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.