Joint Finance-Appropriations Committee advances behavioral-health spending, approves dozens of agency budget items and debates federal home-energy rebates

The Joint Finance-Appropriations Committee (JFAC) on Friday voted on a slate of supplemental and fiscal-year 2026 budget items, advancing multiple behavioral-health appropriations, clearing replacement-item requests across agencies and approving accounting corrections for the Department of Labor. Members also debated a federal home-energy rebates package, and adopted language designed to limit the state’s exposure if federal funding is reduced or rescinded.

Sen. Julie VanOrden, who identified herself as chair of the Senate Welfare Committee, and a House health-and-welfare representative briefed the committee before the budget actions. VanOrden relayed committee observations about Medicaid spending trends and workforce concerns, including growth in the Medicaid expansion population and lingering questions about how recent rate increases for direct-care workers flowed to employees. The representative said committee members urged examination of pharmaceutical costs and continuity between children’s and adults’ mental-health funding.

Why it matters: the committee’s votes allocate and authorize funds that directly affect hospital- and community-based mental-health services statewide, correct accounting entries for unemployment operations, and set conditions for how federal grants will be treated if funding changes. Those actions determine near-term spending and reporting requirements for multiple departments.

Key approvals and decisions

- Behavioral health and psychiatric hospitalization: JFAC approved a set of supplemental and FY2026 actions for the Division of Mental Health Services and the psychiatric hospital system, including a FY2025 one-time appropriation of $6,743,800 in federal Cooperative Welfare funds for Idaho Behavioral Health Plan contract implementation; a FY2026 federal increase of $261,400 for mental-health grant-related line items; a FY2025 one-time $2,663,500 general-fund appropriation for civil-commitment community hospitalization expenditures; and a series of fund-shift adjustments at State Hospital West and State Hospital South to reflect forecast and payer changes. Language exempting Mental Health Services and Psychiatric Hospitalization divisions from statutory transfer limits (Idaho Code 67-35-11) for specific trustee/benefit and personnel classes was adopted alongside those motions. Committee records show these behavioral-health motions carried with the tallies listed below in “Votes at a glance.”

- Substance-abuse funding: The committee approved a fund-source adjustment for the Division of Substance Abuse Treatment and Prevention (net-zero budget impact but a reallocation between dedicated and federal sources) after discussion; that motion recorded a mixed vote as noted below.

- Department of Labor: an initial request to add $7.33 million (unemployment insurance operations) and $161,001 for IT hardware did not pass on the first vote. Committee members then took up accounting corrections and fund-balance adjustments to align internal Labor fund accounts. The committee approved a transfer and appropriation of $4,868,000 from the Unemployment Security Administration and Reimbursement Fund into the Employment Security Fund to correct bookkeeping; the panel also approved related fiscal-year-2024 fund-balance corrections and a reporting requirement for departmental position counts by unanimous consent.

- Across-government replacement items and enhancements: JFAC approved dozens of smaller replacement-item requests and enhancements for agencies including Idaho Public Television, the Soil and Water Conservation Commission (grants and a replacement vehicle), Commission for the Blind and Visually Impaired, Secretary of State (a reduced-duration double-fill deputy request and other items), Lieutenant Governor, State Treasurer (email-security software request; the committee did not adopt the governor’s separate workforce-housing recommendation here), the Idaho State Liquor Division, Commission on the Arts, Idaho Lottery, brand inspection (vehicles and IT), Commission of Pardons and Parole (IT replacement items), and a technical correction for the Division of Veterans Services. Those actions were moved, debated briefly in most cases, and recorded with the tallies below in “Votes at a glance.”

- Federal-fund protection language: committee members adopted a broadly worded condition/limitation that attaches to behavioral-health and a small number of other appropriations. The language instructs that federal-fund appropriations cannot be supplanted by state funds if federal grants are revoked, reduced or eliminated, requires agencies to report how they would respond if federal funds were lost, and requires the department to revert or reduce state-match spending to the extent possible. That language was accepted by unanimous consent.

