Governor Stitt, Legislature Announce Budget Deal

On May 14, 2025, Governor Kevin Stitt, Senate President Pro Tempore Lonnie Paxton, and House Speaker Kyle Hilbert unveiled a comprehensive agreement aimed at cutting taxes, investing in key infrastructure, and strengthening Oklahoma’s business-friendly climate.

The agreement includes a quarter-point tax cut to the state income tax, a consolidation of income tax brackets and a true path to zero income tax, ensuring that Oklahoma stays competitive with surrounding states.

Parties additionally agreed on key spending priorities, including funds for a new, state-of-the-art veterinary hospital at OSU in Stillwater, a world-class pediatric heart hospital at OU in Oklahoma City, and funds for essential infrastructure investments across the state.

“Our agreement shows the kind of leadership that Oklahomans expect— fiscally responsible, conservative governance,” said Governor Stitt. “We’re delivering a tax cut for every Oklahoman, investing in critical infrastructure, public safety and education, and making smart, one-time investments that will strengthen Oklahoma for the long haul. I’m proud that under my administration, we’ve cut over a billion dollars in taxes, put more than $5 billion in savings, and continued to chart a path towards zero income tax while slowing the growth of government.”

“This is a fiscally conservative budget that takes care of all of Oklahoma, investing in critical needs throughout the state while preserving ample surplus for future years,” said House Speaker Kyle Hilbert, R-Bristow.

"This responsible budget plan delivers meaningful tax relief, reforms to our overly complicated tax code and makes critical investments in our state’s future. If approved by the House and Senate, we will deliver tax cuts that will put money back in the hands of hardworking Oklahomans and create a more competitive tax climate for job creators. We will also implement key worker’s comp and tort reform measures that will reduce frivolous lawsuits and make Oklahoma a more attractive place to do business. These are common-sense changes that help level the playing field and encourage growth, innovation and investments across our economy. Importantly, this budget, if approved, also makes targeted investments in critical needs across our state. These are foundational areas that ensure opportunity and prosperity for every Oklahoman, no matter where they live. I’m proud of the work the budget teams have done together to deliver a forward-looking budget that reflects our values and sets our state up for long-term success," said Senate Pro Tem Lonnie Paxton.

In addition to an income tax cut and budget, the parties also agreed to significant business friendly policy proposals including:

• Behind the Meter which will allow large scale manufacturers and data centers to build their own power generation.
• Business courts which will create courts to handle complicated business matters in an efficient and knowledgeable manner.
• Tort reform which will protect rural doctors and business owners from out-of-control economic damages and frivolous lawsuits.
• Expense recovery for utilities which will allow more energy generation and create a more reliable and affordable energy grid.

Details on the proposed budget can be found in the House budget portal.

A recording of the press conference can be found here.