ATLANTA — The Georgia House of Representatives has approved a $37.7 billion state budget for fiscal year 2026, allocating significant funding for key initiatives, including education, prison system improvements, and mental health services. However, state lawmakers are expressing concerns about how potential federal budget cuts could impact Georgia’s financial plans.

The approved budget includes nearly $100 million in additional education spending, primarily for school safety and mental health programs. Additionally, $250 million has been designated for Georgia’s prison system, which will be used to hire hundreds of new correctional officers.

While the budget secures funding for state priorities, House Appropriations Committee Chair Matt Hatchett warned that proposed federal spending reductions could have consequences at the state level. Congressional Republicans are considering cutting $2 trillion in federal spending over the next decade, potentially affecting programs funded by federal grants, such as Medicaid.

“We could end up in a special session, which to me is not surprising,” Hatchett stated, acknowledging that adjustments may be necessary if federal cuts significantly impact Georgia’s budget. Despite these concerns, he expressed optimism that Washington will work with states to mitigate the effects of funding reductions.

Hatchett also cautioned that drastic federal cuts could force Georgia’s legislature to make difficult decisions. “There would be consequences to drastic cuts, and I don’t say that I disagree with them, but we just have to work together,” he said.

The state budget now moves to the Georgia Senate for a vote.

WSB’s Jonathan O’Brien contributed to this story