On Jan. 12, the Georgia General Assembly gaveled in for Legislative Day One of the 2026 session, marking the second year of the biennium and the beginning of what many anticipate will be a memorable legislative session.
Several forces are converging: a volatile election cycle, federal austerity, a softening economy and lingering inter-chamber tension. Together, they create an atmosphere in which norms may shift, pacing may change, and the path for policy becomes less predictable.
Election-Year Politics and Intra-Chamber Strains
The 2026 session unfolds amid open statewide races for governor, lieutenant governor, secretary of state, and attorney general. Many contenders currently serve in the General Assembly, meaning colleagues will be opponents. While it remains to be seen how deeply campaign politics will seep into legislative behavior, some are already asking the question, “How do I get a bill out of the Senate in 2026?”
Adding to the unpredictability is the somewhat strained relationship between the House and Senate. The Senate’s abrupt early adjournment, left dozens of House bills stranded, resulting in some House-side frustration. Like the UGA-Georgia Tech rivalry this tension includes victors but also lingering bruises. The Senate—a reliably Republican chamber with little vulnerability to partisan swings—has sometimes pushed politically divisive legislation with the House expected to follow. The House, managing more competitive districts often resists votes that could endanger vulnerable members.
Federal Austerity and a Tighter State Budget
If inter-chamber tension weren’t enough, federal conditions may exert an outsized influence over the coming session. Washington, D.C., is an austerity posture: cuts or reductions in federal programs, particularly in health, education and workforce, are increasingly likely. In mid-2025, Gov. Brian Kemp directed state agencies to prepare FY2027 budget requests with no increases and warned that if federal funding lapsed, agencies should note the shortfall but should not expect state government to make them whole.
This directive signals that the governor’s proposed budget, released in January, may reflect belt-tightening. If the state is asked to absorb responsibilities previously supported by federal dollars, appropriators will need to make hard choices. For municipalities, this introduces uncertainty around partnerships, grants and state-supported infrastructure programming.
An Economy Showing Signs of Softening
Georgia’s economy, while still strong, is undeniably cooling. After several years of impressive growth. 3.1% in 2024 and 2.4% in 2025, forecasters expect further slowing in 2026. Unemployment remains low at around 3.4%, but growth projections have softened, hiring is decelerating, and consumer spending is leveling out. Residential permitting activity has dropped noticeably, especially in multifamily housing, and businesses appear more cautious.
Georgia’s economic engine—powered by agriculture, manufacturing, logistics, and tech—sits at the intersection of global trade debates. Any prolonged trade disruptions could dampen two of the state’s most important economic sectors. While Georgia’s economy remains resilient, this session may be a test of whether state policy can help maintain that strength.
What This Means for Cities
Against this backdrop of political complexity and economic moderation, Georgia cities face their own set of pressures: population growth, infrastructure demands, housing shortages and increasingly complicated regulatory dynamics. Where 2025 introduced several significant policy proposals, 2026 will determine which of them advance, evolve, or fade quietly.
Cities remain on the front lines of Georgia’s growth. The state continues to rank among the fastest-growing in the nation, and municipal governments are managing expanding populations, accelerating development activity, and rising public expectations for reliable services. This strains transportation networks, water and sewer systems, stormwater infrastructure and public safety agencies, many of which already operate near capacity.
Fiscal Pressures
The Georgia General Assembly enters 2026 divided over whether tax reform should prioritize property taxes or the state income tax. Senate leadership has pushed aggressively for the elimination of income tax, arguing that it would boost competitiveness and attract investment. The House, responding to voter sentiment, has signaled stronger interest in targeted property-tax relief. Eliminating the income tax would create significant state-revenue gaps, while property-tax reductions could strain local governments and schools unless they are fully onset. With the floating homestead exemption from HB 581 now in effect, and the expanded local option sales tax for property relief, the legislature may look to expand those programs. Ultimately, how lawmakers balance these competing priorities will shape both the state’s fiscal trajectory and the financial stability of Georgia’s cities.
Housing Pressures
The central questions shaping the housing debate remain: Who pays for growth, and who controls it? Legislators continue to show interest in creating more uniform statewide processes, with the goal of accelerating housing production. Cities, on the other hand, emphasize that local flexibility is essential for ensuring public safety, environmental protection and orderly planning. Bills limiting local authority are likely to remerge in some form.
Public Safety
Public safety is already the single largest line item in most municipal budgets, and it will remain front and center in 2026. Cities continue to face rising costs, recruitment and retention challenges, and increasing expectations for crisis-response systems. Layered onto these pressures are renewed debates over the role of local governments in immigration enforcement, which could impose additional responsibilities on municipal police agencies. At the same time, cities are bracing for the significant financial outlays required to implement Next Generation 911 systems.
Looking Ahead
To stay up to date on the session, be sure to read the weekly Gold Dome Update and tune into GMA’s weekly Friday Focus. Both help city leaders stay informed and ready to engage.