Health and Human Services budget moves to the governor’s desk, some other health related enhancement funding approved

BOISE, Idaho — The Idaho House passed the state’s largest budget Monday, approving a $5.6 billion health and human services spending plan while rejecting a separate bill that would have added more than $35 million for vaccine purchases and disease prevention programs.

Senate Bill 1435, the main appropriation for the Department of Health and Welfare for fiscal year 2027, passed 43-25 after lawmakers trimmed $351.7 million from last year’s total through a combination of governor’s holdbacks, legislative holdbacks and provider rate reductions.

“The reductions that have actually been made through the governor’s holdback, the legislative holdbacks, as well as provider rate holdbacks, has brought that budget down to $5.6 billion, still a significant, significant number,” Rep. Josh Tanner, R-Eagle, said while presenting the bill on the floor Monday. 

The bill funds a sweeping range of state services including foster care, early childhood programs, Medicaid and the state’s three psychiatric hospitals. 

The $351.7 million in cuts is about a 6% percent funding cut for fiscal year 2027. About $251.6 of the cuts are from cuts to federal money. But cuts include a $21 million general fund reduction for residential habilitation provider rates, an additional $44 million reduction in federal money that would have matched funds for the disability services and includes a one-time removal of $14 million in federal funding for childcare. 

This budget has divided lawmakers and previously failed the house earlier this month. But the second attempt gathered enough votes to pass the Senate and the House, now heading to the governor’s desk for signature. 

Without debate, the House then rejected Senate Bill 1401 Monday, a public health enhancement bill that would have appropriated $35.7 million,  nearly $28 million of which was earmarked for vaccine procurement through the state’s immunization fund. The bill also included money to track a rise in HIV cases in eastern Idaho and funding for suicide prevention programs. It failed 30-36.

The House did approve a third health-related bill Monday, Senate Bill 1429, a $16.4 million behavioral health enhancement, passed 39-27, restoring funding for children’s and adult mental health services and adding 15 positions at the state’s psychiatric hospitals. 

Rep. Rod Furniss, R-Rigby, warned that without the restoration, vulnerable Idahoans would have been pushed out of lower-cost community care settings.

“If we were to cut that, we were going to leave the kids and adults with mental health challenges without funding, and push them to the hospitals or the emergency centers, and that would cost the state about 10 times more money,” Furniss said.

The main health and welfare budget and mental health enhancements now head to Gov. Brad Little’s desk.