Friday, April 17, 2026 · Off-Session

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Idaho’s 2026 Legislative Session Closes With Sharp Partisan Divide Over Tax Cuts and Medicaid Reductions

Idaho lawmakers adjourned the 2026 regular legislative session sine die, ending months of debate over tax cuts, Medicaid reductions, and social policy — with partisan disagreements over the outcomes remaining sharp heading into the post-session period.

Session Ends Amid Budget Pressures

The legislature entered the 2026 session facing a projected budget shortfall, which shaped much of the year’s agenda. Gov. Brad Little had initially proposed a 3% across-the-board budget reduction for most state agencies, with additional cuts of 1% to 2%, as lawmakers worked to close the gap.

Despite those constraints, the legislature approved tax cuts for Idaho residents alongside targeted spending reductions. House Speaker Mike Moyle, speaking at the Statehouse, said Republicans redirected available funding toward high-priority areas including prison overcrowding, Idaho State Police recruitment and retention, and wildfire response through the Idaho Department of Lands.

“We filled those holes and took care of those needs that needed to be done. So, it worked out great. And in the meantime, every Idahoan is going to get a tax relief also,” Moyle said.

Bills approved during the session continue moving to Little for review, signature, or veto. The governor’s office is now in its post-session review period. Idaho’s total budget grew 2.5% in FY2027 despite cuts, driven by Medicaid and Health and Human Services spending, according to earlier reporting.

Medicaid Cuts Draw Democratic Fire

Among the most contested outcomes was a significant reduction to Medicaid-related spending, with lawmakers cutting hundreds of millions of dollars from the Idaho Department of Health and Welfare for the next fiscal year. Included in those reductions was a $21 million general fund cut to residential habilitation reimbursement programs, which help people with disabilities live independently.

Rep. Ilana Rubel (D-Boise) warned of broad consequences for Idahoans who rely on the program. “Tens of thousands of Idahoans are going to lose their health care coverage from the reductions to Medicaid expansion, and we’re going to see significant shrinkage of our health care sectors as a result,” she said.

Moyle defended the reductions as a structural necessity. “Health and Welfare and Medicaid in particular are not going to go away in the future,” he said. “The state of Idaho is going to have to figure out how to get the spending there under control, because it’s taking away resources from other places.”

Rainy Day Fund Debate

Democrats also criticized Republicans for declining to draw from the state’s $1.6 billion rainy day reserve to offset cuts to services. Moyle rejected that approach, arguing the fund should be preserved for a genuine economic crisis, as it was during the 2008 recession.

“So now it worked out perfect. Rainy day fund still intact. And if it starts raining, we can use it,” he said.

Sen. Melissa Wintrow (D-Boise) pushed back during a Democratic end-of-session news conference Friday. “Republican leadership spent the last few years just draining the coffers and calling it success,” Wintrow said. Moyle dismissed that characterization. “Listen, the Democrats, you’ll never make them happy,” he said.

Social Policy Bills Also Debated

Beyond fiscal issues, lawmakers also advanced social legislation, including a bill limiting which public restrooms transgender Idahoans may use. Democrats argued the measure distracted from more pressing economic and health care issues.

“We’re seeing a tsunami, a ridiculous flag and bathroom bills to distract from the total dereliction in terms of addressing real needs,” Rubel said. Moyle defended the legislation as “common sense,” framing it around the privacy of women and girls in public spaces.

What’s Next

With the session concluded, attention now shifts to Gov. Little’s review of legislation awaiting his signature. The governor has the authority to sign, veto, or allow bills to become law without his signature.

Moyle indicated that education funding, Medicaid spending, and illegal immigration are expected to be central issues when lawmakers return for the next session. The political backdrop is already heating up: the May 19, 2026 Idaho primary is six weeks away, and legislative outcomes are likely to feature prominently in competitive races across the state. Attorney General Raúl Labrador recently endorsed a Republican primary challenger against veteran Sen. Jim Guthrie in District 28, one of several contested legislative primaries this cycle.

Voter registration for the primary closes April 24, with early voting beginning May 4.