Budget cuts are running gags during Battle for Dream Island. There were 10 budget cuts, along with 1 fake budget cut, which took place starting on "Reveal Novum" (the budget cut on "Bowling, Now with Explosions!"), and ending with Leafy buying Dream Island in "Return of the Hang Glider."
In seasons 2 and on, the budget cuts appear to be solved, as none have happened yet.
- Enforcing a limit of one recommended character per recommender, in "Reveal Novum" (this was somewhat removed in BFDIA and BFB).
- The scoreboard being downgraded, also in "Reveal Novum".
- Being sent to space in "Gardening Hero".
- A black hole being sold in "Gardening Hero".
- Firey's spaceship being sold in "Gardening Hero".
- Being able to talk, paddle, breathe, and not explode in space, thus removing the logic of space, also in Gardening Hero.
- The television that displays the votes being sold in "Don't Pierce My Flesh".
- The recovery centers being sold in "Insectophobe's Nightmare 2".
- The drumrolls when showing votes, which was sold in "Return of the Hang Glider".
- Dream Island being sold in "Return of the Hang Glider". In reality, Dream Island was actually sold to Leafy.
- Fake Budget Cut: "Bowling, Now with Explosions!" being made as a puppet show, later revealed to be an April Fools joke.