BOISE, ID  – Governor Brad Little has signed Executive Order 2025-05, directing state executive branch agencies to reduce General Fund spending and identify operational efficiencies in the coming fiscal year.

The order, titled “The Idaho Act,” outlines measures to be implemented in Fiscal Year 2026, which ends June 30, 2026. K–12 public schools are excluded from the reductions. Steps include examining potential consolidation of services or agencies, reverting unfilled positions, reducing costs in existing contracts, streamlining boards and commissions, cutting General Fund spending by 3%, and reducing travel expenditures.

According to the Governor’s office, the actions are intended to support implementation of federal tax cuts while maintaining funding for public schools. State officials reported that public school funding has increased by $1 billion annually since Governor Little took office, with a 63% increase in General Fund appropriations over six years.

Economic indicators cited in the announcement include a stable civilian labor force, low layoff rates, and continued growth in personal income and wages. Fitch Ratings recently reaffirmed Idaho’s AAA credit rating, the highest possible.

Legislative leaders from the Idaho House and Senate, as well as the co-chairs of the Joint Finance and Appropriations Committee, issued statements in support of the order.

The full text of Executive Order 2025-05 is available on the Governor’s official website.