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Veterans services seeks pilot temporary‑nursing pool, reports staffing gains and Build America waiver delay
Summary
Division asked for a transfer to hire a temporary nursing pool, outlined hiring progress at Post Falls and described an outstanding federal waiver issue tied to state home reconstruction funding under the Build America, Buy America Act.
The Idaho Division of Veteran Services presented a FY2026 budget that emphasizes workforce changes to reduce reliance on expensive contract nurses, ongoing construction grants for veterans homes and continuing friction with the federal Veterans Affairs office over Build America, Buy America Act compliance.
Legislative analyst Frances Lippett told the committee the division requested a net transfer of $1.2 million from operating to personnel to create a pool of 22 temporary, benefited state employees intended to replace a portion of contracted nursing labor. Administrator Mark Chample described the proposal as a pilot intended to reduce the premium paid for contract nurses. "We're willing to pay the contracted staffing agencies to come in to make sure that we have the appropriate level of staff ... our homes are almost currently completely full to capacity," Chample said.
Chample said the division has a 34–35 percent turnover rate for direct nursing staff but noted the national average is far higher. He told the committee the division has been attempting market‑based pay adjustments and geographic analyses to remain competitive. "We are competitive and we're doing a good job in that area," Chample said, while acknowledging supply limits in the nursing labor market.
The division also reported federal construction funding: Lippitt said the division had $43.1 million in federal appropriation for replacing the Boise veterans home and renovating the Lewiston home, but that the projects were delayed by an inability to secure a waiver under the Build America, Buy America Act (BABA). Administrator Chample explained the federal rule requires domestic sourcing for many building components and that the U.S. Department of Veterans Affairs has not approved the requested waiver so construction cannot proceed. "We've proven ... that many products cannot be purchased currently ... we have not received the waiver as of today," Chample said.
Other requests included $120,600 ongoing for IT maintenance and licensing (per ITS recommendations), a one‑time request of $588,400 for items including a shed and cemetery dump truck, and $354,700 for replacement items such as vehicles and medical equipment. Lippitt said the division continues to expend a large share of its personnel appropriation and relies on a mix of federal reimbursements and miscellaneous receipts; she noted continuously appropriated funds for cemetery maintenance and veterans recognition.
Chample highlighted program outcomes: the Office of Veterans Advocacy filed a record number of claims that yielded over $1 billion in benefits for Idaho veterans; the division is expanding outreach and purchased 15 additional acres to expand the Boise Veterans Cemetery.
Why this matters: The nursing‑pool pilot aims to reduce costly contracted staffing and improve continuity of care while federal construction funding remains on hold pending federal waivers required by BABA.
