BOISE, ID – The Idaho Supreme Court has unanimously ruled in favor of Attorney General Raúl Labrador, affirming his authority to investigate the alleged misuse of taxpayer-funded grants distributed to charitable organizations across the state.
The high court’s decision reverses a previous ruling that had blocked the Attorney General from obtaining information from 19 recipients of state-issued grants. The court concluded that Labrador acted within his legal authority under the Idaho Charitable Assets Protection Act (ICAPA), the Idaho Charitable Solicitation Act (ICSA), and the Idaho Consumer Protection Act when issuing civil investigative demands (CIDs).
“The Idaho Supreme Court unanimously confirmed we have full authority to investigate potential misuse of charitable funds and to seek information from anyone who may have relevant knowledge,” said Labrador following the ruling. “We will continue to defend the investigative powers the Legislature has entrusted our office.”
The grants in question were part of the Community Partner Grant Program, created by the Idaho Legislature in 2021 using federal funds from the American Rescue Plan Act. The program allocated $72 million over two years to support in-person educational and enrichment services for children ages 5 to 13 impacted by the COVID-19 pandemic.
In 2023, Labrador’s office began an investigation after receiving reports that some of the grant money may have been used in ways that violated the statutory restrictions. As part of the probe, the Attorney General issued CIDs to grant recipients and individuals believed to possess information related to the alleged misuse.
The Supreme Court found that the grant funds met the legal definition of charitable donations, thereby granting Labrador the authority to pursue information under Idaho’s charitable oversight laws. The Court did, however, determine that one portion of a single investigative demand was overly broad and remanded it back to the district court for further review. No attorney fees were awarded in the ruling.
Labrador emphasized that the purpose of the investigation is to ensure compliance with state law, not to penalize organizations acting in good faith.
“Those who have worked with us understand that our goal is not to punish grant recipients but to ensure taxpayer funds were used according to state law,” he said.
