After weeks of intense negotiations and public disagreements, Florida lawmakers have reached a tentative budget deal that is set to deliver $2.25 billion in tax relief to businesses and families across the state. The breakthrough comes as the Legislature aims to conclude its session by June 16, following a constitutionally mandated 72-hour review period.
In memorandums issued to their respective members, House Speaker Daniel Perez, R-Miami, and Senate President Ben Albritton, R-Wauchula, outlined the key components of the agreement, which focuses on fiscal responsibility, debt reduction, and bolstering the state’s financial reserves.
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A significant portion of the tax relief package targets businesses, with the complete elimination of the business rent tax, saving companies an estimated $900 million. Florida families are also slated to benefit from permanent sales tax exemptions totaling $350 million, designed to provide broad-based relief. The deal further includes a $250 million allocation for state debt reduction.
Beyond immediate tax relief, the budget framework also sets the stage for a critical constitutional amendment. Lawmakers will take up a joint resolution to increase the cap on the Budget Stabilization Fund, commonly known as the “rainy day fund,” from its current 10% to 25%. This move is accompanied by a requirement for an annual payment of $750 million into the fund until the new cap is reached.
Legislative leaders clarified that this $750 million annual payment will be held in reserve for the next two fiscal years. It will only be automatically transferred to the rainy day fund if 60% of voters approve the proposed amendment in the November 2026 election.
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The agreement comes after a period of considerable friction, notably on May 13, when Speaker Perez publicly accused Senate President Albritton of “breaking his word” over an earlier tentative deal that had included $2.5 billion in tax relief. The House had initially pushed for a more substantial cut to the state’s overall sales tax rate, from 6% to 5.25%, a proposal the Senate resisted.
Albritton indicated that concerns from Governor Ron DeSantis regarding a potential veto of any broad sales tax reduction, which could have also jeopardized property tax reductions supported by the governor, played a role in the Senate’s position. Senators also expressed apprehension about the state’s ability to navigate any significant downturn in tax revenues.
Despite the past disagreements, both legislative leaders are now presenting a united front. In his letter to the Senate, President Albritton lauded the framework as providing for a “fiscally responsible, balanced budget that reduces state spending, lowers per capita spending, and reduces the growth of state bureaucracy.”
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He further emphasized that the budget “authorizes early payoff of state debt, accounts for significant, broad-based tax relief, and builds on historic state reserves for emergencies.” Albritton also highlighted new reporting requirements aimed at safeguarding taxpayer dollars and improving accountability and oversight of government spending.
Budget conference meetings are scheduled to commence on Tuesday and conclude by Thursday, paving the way for lawmakers to return on June 16 to vote on the conference report and other legislative measures.
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