FOR IMMEDIATE RELEASE
April 8, 2026
Boise, Idaho — The Idaho Legislature took decisive action during the 2026 session to restore fiscal discipline, reduce government spending, fully implement the Trump tax cuts, and protect Idaho taxpayers from long-term budget instability.
Through a series of targeted actions, lawmakers advanced one of the most conservative budget frameworks in recent state history, cutting spending, resetting agency baselines, and rejecting unsustainable growth.
“This year, we made it clear: Idaho will not budget on hope,” said Representative Josh Tanner. “Idaho families balance their budgets every day, and state government must do the same.”
Key Conservative Budget Actions
- Over $130 Million in Spending Cuts
The Legislature passed and the Governor signed significant mid-year reductions, cutting more than $130 million from the General Fund and eliminating unnecessary spending. - Adoption of “Maintenance Minus” Budgeting
Rather than automatically increasing agency budgets, lawmakers reduced baseline spending and required agencies to justify every dollar requested. - Up to 5% Agency Reductions
Most state agencies absorbed meaningful reductions, ensuring government tightened its belt just like Idaho families, while JFAC protected critical government services. - Reinforced Structural Balance
Lawmakers prioritized aligning ongoing spending with ongoing revenue, rejecting one-time money gimmicks and preventing future deficits. For FY 2027, the Legislature converted a proposed $100 million ongoing deficit into an ongoing surplus of $26 million. - Protection of Taxpayer Dollars Through Conservative Forecasting
The Legislature resisted inflated revenue projections and instead based budgets on realistic, responsible estimates. At the same time, the Legislature fully implemented the Trump tax cuts, saving Idahoans more than $150 million annually starting in FY 2026. - Strengthened Ending Balances and Reserves
Budget decisions focused on maintaining a healthy ending balance to safeguard Idaho against economic uncertainty. For FY 2027, the Legislature converted a proposed $25 million ending balance into a surplus of $230 million. - Enhanced Oversight and Accountability
Agencies were required to justify expenditures line-by-line, reinforcing a culture of transparency and performance.
Delivering a Better Budget Than the Executive Proposal
Compared to the executive budget, the Legislature delivered a stronger, more responsible plan for Idaho:
- Provided more tax relief
- Cut more spending
- Left stronger surpluses
- Produced an honestly balanced budget
All while leading the most significant reorganization of state government in a generation. Several agencies were combined and obsolete programs were eliminated.
In addition, the Legislature ensured continued investment in core priorities that matter to Idaho families, water infrastructure, wildfire mitigation, and transportation; even as the executive branch proposal fell short in addressing these critical areas.
The Legislature also adopted a more responsible approach to the Rural Health Transformation Fund, ensuring greater accountability and long-term sustainability.
Positioning Idaho for Long-Term Strength
These decisions position Idaho for long-term growth and fiscal durability:
• A more stable and sustainable budget structure
• Stronger reserves to weather economic uncertainty
• Continued alignment with pro-growth tax policy
“Thanks to the leadership of the Legislature, Idahoans will be able to take full advantage of the historic Trump tax cuts,” Tanner said. “We have positioned our state for out-year growth and built a more durable, responsible government.”
A Responsible Path Forward
These actions reflect a clear shift in Idaho’s budgeting philosophy, from managing growth to actively restraining it.
“At a time when other states are growing government and risking deficits, Idaho is choosing a different path,” Tanner said. “We are cutting spending, demanding accountability, and ensuring every dollar appropriated represents money trusted to us by hardworking Idahoans.”
The Legislature’s approach ensures Idaho remains one of the most fiscally responsible states in the nation—committed to balanced budgets, strong reserves, and limited government.
Commitment to Continued Fiscal Leadership
Lawmakers emphasized that this session is only the beginning of a long-term effort to maintain sustainable budgets and eliminate waste.
“We will continue to look for opportunities to streamline spending, improve efficiency, and protect taxpayers,” Tanner added. “That is our responsibility, and we take it seriously.”
Representative Josh Tanner
Co-Chair, Joint Finance – Appropriations Committee
District 14
Idaho House of Representatives
About Josh Tanner
Rep. Josh Tanner represents District 14 in the Idaho House of Representatives, where he serves as co-chair of the Joint Finance-Appropriations Committee. Tanner is a lifelong resident of Idaho, a local small business owner, and a commissioner of the Eagle Fire District. He lives in Eagle with his wife and children.
