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Idaho enacts major spending cuts as governor signs $193M budget reduction bill

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BOISE, Idaho — Idaho Governor Brad Little signed a bill late Monday cutting nearly $193 million from Idaho’s current fiscal year budget, triggering immediate reductions across health care, education and other state agencies.

The measure, known as Senate Bill 1331 or the 2026 Idaho Rescission Act, took effect as soon as it was signed on Monday night. Without action, it would have automatically become law at 8:15 a.m. Tuesday.

The cuts are spread widely across the state government, with some of the largest reductions hitting education and health programs. The legislation moves more than $22 million from public school funding to the general fund, creating cuts tied to teacher pay and school operations.

Higher education also saw reductions, with millions cut from institutions including Boise State University, Idaho State University, the University of Idaho and Lewis-Clark State College, along with smaller reductions to community colleges and workforce training programs.

READ MORE | Bill to cut Idaho budget by over $192M for current fiscal year passes House, heads to governor

The Idaho Department of Health and Welfare absorbed some of the largest overall reductions. The bill cuts funding for Medicaid programs by tens of millions of dollars across multiple categories, including basic, enhanced, and expansion plans, as well as administrative and public health services.

Additional cuts impact youth services, foster care support, early childhood programs and mental health services, including both children’s and adult programs.

Beyond those areas, the bill trims funding for the Department of Correction, judicial branch, Idaho State Police and dozens of other agencies, while also reducing some state employee positions.

Overall, the legislation cuts spending by about $192.6 million, which supporters say is needed to keep Idaho’s budget balanced, while critics warn the cuts could impact key services statewide.

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