IDAHO – On January 12, 2026, Idaho Governor Brad Little announced “The Enduring Idaho” plan, which outlines how the state could address a potential $500 million deficit without tapping into the state’s rainy day fund.
The State Legislature saying that deficit in part due to revenue shortfalls and tax breaks.
The plan focuses on strategic budget cuts.
Governor Little emphasized the need for careful planning and living within the state’s means.
He highlighted “The Idaho Act” executive order, which redirected $200 million to the state’s general fund, addressing a $40 million deficit. This was achieved by delaying and reducing lower-priority spending.
The “Enduring Idaho” plan includes maintenance-only spending for all executive agency budgets and a 3% reduction in ongoing general fund expenditures. Additionally, 100 vacant state positions could be eliminated, saving $20 million. The plan also proposes cuts to Medicaid expenses.
“I think every single Medicaid decision we make, we’re going to have to be thoughtful about those things we reduce and how we make sure we look at that continuum of care,” Idaho Department of Financial Management Director Lori Wolff said during a meeting on January 13.
These proposed service reductions require legislative approval, and discussions are currently ongoing. However, some legislators have expressed concerns that Medicaid service cuts could lead to cost shifting.
Governor Little also said his “Enduring Idaho” plan aligns with President Trump’s budget bill.
