The Idaho House of Representatives has unanimously approved an increased budget allocation for the financially troubled Division of Vocational Rehabilitation. This decision comes after a series of financial challenges that brought the division's sustainability into question. The new budget includes additional funding to cover interpreter services and emergency federal grants, ensuring continued support for individuals with disabilities seeking employment opportunities. The federal government had flagged the division's grant as high-risk due to concerns over its financial accountability. With this legislative move, Idaho aims to stabilize the division’s operations while addressing past service commitments.

In recent years, the Division of Vocational Rehabilitation, a state-federal initiative assisting people with disabilities in securing and maintaining employment, encountered significant financial difficulties. Last year, during the final days of the 2024 legislative session, the former administrator disclosed that the division was insolvent and unable to meet its financial obligations. Subsequently, the federal Rehabilitation Services Administration identified the division's grant as high risk due to substantial doubts about its fiscal responsibility. In response, $10 million in emergency federal funds were offered to Idaho, contingent on the state providing a matching amount of $2.7 million.

This Friday, House Bill 460 passed through the Idaho House with a vote of 49-20, allocating $35,000 for interpreter services within the upcoming fiscal year 2026 budget. Additionally, it provides a one-time $4.4 million supplemental funding appropriation for the current fiscal year 2025 budget. Of this amount, $2.7 million serves as the required state match to access the federal emergency funds, while $1.7 million is earmarked for client services already rendered but ineligible for federal reimbursement.

Representative Wendy Horman, co-chair of the Joint Finance-Appropriations Committee (JFAC), highlighted the division’s progress under new leadership. She praised the interim director for taking on a complex situation and striving to resolve ongoing issues. As Idaho transitions between fiscal years, ending the current year on June 30 and beginning the next on July 1, the legislation now moves to the Senate for further consideration.

With the passage of House Bill 460, Idaho takes a crucial step toward stabilizing its Vocational Rehabilitation program. The bill ensures that both current and future financial needs are met, allowing the division to continue its mission of aiding disabled individuals in achieving employment goals. By securing necessary state and federal funds, the program can address immediate operational gaps while working towards long-term financial health.