Louisiana Governor Jeff Landry has submitted his executive budget to the state legislature for fiscal year 2026 (FY 26), which starts on July 1, 2025. His recommended budget begins the process for members of the state House of Representatives and Senate to adopt a balanced budget that ensures expenditures do not exceed revenue. The governor’s objective for FY 26 is to maintain the flat funding of state government based on last year’s budget as part of a “new era of fiscal responsibility.” The summary of the proposed budget recommendation by the National Association of State Budget Officers totals $44.96 billion in spending.

Budget highlights include:

• Consolidation of the Office of the Secretary and the Office of Business Development into the new Office of Economic Development with a budget of $62.69 million.
• $11.4 million in funding for the Louisiana FastStart Program, which provides workforce training services to businesses looking to relocate and/or expand within the state.

Moving forward, the state’s reliance on federal funds in maintaining a balanced budget will need to be taken into consideration by lawmakers, with President Donald Trump saying he intends to restructure the federal government and reduce federal expenditures that support state services and programs. Fewer federal funds will force the legislature to either reduce expenditures or generate additional revenues through tax increases and other measures. KATC 3 reports that the federal government funded over 50% of the state budget in fiscal year 2024.