2026 Capitol Update - Week 2
2026 Capitol Update - Week 2
January 20, 2026
Last week, the legislature met for Legislative Days 1-5 and will reconvene in regular session on Monday, January 26th for LD 6. This week is “Budget Week.” where members of the House and Senate Appropriations committees will host a three-day long joint hearing in which various state agency heads will present on the Governor’s recommended budget for their respective agency.
The Governor highlighted his top priorities for the budget last week at the Georgia Chamber’s Annual Eggs & Issues Breakfast and during his State of the State address last Thursday. These priorities include:
$2.35 billion in new transportation infrastructure funding:
$1.8 billion for dedicated north and south-bound express lanes on I-75 in Henry County to replace the current reversible lanes and provide motorists with express lanes in both directions at all times of the day
$200 million to complete the transformation of Georgia Highway 316 into a limited access expressway between I-85 and Athens
$100 million dedicated to rural bridge repair and replacement
$250 million for Local Maintenance & Improvement Grants (LMIG) with no local match required
$35 million in one-time funding for a natural gas infrastructure fund to help rural communities attract new economic development projects
$50 million in one-time funding for a Homelessness Response Grant
$2,000 one-time bonus for all state employees
Revamped retirement system for police
$1 billion for a fourth tax rebate for Georgia income tax filers: $250 individual tax rebate; $375 for heads of households; and $500 for married couples
Reduction in the state income tax from the current 5.19% to 4.99%
Historic $325 million investment to create a new needs-based scholarship endowment for Georgia college students - the “DREAMS scholarship” program would provide awards of up to $3,000 per year for students who demonstrate financial need to attend a University System or Technical College System institution
The current state surplus and reserves stand at $14.6 billion, and Governor Kemp will still leave office with roughly $10 billion in reserves if lawmakers approve all of his budget proposals.
Speaker of the House Jon Burns also highlighted some of his own legislative priorities during the Eggs & Issues event, including placing a “literacy coach” in every school in the state to help address the reading challenges Georgia’s students are facing. Additionally, Speaker Burns took a swipe at the locals who opted out of the floating homestead exemption that caps annual property assessment increases to the rate of inflation, stating the House plans to address the 300+ jurisdictions who opted out of tax relief for their citizens. He also indicated strong support for reducing regulatory barriers that drive up the cost of new home construction to help make home ownership a reality for families that have been priced out of that investment.
As lawmakers meet this week to discuss budgetary priorities, we will be working to increase the budget of the Professional Engineers & Land Surveyors Board to support the work they are doing.
If you haven’t already, please plan to join us for our annual Engineers at the Capitol Day!
See you next week!
LEGISLATION ACEC GEORGIA IS FOLLOWING:
Local Government
HB 152 by Representative Matt Reeves (R-Duluth): would extend the existing Mini Brooks Act to local governments. This would require Qualifications-Based Selection for the procurement of A/E services for projects where professional services are estimated to be $75,000 or more or for any project with a total preliminary construction cost of over $1 million.
Status: Assigned to the House Governmental Affairs Committee
Position: SUPPORT
HB 168 by Representative Mitchell Horner (R-Ringgold): would require any local proposal to reimpose a previously passed SPLOST to pass the General Assembly as a local bill (i.e., if a jurisdiction wants to reimpose a SPLOST, they will have to go through the General Assembly to do it.)
Status: Assigned to the Ways & Means Committee
Position: Reviewing
HB 317 by Representative Ron Stephens (R-Savannah): would create a new option for local governments to help finance essential infrastructure needs called a “Workforce and Residential Infrastructure District” (WRID). If approved by the local government, this would allow landowners within the district to self-impose taxes to fund these public infrastructure projects & improvements. A constitutional amendment would be required for the enactment of the legislation which has been filed as HR 192 by Representative Ron Stephens (R-Savannah).
Status: Assigned to the House Ways & Means Committee (was originally assigned to Governmental Affairs). The sponsor and advocates agree that this should be a 2 year bill, as it requires a constitutional amendment. This initiative is back this session.
Position: SUPPORT
HB 531 by Representative Matt Reeves (R-Duluth): proposes to extend the period for plaintiffs to provide notice (ante litem notice) for an intent to sue a city from six months to twelve months. The legislation also has a provision to limit the liability for cities at $3 million per person and $5 million per occurrence.
