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Gov. Little Signs Executive Order to Further Streamline Government, Support Public Schools

Governor Brad Little directs a 3% budget cut across state agencies to address a $75 million revenue shortfall while protecting funding for K-12 public schools.

  • On August 16, 2025, Idaho’s Governor Brad Little issued Executive Order 2025-05, known as "The Idaho Act," which directs all state departments to cut their General Fund budgets by 3% for fiscal year 2026, while specifically excluding K-12 public schools from these reductions.
  • The order responded to recent overly optimistic revenue projections and significant tax cuts passed by the legislature, which lowered income taxes by 23% and created a $453 million net revenue loss for state programs.
  • Governor Little emphasized that the executive order supports public schools by putting them first, reinforcing government efficiency, and preparing for actual revenues, while education leaders praised shielding schools from budget reductions despite mixed feelings about holdbacks overall.
  • May 2025 revenues came in $141.5 million below estimates; however, fiscal year 2025 is projected to finish with a surplus of $278.2 million. Idaho continues to maintain robust reserves and its AAA credit rating, reflecting ongoing fiscal stability.
  • The executive order is expected to improve budget management and government efficiency without harming public education, but critics warn that tax giveaways and holdbacks may strain essential services and reflect unresolved budgetary challenges.
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Krem2 News broke the news in Spokane, United States on Friday, August 15, 2025.
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