Kemp proposes 20‑basis‑point income tax cut, previews sweeping tort reform and disaster relief

Gov. Brian P. Kemp used his State of the State address to propose a 20‑basis‑point reduction in Georgia's income tax rate and to preview comprehensive tort‑reform legislation he said is needed to stabilize insurance costs and protect small businesses.

Kemp framed the proposals as part of a conservative fiscal approach that he said has attracted jobs and investment to Georgia. "Today, I'm proposing a further cut of 20 basis points to bring us down to just 5.19%," Kemp said, adding the change would save Georgians an estimated $7.5 billion over the next decade.

The governor also pointed to recent extreme weather as a continuing priority. Describing the aftermath of Hurricane Helene, Kemp said farmers and timber producers suffered about $5,500,000,000 in damage and said his administration repurposed $100,000,000 to the Georgia Development Authority last November to provide direct financial support for affected producers.

Kemp framed tort reform as a response to rising insurance costs he said are harming small businesses and essential services. He cited prior work tied to House Bill 1114, which he said helped gather data on Georgia's insurance market, and said his office "will introduce" comprehensive but fair tort‑reform legislation in the coming days. "The tort reform legislation my office will introduce in the coming days will be comprehensive but fair," Kemp said.

On education and public‑safety spending, Kemp said the state has allocated $294,000,000 for campus safety to date and that his budget proposal includes an additional $159,000,000 for school security grants. He also highlighted investments in prosecution units focused on gangs and human trafficking and said his budget includes funding to expand those units.

Kemp defended the state's alternative coverage programs and urged caution about full traditional Medicaid expansion, citing overall Medicaid spending and provider rate increases. He described Georgia Pathways and Georgia Access as covering more people than traditional expansion would and as delivering better coverage, while noting constraints on state budgets.

The address concluded with a call for bipartisan cooperation on several priorities, including tort reform and measures to strengthen school safety, and with the governor urging the General Assembly to take up the legislative agenda he outlined.

The joint session was later dissolved by a motion, and the House resumed its separate business.