threshold.  The Senate took another vote in the final days of the session, and the resolution was approved unanimously.  Georgia voters will see the question on the ballot in the November general election.    

Insurance Reform 

Early in the session, Speaker Jon Burns announced a package of insurance affordability legislation, which he said would be one of the House’s top legislative priorities.  The final version of House Bill 1344 that has been sent to Governor Kemp’s desk incorporates provisions from several insurance-related bills.  It would create the Special Insurance Fraud Fund funded by assessments on insurance companies and allow the Insurance Commissioner to hire prosecuting attorneys with these funds for insurance fraud cases.   

It would also prohibit the solicitation,  release, or sale of car accident information for personal financial gain; require timely claims processing after catastrophic events; require local governments to report how their premium tax revenue is used to lower citizens’ insurance premiums; require claims for refunds of certain fees and taxes related to insurance premiums to be filed within three years of payment; and provide homeowner protections regarding the use of aerial or satellite images by insurance companies.  The legislation would also allow insurers to report suspected fraud without completing investigations; establish the Georgia Storm Damage Mitigation Program to assist homeowners in retrofitting properties against severe weather; and increase penalties for various insurance-related offenses, including fraud, uninsured motorist lapse fees, and penalties for pharmacy benefit managers.  

Data Centers 

Coming into the session, data centers were one of the most widely discussed topics under the Gold Dome, with both Republicans and Democrats introducing legislation that would impact data centers.  In 2024, Governor Kemp vetoed a measure that would have paused the sales and use tax exemption that data centers currently receive.  The tax exemption is set to sunset at the beginning of 2032.   

No data center-related bill made it all the way through the legislative process this session.  Only two bills made it out of at least one chamber this session.  One was House Bill 1063 by Representative Brad Thomas (R-Holly Springs), which would a 2025 Public Service Commission ruling by requiring electric utility contracts with data centers to protect residential and retail customers from costs related to data center operation, mandating minimum billing requirements in contracts with large-load consumers to keep costs from being passed down to other customers, codifying protections for other customers if a data center were to default on its contract, and mandating termination provisions to protect retail customers if an electric service contract with a data center ends.  House Bill 1063 was never passed by the Senate, so it will not move on to Governor Kemp’s desk.  

The other data center bill that received a floor vote this session was Senator Matt Brass’s (R-Newnan) Senate Bill 410, which would repeal the data center tax exemption for any new facilities.  The measure passed the Senate 32 to 21 earlier this session, but it never received a vote in the House.  

Other data center-related measures that did not make it all the way through the legislative process this session include, but are not limited to, Senate Bill 408 by Senator Nan Orrock (D-Atlanta), which would move the sunset for the data center tax exemption from January 1, 2032 to January 1, 2027, and Representative Ruwa Romman’s (D-Duluth) House Bill 1012, which would establish a moratorium on the issuance of permits, licenses, or certificates for the constitution or development of a data center between the date the bill is signed into law through March 1, 2027.   

Elections Legislation  

On Day 40, the House passed a substitute version of Senate Bill 214, the elections bill.  As part of previously passed legislation (Senate Bill 189 in 2024), Georgia must transition away from QR code tabulation no later than July 1, 2026.  The substitute version of Senate Bill 214 proposed by the House would push that date back to incorporate hand marked paper ballots and ballot on demand printing from July 1, 2026 to January 1, 2028, after the upcoming midterm elections.  Under the bill, even after the implementation of the new voting system, electronic voting would still be available for voters with disabilities, and voter with children two or younger would be eligible to go to the front of the voting line.   Additionally, the threshold for a candidate to request a recount would increase from 0.5 percent to one percent.   

After the House passed the substitute version of Senate Bill 214, the Senate did not take it back up for a final ‘agree’ motion.  Since the legislature adjourned, some legislators have questioned whether a special session may be required with the July 1, 2026 deadline to do away with QR codes looming.  

DREAMS Scholarship 

In his State of the State address in the first week of the session, Governor Kemp unveiled his plan to create Georgia’s first needs-based higher education scholarship, the DREAMS Scholarship.  His Amended Fiscal Year 2026 budget recommendations included a $300 million endowment and $25 million for scholarship funds, which was ultimately agreed to by the House and Senate.   

