APPROPRIATIONS – Rescissions – Relates to reducing the appropriation for fiscal year 2026.
S1331 is Idaho’s 2026 Rescissions Act, an appropriations bill that reduces fiscal year 2026 funding across a wide range of state agencies and institutions. The bill lowers General Fund appropriations for most agencies by about 4%, with smaller 3% reductions for Public School Support, the Division of Medicaid in the Department of Health and Human Services, the Department of Correction, and the Idaho State Police. It also reduces unallocated CEC funding as required by Senate Bill 1110 of 2025.
In addition to cutting appropriations, the bill reduces 110.05 authorized positions and transfers $22,366,500 from the Public School Income Fund to the General Fund. According to the fiscal note, the total FY 2026 reduction is $192,656,600, including cuts from the General Fund, dedicated funds, and federal grant funds. The bill was enacted and became law as Session Law Chapter 45, effective March 16, 2026.
The bill directly amends the state’s FY 2026 spending plan by rescinding previously enacted appropriations and reducing staffing authority across state government. Its effects reach multiple budget areas, including education, Medicaid, corrections, public safety, and other executive branch agencies, while also shifting money from the Public School Income Fund to the General Fund. Because it is a rescissions act, it changes how much money agencies may spend during the fiscal year rather than creating new programs or policy mandates.
The bill appears to have been supported enough to pass both chambers, but the votes show notable division, especially in the Senate where it passed 18-17. The House margin was wider at 47-20, suggesting broader support there, though still with significant opposition. Overall, the sentiment around the bill was mixed, reflecting disagreement over the size and distribution of the spending cuts.
The main points of contention likely centered on the breadth of the cuts, the reduction in General Fund support, and the transfer of $22.4 million from the Public School Income Fund to the General Fund. Agencies and programs affected by the reductions—especially public schools, Medicaid, corrections, and law enforcement—would be the most directly impacted, and those areas are typically where concerns about service levels and staffing arise. The close Senate vote indicates that fiscal restraint versus program protection was the central divide.