Legislative Update - July 7, 2025

The Governor signed the $115.1 billion budget and vetoed over $1 billion. DeSantis also signed the $1.6 billion tax-cut package that repealed Florida's commercial lease tax and sales tax breaks on everything from back-to-school supplies to hurricane gear and outdoor equipment — including firearms and ammunition.

Alligator Alcatraz officially opened, and President Trump came to Florida to tour the new immigration detention facility built in the Everglades.

Congratulations, Rep. Mike Redondo, the future House Speaker.

Redondo was chosen unanimously by his fellow class members to lead the House following the 2030 election. That’s assuming, of course, that Redondo keeps his seat and Republicans maintain control of the House. But the ongoing reddening of the state — and Redondo's home base in Miami-Dade — makes it likely that Republicans will remain in charge and Redondo will be there to lead them.

“It sounds cliché, but this is a political family that has grown so tight and close that it was just as much enjoying each other’s company as it was coming together to elect a Speaker,” Redondo said of his class. “It was a great time.”

Of course, Redondo had a slight head start on his peers, winning a Special Election in House District 118 in 2023. That gave him a slight measure of seniority that has been an advantage for House Speakers in the past.

He'll also be able to return to the post to a Miami-Dade lawmaker. The current Speaker, Daniel Perez, is also from the region. He'll be followed by Sam Garrison of Fleming Island and Jennifer Canady of Lakeland before Redondo takes over.

Governor …

Gov Signs Budget at FY Deadline, Vetoes Over $1B - Gov. Ron DeSantis on Monday signed the state budget (SB 2500) into law just in time for the fiscal year that begins today, approving a spending plan that took more than a month of overtime wrangling by lawmakers to work out amid differing ideas about spending and tax cuts amid a looming drop in federal assistance. DeSantis used his line item veto power to reject $1.3 billion of the proposed spending lawmakers had agreed on, including over $750 million that the Legislature had been setting aside for reserves in next year's budget and over $560 million in various local projects and programs sought by legislators, from local water and infrastructure projects to arts and education programming (See below). It also includes more than $800 million in accelerated payments to lower the state's debt. "I think what you see in the budget is an example of a very fiscally responsible state," DeSantis said. The budget as passed by lawmakers was $115.1 billion, but comes in at $117.4 billion when adding in money the DeSantis administration left unspent and carried over from last year's budget. The new spending plan accounts for about $1 billion in tax cuts for Florida businesses and about $300 million on consumer product sales tax breaks (See below). While legislative Republicans and DeSantis touted the budget for being lean, it does provide for a 2% raise for state employees, and pay increases for teachers and law enforcement officers. The budget also builds in $15.7 billion in reserves. DeSantis noted in a press release that Florida's "rainy-day" Budget Stabilization Fund has tripled in size since he took office and will hit its maximum legal limit this year with an additional $429 million contributed. DeSantis Press Release / Associated Press / USA Today Network / Orlando Sentinel / Politico Pro / News Service Florida / The Capitolist / Florida Phoenix / LobbyTools Budget Materials / LobbyTools Bill Activity

DeSantis Exercises Line-Item Veto Power - Gov. Ron DeSantis on Monday rejected more than $1.3 billion in spending with budget vetoes ranging from $5 million to expand West Shore Jr./Sr. High School in Brevard County, $750,000 for a development fund for the Florida Museum of Black History in Opa-locka, and $7.5 million intended for capital improvements to east Orange County's aging water infrastructure, which aimed to address deferred maintenance and long-standing concerns from residents. Other items that were axed included $1.35 million for Sunrise Community, a nonprofit in Homestead that serves people with intellectual and developmental disabilities, more than $50 million in water-related projects, including $6.25 million designated for restoring the Ocklawaha River, and a $200 million transfer of previously approved funding meant for land acquisitions in the Florida Wildlife Corridor, halting efforts to repurpose 2023 funds within the Department of Environmental Protection. The governor also vetoed HB 5015, a budget-related bill aimed at keeping costs down in the state group health insurance program. The measure would have required the Department of Management Services to implement a pharmaceutical formulary, effective for the 2026 policy year, potentially narrowing available medicines. DeSantis contended the proposal could harm the state group health insurance program, which is used to offer affordable and comprehensive health care coverage as a key benefit to attract and keep skilled state workers. He argued it would increase costs and reduce access to prescription drugs and medical supplies for state employees and their families. "The Department of Management Services (DMS) is continuously researching industry trends and opportunities to achieve cost savings while balancing member impact; however, a comprehensive analysis and implementation is not feasible in an abbreviated timeframe without an abrupt impact to state employees," the veto letter reads. "While I support DMS developing recommendations as required by the bill to reduce the rate at which costs are increasing, the implementation of the provisions contained in the bill will have a negative impact on thousands of Florida's families. Therefore, the recommendations should be carefully evaluated, with all options available for review and approval by the entirety of the Legislature, not solely by a 14-member budget panel." DeSantis Veto List / HB 5015 Veto Letter / Florida Politics / USA Today Network / Tampa Bay Times / Politico Pro / News Service Florida

