APPROPRIATIONS – HEALTH AND HUMAN SERVICES – Relates to the maintenance appropriations to the Department of Health and Welfare and the State Independent Living Council for fiscal year 2027.
Sponsored By: FINANCE COMMITTEE
Signed by Governor
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 9 benefits, 3 costs, 2 mixed.
FY2027 funding keeps health benefits flowing
The law provides $5.663 billion to the Idaho Department of Health and Welfare for July 1, 2026–June 30, 2027. Of this, $5.180 billion pays benefits to people. Money in the benefits category cannot be moved to other expense types this year. The State Controller can move General Fund dollars into the Cooperative Welfare Fund when the director asks and the Board of Examiners approves, so benefits can be paid on time.
Services limited to available funding
The Department provides services only as money and resources are available for each program. If funding runs short, services can be limited. This can reduce access even for eligible people.
State pays school costs in some placements
When the Department places a school‑age child in its custody at a licensed residential treatment facility that has a nonpublic accredited school, and decides school there is best for the child, it pays for that education. Payment is per student per educational day.
Staffing caps for Health and Welfare
The law sets maximum full‑time staff for listed programs from July 1, 2026 to June 30, 2027. The Governor can approve increases and must promptly notify the budget committee. This controls staffing levels while allowing adjustments if needed.
Medicaid moving to managed care, with oversight
The Department must submit federal applications for comprehensive Medicaid managed care by July 1, 2027. It keeps current managed care in place until new plans start and works on cost control with input from providers and participants. The Medicaid divisions must send a monthly budget‑to‑spending report with a forecast to the Legislative Services Office and the Division of Financial Management. For FY2027, the Department can move more than 10% of benefit funds between listed Medicaid plan lines but not to other programs.
Grant naloxone only for first responders
Naloxone bought with the State Opioid Response Grant is now limited to first responders. It must be distributed inside Idaho. Other groups cannot receive these grant‑funded doses.
Some families pay more for kids’ Medicaid
Families with gross taxable income over 185% and up to 300% of the federal poverty level must pay part of the cost for a child’s Medicaid services. The Department sets cost‑sharing up to the maximum allowed by federal rules. This applies to the Medicaid‑eligible services identified in House Bill 43.
More funding to fight tobacco and vaping
Public health districts receive $2.1 million for prevention and quit programs. Project Filter receives $2.406 million for similar work. Project Filter cannot spend this money on sponsorships or passive ads. Funds are used as money allows under the board’s formula.
Stronger oversight of big buys and rules
For any Department acquisition over $1,000,000 in FY2027 that involves the Governor’s Office, the Department must report details within 30 business days. By December 31, 2026, the Department must list each rule made under Section 56-202 and stop spending under any rule flagged for repeal. Money set aside for a specific purpose can be used only for that purpose and is subject to accountability reviews and audit reporting.
Funding for Independent Living Council in FY2027
The State Independent Living Council receives $690,600 for July 1, 2026–June 30, 2027. $485,900 pays staff and $204,700 pays operating costs to support services for people with disabilities.
Funds for child abuse review panels
At least $42,000 in federal CAPTA funds go each year to public health districts for citizen review panels. The seven districts split the money equally, $6,000 each.
More support to recruit rural doctors
On July 1, 2026, the State Controller transfers $640,000 to the Rural Physician Incentive Fund for use through June 30, 2027. This supports incentives to attract and keep doctors in rural Idaho.
Protecting mental health and hospital funds
Money for Mental Health Services and Psychiatric Hospitalization can move between those two divisions but not to other divisions without the Legislature. From July 1, 2026 to June 30, 2027, the Community Hospitalization Program can receive transfers from other programs without the usual limits.
Grant for Drug Free Youth with oversight
Idaho Drug Free Youth receives a one‑time $250,000 grant, paid in four $62,500 installments by July 15, 2026; October 15, 2026; January 15, 2027; and April 15, 2027. The group must file reports by December 30, 2026 and June 30, 2027. The Department can withhold or recover payments if the group stops operating, misses reports, or has legal or fiscal issues. The Department may help ensure proper use of funds but cannot directly manage the group beyond what the law requires.
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Sponsors & Cosponsors
Sponsor
FINANCE COMMITTEE
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Signed by Governor on 04/02/26 Session Law Chapter 271 Effective: 04/02/2026 SECTION 25; 07/01/2026 SECTION 1-24, 26 & 27
4/2/2026Received from Senate; Signed by Speaker; Returned to Senate
4/1/2026HouseReturned From House Passed; referred to enrolling
3/31/2026SenateRead second time; Filed for Third Reading
3/30/2026HouseReceived from the Senate, Filed for First Reading
3/27/2026HouseReported Printed; referred to Finance
3/26/2026SenateIntroduced; read first time; referred to JR for Printing
3/25/2026Senate
Bill Text
Bill Text
Related Bills
H 0889 — STATE PROCUREMENT – Amends, repeals, and adds to existing law regarding the procurement of property by the State of Idaho.
S 1429 — APPROPRIATIONS – HEALTH AND WELFARE – BEHAVIORAL HEALTH SERVICES – Relates to the appropriation to the Department of Health and Welfare for the Behavioral Health Services Division for fiscal years 2026 and 2027.
S 1410 — MEDICAID – Adds to existing law to provide legislative approval for the Department of Health and Welfare to submit a state plan amendment regarding change in encounter rate due to change in scope of services.
S 1439 — EDUCATION – Amends existing law to revise provisions regarding the Model School Facility Council.
S 1433 — APPROPRIATIONS – HEALTH AND WELFARE – MEDICAID – Relates to the appropriation to the Department of Health and Welfare for fiscal years 2026 and 2027.
S 1431 — APPROPRIATIONS – DEPARTMENT OF WATER RESOURCES – Relates to the appropriation to the Department of Water Resources for fiscal year 2027.
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