Committee discussion and concerns

Lawmakers voiced recurring concerns about workforce and service access. Several members asked staff to follow up on whether Medicaid reimbursement and prior rate increases for personal-care and direct-care workers actually boosted worker pay and recruitment. Multiple members said foster-care investments were important despite higher near-term costs. Some legislators pressed the Department of Labor on technology and staffing levels and on the ongoing need to investigate unemployment fraud even during low-unemployment years.

The home-energy rebates package drew the most sustained debate. Supporters argued Idaho should accept federally allocated funds (formula money from the Inflation Reduction Act) to help residents pay for electrification and energy-efficiency upgrades rather than have neighboring states receive the money. Opponents questioned whether the program would impose federal energy codes on the state, and whether accepting the federal dollars would expand federal influence or contribute to inflation. The chair and staff repeatedly stressed that the federal awards are formula-based grants and that the package under consideration primarily created spending authority to administer the federal program.

Process and next steps

Where votes were split between senators and representatives, the committee followed its operating practice: if the panel as a whole could not reach the statutory approval threshold in this joint session, the work product will be transmitted to the House for consideration first. The committee adopted the home-energy-rebates language and agreed that the package would be sent to the House for further action. Staff were asked to prepare follow-up reports on the Medicaid direct-care rate impacts, foster-care ombudsman and program design, and Department of Labor position and workload data.

Votes at a glance (major motions recorded in the transcript)

Note: votes below show the motion text as read into the record, the mover/second when named in the transcript, and the final tallies as stated in roll call. When the transcript did not name a mover, “not specified” is used. For complete roll-call excerpts, see the provenance segments below.

1) Idaho Behavioral Health Plan (FY2025 cooperative federal funds) - Motion: "...1 time addition of $6,743,800 from the Cooperative Welfare Federal Fund for Idaho Behavioral Health Plan contract implementation." - Mover: not specified. Second: Representative Furniss. - Tally: 15 ayes, 5 nays, 0 absent. Outcome: approved.

2) Mental Health Services (FY2026 federal grant increase) - Motion: "...add $261,400 for Idaho Behavioral Health Plan federal grant increases." - Mover: Senator Cook. Second: Representative Furniss. - Tally: 18 ayes, 2 nays (record shows majority in favor). Outcome: approved.

3) Psychiatric hospitalization (FY2025 civil-commitment expenditures) - Motion: "...1 time addition of $2,663,500 from the Cooperative Welfare General Fund for civil commitment expenditures in community hospitalization." - Mover: Representative Furniss. Second: Senator Wintrow. - Tally: Senate 9 ayes, 1 nay; House unanimous 10 ayes; Total 19 ayes, 1 nay, 0 absent (as stated). Outcome: approved.

4) State Hospital West (FY2025 fund shift) - Motion: "...1 time addition of $2,206,900 from the Cooperative Welfare Dedicated Fund and 1 time reduction of $2,206,900 from the Cooperative Welfare Federal Fund for State Hospital West." - Mover: Senator (name in record: not specified). Second: Representative Galaviz. - Tally: Senate 10 ayes, 0 nays; House 8 ayes, 0 nays; Total 18 ayes, 0 nays, 1 absent/excused. Outcome: approved.

5) State Hospital South (FY2025 forecast/fund adjustments) - Motion: "...1 time addition of $1,000,000 from the Cooperative Welfare General Fund, $3,859,700 from the Cooperative Welfare Dedicated Fund and a 1 time reduction of $4,859,700 from the Cooperative Welfare Federal Fund to the State Hospital South." - Mover: Representative Galaviz. Second: Senator Cook. - Tally: unanimous (20 ayes, 0 nays). Outcome: approved.

6) Substance Abuse Treatment and Prevention (FY2026 fund allocation adjustment) - Motion: net-zero shift between dedicated and federal funds and personnel/trustee changes for the substance abuse fund. - Mover: Senator Wintrow. Second: Representative Galvez. - Tally: Senate 8 ayes, 2 nays; House 7 ayes, 3 nays; Grand total 15 ayes, 5 nays. Outcome: approved.

7) Department of Labor (initial funding request) - Motion: "Beginning with FY 2026 JFAC program maintenance budget at $7,330,000 for unemployment insurance operations and $161,001 one time for IT hardware." - Mover: Representative Handy. Second: Senator Cook. - Tally: initial roll-call did not produce a majority in the joint context and the motion failed on the first vote as recorded. Outcome: initial funding request not approved on first vote.

