Bills Evaluated in Affordability Index
S1288 Provide $5M For Special Education For High-Need Students
SUPPORT - This bill creates an Idaho High Needs Student Fund to reimburse local educational agencies for IEP-related expenses for students with disabilities whose annual expenses exceed $30,000, far beyond the support of typical special ed expenditures.
This bill makes small progress in addressing a shortfall in special education funding. The federal Individuals with Disabilities in Education Act guarantees children a free, appropriate public education. However, the federal government has never appropriated sufficient funds to cover the 40% of the costs that the law promises to the states leaving Idaho with an annual shortfall of $80 million to $100 million. An initial $5M has been appropriated for FY27, future funding requires further appropriations.
Reimbursement is capped as follows:
Up to 100% of costs per student for expenses between $30,000 and $80,000
Up to 80% of costs per student for expenses above $80,000
Maximum payment of $100,000 per student
Up to 60% of the fund is reserved for non-rural local educational agencies with 40% reserved for rural local educational agencies. The Idaho Department of Education is reprioritizing the $5M to this bill from the Driver Training Account and interest from the Idaho Career Readiness Student Fund.
This legislation was signed into law on March 31, 2026.
H0730 Implement New Verification Rules For SNAP Recipients
OPPOSE - This bill imposes new verification requirements intended to prevent non-citizens or those without legal status in the United States from obtaining SNAP benefits.
This law, effective July 1, 2026, creates new quarterly status verification requirements for all SNAP recipients and all members of their households. Every three months, the state must verify the identity of all members of recipient households through the federal SAVE (systematic alien verification for entitlements) program. If verification is unsuccessful individuals must provide proof of status using a passport, birth certificate, or other acceptable documentation. This verification requirement extends to all members of the applicant’s household, even those who are not applying for benefits for themselves. At the same time, income and financial resources of all members of the applicant’s household, regardless of status, will be considered in approving or denying the applicant’s eligibility.
These new requirements create hurdles both for the state and for those eligible for SNAP benefits. The state must bear the expenses of conducting the quarterly verifications. And, because the databases are not perfect, some people will be inappropriately flagged for further investigation. For some of those families, the difficulties in producing the appropriate documentation, even for those legally in the United States, will result in lost benefits. Moreover, because the state will be inquiring into the status of every member of the household, even those not applying for benefits, families will have to choose between adequate nutrition and protecting their family members from arrest and deportation.
H0933 Partial Restoration Of Budget Cut for Senior Nutrition Program
SUPPORT - This enhancement budget bill partially restores funding for the Senior Nutrition Program although there still remains a 3.7% cut from FY26.
H933 appropriates an additional $129,900 from the General Fund to the Commission on Aging for FY 2027. While this investment is a step in the right direction - recognizing that some funding is better than none - we remain concerned about the impact of the remaining cut on services for older adults.
This legislation was signed into law on March 27, 2026.
H0863 Cuts To Residential Habilitation Providers Rates By $22M For FY27
OPPOSE - This bill cuts $21.8 million from residential habilitation services in response to Governor Little’s directive to reduce Medicaid spending by $22 million. Previously approved provider pay increases from 2022 are rolled back following a court order in K.W. v. Armstrong. The bill also caps Medicaid reimbursement rates, increases program oversight, mandates more spending on direct care wages, and shifts greater control over payment rates to the Legislature.
By reducing reimbursements and eliminating planned rate increases, the bill puts significant financial strain on home- and community-based service providers—likely forcing some to close. Fewer providers and downward pressure on wages will make it harder for people with disabilities to live independently, undermining housing stability for vulnerable populations. As a result, demand may shift toward more costly or less appropriate institutional settings.
This legislation was signed into law on March 26, 2026
H0913 Make Medicaid Eligibility Contingent On Meeting Work Requirements
OPPOSE - This bill keeps Idaho’s Medicaid expansion for adults earning up to 133% of the federal poverty level. It adds work or community service requirements, minimum 80 hours / month, requiring 3 months of compliance to enroll and allowing disenrollment for noncompliance. There are some exemptions from these work requirements. It also allows the state to cut provider payments or benefits to protect from higher costs if there are drops in federal funding.
This bill leaves Medicaid expansion intact, however, the work/reporting rules and pre-enrollment requirements create barriers very likely to reduce enrollment and cause coverage gaps, limiting real access to care. It is estimated that 40,000 people will lose coverage creating higher out-of-pocket costs and medical debt for many low-income residents.
