The mid-session sprint begins

GA Legislative Watch

By Howard Franklin ● February 7, 2026
Smart Brevity™ count: 2.5 mins…599 words

The Big Picture: Following a marathon of budget hearings and the Governor’s State of the State address, the Gold Dome is shifting from fiscal planning to policy fights. The theme for 2026 is clear: affordability and infrastructure.

With $14.6 billion in reserves, the debate isn’t if the state should spend, but how to return it—and where to lay the groundwork for Georgia’s next decade of growth.

The Tax Pivot: Property vs. Income

A significant rift has emerged between the House and the Governor’s Mansion over how to deploy Georgia’s surplus.

The House Play: This week, the House Appropriations Committee moved to scrap Governor Kemp’s proposed $1.2 billion income tax rebate. Instead, they are pushing an $850 million property tax relief plan.
The Math: While Kemp’s plan focused on one-time checks of up to $500, the House proposal offers one-time grants to local governments to offset property tax bills, averaging roughly $500 in savings per homeowner.
The Long Game: House Speaker Jon Burns is doubling down on his goal to eventually phase out “homestead” property taxes entirely by 2032.
Why it matters: For your real estate and development clients, this marks a shift toward addressing the “holding cost” of housing rather than just liquid cash for consumers.

Tech & AI: Regulation Meets Reality

Innovation is a top-tier priority this session, with a focus on both fostering growth and setting guardrails.

AI Oversight: HB 147 is moving through the Senate. It would require an annual inventory of AI usage by state agencies and the development of “model policies” for AI procurement by late 2026.
Data Center Tug-of-War: SB 34 has resurfaced, aiming to prevent utilities from passing on the massive electricity infrastructure costs of data centers to residential ratepayers.
Tech in Schools: The “Distraction-Free Education Act” (targeting cell phones in K-8) is being eyed for expansion into high schools, a move impacting ed-tech providers and hardware vendors.

Housing & Development: Beyond the Blueprint

Affordability is no longer just a social issue; it’s a workforce development crisis.

Infrastructure Fuel: Kemp proposed a $35 million natural gas pipeline program specifically to support rural economic development and industrial expansion.
Housing Vouchers: The AFY2026 budget includes $50 million for the State Housing Trust Fund and $9.3 million to expand housing vouchers—part of a broader effort to meet DOJ settlement requirements regarding mental health and homelessness.
Telecomm/Broadband: Funding remains a focal point as the state looks to utilize federal BEAD funding to close the “last mile” gap in rural development hubs.

Transportation: Clearing the Arteries

The state is double-downing on “Freight and Future” to maintain its #1 state for business ranking.

The Spend: A massive $2.4 billion is earmarked to improve freight and commuter corridors.
Key Projects: $1.8 billion for the I-75 Henry County Express Lanes and $100 million for rural bridge repairs.
The Strategy: By using cash instead of debt for $4.1 billion in capital projects, the state estimates it will save $3.3 billion in interest over 20 years.

Three Things to Watch Next Week

House Budget Vote: The House is expected to vote on its version of the amended FY2026 budget (including the property tax pivot) today.
Crossover Day Prep: Committees are picking up the pace to ensure bills move between chambers before the Day 28 deadline.
Health Care Reform: Expect renewed debate on Certificate of Need (CON) laws—a perennial fight over hospital competition that impacts development in rural corridors.

Go Deeper: Read the full AJC breakdown of the House vs. Kemp tax battle here.