diff --git a/packages/loot-core/src/server/budget/goaltemplates.ts b/packages/loot-core/src/server/budget/goaltemplates.ts
index 9d27ac33960..c07557a05d2 100644
--- a/packages/loot-core/src/server/budget/goaltemplates.ts
+++ b/packages/loot-core/src/server/budget/goaltemplates.ts
@@ -213,6 +213,9 @@ async function processTemplate(month, force, category_templates) {
               );
             if (to_budget != null) {
               num_applied++;
+              if (to_budget > available_remaining && priority > 0) {
+                to_budget = available_remaining;
+              }
               templateBudget.push({
                 category: category.id,
                 amount: to_budget + prev_budgeted,
diff --git a/upcoming-release-notes/1738.md b/upcoming-release-notes/1738.md
new file mode 100644
index 00000000000..d8f68969d53
--- /dev/null
+++ b/upcoming-release-notes/1738.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [shall0pass]
+---
+
+Goals - Fixed an overbudgeting condition