The Problem
Idaho sends millions in grants to nonprofits, workforce programs, economic development groups, local projects, and other entities every year. Too often a big chunk goes to admin overhead (15 to 30 percent in some workforce/community grants) and layers of management instead of direct help. Poor tracking means we cannot see if the money actually helps people with job training, food, or community services. Additional problems include potential misuse or fraud (as seen in concerns over child care grants, where lawmakers pushed for freezes due to out-of-state scandals and system gaming). Non-competitive awards lead to favoritism, grants sometimes go to out-of-state groups, and federal pass-through funds lack strong state oversight. Budget cuts exacerbate this, as seen with rural schools losing $30 million in federal grant funds three years early, putting staff and programs at risk. Waste builds up, taxpayers get low return, and real needs go unmet while federal cuts make things tighter.
What I'll Do Day One as Governor
Sign an executive order directing all state agencies to tighten rules for state-funded grants and federal pass-throughs, using existing administrative authority. Right away:
Direct agencies to require every grant recipient to cap overhead at 15 percent and show clear outcomes (like "how many people helped per dollar").
Direct agencies to mandate upfront disclosure of spending plans, competitive bidding for grants over $50,000, and priority for Idaho-based recipients to keep money local.
Direct agencies to add fraud prevention measures, like mandatory background checks for recipients and random audits on 20 percent of grants.
Direct agencies to improve oversight on federal grants by requiring state-level transparency reports and alignment with Idaho priorities, within federal guidelines.
Launch pilots of the stricter rules on 20 percent of grants (like workforce training, child care, and community health) and share results in 90 days.
Direct agencies to create a simple public tracker for all grant money flows, outcomes, and any red flags on Transparent Idaho.
This uses powers I already have under executive oversight of state agencies and existing grant administration rules. No new laws needed first—pilots will prove viability before full rollout.
How This Is Different From Now
Right now, many grants have weak caps on overhead and little real-time tracking. Money gets diluted through layers and outcomes are hard to check. Fraud risks are monitored but not proactively prevented, non-competitive awards allow favoritism, out-of-state groups sometimes get funded over locals, and federal pass-throughs have gaps in state oversight. Budget cuts hit grant programs hard without clear priorities. My way puts firm limits, transparency, and fraud prevention first so grants deliver real help, not just paperwork, admin costs, or misuse.
What I'll Push the Legislature For
Easy laws to make it permanent:
Set a statewide 15 percent max overhead cap for all grants.
Require competitive bidding, outcome reporting, and public posting for every grant over $50,000.
Add routine audits for larger grants and penalties for misuse or fraud.
Give preference in future grants to groups with proven low overhead, high results, and Idaho-based operations.
Mandate stronger state oversight on federal pass-through grants, including alignment with local priorities.
No big new spending. Savings go back to more direct services.
How We'll Check It Works
We will keep it honest with:
Online postings of every grant award, spending breakdown, and outcomes.
Random audits and progress checks during the grant period.
Citizen team to review grants and take tips from locals and workers.
Yearly report showing money spent versus real results achieved.
Everything open for anyone to look and ask about.
How This Connects to Other Reforms
Grants often use contracts, so the disclosure and layer limits from procurement reform apply directly. This ensures money reaches the ground level. Savings from reduced overhead fund workforce incentives and budget protections. Audits check for misuse and verify outcomes, while transparency tools like Transparent Idaho make grant flows visible alongside budget and procurement data. Citizen team tips from grants feed into audits and workforce priorities such as rural staffing. This reform ensures grant dollars deliver real results and supports the overall cycle of efficiency and direct help.
Answers to Common Questions
Won't overhead caps hurt small nonprofits that need admin help?
Caps target waste, not essentials. Small groups usually have low overhead anyway and will win more grants through fair competition.
What if a grant is complex and needs more admin?
Exceptions allowed with clear proof, but we will favor efficient groups that deliver more help.
How do we measure success for different kinds of grants?
Clear outcomes in the application (jobs created, people served, community impact) tracked publicly.
Does this cost taxpayers more to administer?
No. It uses existing tracking tools and the citizen team. Savings from better grants pay for any checks.
How does this connect to the contracts reform?
Grants often use contracts. The same disclosure and layer limits apply so money reaches the ground level.
What about federal grants that come through the state?
We follow federal rules first but add state transparency and outcome checks so waste does not hide.
How will rural and small-town nonprofits be protected?
The citizen team includes rural voices. We will prioritize grants that help local needs with low overhead.
What if a nonprofit fails to meet outcomes?
Future grants get reduced or denied. Money saved goes to groups that deliver results.
How often will grants be reviewed?
Progress reports every six months, full review at the end, with random spot checks.
Won't this scare away good nonprofits?
Clear rules and public success stories will attract honest groups that want to help Idahoans.
What about potential fraud or misuse in grants?
Mandatory background checks, random audits, and tip lines prevent it. Any issues trigger immediate penalties and claw backs.
How do we ensure competitive bidding and avoid favoritism?
All grants over $50,000 require open bidding and public criteria. Citizen team reviews awards for fairness.
Why prioritize Idaho-based recipients?
To keep taxpayer money local and support our communities first—out-of-state groups can still apply but must show strong Idaho impact.