This bill establishes the Idaho High-Needs Student Fund, which is designed to provide financial support to local education agencies for the costs associated with educating high-needs students—defined as students with disabilities whose individualized education program-related costs exceed $30,000. 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 incurred in fulfilling the requirements of individualized education programs, with specific guidelines on documentation and transparency.

The reimbursement structure allows for up to 100% coverage of costs exceeding $30,000, capped at $80,000, and up to 80% for costs above $80,000, with a maximum reimbursement of $100,000 per student. The bill also includes provisions for reserving funds for rural and non-rural local education agencies and mandates annual reporting by the state department of education on the fund's status and activities starting in fiscal year 2028. An emergency clause is included, making the act effective on July 1, 2026.