In an effort to help Idahoans follow major bills, resolutions and memorials through the legislative process, the Idaho Capital Sun will produce a “legislative notebook” at the end of each week to gather information in one place that concerns major happenings in the Legislature and other news relating to state government. To receive the full extent of our reporting in your inbox each day, sign up for our free email newsletter The Sunrise on our website at idahocapitalsun.com/subscribe/.

Here is our quick rundown of the major happenings during the third week of the Idaho Legislature’s 2025 session.

Legislation introduced to allow public funds for private education, bill introduced to repeal Medicaid expansion

Measures that address some of the most controversial and fiscally consequential issues that may come before the Idaho Legislature all session were introduced this week.

Legislators introduced highly anticipated legislation on Wednesday that would allow millions in public funds to pay for private and religious schooling expenses – referred to as school choice – in the Idaho House of Representatives and Idaho Senate. State lawmakers also introduced on Friday legislation to fully repeal Medicaid expansion in the state after voters passed a law via ballot initiative in 2018 to allow health insurance access for Idahoans that fall within the “Medicaid gap.”

Tens of thousands of Idahoans in the “gap” earned too much to qualify for Medicaid, but too little to qualify for tax subsidies on Idaho’s health insurance marketplace, Your Health Idaho.

Both issues have come before the Idaho Legislature before, but bills to fund private education with public taxpayer dollars and bills to repeal or reform Medicaid expansion haven’t successfully made it through both chambers of the Legislature in years past. 

This year, due to several factors including changes to which legislators make up the relevant committees that hear these bills and prevailing changes at the federal level with the Trump administration, may mean these policies could be on surer footing in 2025.

But standing in their way on both issues is one overarching question: How much will these proposals affect the overall state budget and its financial future?

Democrats, education groups and other advocates have said any proposal that allows public dollars to go toward private education would affect the state’s general fund and its ability to fully fund other public services and infrastructure projects.

Similarly, some Democrats and even one Republican on the Idaho House Health and Welfare Committee questioned how much repealing the voter-supported Medicaid expansion law would cost the state.

The Medicaid expansion repeal bill’s fiscal notes estimates it would save the state at least $110 million annually. But Idaho House Minority Leader Ilana Rubel, D-Boise, said repeal may cost the state more than that.

“I think this fiscal note is entirely inaccurate,” Rubel said. “Everything that I’ve seen indicates that it would actually cost the state more to get rid of Medicaid expansion than it would save. … There have been huge savings throughout the system — in corrections and behavioral health, certainly in terms of all those funds we had to stand up before to ensure we don’t lose all the rural hospitals.”

Legislation of interest during the third week of the 2025 session

• House Bill 58:  Introduced by Rep. John Vander Woude, R-Nampa, on Friday, the bill would repeal Medicaid expansion in Idaho. The bill may be taken up by the Idaho House Health and Welfare Committee for a full public hearing in the coming days of the session.
• House Bill 39: Introduced by Rep. Wendy Horman, R-Idaho Falls, on Wednesday, the bill would establish a refundable tax credit of up to $5,000 for parents to help pay for education expenses, including for private or religious school expenses like tuition. The bill’s fiscal impact statement says the proposal would reduce the state’s General Fund revenue by no more than $50 million, with $125,000 needed in General Fund dollars for one-time programming and coding costs to carry out the credit by the Idaho State Tax Commission. The bill may be taken up by the Idaho House Revenue and Taxation Committee for a full public hearing in the coming days of the session.
• Senate Bill 1025: Sponsored by Sen. Dave Lent, R-Idaho Falls, on Wednesday, the bill would expand the state’s Empowering Parents program by $20 million to be able to cover costs such as tuition for students at private, public and home schools. It also includes $30 million in funding to support special education. 
• House Bill 40: Sponsored by Idaho House Speaker Mike Moyle, R-Star, on Thursday, the bill would reduce the individual and corporate income tax rates in Idaho from the current rate of 5.695% down to 5.3%, at a cost of $240 million. It would also expand the income tax exemption to military pensions, at a cost of $12 million, and would eliminate capital gains tax for gold bullion sales, at a cost of $1 million. The bill may be taken up by the Idaho House Revenue and Taxation Committee for a full public hearing in the coming days of the session.
• House Bill 37: Sponsored by Rep. Bruce Skaug, R-Nampa, the bill would make death by firing squad the primary way of administering the death penalty in Idaho. The bill may be brought back before the House Judiciary, Rules and Administration Committee for a full public hearing in the coming days of the session.
• House Bill 10: Sponsored by Rep. Ted Hill, R-Eagle, the bill was referred back to the House Education Committee from the House floor on Friday. The bill would ban flags or banners in Idaho public school classrooms that “represent a political viewpoint, including but not limited to flags or banners regarding a political party, race, sexual orientation, gender, or a political ideology.” An updated version of the bill, House Bill 41, aims to take its place after Hill added that flags of other nations “not engaged in hostile action” with the United States would be allowed. The bill may be taken up by the full Idaho House in the coming days of the session.
• House Bill 7: The Idaho House on a 54-14 vote passed the bill on Wednesday that would implement a $300 minimum fine for adults possessing three ounces or less of marijuana. It now heads to the Senate Judiciary and Rules committee for consideration in the coming days of the session.
• House Joint Memorial 1: Sponsored by Rep. Heather Scott, R-Blanchard, the memorial passed the House State Affairs Committee on a 13-2 vote Wednesday. The memorial asks the U.S. Supreme Court to reconsider its 2015 decision in Obergefell v. Hodges that legalized same-sex marriage. The memorial is on the Idaho House’s third reading calendar for Monday and may be taken up in the coming days of the session.

What to expect next week 

Senate State Affairs Committee

House Bill 14, a bill that would require all Idaho state agencies to recommend outdated, obsolete or unnecessary laws for the Idaho Legislature to consider removing, will be before the committee on Monday after passing the House on a 68-0 vote on Thursday.

House State Affairs Committee

House Bill 32, a bill seeking to prohibit the state, cities, counties, public health districts, school districts and state officers from mandating the use of masks, face shields or coverings to prevent the spread of contagious diseases, will be before the committee for a full public hearing on Monday.

Quote of the week

“This bill is not about whether the death penalty is good or bad … Our job is to make sure to carry out the most efficient manner under the bounds of the Constitution.” – Rep. Bruce Skaug, R-Nampa, on House Bill 37, the bill that would make the firing squad the primary way of administering the death penalty in Idaho

Social media post of the week

Photo of the week

Reporting from Idaho Capital Sun journalists Clark Corbin, Mia Maldonado and Kyle Pfannenstiel contributed to this legislative notebook.