Oklahoma lawmakers approve $12.5 billion budget with tax cut, private prison purchase

The Oklahoma Legislature has finalized the state's $12.5 billion budget for fiscal year 2026, sending it to Governor Kevin Stitt for approval.

The budget package, made up of more than 50 separate bills, includes funding allocations for state agencies and a state income tax cut, a priority for Republican leadership this session.

A key provision in the spending plan is a $312 million allocation to purchase the state’s last remaining private prison, located near Lawton. Lawmakers say the move aims to bring correctional operations fully under state control.

The Legislature also passed a measure designed to attract major business investments, such as the $4 billion aluminum manufacturing facility planned for Inola, which officials say could bring thousands of jobs to the region.

Despite the forward-looking economic plans, not all lawmakers supported the final budget. House Minority Leader and Democratic gubernatorial candidate Cynthia Munson voted against it, calling the session a “missed opportunity.”

“I voted against the budget because I felt like there was more we could do to really focus on the needs of everyday Oklahomans, specifically around education and health care,” Munson said.

Governor Stitt has four days to sign the budget bills. If he takes no action, the legislation will automatically become law.