2026 Legislative Session Recap: Key Highlights Unveiled

2026 Legislative Session Recap: Key Highlights Unveiled

The 2026 Idaho legislative session ended after 82 days of work. Lawmakers submitted a record number of proposals.

A progress report on March 27 shows 1,018 pieces of legislation filed. That tops 2025, which had 954 bills and resolutions.

Budget and revenue moves

Budget negotiations dominated much of the session. State leaders responded to a sharp revenue downturn after last year’s $450 million tax cut.

Gov. Brad Little ordered a 3% spending reduction last summer. Leaders on the Joint Finance and Appropriations Committee added another 1% cut for the current year. They approved cuts totaling 5% for the next fiscal year.

Medicaid, K-12 schools, state police and prisons were spared additional reductions. Other agencies, including public colleges and universities, faced deeper proportional cuts.

Lawmakers also aligned Idaho tax rules with federal changes in the One Big Beautiful Bill. That conformity reduced revenue by about $155 million this fiscal year. It also creates an ongoing hit of roughly $175 million.

The FY27 budget is set at $5.6 billion. That figure is slightly below the current year’s budget.

Public policy and regulatory changes

Short-term rentals

Lawmakers limited local control over short-term rental rules. The House version of the measure prevailed.

  • Cities and counties may require smoke alarms in all sleeping areas.
  • Fire extinguishers and carbon monoxide detectors must be on each floor.
  • Owners must provide a safety handout for guests.

Local governments may not cap the number of rental properties. They cannot require registration or enforce new parking mandates.

Transgender bathroom law

A new law takes effect July 1. It restricts restroom access based on sex assigned at birth.

Exceptions include custodial staff cleaning, emergency medical assistance by an opposite-sex person, and dire need where no other facility is reasonably available. A first conviction is a misdemeanor. A second within five years becomes a felony.

Multiple protesters were arrested after Gov. Little signed the bill.

Higher education governance

Senate Bill 1225 changes how finalists for university presidents are revealed. The measure responds to a failed initial search for Boise State’s president.

The Idaho State Board of Education argued earlier transparency rules discouraged applicants. Under the new law, the board must disclose the name of a finalist ten days before a final decision.

Bills still awaiting the governor

House Bill 516 — Teachers unions

House Bill 516 would impose new limits on teachers unions. The proposal bars use of taxpayer funds for union operations.

The bill would end payroll-based dues collection by districts. It would also prohibit union meetings in school buildings before or after classes. Teachers could be barred from using paid vacation days for legislative advocacy.

Gov. Little has additional days before he must act on the measure.

Medicaid expansion work requirements

Lawmakers debated adding work requirements to Medicaid expansion. The choice centers on a lookback period of one to three months prior to application.

Republicans favor the longest lookback. Opponents warn of heavy administrative costs and potential coverage denials. The governor’s deadline to act is April 8 at 10:38 a.m.

Ada County Highway District elections

A proposal would change how Ada County Highway District commissioners are elected. Candidates must still live in one of five districts.

But voters across Ada County would choose each commissioner. Positions would become partisan, with party labels and possible primaries. House Democratic Leader Ilana Rubel noted a candidate could win without votes from their own district. The governor’s deadline for this bill is April 8 at 5 p.m.

Filmogaz.com’s 2026 legislative session recap summarizes the key highlights unveiled during the session. Lawmakers filed a historic 1,018 bills over 82 days.