Some Lawmakers Who Took on DeSantis Lose Budget Projects: One of the most vocal critics of the DeSantis administration during the spring legislative session was a fellow Republican, Rep. Alex Andrade, who led an investigation into a DeSantis priority project, the Hope Florida organization, and accused DeSantis' appointed attorney general of criminal activity. Andrade noted Monday that 14 projects in his Pensacola-area district were vetoed by DeSantis. "From what I can tell, yes, Gov. DeSantis is obviously trying to punish me," Andrade told the Tampa Bay Times after the governor's budget veto list was released. Andrade has accused the Hope Florida Foundation of diverting $10 million of a $67 million prescription drug overbilling settlement reached by the Agency for Health Care Administration to a political campaign to oppose a 2024 ballot initiative to legalize marijuana. "I knew that heavy vetoes would be his reaction as I began investigating what happened," Andrade told the newspaper. Miami Republican Rep. Vicki Lopez, who criticized some executive agency heads, and even called for one to lose his pay, had more than half of her proposed projects vetoed, including $445,000 for a food access program. The Times reported other lawmakers who crossed DeSantis during the session had large numbers of projects vetoed as well. Tampa Bay Times

Gov Signs Lease Tax Repeal, Sales Tax Holidays - Gov. Ron DeSantis on Monday signed a sweeping $1.6 billion tax-cut package that includes a long-sought repeal of Florida's commercial lease tax and sales tax breaks on everything from back-to-school supplies to hurricane gear and outdoor equipment — including firearms and ammunition. The legislation (HB 7031), approved by lawmakers earlier this month with an effective date of July 1, also creates permanent sales tax exemptions on hurricane-preparedness items such as batteries, tarps, and generators, as well as outdoor essentials like sunscreen, insect repellent, bike helmets, and life jackets. Other permanent exemptions take effect Tuesday, including the removal of sales tax on state park admissions and certain NASCAR race tickets, as well as precious metals sales under $500. A key highlight of the tax package is the elimination of the 2% commercial lease tax, a move celebrated by small business advocates. The change, effective Oct. 1, is expected to reduce state and local revenues by more than $1.1 billion in the first year. Also included is a newly established annual back-to-school sales tax holiday, set for every August. This year's version will save families an estimated $217 million by exempting clothes and shoes under $100, school supplies under $50, learning aids under $30, and personal computers under $1,500. From Sept. 8 through Dec. 31, a second tax holiday will apply to hunting, fishing, and camping gear — including guns and ammo — expected to save shoppers nearly $45 million. Tax breaks will also apply to tents under $200, fishing rods under $75, and camping stoves and sleeping bags. Additional provisions in the tax cut deal include expanded uses for local tourist-development taxes — such as funding beach lifeguards and public facilities in rural counties — and the repeal of the state aviation fuel tax. According to legislative analysts, the tax cuts will reduce state general revenue by about $1.3 billion in the first year, with long-term recurring impacts approaching $2 billion. The tax package coincides with DeSantis' approval of Florida's $116.5 billion budget (SB 2500) for the 2025-2026 fiscal year (see above). USA Today Network / News Service Florida / Florida Politics / LobbyTools Budget Tab / LobbyTools Governor's Activity

