BOISE — Attorney General Raúl Labrador won a unanimous Idaho Supreme Court victory affirming his authority to investigate alleged misuse of government grants issued to charitable organizations in the state of Idaho. The Court reversed the ruling that blocked the Attorney General from obtaining information from 19 grant recipients. The Court affirmed his authority to issue civil investigative demands (CIDs) under the Idaho Charitable Assets Protection Act (“ICAPA”), the Idaho Charitable Solicitation Act (“ICSA”), and the Idaho Consumer Protection Act. Under this investigative authority, the Attorney General may issue CIDs to any person who he has “reason to believe” possesses relevant information regarding a suspected violation of ICAPA and ICSA.
“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 Attorney General Labrador. “We have worked cooperatively with many entities throughout this process. 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. We will continue to defend the investigative powers the Legislature has entrusted our office.”
In 2021, the Idaho Legislature established the Community Partner Grant Program using American Rescue Plan Act funds provided by Congress to help states address COVID-19’s impact on school-aged children, including learning loss. The Legislature appropriated a total of $72 million—$36 million in 2021 and $36 million in 2022—with specific restrictions requiring the funds be used only for in-person educational and enrichment activities serving children ages 5 through 13.
In 2023, Attorney General Labrador received reports alleging certain grant funds were improperly used contrary to statutory requirements. He issued Civil Investigative Demands to grant recipients and others who the Attorney General believed might have knowledge of the alleged misuse of charitable funds.
The Court determined that grant funds fit within the statutory definition of charitable donations, giving the Attorney General clear authority to seek information under Idaho’s charitable protection laws. The Court ruled that the Attorney General can demand information from anyone he has reason to believe possesses relevant knowledge about suspected violations.
The Court held that a single request for information within one of the 35 investigative demands was overbroad and remanded it to the district court, while upholding the Attorney General’s authority to seek relevant information. The Court declined to award attorney fees.
Idaho Supreme Court Opinion Here.