This bill amends Idaho Code by introducing new sections that establish provisions for earned autonomy for both school districts and public charter schools. Specifically, Section 33-1035 allows qualifying school districts to utilize their allocated state funding in a manner they believe best serves their students, provided they meet certain academic benchmarks and demonstrate financial stability over the previous three fiscal years. Participating districts will also be exempt from various reporting requirements without facing penalties or funding reductions. The state department of education retains the authority to revoke this flexibility if the district fails to maintain the required academic performance or audit standards.

Similarly, Section 33-5207A provides public charter schools, which are not virtual schools, the ability to spend their allocated state funding flexibly, contingent upon meeting specific requirements. These charter schools will also be exempt from certain reporting obligations, as long as they do not conflict with federal mandates. Like school districts, charter schools can lose their earned autonomy if they fail to meet academic standards or if their charter is revoked or not renewed. The bill mandates that the state board of education report to the legislature in 2029 on the number of participating entities and any changes in student performance metrics. An emergency clause is included, making the act effective from July 1, 2026.