TALLAHASSEE, FL — On June 16, 2025, Florida lawmakers finalized a $117 billion state budget for the 2025–2026 fiscal year, marking a significant legislative achievement that balances substantial tax relief with strategic investments in key sectors. The budget, which Governor Ron DeSantis is expected to review in the coming weeks, includes a $900 million tax cut achieved by eliminating the tax on commercial leases—a move long advocated by business groups.
Tax Relief and Economic Measures
A cornerstone of the new budget is the elimination of the state’s business rent tax, a $900 million annual relief that has been a priority for Florida’s business community. This tax cut is part of a broader $1.3 billion tax relief package that also includes sales tax holidays on hurricane supplies, school supplies, and other essential items.
In addition to tax cuts, the budget allocates $750 million annually to a reserve fund, pending voter approval of a proposed constitutional amendment. This measure aims to bolster the state’s financial resilience against economic downturns and natural disasters.
Investments in Education and Healthcare
Education funding remains a priority, with the budget allocating $4 billion for private and religious school vouchers, reflecting the expansion of Florida’s universal voucher program. The Florida Education Finance Program (FEFP) sees an increase, with the Base Student Allocation rising to $5,398, supporting both public and private educational institutions.
Healthcare services receive significant attention, with increased funding for Medicaid provider rates and opioid treatment programs. The budget also includes investments in mental health services, aiming to address the needs of vulnerable populations across the state.
Infrastructure and Environmental Initiatives
The budget dedicates substantial resources to infrastructure and environmental projects, including $750 million for Everglades restoration and $209 million for citrus protection and research. These investments underscore Florida’s commitment to preserving its natural resources and supporting agricultural industries.
State Workforce and Public Safety
In efforts to streamline government operations, the budget eliminates 2,238 vacant state positions. However, it provides a 2% across-the-board raise for state employees, with law enforcement officers and firefighters receiving up to a 15% increase, depending on tenure. Additionally, $3 million is allocated to support local jails involved in federal immigration enforcement efforts.
Governor’s Review and Implementation
Governor DeSantis holds line-item veto power and is expected to review the budget before the fiscal year commences on July 1. His decisions will determine the final allocations and may influence the implementation of various programs and initiatives outlined in the budget.