The overall Louisiana state budget for the fiscal year beginning July 1, passed its first step in the process on April 13 as the House Appropriations Committee approved a $47 billion spending plan headed to the full House for a vote later this week.
Authored by Appropriations Chairman Rep. Jack McFarland, R-Jonesboro, House Bill 1 emphasizes fiscal responsibility by prioritizing paying down debt, providing more support to Louisiana students and attracting new industries that will change the face of the state’s economy — all without raising taxes.
“We are strategically investing in education, workforce and training so we stay on track to create new high-demand, highpaying jobs, while we prepare our workforce to fill those jobs right here at home,” McFarland said. “From the energy sector to new technology, we are breaking barriers so families will continue to want to call Louisiana home for generations to come.”
“We know that our future rests on how much we invest in our students across every classroom, from pre-K to community colleges and universities,” House Speaker Phillip DeVillier said. “With this budget, we are sending a clear signal across the nation that Louisiana is here to lead when it comes to welcoming industries that will propel this country forward over the next decade and beyond.”
Key investments in next year’s budget plan include:
• $420 million for early childhood education
• Fully funding the K-12 education formula, known as the Minimum Foundation Program
• For the first time since 2009, an increase in per-pupil funding for school districts’ operational needs, rising from $100 to $147 per student for expenses including fuel, insurance, utilities and retirement costs. This funding is provided in addition to the state’s perstudent MFP allocation
• $87 million for the LA GATOR scholarship program, offering families education savings accounts
• $47 million for Louisiana Economic Development to support new projects and programs attracting private industry investment
• $50 million to replenish a fund for future emergencies such as hurricanes
• A $144 million surplus payment to LASERS to pay down state retirement debt The House Ways and Means Committee also approved the Capital Outlay bill, House Bill 2, for the coming year, reflecting funding for the state’s construction budget. Both bills build on the fiscally responsible foundation of tax reforms passed in the first two years of the 2024-2028 legislative term.
Furthering the goals of fiscal stewardship and accountability:
• Total construction projects funded in House Bill 2 remain within the state’s bonding capacity for new lines of credit and within available surplus dollars
• The state would “bundle” funding for groups of projects, allowing unused funds from under-budget projects to be redirected to those that need additional resources “This statewide construction budget advanced today stays under the maximum available funding level by several million dollars,” Ways and Means Chairman Rep. Tony Bacala, R-Prairieville, said. “Continuing our commitment to remain prudent and accountable to taxpayers, we balanced efficient use of funds by redirecting money away from dormant projects to those that are urgently needed and ready to break ground.”
The full House is expected to take up House Bills 1 and 2, along with other funding measures, on Thursday, April 16, continuing the regular budget process during the 2026 Regular Legislative Session, which ends June 1.