Status: Passed the House Judiciary Committee; Passed the House 161 to 13; Passed the Senate Judiciary Committee; Recommitted to the Senate Judiciary Committee
Position: Monitor
HB 812 by Representative Mike Cheokas (R-Americus): proposes to reinforce the shot clock on local government plan reviews by limiting the number of rounds an application may undergo. The legislation continues to enforce the 45-day turn around requirement for local governments but would require a new 14-day turn around where a local government would then be required to issue or deny the permit. Any comments made by the local government would need a citation for the exact local, state, or federal rule or regulation they violate. The main purpose of this bill is to limit a local government’s ability to perpetually run the clock on a permit issuance or denial and end the practice of unlimited rounds of comments where new items are introduced during subsequent rounds.
Status: Heard in House Governmental Affairs subcommittee on State & Local Government.
Position: Support
SB 51 by Senator Ed Setzler (R-Acworth): this legislation would require qualifications-based selection for the procurement of A/E services for local government projects where the professional services cost is estimated to be $75,000 or more, or if the project cost is estimated to be $1 million or more. This is not a prohibition on cost being a factor, this simply shifts the consideration of cost to a second stage of negotiation after the firms have been ranked, rather than cost being an initial evaluation.
Status: Passed the Senate State and Local Governmental Affairs Committee unanimously; passed the Senate 54 to 1; passed the House Governmental Affairs Committee; recommitted to the House Governmental Affairs Committee
Position: SUPPORT
SB 151 by Senator Brandon Beach (R-Alpharetta): proposes the creation of a “Joint Development Authority of North Fulton Municipalities”. A committee of seven directors would be created with one representative each from Alpharetta, Johns Creek, Milton, Mountain Park, Roswell, and Sandy Springs, with a seventh member being appointed by the committee.
Status: Passed out of the Senate State and Local Governmental Affairs Committee; passed the Senate 32 to 23. Passed the House Intragovernmental Coordination Committee. The House passed this with a substitute, however the substitute did not receive a final agree on the Senate side in 2025. With Senator Beach’s resignation to serve as US Treasurer, it is unclear what is happening to this measure.
Position: Monitor
Industry & Professions
HB 107 by Representative Bethany Ballard (R-Warner Robins): would require all professional licensing boards in the state to adopt a process by which spouses of military members or transitioning service members may obtain a digitally verifiable license.
Status: Passed the House Defense & Veterans Affairs Committee
Position: Monitor
SB 28 by Senator Greg Dolezal (R-Forsyth County): this legislation aims to reduce red tape and reconfigure how the regulatory environment operates in Georgia by allowing the legislature to take a more active role in regulatory activities.
Status: Passed the Senate Economic Development & Tourism Committee; passed the Senate 31 to 23. Passed the Senate Budget and Fiscal Affairs Oversight Committee; recommitted to the Senate Budget and Fiscal Affairs Oversight Committee.
Position: Monitor
SB 207 by Senator Brian Strickland (R-McDonough): would provide a preclearance process for the licensing of individuals with criminal records who apply for a professional license in the state.
Status: Passed the Senate Judiciary Committee; passed the Senate 55 to 0. Passed the House Judiciary Committee; Passed the House 170 to 0; Senate agreed to the House version with a Senate floor amendment, so it needs an agree on the House side before it can pass. Still pending an agree.
Position: SUPPORT
Transportation
HB 76 by Representative Stacey Evans (D-Atlanta): would require the Department of Transportation to host public hearings for local transportation projects of significant impact.
Status: Assigned to House Transportation Committee
Position: REVIEWING
HB 387 by Representative Brad Thomas (R-Holly Springs): would require a service delivery agreement to include a growth boundary agreement component.
Status: Assigned to the House Governmental Affairs Committee
Position: Monitor
Water & Environmental
HB 559 by Representative John Carson (R-Marietta): this legislation would revise the sunset date on the sales tax exemption for the equipment used in data centers from 2031 to 2026.
Status: Assigned to the House Ways & Means Committee
Position: Monitor
SB 34 by Senator Chuck Hufstetler (R-Rome): would prohibit an electrical utility provider from recovering the cost of servicing a data center from regular ratepayers.
Status: Assigned to Senate Regulated Industries & Utilities Committee
Position: Monitor
SB 410 by Senator Matt Brass (R-Rome): proposes to end the sales & use tax exemptions for new data centers, effective upon signature of the governor.
Status: Referred to the Senate Finance Committee
Position: Reviewing