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New budget, some new state laws take effect today in Idaho • Idaho Capital Sun [1]

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Date: 2025-07-01

Idaho’s new state budget and several new laws take effect today with the beginning of the 2026 fiscal year.

Idaho’s state budget and state government operate on a fiscal year calendar that runs from July 1 to June 30 each year. That means fiscal year 2025 is coming to a close and fiscal year 2026 is about to begin.

Along with the start of the new fiscal year, several new laws take effect today, including a mandatory minimum fine for marijuana possession, a statewide ban against sleeping in public spaces, the ability to exceed the speed limit to make a pass on highway passing lanes and higher pay for Idaho judges.

Traditionally, most new laws passed by the Idaho Legislature would have taken effect on July 1, when the new fiscal year kicks in. However, over the past five years, legislators have increasingly been attaching so-called “emergency clauses” to bills that make them take effect as soon as they are signed into law by the governor.

Now there are a mix of laws that take effect when they are signed into law in the spring and laws that take effect July 1.

State of Idaho prepares for new budget year to begin as revenue lags behind projections

The new fiscal year 2026 budget set by the Idaho Legislature also takes effect today.

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State officials will closely monitor the process for closing the books on the current fiscal year 2025 budget. As of May, state revenue was running $141 million below the revenue projection Idaho legislators built into the budget. The state was still projected to end fiscal year 2025 with a positive ending cash balance, but that projected ending balance has shrunk from $420 million to an estimated $278 million since the 2025 legislative session adjourned April 4, the Idaho Capital Sun previously reported.

Although state officials say Idaho’s economy is healthy, Idaho Gov. Brad Little’s budget office asked state agencies to internally prepare for potential midyear budget holdbacks of up to 6%, Idaho Education News reported.

Idaho Division of Financial Management Administrator Lori Wolff said that even though revenue came in below forecast, Idaho is still seeing year-over-year growth in revenue, which signals a healthy economy.

“Idaho also has 22% of general fund revenues in rainy day funds, greater than almost every other state,” Wolff said in a written statement June 12. “While we continue to watch revenue closely, we feel good about the strength of the state budget and our economy.”

After year-end budget transfers and reconciliation procedures are complete, state officials should have a better understanding of the final fiscal year 2025 budget numbers later in July or in August.

Here’s a look at five new laws taking effect this week in Idaho House Bill 7: This bill creates a new mandatory minimum fine of $300 for adults convicted of possessing less than three ounces of marijuana. Republican legislators who supported the law said it is a way to be tough on marijuana and distinguish Idaho from neighboring states like Washington, Montana, Oregon and Nevada where recreational cannabis is legal. House Bill 322: This bill increases the salaries for judges in Idaho. Before the 2025 legislative session, Idaho Supreme Court justices encouraged the Idaho Legislature to raise pay for judges, saying that pay for Idaho judges was among the lowest in the nation and pay was so low that many judges who announced their retirement returned to practice law as attorneys, where they could make more money. The new law raises the pay for each judicial position in Idaho by $17,000 per year. House Bill 205: This bill allows drivers to exceed the speed limit when they are using the passing lane to pass another vehicle on roads and highways outside of city limits with a speed limit of at least 55 mph. The law does not apply to vehicles passing on the right side. Previously, state law allowed drivers to exceed the speed limit when they were passing on a two-lane road. The new bill adds passing lanes to that section of law. Senate Bill 1099: This bill provides for a mandatory minimum prison sentence of five years for a person who has previously been found guilty of driving under the influence and is again found guilty of DUI, along with vehicular manslaughter. Senate Bill 1141: This bill establishes a statewide ban on sleeping in public places. The law bans public camping and sleeping on public property in Idaho cities with a population of at least 100,000 people. Some nonprofit organizations are concerned the law will create additional hardships for people experiencing homelessness in Idaho. “There’s a lot of ambiguity about how this law will be enforced locally,” said Connor O’Hora, outreach team lead for the Boise-based housing nonprofit CATCH, in a written statement. “But what we do know is that it will disproportionately affect those who have no other place to go. Our immediate focus is getting people emergency supplies and protecting their health and safety in the heat.” Senate Bill 1144: This bill adds a new section to state law that requires that, for new and existing highway projects, existing or new bicycle and pedestrian facilities may only be improved as a secondary or collateral benefit to any highway project, or to improve safety near schools, parks or other areas designated for bicycles and pedestrians. One notable Idaho law takes effect a year from now One law, House Bill 37, takes effect in a year on July 1, 2026. That law makes it so that that firing squad will become the primary method of execution in Idaho, not lethal injection. Idaho Department of Correction officials have previously said they have had a difficult time obtaining chemicals to carry out a lethal injection. And in 2024, the state was unable to carry out the scheduled execution of death row inmate Thomas Creech after officials were unable to establish an IV line, the Sun previously reported.

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[1] Url: https://idahocapitalsun.com/2025/07/01/new-budget-some-new-laws-take-effect-today-in-idaho/

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