Idaho Legislature – VOTE NO on S1374 - Idaho child care program (Posted: 03/12/26) Updated 03/13/26 🆕

• Link: legislature.idaho.gov/s…

• See bill link above for current status and committee assignment

• See Idaho Insider for links where you can send group emails based on current status and committee assignment: gemstatechronicle.com/l…

🆕 Update 03/13/26: Bill pulled (but may resurface)

Summary (ai assisted)

Grok analysis link: grok.com/share/c2hhcmQt…

S1374 establishes the Idaho Child Care Program, (ICCP) administered by Department of Health and Welfare (IDHW) using federal child care funds plus state matching and maintenance-of-effort funds, subject to legislative appropriation. S1374 claims to improve child care quality and assist eligible low-income working or training families.

Definitions

Terms include CCMS (child care management solution), child care, eligible child (under 13, citizen or lawfully in U.S., with exceptions), FPG (federal poverty guidelines), SMI (current state median income), intentional program violation, provider, and vendor.

Program Creation and Qualifying Activities

• Parents must be employed/self-employed, in accredited (non-online) education/training (max 48 months postsecondary), or receiving child welfare preventive services.

• Online classes and post baccalaureate study without other activity excluded.

Eligibility and Application

• Idaho residents.

• Family assets ≤ $1,000,000.

  • Initial income ≤ 155% FPG.

  • Ongoing ≤ 85% SMI

  • Redetermination every 12 months with possible 12-month graduated phaseout up to 170% FPG.

• Waiting list allowed with priorities for homeless, disabled-child, foster, Temporary Assistance for Needy Families (TANF), child welfare, and young-parent families.

Provider Requirements

• Must sign agreement, keep attendance/billing/records (3 years), register as business entity, substantiate services for payment, collect copays without waiver, allow department access/ inspections.

• Prohibited from paying for child attendance or claiming status as employees of IDHW department.

Program Integrity and Oversight

• Suspension for suspected fraud.

• Appeals via administrative hearings then judicial review.

• Penalties: 1-3 years ineligibility (first violation), 2-5 years (second), permanent (third+).

• Provider termination up to permanent for violations.

• AI-based fraud detection/remediation system required by July 1, 2027 using analytics across enrollment, billing, licensing data.

• IDHW will select a single vendor for tech modernization including CCMS, finder, licensing, subsidy management.

Vendor and Other Provisions

• Department selects vendor to create up to 600 new licensed child care programs with recruitment support.

• No entitlement created.

• Attorney General has concurrent prosecution authority.

• State plan amendments expanding benefits require statutory legislative approval.

• Capacity-building funds prioritize family/relative/group/nonprofit/vendor care for underserved areas.

• Amends Section 39-1111 for limited rulemaking.

Fiscal Impact: Will continue to be paid for with federal funds.

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Reason for Recommendations to VOTE NO on S1374

Idaho Senator Brian Lenney wrote a brilliant, detailed analysis of this bill, which essentially continues and expands an illegal program. Everyone should read it before voting on this bill (see Related links and summary below).

Senator Brandon Shippy also wrote an excellent article about how the state must not accept federally funded childcare or replace the family (also in Related links).

The bottom line is VOTE NO on this terrible bill. It likely is illegal, expands government, compromises Idaho state sovereignty (due to strings attached to federal money), creates ever more citizen dependency on government, does not improve transparency, could increase fraud, and transfers childcare responsibility from parents to the state.

The best outcome would be for S1374 to fail and the ICCP program to shut down in a controlled manner, making Director Juliet Charron’s threat (described below) become reality.

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Summary of Issues Sen. Lenney Raised (Grok summary, edited)

In December 2025, Idaho Representative Josh Tanner and Brian Lenney sent a letter to Department of Health and Welfare Director Juliet Charron. They requested a pause on $14 million in Idaho Child Care Program (ICCP) disbursements until fraud prevention measures were implemented, citing Minnesota’s large-scale childcare fraud scheme. During the 2026 legislative session, IDHW responded with bill S1374 and admitted the program has operated without statutory authority.

Request Details

The Tanner/Lenney letter asked for:

• Temporary suspension of disbursements.

• Comprehensive fraud prevention plan including enrollment verification, financial transparency, and inspection protocols.

• Review of prior disbursements for fraud.

• Legislative briefing.

IDHW Response

• IDHW did not pause payments or provide a briefing.

• Instead, it submitted bill S1374, which creates a vendor contract for an AI-based fraud detection system.

• S1374 authorizes 600 new licensed childcare programs.

Program Legality Admission

In a March 9, 2026 letter, Director Charron stated IDHW has been administering ICCP illegally. The department relied on insufficient general rulemaking authority under Idaho Code.

Charron warned that without passage of similar legislation, ICCP rules must be eliminated and the program wound down by fiscal year end.

Bill S1374 Provisions

• Implements fraud detection system by July 1, 2027; program continues until then.

• Sets income eligibility at 155% of federal poverty guidelines (down from a more sustainable 130% under director Alex Adams).

• Requires provider-reported attendance documented with provider authentication. (What could go wrong with the fox guarding the hen house?

• Prioritizes capacity-building funds for vendor-managed services and relative childcare.

• Appropriates $30 million in federal funds for expansion.

Measures Not Addressed

• No requirement for enrollment verification.

• No financial transparency rules.

• No inspection protocols.

• No review of past disbursements.

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🆕 Related

• Update on Idaho Child Care Subsidies. Has the program been unlawful from the start? By Brian Almon (03/12/26): tinyurl.com/5edtfrky

• We Asked for Fraud Prevention. They Gave Us a Vendor Contract. How Idaho's Department of Health and Welfare ignored our concerns and kept running an "illegal" program. By Sen. Brian Lenney (03/11/26): tinyurl.com/5n7en2n3

  • Grok Summary: tinyurl.com/4h4ehtac

• PRESS RELEASE: Senators Request AG Labrador to Weigh in on Possible Illegal IDHW Childcare Program. By Brian Lenney (03/12/26): tinyurl.com/4vy89f23

• Federally funded childcare? When Government Replaces the Family. By Sen. Brandon Shippy (03/11/26): tinyurl.com/4evecnjv

• Idaho Legislature 2026 Bills to Support or Oppose: tinyurl.com/yc2jpkeh