Committee sends House Bill 26 to the floor to allow Idaho to join national ABLE consortium

BOISE — An Idaho House committee voted to send House Bill 26 to the floor with a do-pass recommendation after testimony from State Treasurer Julie Ellsworth and disability advocates supporting the state’s participation in a national ABLE-account consortium.

Treasurer Julie Ellsworth, appearing before the committee, said the bill would amend Idaho Code section 56-708 to let the Idaho State Treasurer enter into a contract with a national ABLE consortium, establish an ABLE-account advisory council and require financial-literacy outreach to potential account holders. “This legislation makes the Idaho ABLE account program less expensive for participants and provide greater oversight and protection,” Ellsworth said.

ABLE accounts (Achieving a Better Life Experience), created under federal 529A rules, let eligible individuals with disabilities save money for disability-related expenses without jeopardizing means-tested benefits such as Supplemental Security Income (SSI) or Medicaid. Ellsworth and several testifiers told the committee that joining a multi-state consortium spreads administrative overhead and lowers fees for Idaho account holders.

Why it matters: Supporters said the change will expand options for Idahoans who rely on public benefits but need to save for transportation, adaptive equipment, dental or other expenses not covered by insurance. Ellsworth told the committee that federal eligibility rules will change in 2026 to raise the age limit to 46, which she said will expand eligibility to more people, including veterans.

Details from testimony and fiscal note: Ellsworth told lawmakers the bill carries no fiscal impact to the state general fund in the fiscal note. She said account-holder fees would pay program operating costs rather than state appropriations. During discussion she gave approximate fee ranges as described in testimony: out-of-state (non‑partner) account holders currently pay roughly 45–59 basis points, while participating through a consortium could reduce participant costs to a stated range of 19–33 (the testimony used mixed units for the two ranges). The bill would authorize the treasurer to vet and sign contracts with a consortium, to create an advisory council to provide periodic oversight, and to run outreach and financial-literacy efforts in coordination with the Idaho State Independent Living Council.

Public testimony: Six public witnesses, including people with disabilities and family members, urged the committee to approve the bill. Jeremy Arnold, a parent of two sons on SSI, described the relief of legally saving money for his children: “The stress that was lifted off of my wife and I knowing that we can legally put money into a savings account, and it won't be considered an income is imperative,” he said. Tara Rowe, who uses an out‑of‑state ABLE account, said the current process can be slow when funds are requested: “They then contact their bank, which is in Boston, and then they cut me a check and send it to me in Idaho. So as you can imagine, this is like a week long process.” Lisa Anderson, the advocacy director for AARP Idaho, said the accounts help people save for unexpected and everyday expenses and asked lawmakers to support the bill.

Questions and oversight: Committee members asked how outreach and marketing would be funded, whether the state could be held financially liable, and which consortium contracts the treasurer was considering. Ellsworth said outreach would be funded out of account-holder fees and that the arrangement would be similar in structure to state-administered 529 college savings plans — individual account fees cover program costs rather than creating a new tax liability for the state. She said she had preliminarily reviewed a small number of consortium options and would pursue competitive vetting and legal review if the legislature approved authorization to contract.

Committee action and next steps: Representative Haley moved to send House Bill 26 to the floor with a do-pass recommendation. Representative Kaler announced he would vote no on the motion, citing a general fiscal-conservative reluctance to expand government roles. The chair called the roll, recorded at least one nay and multiple ayes; the committee approved the motion and House Bill 26 will be presented on the House floor (Representative Scoggs is listed to present it). The committee chair also announced that House Bill 30, which the committee previously sent to the floor, will return for redrafting after further review.

The bill will next be scheduled for floor action in the Idaho House, where proponents said they will seek final legislative approval and authorize the treasurer to move forward with contracting and establishing program oversight.