IdahoS 14352026 regular legislative sessionSenateWALLET

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

APPROPRIATIONS

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 9 benefits, 4 costs, 1 mixed.

FY27 funding for health programs

For July 1, 2026–June 30, 2027, Idaho funds the Department of Health and Welfare with $5.66 billion. Medicaid gets $4.98 billion. Other key amounts: Youth Safety & Permanency $121.55 million; Early Learning $101.86 million; Public Health $105.65 million; Welfare $132.34 million; Psychiatric Hospitalization $68.30 million; Mental Health $43.15 million. Licensing, substance‑use treatment, indirect support, Independent Councils, and the State Independent Living Council also receive named budgets. This money keeps benefits and services running during FY 2027.

State pays school for children in custody

The law makes Health and Welfare responsible for schooling for certain children in its custody. When a court places a school‑age child in the Department’s custody for child protection or mental‑health reasons, the Department pays for education at the facility if that is best for the child. The facility must be a licensed residential treatment center with a nonpublic accredited school. The Department pays per student, per educational day.

Guardrails for mental‑health hospital funds

Money for Mental Health Services and Psychiatric Hospitalization can move between those two divisions, but not to others without lawmakers’ approval. For FY 2027, the Department may move unlimited funds into the Community Hospitalization Program from other Department programs.

Medicaid tracking and tighter fund rules

Medicaid must send a monthly budget‑to‑spend report and next‑year forecast to state budget offices. Budget requests must match the latest forecast. For FY 2027, benefit‑payment funds cannot be moved to other expense classes. Inside Medicaid, the Department may move benefit‑payment money by more than 10% among the Coordinated, Enhanced, Basic, Expansion plans, and Medicaid Administration/Medical Management, but not out of Medicaid.

Cost‑sharing for higher‑income Medicaid kids

Families with gross taxable income over 185% and up to 300% of the federal poverty level must pay cost‑sharing for children’s Medicaid services listed in House Bill 43. The Department applies the maximum cost‑sharing allowed under federal rules.

Services limited to available funding

The Department provides services only as money and staff are available for each program. If funding runs out in a program, services can be limited or paused.

Medicaid managed care timeline and plan

The law gives the Department until July 1, 2027 to file all federal approvals for comprehensive Medicaid managed care. It must report progress by December 1, 2026. Current managed care stays in place until a new plan replaces it.

Stronger oversight of DHW spending

The State Controller may shift General Fund money to the Cooperative Welfare Fund when approved to keep programs running. Crisis centers must report their funding sources by December 31, 2026. DHW must report large acquisitions involving the Governor’s Office within 30 business days and review rules under Section 56‑202 by December 31, 2026. Purpose‑specific funds are subject to audits and accountability reviews.

Minimum CAPTA funds for review panels

At least $42,000 in federal CAPTA funds goes each year to Idaho’s seven public health districts for citizen review panels. Each district gets one‑seventh of the total.

More prevention funds for tobacco and vaping

$2.1 million goes to public health districts for tobacco, vape, and substance prevention and quit help. Another $2.406 million funds Project Filter for the same goals. Project Filter money cannot be used for sponsorships or passive ads.

More support to recruit rural doctors

On July 1, 2026, the state transfers $640,000 to the Rural Physician Incentive Fund. The money supports recruiting and keeping doctors in rural Idaho during FY 2027.

Youth drug‑prevention grant with safeguards

Idaho Drug Free Youth receives $250,000 for youth prevention: an annual summit, chapters, and school coordinators. DHW pays four $62,500 installments by July 15, 2026; Oct 15, 2026; Jan 15, 2027; and Apr 15, 2027. The group must file reports, and DHW can hold back or recover funds for noncompliance or misuse.

Limits on Health and Welfare spending and staffing

Beginning July 1, 2026, all Health and Welfare appropriations must follow this act’s conditions and limits. The law caps full‑time jobs by program for FY 2027 (examples: 500.53 Youth Safety & Permanency; 609.50 Welfare; 303.50 Medicaid; 300.41 State Hospital South). Adding positions needs the Governor’s approval and quick notice to JFAC. The Department cannot spend money to carry out any rule it has formally flagged for repeal in its required report.

Naloxone grant limited to first responders

State Opioid Response grant money for naloxone is only for first responders, for use in Idaho. Community groups cannot use this grant to get naloxone under this law.

Sponsors & Cosponsors

Sponsor

  • FINANCE COMMITTEE

    Affiliation unavailable

Cosponsors

  • C. Scott Grow

    Republican • Senate

  • Josh Tanner

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 65 • No: 38

House vote • 3/30/2026

House Floor Vote

Yes: 43 • No: 25

Senate vote • 3/26/2026

Senate Floor Vote

Yes: 22 • No: 13

Actions Timeline

  1. 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

    4/2/2026
  2. Reported delivered to Governor at 1:24 p.m. on 04/01/26

    4/1/2026
  3. Reported signed by the Speaker & ordered delivered to Governor

    4/1/2026
  4. Received from Senate; Signed by Speaker; Returned to Senate

    4/1/2026House
  5. Reported enrolled; signed by President; to House for signature of Speaker

    3/31/2026Senate
  6. Returned From House Passed; referred to enrolling

    3/31/2026Senate
  7. Rules Suspended: Ayes 66 Nays 0 Abs/Excd 4, read in full as required – PASSED - 43-25-2

    3/30/2026House
  8. Read second time; Filed for Third Reading

    3/30/2026House
  9. Read First Time, Filed for Second Reading

    3/27/2026House
  10. Received from the Senate, Filed for First Reading

    3/27/2026House
  11. Rules Suspended (2/3 Vote - Read in full as required) – PASSED - 22-13-0

    3/26/2026Senate
  12. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    3/26/2026Senate
  13. Reported Printed; referred to Finance

    3/26/2026Senate
  14. Introduced; read first time; referred to JR for Printing

    3/25/2026Senate

Bill Text

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