DeSantis Vetoes $1M Property Tax Study - Gov. Ron DeSantis on Monday vetoed $1 million earmarked for a state study on the potential effects of eliminating property taxes in Florida, saying officials don't need more data to move forward with a plan he strongly supports. Speaking at a press conference in Wildwood, DeSantis criticized the Legislature for including the funding in the budget and reaffirmed his call for a constitutional amendment to abolish ad valorem taxes on homesteaded properties. He urged lawmakers to put the measure before voters in 2026. "We know what needs to be done, so let's just do it," said the governor. The vetoed funds were designated for the Office of Economic and Demographic Research to evaluate the state's property tax structure and how local governments spend those revenues, particularly regarding homestead exemptions. The study was included in the state's tax package (HB 7031), with a completion deadline of Nov. 1. Despite DeSantis' rejection of the study, Senate President Ben Albritton, R-Wauchula, voiced support for a property tax elimination proposal, while House Budget Committee Chair Rep. Lawrence McClure, R-Dover, noted the state study had been a Senate-backed initiative. Democratic lawmakers have raised concerns about moving too quickly without fully understanding the fiscal consequences of a property tax repeal and outside groups have also cautioned against eliminating property taxes. The Florida Policy Institute warned that doing so could force the state to double its sales tax to 12% to offset lost revenue. Meanwhile, Florida TaxWatch is conducting its own analysis, with early findings indicating that property taxes generate roughly $55 billion annually — making them the state's largest revenue source. DeSantis Press Release / DeSantis Line Item Veto Letter / Florida Politics / LobbyTools Budget Tab / LobbyTools Governor's Activity

"Donald Trump will visit ‘Alligator Alcatraz’ in Everglades when it opens Tuesday, Ron DeSantis says" via Ana Ceballos of the Miami Herald — DeSantis announced that Trump would visit a newly constructed immigration detention center in the Everglades on Tuesday, the day it is expected to open. Speaking at a news conference on Monday, DeSantis stated that the facility, which began construction the previous week, would be operational by Tuesday, allowing it to house detained immigrants.

“Lieutenant Governor, CFO replacements coming soon — but not before July 4 Weekend” via A.G. Gancarski of Florida Politics — There’s no rush to pick the state’s new Chief Financial Officer or Lieutenant Governor, DeSantis said in Wildwood. But he added that with the budget finally signed, those appointments are “next on our agenda.” Still, DeSantis cautioned that “no decision has been made” and none will be announced before the holiday weekend. “Those will be in relatively short order. Probably not before July 4, because people are not going to be paying attention. But when we get back on there, that’ll be something that we’re going to do,” DeSantis said. DeSantis has put off these picks for some time, saying in May that with the “dust still settling,” he wasn’t ready to finalize selections to replace former Lt. Gov. Jeanette Nuñez and former Chief Financial Officer Jimmy Patronis.

Legislative …

New Laws Take Effect: While the governor has yet to act on nine bills, 154 bills from the 2025 regular legislative session are slated to take effect July 1. Bills that officially become law on Tuesday range from high profile bills such as legislation (SB 56) that makes it illegal for anyone to disperse chemicals into the atmosphere to try to change the weather and two bills (HB 549, HB 575) that change the name of the Gulf of Mexico to the "Gulf of America," to lesser noticed measures like one (HB 615) that will allow landlords and tenants to send each other certain official notices electronically in some cases, and a bill (HB 653) that could make it easier for people to receive a death sentence in cases of assassination of a head of state. Axios Tampa Bay / LobbyTools Bills That Go Into Effect July 1 / LobbyTools Governor's Activity

Business …

Florida Gas Prices Dip Ahead of July 4th Travel Surge: Florida drivers saw relief at the pump this week, with the average price for a gallon of regular unleaded gasoline dropping to $2.94 on Monday — down 16 cents from the previous week, according to AAA. The decline comes after prices had inched up due to tensions in Iran. Despite the recent drop, fuel demand is expected to climb as nearly 4.6 million Floridians are projected to travel 50 miles or more during the upcoming Independence Day weekend, a 3% increase from last year. Gas prices varied across the state, from a low of $2.84 per gallon in the Crestview-Fort Walton Beach area to a high of $3.12 in the West Palm Beach-Boca Raton region. Nationally, the average price was $3.19 per gallon on Monday, down three cents from the previous week. News Service Florida

COVID …

State Surpasses 1,000 COVID Deaths in First Half of 2025: Florida has recorded more than 1,000 COVID-19-related deaths in the first six months of 2025, according to data released Monday by the state Department of Health. The total reached 1,027, with the number steadily rising from 878 reported in late May. While the virus continues to claim lives, the death toll so far this year is significantly lower than in previous years. Since the pandemic began in early 2020, Florida reported 23,351 deaths that year, peaking at 39,874 in 2021, before declining to 21,316 in 2022, 8,448 in 2023, and 6,023 in 2024. Among counties, Palm Beach leads with 75 deaths reported in 2025, followed by Pinellas with 67 and Broward with 66. News Service Florida