This legislation was signed into law on April 10, 2026.
S1319 Protect Patients From High Medical Bills For Emergency Services
SUPPORT - S1319 establishes the Freestanding Emergency Room and Emergency Care Affordability Act, targeting surprise billing at out-of-network freestanding ERs. It limits providers from billing patients for the difference between full charges and amount covered by insurance, applies in-network cost-sharing, sets standard payment rates, and requires clear disclosure if a facility does not accept Medicare, Medicaid, or TRICARE.
Lack of transparency in medical billing can cost patients thousands of dollars. This bill would protect patients from large, unexpected emergency bills while improving price clarity. Standardized reimbursement and in-network cost-sharing reduce financial uncertainty, and upfront disclosures help patients understand potential costs before receiving care.
This legislation passed the Senate on March 3, 2026, but was not taken up in the House.
S1435 Cut $21M From Medicaid Disability Budget
OPPOSE - S1435 incorporates the $21 million in Medicaid disability service cuts from H863 into the FY 2027 budget, triggering the loss of an additional $44 million in federal funding. These reductions come on top of the across-the-board 5% cuts already applied for FY 2027.
S1435 replaces S1375, which failed in the Senate after Sen. Guthrie criticized the broad cuts as a defining moment and urged a more responsible approach. This replacement bill goes further, reducing the FY 2027 Health and Human Services budget by an additional $65 million due to cuts in residential habilitation services approved under H863. As Sen. Guthrie (R, McCammon) warned, “We’re punishing Idaho’s most vulnerable.”
This legislation was signed into law on April 2, 2026.
S1446 Restoration of Funding for Assertive Community Treatment
SUPPORT - This law, effective July 1, 2026, restores funding for the mobile Assertive Community Treatment Program. The program, designed for those who have struggled in routine mental health treatment settings, was discontinued after the legislature cut Medicaid funding to satisfy the Governor’s order for budget cuts in FY 2026. Within three months of the closing of the program, four former patients died. In contrast, in the 18 months before the program was shuttered, only one patient died. Funding was restored for the upcoming fiscal year at the urging of Sen. Kevin Cook (R, Idaho Falls).
H0760 Low-income Property Tax Exemption
SUPPORT - This bill revises Idaho’s property tax exemption for nonprofit low-income housing by establishing clearer eligibility standards and deeper affordability requirements. It prioritizes units for households earning 30–60% of area median income, expands allowable ownership structures, and adds ongoing compliance reporting. However, counties retain discretion to deny exemptions, and many projects - particularly those using federal tax credits or existing developments - are excluded.
We support this legislation because it encourages the development of deeply affordable housing and can reduce operating costs for nonprofits through property tax relief. That said, limiting access to federal tax credits—a key financing tool—and allowing counties to deny exemptions introduces uncertainty that may reduce its overall effectiveness in expanding housing supply.
This legislation passed the House and failed in the Senate after 2 rounds of voting.
H0800 Clarifies Definition and Siting of Multi-family Manufactured Homes
SUPPORT - The bill increases housing affordability by allowing single section manufactured homes to be placed on lots zoned for single family homes and multi-sectional manufactured homes to be placed on lots zoned for multifamily homes.
This law, effective July 1, 2026, expands where manufactured homes can be placed. It allows manufactured duplexes to be treated as multifamily homes in zoning ordinances. Single section manufactured homes that are at least 400 square feet may be placed on lots zoned for single family homes and multi-sectional manufactured homes that are at least 800 square feet may be placed on lots zoned for multifamily homes.
We support these options toward improving housing affordability, primarily by expanding lower-cost housing options and increasing supply.
The legislation was signed into law on March 26, 2026.
H0842 Allow Greater Property Tax Increases By Local Governments
OPPOSE - This bill is intended to provide flexibility for fast-growing communities (under 30,000 residents) by raising the property tax growth cap from 8% to 15% and increasing the use of foregone revenue from 1% to 2% to meet rising public safety demands. It also limits future accumulation of unused tax capacity and allows voters to reduce local tax budgets through initiatives.
We oppose this legislation because it has the potential to increase housing costs in high-growth areas through higher property taxes. Additionally, using the ballot initiative process—traditionally reserved for broader policy issues—to address local budgeting concerns has drawn criticism. Finally, limiting these provisions to smaller cities excludes larger communities facing similar growth pressures.
This legislation failed in the House on March 23, 2026.