A Day 40 substitute version of Senate Bill 556 included the legal framework to establish the DREAMS Scholarship, including eligibility criteria such as FAFSA completion, enrollment status, minimum GPA maintenance, the requirement to complete a financial literacy course, and the requirement to be engaged in part-time work, internship, volunteer job, or military service.  The underlying bill would include AP and IB fine arts courses in the calculation of grade point averages for HOPE Scholarship eligibility purposes.  The amended version of the bill also incorporated language that would require universities and technical colleges to maintain a stock supply of opioid antagonists.  The bill would also establish medical school scholarships for students who practice medicine in Georgia for four years after graduation and meet other requirements.  

The measure has been sent to Governor Kemp’s desk for his consideration.  

School Zone Speed Cameras 

While school zone speed cameras became one of the most widely debated issues last session, there was not much discussion on the topic this session.  Last session the House passed two bills- one that would do away with school zone speed cameras entirely, and another that would put more guardrails in place related to the use of the cameras.   

On the final day of the session, Representative Alan Powell’s (R-Hartwell) House Bill 651 received final approval from the legislature.  The version of the bill that has been sent to Governor Kemp’s desk specifies that the speed camera devices must include flashing yellow lights when they are authorized to issue citations and specifies that citations may only be issued when a vehicle’s speed exceeds the posted speed limit by more than 10 miles per hour within an hour before and an hour after the school’s starting and dismissal time.   

The bill specifies that no cameras can be placed on a highway within a school zone with four lanes that does not have a crosswalk.  It would require any funds from the speed zone camera violations to be used for school safety initiatives.  The bill would also require contracts for the cameras to be approved by voters in a local referendum every six years.  The House agreed to changes made to the bill by the Senate, sending it to Governor Kemp’s desk for his consideration.  

Education Legislation  

House Bill 1009 by Representative Scott Hilton (R-Peachtree Corners) would expand the Distraction-Free Education Act to high schools in Georgia.  A bill passed last session requires all public elementary and middle schools to implement a ban on cell phones and other personal electronic devices for the entirety of the school day.  House Bill 1009 would apply the same bell-to-bell electronic device ban to public school students in grades nine through twelve.   The measure was approved by the Senate in the final weeks of the session and has been sent to Governor Kemp’s desk for his consideration.  

A measure to address chronic absenteeism in schools failed on the House floor 80 to 90 on the final day of the session.  Senate Bill 513, the ‘Every Day Counts Act,’ by Senator Jason Dickerson (R-Canton) would mandate a multi-tiered intervention framework, in which students with the most unexcused absences would receive formal attendance intervention plans to improve academic engagement.  Additionally, the bill specifies that students who fail to comply with these plans may face consequences, including ineligibility for extracurricular activities and potential denial of an instruction permit or driver’s license.  After it failed on the House floor, the House recommitted the measure to the Rules Committee.  

Rural Hospitals 

This session, Representative Angie O’Steen (R-Ambrose) introduced House Bill 662, which would revise the definition of “rural hospital organization” to include an acute care hospital or rural freestanding emergency department that meets specific criteria.  These criteria include having its primary campus in a rural county or being a critical access hospital, participating in Medicaid and Medicare, providing healthcare services to indigent patients, and being licensed to provide maternal and newborn services or having a certain percentage of revenue categorized as indigent care.  The bill specifies that at least 5 percent of annual net revenue must be categorized as indigent care, charity care, or bad debt.  The bill would increase the number of rural hospitals that are eligible to receive funds from the HEART Rural Hospital Tax Credit Program.   

Although House Bill 662, did not make it all the way through the legislative process, language from the bill was included in both Senate Bill 411 and Senate Bill 111.  Senate Bill 111 made it all the way through the legislative process after receiving a final ‘agree’ motion in the Senate on the final day of session.   The measure is now on its way to Governor Kemp’s desk for his consideration.  

Transportation Agencies  

The substitute version of House Bill 297 would abolish the Georgia Regional Transportation Authority (GRTA) and the Atlanta-region Transit Link (ATL) Authority. Under the legislation, these entities would be consolidated into a single body renamed the Georgia Transportation Efficiency Authority (GTEA), and regional transit planning responsibilities would shift from the ATL to the Georgia Department of Transportation Commissioner.   

