What began as a tentative agreement between Florida’s House and Senate on the 2025 state budget has unraveled dramatically. A memo issued by House Speaker Daniel Perez confirmed that the budget deal, which had been reached last week, has effectively “blown up.” With the legislative session already extended past its original deadline, state lawmakers now find themselves gridlocked over key fiscal decisions — raising concerns about the possibility of a government shutdown if no budget is passed before the end of the fiscal year on June 30.
At the heart of the breakdown is a sharp disagreement over tax cuts, government spending, and the future direction of Florida’s fiscal policy. Governor Ron DeSantis added fuel to the fire earlier this week by threatening to veto the House’s proposed sales tax cut plan, calling it “dead on arrival.” His argument: the proposed measure would disproportionately benefit out-of-state tourists rather than Florida residents, and it clashes with his preferred approach — cutting property taxes instead.
A Breakdown in Negotiations
Initially, both chambers seemed aligned on a $2.8 billion tax relief package. Of that, $1.6 billion was earmarked for broad sales tax reductions — a proposal championed by Speaker Perez. Senate President Ben Albritton had expressed initial support for the plan, indicating that the Senate would bring the package to the floor. But just days later, Albritton reversed course.
Perez noted in his Friday memo to lawmakers that Albritton called him Thursday to say he would no longer support the previously agreed-upon plan. While Albritton didn’t cite the governor’s opposition during that call, his own memo to senators on Friday acknowledged that DeSantis had firmly rejected the broad sales tax cut and favored more targeted relief — specifically for families and seniors.
“Senators also have concerns about the cut,” Albritton wrote, adding that any final package must be “sustainable for the long term” and leave space in the state’s budget for potential property tax relief in the future.
DeSantis Draws a Line
Governor DeSantis has made it clear that he sees the House’s approach as fiscally irresponsible. His administration has framed the broad sales tax cut as a short-sighted move that undermines more meaningful and permanent solutions, such as reforming Florida’s property tax system.
While DeSantis has publicly criticized the House’s tax plan, he has not offered a detailed alternative or legislation to advance his proposed reforms. Speaker Perez noted that the governor’s office failed to provide specific property tax proposals during negotiations. In response, Perez has launched a special committee to study property tax reforms ahead of the 2026 election, since any changes to property tax structure would require a constitutional amendment approved by 60% of Florida voters.
DeSantis was dismissive of that effort, criticizing the House’s approach by saying, “You don’t convene a 37-person committee when you’re trying to get something done.”
Perez, in turn, expressed frustration with the lack of direct dialogue with the governor, stating, “I am willing to be the adult in the room and sit with the governor and explain why I believe this is in Florida’s best interest.” He also added that meaningful conversations have been difficult because “the governor only talks in roundtables and Twitter.”
Extended Session, Uncertain Future
Last week, the Legislature agreed to extend its session until June 6 to hash out a final budget. Now, the House is preparing to remain in session through the end of June if necessary, according to Speaker Perez. The Senate, however, appears less eager to prolong talks unless absolutely required.
The impasse has increased the risk of a budget not being passed in time, which could lead to a partial government shutdown on July 1 — disrupting state-funded services. The 2025 budget remains the only constitutionally mandated duty of the Florida Legislature each year, and failure to reach an agreement would be unprecedented and potentially damaging.
Political Tensions Rise Within GOP Leadership
The conflict marks a growing rift not just between the House and Senate, but also within the ranks of the Republican Party. DeSantis, Perez, and Albritton — all Republicans — have clashed over both policy and process.
In a sign of how fractured negotiations have become, the Republican Party of Florida offered to mediate. Party Chair Evan Power issued a statement Friday, proposing a “budget summit” to bring all three leaders to the table. “Bringing everyone to the table will help us focus on our shared priorities — fiscal responsibility, tax relief, and a balanced budget,” Power said.
While it remains unclear whether such a summit will happen, the offer underscores the urgency and gravity of the current situation.
What’s at Stake
Florida residents and businesses are watching closely. If lawmakers fail to reach a compromise, not only could state operations be affected, but confidence in the state’s governance could take a hit. The breakdown also calls into question how future initiatives — such as the governor’s ambitious property tax overhaul — will be managed amid growing internal divisions.
The next few weeks will be crucial as lawmakers attempt to salvage budget talks and align on a fiscal plan that satisfies the House, Senate, and governor’s office — a tall order in an already tense political environment.
As Speaker Perez emphasized, “It’s better to get it right than to do it fast.” Whether Florida’s leaders can do either remains to be seen.
