House approves end-of-year cash-transfer bill to rebalance FY2026 budget

The Idaho House on March 9 passed Senate Bill 13-32, a year-end cash-transfer bill its sponsor described as necessary to balance the 2026 fiscal year. The measure rescinds or reclaims unspent appropriations and reappropriations and moves that funding back into the general fund.

Sponsor remarks summarized the bill’s main provisions: the bill reclaims $45,000,000 from the Strategic Initiatives Program, $3,000,000 from the Idaho Opportunity Scholarship, $33,700,000 from the Permanent Building Fund for projects that had not started or were canceled, $15,000,000 previously set aside for water pollution control grants, and $10,000,000 from in-demand careers or related launch grants. “If we do not do this, we would not be able to balance the fiscal year ’26 budget,” the sponsor said during floor remarks.

The sponsor framed the bill as an unfortunate but necessary consolidation of unspent capital and program funds to create about $100 million in general-fund capacity for the current fiscal year. Debate on the floor was brief; lawmakers acknowledged the trade-offs between preserving capital investments and ensuring the state meets its immediate fiscal obligations.

After debate, the House recorded the vote and the bill was declared passed and will be transmitted according to the usual enrolling and transmittal process.

Why this matters: The transfers reduce funding available for previously planned capital and grant projects and will require agencies and local recipients that expected those funds to adjust project timelines or find alternative funding. Lawmakers said the move addresses an immediate budget shortfall while leaving open policy decisions about future capital prioritization.

The House sent the bill on to the enrolling and transmittal process; the bill’s next procedural step is transmission to the Senate or as otherwise required by enrollment procedures.