JFAC advances transportation funding package and energy agency budget shifts

The Joint Finance-Appropriations Committee on the floor advanced multiple Idaho Transportation Department (ITD) budget measures and approved a budget adjustment for the Office of Energy and Mineral Resources, voting to send the measures to the full Senate and House floors.

The committee approved supplemental federal reimbursements for local public transportation jurisdictions, reappropriation authority and capital maintenance funding for ITD programs, and a $275 million general-fund transfer to dedicated highway funds. The panel also approved a requested intra-agency shift for the Office of Energy and Mineral Resources and asked staff to prepare limited reporting language to consider whether certain energy-assistance grants could be moved between agencies.

The approvals included: a multi-part reappropriation for ITD transportation services and aeronautics programs, additional dedicated-fund replacement and IT hardware for the Division of Motor Vehicles, two supplemental federal reimbursements for local transit and metropolitan planning organizations, an FY2026 operations package for ITD highway operations including new equipment and public-transit funding, several construction and right-of-way funding actions (including reappropriation authority up to $300 million), and a $275 million transfer from the general fund to dedicated highway funds split between strategic initiatives and local distribution accounts. The committee also approved an agency-requested shift of $48,000 between dedicated funds for the Office of Energy and Mineral Resources and added federal funding authority to administer the Home Energy Rebate program.

"The budget is before the committee," Brooke Dupree, a budget and policy analyst with the Legislative Services Office, told members when she introduced the transportation services packet and the items that followed.

Committee members debated a handful of technical changes that will be folded into a single bill. "There will be one bill, and it will be a hundred dollars different," the committee chair noted during discussion about small dollar corrections that were combined into the consolidated package.

Representative Petzke spoke during the Office of Energy item, expressing disappointment that federal funds associated with the home energy rebate work will go to vendors outside Idaho. "We're basically giving up tens of millions of dollars that could have gone into Idaho's economy and it's not going to," Petzke said.

Representative Tanner, who said he added language asking agencies to examine alignment of programs, described the change as a request for a report rather than an immediate transfer of grants. "It just gives the agencies the ability to go and talk and give us a report back saying, 'We looked at it,'" Tanner said, describing the purpose of the proposed reporting language.

Several motions passed with clear majorities. Some budget items drew dissent in the form of recorded nays on individual votes (a small number of motions recorded two Senate nays on larger highway packages), but the committee approved each motion it considered and forwarded the items with "do pass" recommendations.

The committee ended with brief remarks from leadership thanking staff and members for compromise and speed. "The definition of compromise is when everybody's unhappy," a committee co-chair said near adjournment, and the committee adjourned to the call of the chair.

Votes at a glance

- Transportation Services Division (FY2026): additional $38,090,600 from dedicated funds to provide reappropriation for aeronautics and State Highway Dedicated Fund capital facilities (mover: Representative Handy; second: Senator Cook). Outcome: approved (committee to send with do-pass recommendation).

- Aeronautics program language clarifying compliance requirements for local airport hangar non-aeronautical use: accepted by unanimous consent.

- Division of Motor Vehicles (FY2026): additional $1,589,800 from dedicated funds for replacement items and IT hardware (mover: Senator Cook; second: Representative Galaviz). Outcome: approved.

- Division of Highway Operations supplemental (FY2025): $5,000,000 one-time federal funding to reimburse local public transportation jurisdictions (mover: Representative Gallivese; second: Senator Cook). Outcome: approved; recorded as unanimous in both houses.

- Division of Highway Operations supplemental (FY2025): $500,000 one-time federal funding to reimburse Metropolitan Planning Organizations (mover: Senator Cook; second: Representative Gallavese). Outcome: approved (committee tally reported: Senate 9 ayes, 1 nay; House 9 ayes; one absence reported).

- Division of Highway Operations (FY2026): full budget package totaling $84,963,600 (mix of dedicated and federal funds) including new equipment, automated materials software and public-transit funding (mover: Representative Furness; second: Senator Cook). Outcome: approved (committee tally reported: Senate 8 ayes, 2 nays; House majority approved).

- Contract Construction and Right of Way Acquisition supplemental (FY2025): $10,000,000 State Highway Local Fund and $50,000,000 State Highway Federal Fund (mover: Representative Handy; second: Senator Cook). Outcome: approved.

- Contract Construction and Right of Way Acquisition (FY2026): additional $5,000,000 dedicated and $107,276,000 federal (total $112,267,000) and reappropriation authority up to $300,000,000 (mover: Representative Furness; second: Senator Cook). Outcome: approved.

- General-fund transfer: $275,000,000 from general fund to dedicated highway funds (split: $165,000,000 to strategic initiatives program dedicated funds; $110,000,000 to local highway distribution fund) (mover: Representative Furness; second: Senator Cook). Outcome: approved (committee tally reported: Senate 8 ayes, 2 nays; House majority approved).

- Office of Energy and Mineral Resources (FY2026): net-zero shifts of $48,000 between dedicated funds; federal appropriation authority $24,500,000 for Home Energy Rebate program administration (mover: Representative Price; second: Representative Tanner). Outcome: approved.

What happens next

The committee forwarded the approved budget motions and language to the respective floors of the House and Senate with "do pass" recommendations. Members said they expect to reconvene only if either chamber amends or defeats items on the floors and changes require JFAC to act again.

Ending

Committee co-chairs and staff thanked members for their work and encouraged prompt floor action so both chambers could complete consideration. No further substantive items were added before adjournment; the committee said it will return only if necessary to reconcile floor activity.