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JFAC approves Department of Labor FY2026 funding adjustments; language on immigration and disability reports fails in committee
Summary
The Joint Finance Appropriations Committee approved fund shifts and a modest net appropriation increase for the Department of Labor’s FY2026 operating budget, while two requests for department reports on illegal immigration and disability determinations failed to win committee approval.
The Joint Finance Appropriations Committee approved a set of fund shifts and a small net increase for the Department of Labor’s FY2026 budget, while rejecting two pieces of intent language asking the agency to study the impact of illegal immigration on the state labor market and to analyze costs of administering disability determinations at state versus federal levels.
Brooke Dupree, budget and policy analyst with the Legislative Services Office, told the committee the department sought $7,330,000 for unemployment insurance operations and that the adjustments under consideration included moving operations from federal grant funding to the Employment Security Special Administration Fund because the state expects a reduction in its federal grant award. “This request comes from the Employment Security Special Administration Fund, which is derived from the interest off of the Employment Trust Fund,” Dupree said.
Senator Cook moved the budget adjustment that contained an increase of $5,000,000 in dedicated funds and a federal reduction of $4,839,000 (net $161,000), along with FTP adjustments across programs. Senator Cook explained the adjustment resulted from discussions with the department director and represented the department’s preferred option.
On the record the committee adopted the budget adjustment by roll call. The chair announced the motion will go forward with a due-pass recommendation.
Later in the meeting committee members debated two pieces of non‑appropriations language. One required the Department of Labor to provide a report analyzing the impact of illegal immigration on Idaho’s labor market; the second requested a report reviewing costs of administering disability determination services at the state level compared with the federal level. Supporters said the reports would provide information for potential future policy decisions. Opponents raised separation-of-powers and cost concerns, and several members emphasized federal statutory constraints and the need to consult disability advocates before directing work on disability services.
A roll-call vote on the language showed support in the Senate (recorded as 8 ayes, 2 nays) but the House vote did not reach a majority (4 ayes, 5 nays, 1 absent), and the chair recorded that the language “fails” in committee and would be sent to the House for further consideration.
The committee record shows the budget adjustment motion was adopted and the two report requests did not receive the committee majority across both chambers.
