The proposed legislation establishes the Idaho High-Needs Student Fund, which aims to provide financial support to local education agencies for the costs associated with educating high-needs students. A "high-needs student" is defined as a student with a disability whose individualized education program-related costs exceed $15,000. The fund will be administered by the state department of education and will consist of legislative appropriations, donations, and interest earned. Local education agencies can apply for reimbursement for eligible costs, which include specialized services and equipment, but exclude routine classroom expenses. The reimbursement structure allows for up to 100% coverage of costs above $15,000, with a maximum reimbursement of $100,000 per student.

Additionally, the bill outlines the prioritization of reimbursements, favoring small and rural school districts if requests exceed available funds. It mandates transparency and accountability in the use of funds, requiring local education agencies to adhere to the state department of education's budgeting and reporting systems. Starting in fiscal year 2027, the state department will also be required to report annually on the fund's appropriations, applicants, awarded funds, and other relevant matters. The act is set to take effect on July 1, 2025, following the declaration of an emergency.