North Dakota Governor Calls for Budget Cuts Across State Agencies

Armstrong says 20 years of growth in state spending is unsustainable

Apr. 8, 2026 at 10:59pm

Got story updates? Submit your updates here. ›

A dynamic, abstract painting featuring overlapping, fragmented shapes and lines in shades of blue, grey, and green, conceptually representing the instability and uncertainty surrounding North Dakota's state budget.North Dakota's governor calls for budget cuts to address the state's growing fiscal imbalance.Bismarck Today

North Dakota Governor Kelly Armstrong is directing state agencies to prepare for budget cuts as part of the upcoming 2027-29 biennium. Armstrong says the state's growing budget deficit is a 'slow-building storm' that needs to be addressed through reduced spending across agencies.

Why it matters

North Dakota has experienced significant economic growth over the past two decades, leading to a steady increase in state spending. However, the governor believes this growth rate is unsustainable and is taking steps to rein in deficit spending in the general fund.

The details

The new budget guidelines call for agencies with general fund budgets under $10 million to prepare a 'hold-even' budget. Agencies with budgets between $10-20 million must identify 3% base budget reductions, while agencies over $20 million must find 10% reductions. Agencies in the lower budget categories must also submit an additional 3% reduction package as a contingency against potential revenue shortfalls.

  • The new budget guidelines were announced at a meeting with agency leaders and fiscal officers on April 8, 2026.
  • The cuts will be implemented as part of the 2027-29 biennium budget.

The players

Kelly Armstrong

The Governor of North Dakota who is calling for budget cuts across state agencies.

Got photos? Submit your photos here. ›

What they’re saying

“'Twenty years of growth in North Dakota has come with 20 years of growth in the state budget. Much of that was necessary, but the growth rate is also unsustainable.'”

— Kelly Armstrong, Governor of North Dakota

“'We have a balance problem in our state budget. The growing gap between our ongoing revenues and ongoing expenditures is a slow-building storm, and we need to start correcting deficit spending in the general fund.'”

— Kelly Armstrong, Governor of North Dakota

What’s next

The state agencies must now prepare their budget reduction plans to submit as part of the 2027-29 biennium budget process.

The takeaway

Governor Armstrong's call for budget cuts across state agencies signals a shift in North Dakota's fiscal priorities, as the state looks to rein in deficit spending and address a growing imbalance between revenues and expenditures.