In July, we told you Idaho Gov. Brad Little’s financial office had sent out a memo, letting state departments know he was thinking about possible budget cuts before the 2026 Idaho legislative session.
These midyear cuts in spending are called holdbacks — and often happen when revenues fall below expectations and Idaho needs to start trimming expenses to keep the budget in the black.
They’re not new to Idaho. We’ve had holdbacks in the past, including as recently as 2020. But Idaho ended the fiscal year last month with a surplus, so we’ve been exploring why the spectre of holdbacks has crept back into Idaho’s budget planning.
Jason Mercier is the vice president and director of research for the Mountain States Policy Center and he’s also been exploring why holdbacks have reentered the conversation around Idaho’s budget. He joined Idaho Matters to share his perspective.