A major step was taken this week in the state budget process as the Louisiana House Appropriations Committee approved House Bill 1, the main state operating budget for the fiscal year beginning July 1, 2026.

The budget proposal, authored by Rep. Jack McFarland of Jonesboro, totals about $47 billion and now moves to the full House for consideration. State lawmakers described the plan as one focused on fiscal restraint while still putting money toward education, workforce development, retirement debt, emergency reserves, and economic growth.

Supporters of the measure said the spending plan aims to keep Louisiana on stable financial footing without adding taxes. McFarland said the proposal puts an emphasis on investing in students and job preparation while also working to position the state for future industry growth.

Among the major items included in the budget plan are $420 million for early childhood education, full funding of the Minimum Foundation Program for K-12 schools, and an increase in per-student operational funding for school districts. Under the proposal, that amount would rise from $100 to $147 per student to help districts cover costs such as fuel, insurance, utilities, and retirement expenses.

The budget bill also includes $87 million for the LA GATOR scholarship program, $47 million for Louisiana Economic Development to support new projects and business recruitment, $50 million to replenish emergency reserves, and a $144 million surplus payment to LASERS to help reduce state retirement debt.

House Speaker Phillip DeVillier said the budget reflects an effort to strengthen education from early childhood through higher education while also sending a message that Louisiana wants to compete for industries that could shape the state’s future economy.

In addition to the operating budget, the House Ways and Means Committee also approved House Bill 2, the state’s capital outlay bill, which covers construction funding. Lawmakers said that proposal keeps project funding within the state’s borrowing capacity and below available surplus levels.

Supporters of the capital outlay plan said it also includes a new approach to bundling project funding so money can be shifted more efficiently between projects that come in under budget and those that need additional support. Rep. Tony Bacala of Prairieville, chairman of House Ways and Means, said the measure continues the Legislature’s effort to be careful with taxpayer dollars while moving funding away from long-dormant projects and toward those ready to move forward.

The full House is expected to consider HB1, HB2, and other related funding bills on Thursday, April 16, as lawmakers continue work on the budget during the 2026 Regular Legislative Session, which is set to end June 1.