Governor Brad Little ordered 3% budget cuts to most state agencies in August 2025, citing revenue collections that were falling short of projections. The cuts affected most departments but specifically shielded K-12 education from reductions.

The governor’s action set the baseline for the 2026 legislative session, where lawmakers would add additional cuts on top of Little’s reductions. Higher education was subject to the cuts, positioning colleges and universities for a disproportionately large hit when the Legislature convened.

Little defended the cuts as prudent fiscal management to maintain Idaho’s AAA credit rating and balanced budget. ‘Idahoans expect their state government to operate efficiently and effectively,’ he stated.

The budget reductions reflected the cumulative fiscal impact of the major tax cuts passed over the previous three sessions. While the cuts delivered significant relief to Idaho taxpayers, they also narrowed the state’s revenue base heading into a period of slower economic growth.