Seth Ratliff
UPDATE:
BOISE, Idaho (KIFI) — Governor Brad Little opened the 2026 Legislative session Monday by unveiling his “ENDURING IDAHO” plan, a two-year budget policy roadmap centered on a “right-sized” approach to state spending.
A central theme of Little’s 30-minute State of the State address was focused on conservative budgeting while navigating reduced revenues as a result of years of significant tax cuts. While Little acknowledged the Gem State has shifted from years of massive budget surpluses to a period “demanding restraint,” he promised that executive agencies would “tighten their belts” for the 2026 and 2027 fiscal years. He emphasized that these cuts are designed to protect key priorities, including public education, Idaho LAUNCH, water infrastructure, and rural healthcare.
“Our plan uses a responsible mix of one-time and ongoing spending reductions to keep the budget structurally sound,” Little said. “…We’re renegotiating contracts, reprioritizing initiatives, and finding operational efficiencies.”
Protecting Key Areas in a Lean Budget
Despite the focus on conservative budgeting, Little insisted that Idaho’s classrooms would remain a “top priority.” He promised that the ENDURING IDAHO plan would protect classroom funding.
“Idaho’s public schools are the heart and soul of our communities,” Little noted. “Even in a year of reduced revenues, schools remain our top priority.”
In addition, Governor Little says his budget also maintains support for:
Idaho LAUNCH: Aligning with the Trump Administration’s talent strategies to support the American worker.
Water Infrastructure: Preserving funding to support farmers following the 2024 water crisis.
Public Safety
Little also reaffirmed his commitment to healthcare access and affordability, particularly in rural Idaho. His “Enduring Idaho” plan allocates funds to address physician shortages and bolster the healthcare workforce, in addition to the $925 million in federal Rural Healthcare Transformation grants over five years.
“Tighten their belts.”
The current budget tightening follows five years of aggressive tax cuts. While in his address, Little touted these measures as “real relief” for families and seniors, critics argue they have eroded the state’s revenue. According to the Idaho Center for Fiscal Policy, these cuts resulted in a $4 billion revenue loss between 2021 and 2025.
Reports from the Idaho Capital Sun indicate that heading into the session, Idaho faced a projected $40.3 million shortfall for FY 2026.
While the Governor touted the tax cuts as “real relief” for seniors and working families, his speech came on the heels of significant controversy regarding slashed state services. Last year, Little ordered across-the-board cuts to bridge a projected $40.3 million shortfall, which resulted in the cancellation of six essential mental and behavioral health programs, despite warnings from law enforcement and healthcare providers that these cuts would be disastrous.
RELATED: Idaho Sheriffs to State Leadership: Mental Health Cuts Have ‘Real-World Public-Safety Consequences’
To avoid additional deficits, the ENDURING IDAHO plan recommends several significant cuts and funding pauses:
Budget Item
Action Taken
Estimated Savings
Idaho Act Cuts
Making 3% cuts permanent
$120M annually
Transportation
One-time “funding pause” on ITD Strategic Initiatives
$275M
Empowering Parents
Removing ongoing funding for the now-ended pandemic-era program
$30M
State Vacancies
Reverting 100+ positions vacant for 6+ months
$20M
Water Projects
Reducing ongoing funds to local drinking/wastewater projects at the DEQ
$10M
Medicaid
Making the 4% provider rate reduction permanent and cutting service by another $22 million
$45M
Higher Ed
Pausing enrollment workload adjustments
Removing ongoing funding for the sunset program
“A combination of factors has shifted us from years of record budget surpluses – driven by rapid population growth, business expansion, and one-time federal funds – to a period ahead that demands restraint,” said Little. “Thankfully, the way we have governed in recent years has positioned Idaho to weather the revenue challenges ahead.”
Statewide Reaction
Following Gov. Little’s speech, Idaho Congressman Mike Simpson released the following statement applauding the governor’s leadership:
“As a lifelong Idahoan, I will always stand by the fact that Idaho is the best in the West and in the United States. From its natural beauty to the people who call it home, Idaho is an easy state to love. But policies matter – especially thoughtful policies. Under Governor Brad Little’s leadership, we’ve seen some of the most promising policies that have delivered fiscal stability, a healthy economy, lower crime, and new opportunities. I’m proud to be an Idahoan, and I’m grateful for the collective efforts of Governor Little, the state legislators, and state officials who have worked hard to ensure our state remains so great. I wish Governor Little another successful year ahead,” said Rep. Simpson.
Local News 8 will update this story with further reaction from state leadership and agencies throughout the day.
ORIGINAL:
BOISE, Idaho (KIFI) — The 2026 Idaho legislative session kicks off today, starting with Governor Brad Little’s State of the State address, outlining his initiatives and setting the tone for this year’s legislature.
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Gov. Little is set to speak at 1 PM inside the House Chambers at the state capitol in Boise. Local News 8 will be streaming the Governor’s speech live above.
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Rep. Ben Fuhriman, Sen. Kevin Cook and Rep. Rod Furniss sound off Monday following the Governor’s State of the State address.
