Executive Order 2025-05, which was signed by Governor Brad Little of Idaho, directs state executive branch agencies to find operational efficiency and cut back on General Fund spending in the upcoming fiscal year.
The Idaho Act is an order that specifies actions to be taken during Fiscal Year 2026, which concludes on June 30, 2026. The cuts do not apply to public K–12 schools. Examining possible service or agency mergers, returning vacant jobs, saving costs in current contracts, simplifying boards and commissions, reducing travel expenses, and reducing General Fund spending by 3% are some of the actions.
The governor’s administration claims that the measures are meant to preserve public school financing while assisting in the implementation of federal tax cuts. With a 63% rise in General Fund appropriations over six years, state authorities estimated that public school spending had climbed by $1 billion yearly since Governor Little entered office.
A stable civilian labor force, low layoff rates, and ongoing increases in earnings and personal income are among the economic factors mentioned in the announcement. Idaho’s AAA credit rating—the highest possible—was recently reaffirmed by Fitch Ratings.
Statements endorsing the order were released by the co-chairs of the Joint Finance and Appropriations Committee, as well as legislative leaders from the Idaho House and Senate.
The Governor’s official website has the complete text of Executive Order 2025-05.
