S1331 Budget Cuts to Offset Revenue Shortfalls

OPPOSE - This bill imposes across-the-board funding cuts of 3–4% to all state agencies to offset revenue shortfalls from the prior year and align Idaho’s budget with federal tax changes under the “One Big Beautiful Bill Act.”

Most agencies face a 4% reduction. K-12 public education, Medicaid, the Idaho State Police, and the Idaho Department of Corrections are limited to a 3% cut. In total, this bill does the following:

• reduces FY26 appropriations by $192 million

• eliminates 110 full-time positions across multiple agencies

• includes a $22 million transfer from the Public School Income Fund to the General Fund

These broad, indiscriminate cuts have been criticized as a blunt approach that avoids careful evaluation of programs and priorities. While some areas were spared the additional 1% reduction, cuts to Medicaid and K–12 education remain deeply concerning. They disproportionately affect Idaho’s most vulnerable residents and undermine long-term affordability by weakening access to health care and limiting the state’s ability to prepare the next generation for economic self-sufficiency.

The ripple effects will be felt across many essential services that Idahoans rely on every day.

This legislation was signed into law on March 16, 2026.