When the Safety Net Frays: The Real-World Impact on Idahoans.
A Companion to "Voices from the Field: Reimagining Giving in a Shifting Landscape"
Executive Summary
Idaho is at a pivotal moment. Government cuts to healthcare, housing, recovery services, and food assistance, combined with declines in individual giving and new taxes on philanthropic foundations, have created a perfect storm. This white paper documents the compounding effects of these challenges and calls for businesses, faith communities, philanthropic and corporate foundations, and civic groups to mobilize in coordinated, strategic response. The goal is clear: prevent needless suffering and ensure basic human dignity for tens of thousands of Idahoans.
Introduction: Why This Matters Now
We are forecasting a significant rise in unmet needs in Idaho by year-end. Federal and state funding reductions threaten key public programs—Medicaid, SNAP, housing assistance, and recovery services—while economic conditions are limiting philanthropic giving and adding tax pressure to foundations. In a state with historically lean investments in human services, these developments put Idahoans at serious risk. It’s time for the public, private and civic sectors to get clear about the crisis, focus on what needs to be done and step up together. As Idahoans, we need to ensure we don't just see the needs but that we respond effectively to those in our community who will need extra support to get them through.
The Crisis Unfolding: Idaho’s Safety Net Under Pressure
1. Healthcare and Medicaid Cuts
● Impact: Up to 40,000 Idahoans may lose Medicaid coverage; an additional 35,000 may lose marketplace insurance.
● Services at risk: In-home care, rural hospital access, and provider rates.
● Budget pressures: Idaho anticipates 2–6% holdbacks affecting health and welfare services.
What this means:
● A mom in Rexburg may skip cancer screenings.
● A diabetic in Caldwell could ration insulin.
● A pregnant woman in Jerome may miss prenatal care.
Recommendation: Fund mobile clinics and/or transportation access, provide free/low-cost pharmaceuticals for those in the gap, and advocate for state-level protections.
2. Cuts to SNAP, Housing, and Legal Aid
● SNAP: ~136,000 Idahoans currently enrolled; 20–30% (27,000–40,000) may lose benefits.
● Housing legal services: Loss of $500K in HUD grants; hotline usage down 43%.
● Immigrant access: New laws cut prenatal and food assistance for undocumented families.
What this means:
● Families skipping meals; food banks overwhelmed.
● Tenants unable to defend against wrongful evictions.
● Seniors and children bearing the brunt of hunger.
Recommendation: Expand community garden options, healthy food drives and school backpack meals programs, support eviction prevention programs and pilot multi-generational co-housing solutions, church-sponsored housing solutions, train volunteers in tenant rights.
3. Behavioral Health & Recovery Services
● Federal cuts: Threaten SAMHSA-supported recovery programs.
● Local impact: ~$49M in federal health grants lost; reduced mental health support.
What this means:
● Increased relapse and overdoses.
● Longer waitlists and fewer peer support staff.
● Loss of rural recovery access.
Recommendation: Fund operational needs of recovery centers, expand access to peer-led models, promote recovery-friendly workplaces, promote effective mental health resources that are powered by technology.
4. Decline in Philanthropic Giving & Foundation Taxation
● Individual giving: Down 2.1–2.4% in 2023; now only 67% of the overall charitable giving pool.
● Foundation giving: Up slightly (19%), but new federal tax proposals could raise excise taxes significantly for large foundations.
What this means:
● Shrinking general operating support available to distribute to nonprofits.
● Emergency response funds at risk.
● Nonprofits losing historical funding lifelines.
Recommendation: Promote pooled giving, engage business, churches and civic groups in new partnerships, and educate policymakers on risks of foundation taxation.
Sector-Specific Response Guide
Group Call to Action
Businesses Help guide strategy and target funding to more of what works (mobile health clinics, food pantries, and housing programs) as part of marketing and community benefit programs. Sponsor mental health and recovery support initiatives for employees and their families.
Faith Communities Rethink the role of community engagement and help lead strategic initiatives to deliver food, clothing, recovery support and childcare, adopt a nonprofit that provides a core function (food, housing, etc) and tithe part of the annual budget, host fundraisers, and promote volunteerism as a demonstration of their faith.
Philanthropic Foundations Increase general operating grants, fund capacity building and/or mergers, host solution-focused convenings, reduce administrative burden, fund new service delivery models for key services.
Civic Organizations Mobilize volunteers and get trained on how to have the greatest impact, adopt key nonprofits and fund them, and raise awareness through events and social media.
State & Federal Government Maintain a leadership and advocacy role focused on the most vulnerable of Idahoans. Much of the burden will end up being shouldered by city and county government agencies which may be under-resourced and ill-equipped to handle an increase in service. Stay at the table to help solve key systems delivery challenges.
Policy Recommendations
● Reinstate or protect state funding for healthcare and housing services
● Rescind excise tax increases on philanthropic foundations
● Extend or reform the Child Tax Credit to support vulnerable families
● Maintain public benefits for all children and pregnant women, regardless of immigration status
Conclusion: From Forecast to Action
We can let adversity force clarity, help us refocus, and allow for honest reckoning. The loominghuman crisis is not inevitable. It is a call to action! Every business owner, faith leader, foundationexecutive, and concerned citizen can be part of the solution. If we act together now, we can soften the blow and even reimagine how Idaho meets the needs of all its people.
Together, we can:
● Cushion the loss of Medicaid and SNAP benefits.
● Prevent evictions and expand access to legal aid to our most vulnerable.
● Maintain momentum in addiction recovery and behavioral health.
● Strengthen local giving and cross-sector partnerships.
Final Takeaway: Humanizing the Crisis
Behind every statistic is a human story:
● A child going to bed hungry.
● A cancer screening missed.
● A tenant evicted into homelessness.
This is more than a funding shortfall. It’s a test of our values. Idaho’s future depends on how we answer.
Let’s mobilize. Let’s give. Let’s lead.
Blossom Puamohala Johnston, CEO Idaho Partners for Good 208.391.5389 info@IdahoPartners4Good.org, https://www.idahopartners4good.org/
Bright Spot: Innovative Local Response
Fredricksen Insurance Outreach Strategy
In response to Medicaid disenrollments, Fredriksen Health Insurance is launching a statewide outreach campaign to enroll newly uninsured Idahoans in subsidized exchange plans. This includes:
● Radio outreach in rural areas
● Partnerships with nonprofits and churches
● Direct enrollment support through licensed agents
Replicable Actions:
● Promote awareness of affordable coverage options.
● Host health fairs and Q&A sessions.
● Fund premium assistance for high-need individuals.
Eric Fredriksen-
https://www.fredhealthins.com/contact-us |