Under the bill, a board of 13 would be created, including the GDOT commissioner, eight members appointed by the governor, two appointed by the lieutenant governor, and two appointed by the speaker.  At least seven members of the board must reside within the nonattainment area in the 13 metro Atlanta counties, and the board would appoint the executive director of the GTEA.  An amendment from the House agreed to by the Senate would extend the one percent sales tax used to fund MARTA an additional ten years through 2067.  

The Senate agreed to changes made to the bill by the House, sending it to the governor’s desk for his consideration.  

Immigration  

The final version of House Bill 295 would allow real property owners to make claims for compensation from local governments for the loss of property value or expenses incurred due to the local government’s failure to comply with or enforce laws related to homelessness or the prohibition on immigration sanctuary policies.  The measure was heavily debated on the final day of the legislative session before passing the Senate 34 to 19.  The bill is now on its way to Governor Kemp’s desk for his consideration.  

Other immigration-related bills that did not make it across the finish line include Senate Bill 116 by Senator Tim Bearden (R-Carrollton), which would require the collection of DNA samples from individuals in detention facilities who are charged with a misdemeanor or felony and are subject to an immigration detainer notice, and Senate Bill 465 Senator Steve Gooch (R-Dahlonega), which would disqualify any business enterprise from claiming state income tax credits for large-scale projects if they are found to have hired illegal immigrants. 

Bureaucratic Deference Elimination Act 

House Bill 1247 by Representative Matt Reeves (R-Duluth), the ‘Bureaucratic Deference Elimination Act,’ would prohibit a court from deferring to a state agency when interpreting laws and regulations, instead mandating that courts independently interpret the state Constitution, statutes, or published rules without agency influence.  Language from another bill, the ‘Red Tape Rollback Act’ was also incorporated into the substitute.   It would revise procedures for adopting administrative rules, including periodic reviews, automatic sunsets of agency rules, and public hearing requirements, and would change the rulemaking procedures for the Department of Community Health and other state agencies, requiring them to assess the economic impact of proposed rules and provide detailed notices regarding rule adoption.  Agencies would be required to submit a report analyzing their rules every five years, starting July 1, 2027.  

An amendment made to the bill on the floor would make sexual harassment settlements involving state lawmakers disclosable under the Georgia Open Records Act.  Legislative records are generally exempt from disclosure.  The measure received final passage from the Senate after midnight on Sine Die and is now on its way to the governor’s desk.  

Families First Initiative 

Earlier this session, House leaders held a press conference to announce package of bills that make up the House’s ‘Georgia Families First’ legislative initiative.   

House Bill 1138 by Representative Beth Camp (R-Concord) would increase access to contraceptives by allowing pharmacists to prescribe birth control and administer injectable hormonal contraceptives.  It would require health benefit policies to provide a minimum three-month supply of contraceptives at the first dispensing and a twelve-month supply for subsequent dispensings.  Language was added to the bill that would require corn masa flour and wet corn masa products to contain specified amounts of folic acid and mandate labeling requirements.  The measure passed both chambers and has been sent to the governor’s desk. 

House Bill 1123 by Speaker Pro Tempore Jan Jones (R-Milton) would require public schools that offer after-school care services to students in grades K-5 to make after-school services available to Pre-K students on the same basis.  The measure passed both the House and Senate unanimously this session and now heads to Governor Kemp’s desk.  

House Bill 1118 by Representative Sandy Donatucci (R-Buford) would provide state employee birth mothers with an additional three weeks of paid leave, increasing total paid leave for birth mothers from six weeks to nine weeks.   The measure was approved unanimously by the House and Senate this session and has been sent to Governor Kemp’s desk.   

Campaigns 

Now that the legislative session has concluded, legislators running for reelection and those seeking higher office are officially free to hit the campaign trail and raise money.  With a number of legislators opting to run for higher office or to retire from politics entirely, the makeup of the General Assembly will look very different next year.  In addition to all 180 House seats and 56 Senate seats that are up for election, all statewide offices will also be on the ballot this year, which means the Senate will have a new leader with a new lieutenant governor in the 2027 session.   

The primary is set for May 19, and the general election will be held on November 3.  For any primary races that require runoffs because no single candidate was able to get above the 50 percent plus one threshold, the primary runoff would be held on June 16.