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Gov. Kemp proposes $1 billion tax rebate in final State of the State address
Gov. Kemp proposes $1 billion tax rebate in final State of the State address
Gov. Kemp proposes $1 billion tax rebate in final State of the State address

Published on: 01/16/2026

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ATLANTA, Ga. (Atlanta News First) — Gov. Brian Kemp took to the floor of the state House of Representatives Thursday morning and, in his final state of the state address, said his last budget proposal as the state’s chief executive will include another $1 billion tax rebate that, he said, “will return or save the average filer $250 and a married couple up to $500.

“With this rebate, my administration and this General Assembly will have returned over $7.5 billion in surplus revenue to the taxpayers of our state over the last four years,” he said.

Kemp also said he is proposing an additional, 20-basis point reduction in the state’s personal and corporate income tax rate, bringing it to 4.99 percent.

“This tax cut doesn’t promise to pay for itself years down the road or create future budget holes with today’s one-time money,” Kemp said. “Our plan fulfills my promise to the voters of this state in a responsible way. And most importantly, this plan puts all the hardworking people of our state first.

“The reason we’ve been able to do this - and three years ahead of schedule - is because of our fiscal discipline,” he said. “It’s also worth noting a few other important accomplishments from the last few years that may not make headlines or please those who constantly advocate for bigger government.

“Even with the rebate and tax cuts that my office will be proposing this legislative session, our state’s rainy-day fund and strategic reserves will stand at over $10 billion.”

Kemp’s budget proposal also includes a $325 million investment in the University System of Georgia’s DREAMS Scholarship program, which he called, “the first need-based scholarship of its kind in Georgia history.

“The DREAMS scholarship will build on the incredible, unmatched legacy of the HOPE Scholarship and leave no stone unturned when it comes to student achievement in our state,” Kemp said.

“There is no question the state of our state is stronger, more prosperous, and safer today than it was in January of 2019,” Kemp said.

If lawmakers pass Kemp’s budget, all state employees - from teachers to public safety officers - will receive a $2,000 bonus, double what was approved last year.

READ | Gov. Brian Kemp’s last state of the state address

Other highlights of the governor’s speech included:

  • $2.1 million for medical residency slots.
  • An enhanced retirement plan for state law enforcement officers which provide a higher match to the 401(k) savings accounts of eligible public safety officers.
  • A Georgia version of Trey’s Law, which prohibits the misuse of nondisclosure agreements in civil settlements related to sexual abuse and trafficking.

“There is no question the state of our state is stronger, more prosperous, and safer today than it was in January of 2019,” Kemp said. “But I want to be clear. This success - this ‘good news’ - isn’t guaranteed. It doesn’t happen by default or accident. There’s more work to be done and more wood to chop to make sure Georgia continues to be the best place to live, work, and raise a family for generations to come.”

Trey’s Law prohibits the misuse of nondisclosure agreements in civil settlements related to sexual abuse and trafficking.

Kemp is currently in the last year of his second gubernatorial term and has made no firm announcements regarding his own political future, having rejected national GOP leaders’ call to challenge Democratic U.S. Sen. Jon Ossoff this fall.

On Wednesday, Kemp said he is asking lawmakers to pass several billion-dollar investment initiatives in “affordability, transportation and energy infrastructure, and education and workforce development.”

The governor took to the podium Wednesday to talk to the state's business and political leaders.

Making his final headline appearance at the annual Georgia Chamber of Commerce’s Eggs & Issues breakfast on Wednesday, Kemp pitched:

  • $1.8 billion for I-75 in Henry County, including for express lanes.
  • $200 million to continue improvements along Georgia 316, a.k.a. University Parkway.
  • $250 million in funding for local road projects.
  • $100 million to strengthen and improve bridges across rural parts of the state.
  • $35 million to create a natural gas infrastructure improvement fund within the Georgia Environmental Finance Authority.
  • $50 million to combat homelessness through a new Homelessness Response Grant.
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So far, four Republicans and seven Democrats have announced their candidacies to become the state’s next governor. No Democrat has been elected Georgia governor this century.

Kemp was elected governor in 2018 in a closer-than-expected contest against Democrat Stacey Abrams in a race that briefly propelled Abrams to a national profile. But four years later, Kemp won reelection, again defeating Abrams by a larger margin than in 2018.

Kemp currently serves as chair of the Republican Governors Association.

Atlanta News First and Atlanta News First+ provide you with the latest news, headlines and insights as Georgia continues its role at the forefront of the nation’s political scene. Download our Atlanta News First app for the latest political news and information.

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News Source : https://www.walb.com/2026/01/16/gov-kemp-proposes-1-billion-tax-rebate-final-state-state-address/

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