8) Department of Labor (accounting correction) - Motion: "Transfer and appropriate $4,868,000 from the Unemployment Security Administration and Reimbursement Fund to the Employment Security Fund." - Mover: Representative Handy. Second: Representative Horman. - Tally: Senate 10 ayes, 0 nays; House 8 ayes, 0 nays; Total 18 ayes, 0 nays. Outcome: approved. (Follow-on FY2024 fund-balance corrections and reporting language were accepted by unanimous consent.)

9) Office of Energy and Mineral Resources / Home Energy Rebates (two competing motions) - Original motion (workgroup): Add federal appropriations of $24,497,900 for the Home Energy Rebates program, $82,000 from dedicated funds, and $481,100 from the general fund for the governor’s Speed Council initiative (creates 5 FTPs total across items). - Mover: Representative Petzke (work group). Second: Senator Ward Engelking. - Substitute motion (Representative Tanner): Limit action to only the governor’s Speed Council initiative (1 FTP and $481,100 general fund) and omit the federal appropriation portion. - Outcome: The substitute motion failed on a tie in the joint roll call (10–10 total), the original motion failed to secure a joint majority in committee after separate Senate and House roll calls, and committee leadership indicated the package will be forwarded to the House first for further consideration. Language restricting state replacement of lost federal funds was approved and will accompany any package.

10) Miscellaneous agency motions (replacement items/enhancements and technical corrections): - Idaho Public Television: $342,400 general fund (replacement items & network ops center) — passed (total 16 ayes, 4 nays as recorded). Outcome: approved. - Soil and Water Conservation Commission: $1,040,500 general fund (vehicle replacement and $1,000,000 in water-quality grants) — passed (18 ayes, 2 nays). Outcome: approved. - Commission for the Blind and Visually Impaired: $28,900 general fund (IT hardware) — passed (unanimous in committee). Outcome: approved. - Secretary of State: $468,300 general fund (various enhancements; voter-guide request removed for policy consideration) — passed in committee with recorded split votes; forwarded. Outcome: due-pass recommendation. - Lieutenant Governor: $32,600 general fund (ITS hardware) — approved. Outcome: approved. - State Treasurer: $25,000 (email security) — approved; the related governor workforce-housing proposal was not added in this motion. Outcome: approved. - Idaho State Liquor Division: $1,521,700 dedicated funds for pay and ITS/replacement items — passed (14 ayes, 6 nays). Outcome: approved. - Commission on the Arts: $18,400 general fund (arts & education grants) — passed (13 ayes, 7 nays). Outcome: approved. - Idaho Lottery: $176,700 dedicated funds (ITS hardware) — passed (16 ayes, 2 nays). Outcome: approved. - Brand Inspection division (Idaho State Police): $289,200 dedicated funds for vehicles and IT — passed. Outcome: approved. - Commission of Pardons and Parole: $12,600 general fund (IT replacement) — passed (unanimous). Outcome: approved. - Division of Veterans Services: technical shift to reclassify personnel vs. operating across funds (net zero) — passed unanimously. Outcome: approved.

What the committee asked staff to do next

Members asked for follow-up reports on the effects of past Medicaid rate increases on direct-care worker pay; clarifications of ombudsman roles in foster care as the department revamps foster-care services; Department of Labor position and FTP counts and ongoing workload information; and reporting and contingency planning for the behavioral-health federal grants if those funds were reduced or rescinded.

Ending

The committee’s work will feed the Appropriations process in both chambers. Several measures that carried in this joint session will proceed to their respective chamber calendars; the home-energy rebate package and related federal spending authority will move first to the House for additional consideration, per the committee’s operating practice when a joint majority was not achieved. Staff indicated they will prepare the requested follow-up reports on Medicaid workforce impacts and Department of Labor accounting and position data. Additional hearings and votes are expected as the Legislature continues budget work.

(Reporters: all quotes and attributions are taken from the committee transcript. Motions, tallies and language descriptions above reflect the committee’s roll-call statements and unanimous-consent actions recorded on the transcript.)