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flag Idaho faces a $555M budget gap in 2027, risking Medicaid cuts and school funding amid tax cuts and no federal aid.

flag Idaho’s 2026 legislative session opened with lawmakers confronting a projected $555 million budget shortfall for fiscal year 2027, driven by a $453 million tax cut and federal tax changes from the One Big Beautiful Bill Act. flag With no federal aid available, officials warn of deep spending cuts, including potential repeal of Medicaid expansion, which covers over 85,000 low-income residents with 90% federal funding. flag The state’s constitutional balanced budget requirement intensifies pressure to act, as lawmakers face limited experience and institutional knowledge. flag Education funding and fiscal responsibility are key priorities, with calls to protect public schools and reject further tax cuts.

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