S1352Require Cities to Allow Starter Home Subdivisions
SUPPORT - This legislation requires Idaho cities with populations over 10,000 to allow “starter home subdivisions” in residential zones. It defines these as smaller-lot developments (generally ≤1,500 sq ft per lot) designed to reduce costs and expand access to homeownership. The bill limits local zoning requirements—such as lot size, setbacks, and fees—to make these projects feasible, while still allowing exceptions for infrastructure, environmental constraints, and public safety.
The bill will increase housing supply, particularly entry-level homes, by lowering regulatory barriers and development costs. This will improve affordability at the lower end of the market and provide more options for first-time buyers, especially in growing cities.
This meaningful pro-supply step should expand starter home options and modestly improve affordability, but it is not a complete solution to Idaho’s housing challenges.
This legislation was signed into law on March 31, 2026
S1353a Allow Duplexes & Twin Homes In Areas Zoned For Single-family Housing
SUPPORT - This bill requires Idaho cities over 10,000 residents to allow duplexes and twin homes anywhere single-family homes are permitted. It limits barriers (lot size, parking, fees), streamlines the approval process, and mandates code updates by Feb. 2027, while preserving health, safety, and infrastructure standards.
This is a meaningful but incremental step toward improving affordability. Legalizing modest density in single-family zones and reducing regulatory barriers, could help increase housing supply and create more attainable homeownership options. However, because it only allows up to two units and applies only to larger cities, the overall impact will likely be gradual rather than dramatic.
This legislation passed in the Senate on March 20, 2026; it was not voted on in the House.
S1354a Allow Addition Of ADUs To Existing Properties
SUPPORT - Requires Idaho cities over 10,000 residents to allow Accessory Dwelling Units (ADUs)—one per lot—in single-family zones and limits both cities and HOAs from blocking them. The bill reduces barriers (parking, fees, owner-occupancy, size limits), requires by-right approval (must be approved if meets objective standards), and mandates zoning updates by Feb. 2027, while preserving health and safety standards.
This is a meaningful step toward improving affordability. By allowing smaller, lower-cost units in existing neighborhoods and removing common regulatory barriers, the bill makes it easier for homeowners to add rental housing or multigenerational living space. ADUs are typically among the most affordable forms of new housing, and this policy could expand supply relatively quickly. Compared to other reforms, ADU legalization is often one of the more effective tools for gradually increasing affordable housing options.
This legislation was signed into law on March 31, 2026.
H0559 Idaho Tax Law to Conform To Federal Tax Code
OPPOSE - This bill largely conforms Idaho tax law to the federal “One Big Beautiful Bill,” with changes applied retroactively to tax year 2025. It includes provisions such as no tax on tips, no tax on overtime, and an enhanced senior deduction. It excludes certain elements, including bonus depreciation (which Idaho has historically not adopted), while maintaining the existing amortization schedule for R&E (R&D) expenditures from 2022–2024.
We oppose this legislation because it comes amid significant budget cuts to address an existing revenue shortfall. Further reducing revenues to fund these tax changes places additional strain on an already stressed state budget. Estimated impacts vary widely but include projected revenue losses of approximately $155 million in FY26 and $175 million in FY27.
As with other tax cut measures, the downstream effects are likely to be felt across essential public services that Idahoans rely on every day.
This legislation was signed into law on February 10, 2026
S1332 Transfer of In-Demand Careers Funds Into General Fund
OPPOSE - This appropriations bill transfers money from important program funds to the General Fund to address budget shortfalls despite a large rainy-day fund. General Fund revenues will grow by $106,745,000 in FY 2026 and $10,000,000 in FY 2027 through the cutting funds of these programs:
$45,000,000 from the Strategic Initiatives Program Fund in FY 2026
$3,000,000 from the Idaho Opportunity Scholarship Fund in FY 2026
$33,745,000 from the Permanent Building Fund in FY 2026
$15,000,000 from the Water Pollution Control Fund in FY 2026
$10,000,000 from the In-Demand Careers Fund in FY 2026
$10,000,000 from the In-Demand Careers Fund in FY 2027
We oppose this legislation, particularly the transfer of funds out of the In-Demand Careers Fund. This fund provides education and training grants of up to $8,000 for high-demand careers through the LAUNCH program, strengthening the connection between education and employment by aligning student training with Idaho employers’ workforce needs. The program has demonstrated strong demand and is already unable to serve all qualified applicants, making these funding reductions especially concerning.
This legislation was signed into law on March 17, 2026 and becomes effective July 1, 2026,