Idaho collected $26.4 million more in tax revenue than anticipated during April, according to a new Legislative Services Office report released Thursday. The surplus pushes the state’s projected year-end reserve from $67.3 million to $93.8 million.

The figures represent a critical gauge of fiscal health following a contentious 2026 legislative session that featured sharp disagreements over spending cuts and tax policy between state lawmakers and Gov. Brad Little.

Income Tax Returns Drive April Surplus

April typically delivers the largest monthly revenue totals due to the influx of individual income tax payments tied to the filing deadline. The State Tax Commission is still processing returns, and additional refunds may be distributed to taxpayers through May and June, according to the LSO report.

The budget year closes June 30, leaving less than two months for final revenue and expenditure activity to be recorded.

Budget Tensions Marked 2026 Session

The improved revenue picture follows a legislative session dominated by fiscal disputes. Little initially ordered 3% reductions across most state agency budgets. Lawmakers then added another 1% in cuts despite the governor’s objections.

The Legislature also pushed for immediate adoption of federal tax changes linked to President Donald Trump’s tax package, which carried an estimated $155 million price tag for Idaho this fiscal year. Little had proposed delaying implementation until July 1 to avoid mid-year budget strain, but ultimately signed off on the accelerated timeline.

Lawmakers justified their decisions by projecting $152.7 million more in revenue than Little’s administration had forecast.

Governor Defends Budget Choices

In a statement Thursday, Little said the April numbers vindicate the state’s fiscal approach.

“We made responsible decisions to rein in spending, protect our balanced budget, and keep Idaho on strong financial footing,” the governor said. “At the same time, we are continuing to invest in the priorities that secure Idaho’s long-term success – strong schools, reliable infrastructure, water projects, and public safety.”

Uncertainty Remains

While April delivered positive news, the final two months of the fiscal year will determine whether the state’s aggressive budgeting holds. Tax refund processing and any unanticipated expenditures could still affect the bottom line before June 30.

The 2026 session adjourned April 2 after lawmakers and the governor reached agreement on spending levels and tax policy, ending weeks of public disagreement over the state’s fiscal trajectory.