This bill proposes significant changes to the funding and operational structure of the Idaho Digital Learning Academy for the fiscal year 2027. It reduces the appropriation to the Public Schools Educational Support Program's Division of the Idaho Digital Learning Academy by $13,500,000, which will be reflected in both the Public School Income Fund and the General Fund. Additionally, the bill restricts withdrawals from the Public Education Stabilization Fund, requiring the Academy to rely on existing cash balances and potentially reduce course offerings to maintain a positive cash balance.

Furthermore, the bill mandates compliance with dignity and nondiscrimination standards regarding the use of state-appropriated funds for courses related to diversity, equity, and inclusion. The Idaho Digital Learning Academy is required to submit a report verifying compliance by December 1, 2026, detailing any expenditures associated with non-compliant courses. The legislation also outlines a process for the Academy to report on its funding and enrollment metrics to assist the Legislature in evaluating the funding process, with a report due by August 1, 2026. An emergency clause is included, making the act effective from July 1, 2026.