The bill appropriates funds to the Department of Health and Welfare for the fiscal year 2026, targeting various divisions such as Youth Safety and Permanency, Services for the Developmentally Disabled, Early Learning and Development, and Mental Health Services. It includes significant increases in federal funding for programs like Medicaid and mental health services, while mandating the use of funds from the Child Abuse Protection Treatment Act and the State Opioid Response Grant. The bill also requires monthly Medicaid tracking reports and establishes conditions for maintaining budget integrity. Additionally, it limits the number of authorized full-time equivalent positions and prohibits the transfer of personnel costs, emphasizing program integrity and accountability.

Furthermore, the bill outlines the Department of Health and Welfare's responsibilities regarding the educational needs of school-age children in state care, ensuring coverage of educational costs for those placed in licensed residential treatment facilities with accredited schools. It allocates a minimum of $42,000 from federal Child Abuse Protection Treatment Act funds to public health districts for citizen review panels and restricts the transfer of appropriations within the department. The bill also addresses Medicaid reporting, cost-sharing requirements, and the distribution of funds for health initiatives, while establishing oversight for funds allocated to Idaho Drug Free Youth. It exempts the Community Hospitalization Program from certain transfer limitations and emphasizes accountability in the use of appropriated funds, with the act set to take effect on July 1, 2025, following an emergency declaration.