Gov. Brad Little issued an executive order Friday enacting 3% budget holdbacks — midyear spending cuts — for state agencies.

K-12 public schools are excluded from the cuts. Colleges and universities are not. 

The order comes after Little and Statehouse Republicans this year enacted $453 million in tax cuts. In recent months, these cuts coincided with state revenue collections that have fallen short of forecasts. Little’s office in May told agency directors to make internal plans for 2%, 4% and 6% holdbacks, and the governor’s office placed limits on agencies’ budget requests. 

In a news release Friday, Little framed the cuts as a way to create efficiencies and “make way for” President Donald Trump’s federal tax cuts. “It’s in our DNA here in Idaho to balance the budget, cut taxes and right-size government so we can continue to make public schools our top priority,” the Republican said in the news release. 

The executive order calls for a 3% reduction in general fund spending for the current fiscal year, which runs from July 1 to June 30, 2026. The state budgeted nearly $6 billion in general fund spending for the fiscal year. Excluding K-12 spending — about half of the state’s budget — puts the holdback hit at around $86 million. 

The order also directs agency, department and institution leaders to consolidate services or agencies, revert funding for unfilled positions, identify cost reductions in contracts and reduce travel spending.

K-12 public schools are explicitly excluded. But colleges and universities, which are largely funded by the state, will have to comply with the order. 

A $13.3 million hit to higher education

Idaho’s colleges and universities stand to lose more than $13.3 million from the holdbacks.

The colleges and universities get their money from a variety of sources, not just the state general fund that is affected by the holdbacks. They collect student tuition and fees, which would be outside a general fund holdback. And the state’s community colleges receive local property taxes, in addition to state funding and tuition and fees.

And a 3% holdback won’t have an across-the-board impact. Boise State University collects a bigger share of its budget from tuition and fees — so the general fund accounts for 44% of its overall budget. Idaho’s other four-year schools — the University of Idaho, Idaho State University and Lewis-Clark State College — each receive more than half of their budget from state tax dollars.

Here’s how the general fund budgets for higher education break down:

The State Board of Education — a policymaking body, comprised largely of gubernatorial appointees — supported the governor’s move.

“The State Board of Education is committed to working closely with its agencies and Idaho’s colleges and universities to implement the governor’s executive order,” Executive Director Jennifer White said Friday. “Together, we will ensure the 3 percent holdback plan is developed thoughtfully, with a continued focus on strengthening education across the state.”

White said the colleges and universities will spell out their plans for absorbing the cuts by the end of the month — when all state agencies submit their proposals for the 2026-27 budget year, which begins July 1.

For now, college and university officials aren’t saying much.

Partisan political reactions

It’s the first time since 2020 — and the height of the COVID-19 pandemic — that Little has ordered midyear spending cuts.

GOP legislative leaders rallied quickly behind Little’s decision. In a news release from the governor’s office, Senate President Pro Tem Kelly Anthon of Rupert, House Speaker Mike Moyle of Star and the co-chairs of the Legislature’s budget-writing Joint Finance-Appropriations Committee praised the governor’s order. 

“This isn’t the government’s money; it’s the people’s money,” Moyle said in the release. “Unlike left coast states, Idaho leaders routinely give back what the people have earned, and our focus on the taxpayer is what makes our state such a desirable place to live and do business.”

“The governor’s executive order today further reinforces our strong track record of living within the people’s means and making government as efficient as possible so we can continue to prioritize education,” Anthon said.

Democrats quickly slammed the executive order, and tied the midyear cuts to House Bill 93. The legislation, passed by GOP lawmakers and signed by Little this year, created a $50 million tax credit covering tuition and other expenses for non-public school families. 

“These holdbacks are the bill coming due for reckless Republican rule,” Idaho Democratic Party chairwoman Lauren Necochea said in a news release. “Democrats opposed giveaways to the wealthy and costly voucher schemes because we knew they would blow a hole in the budget and do nothing for working families.”

“For years, Republicans have chosen giveaways for the well-connected over investments in housing, education, and public safety,” said House Minority Leader Ilana Rubel, D-Boise. “Those choices are catching up with us now.”