Idaho House Bill 396 (HB 396), aking effect July 1, 2025, marks a major shift in how public school transportation is funded and managed across the state. By allowing reimbursement for smaller-capacity vehicles and refining the rules around it, the bill empowers districts to build more flexible, efficient, and student-centered transportation systems.
Now that the law has passed, many district leaders are asking: What’s next?
Here are three critical steps school districts can take to prepare for and maximize the opportunities created by HB 396:
1. Evaluate Your Current Transportation Model
The first step is to assess where your district’s transportation system could benefit from added flexibility.
- Is the lack of transportation access contributing to student absenteeism?
- How many students currently live outside traditional bus routes?
- Could smaller-capacity vehicles help serve students in rural, hard-to-reach, or low-density areas?
- Are there students in specialized programs (IEP, McKinney-Vento, foster care) who would benefit from a tailored transportation solution?
Modern student transportation isn’t about replacing the yellow bus—it’s about complementing it. HB 396 enables districts to integrate alternative transportation alongside existing bus routes to close gaps, improve attendance, and meet the needs of students who don’t fit neatly into standard routes.
A transportation audit can help districts identify inefficiencies and opportunities to integrate alternative solutions where the traditional school bus needs support.
2. Review Vendor Partnerships and Procurement Processes
With the new flexibility for reimbursable small-capacity vehicles, districts may need to expand their transportation partnerships—or reassess current contracts.
Districts can take proactive steps, including:
- Review current vendor agreements for flexibility in vehicle types and service models
- Ensure existing or new providers meet compliance, safety, and reporting standards tied to reimbursement
- Explore alternative transportation providers experienced in small-capacity, student-centered services
By establishing qualified partnerships early, districts can ensure they’re ready to deploy compliant services by July 1—avoiding disruption or delays in reimbursement.
3. Communicate Changes to Families and Stakeholders
As transportation plans evolve, clear communication is critical to build trust and minimize confusion. Families—especially those of students receiving alternative transportation—need to understand what’s changing and how it affects their child’s daily routine.
Consider proactive outreach to families such as:
- Informational letters or emails to impacted families
- Updates to district websites or transportation FAQs
- Collaboration with school counselors, special education teams, and homeless liaisons to ensure consistent messaging
This step is especially important for families who depend on reliable, accessible transportation to support daily attendance.
Supplementing the Bus: A Modern Approach to Student Transportation
HB 396 reflects a broader movement across the country: recognizing that modern school transportation is no longer one-size-fits-all. While traditional yellow buses remain a critical backbone of transportation, many students need an alternative solution to get to school safely and on time.
Alternative Student Transportation doesn’t replace the bus—it supplements it, filling the gaps for students who live off route, have specialized needs, or require individualized accommodations. HB 396 provides the framework—and the funding flexibility—to build these layered, more responsive systems.
At EverDriven, we help districts implement this modern approach by:
- Deploying compliant, small-capacity vehicles alongside existing bus fleets
- Serving students with specialized needs (IEP, McKinney-Vento, foster care) efficiently and safely
- Optimizing routes to improve attendance, reduce costs, and ensure on-time arrivals
- Maintaining the highest safety standards with vetted, monitored drivers
With the right planning and partnerships, Idaho districts can transform this legislative change into real progress for students across the state.
Need help navigating your transportation options under HB 396? We’re here to help.
Morgan Judge is an attorney and regulatory strategist with a rare combination of legislative, legal, and private sector expertise. As Senior Director of Compliance, Regulation, and Policy at EverDriven, she leads government relations and regulatory strategy for a company operating at the intersection of technology, education, and a rapidly evolving policy landscape , overseeing multi-state legislative and compliance initiatives, managing contract lobbyists, and working across teams to advance policies that align with EverDriven’s mission and growth.
Morgan’s foundation in law and policy runs deep. She earned her law degree from Loyola University New Orleans School of Law and gained early experience through legal clerkships researching civil law, criminal procedure, and local government policy. She then spent six and a half years as a nonpartisan staff member in a state legislature, working her way from enrolling clerk to senior projects and calendar manager. In those roles she developed deep fluency in legislative process, parliamentary procedure, and the mechanics of how policy actually gets made, experience that now gives her a distinctive edge navigating state-level regulatory environments on EverDriven’s behalf.
Morgan joined EverDriven in 2021 and has grown steadily within the organization, moving from Regulatory Compliance Manager to Director to her current Senior Director role. She is a visible voice in the student transportation policy community, regularly engaging at national industry conferences and advocating for regulatory frameworks that reflect the realities of modern, technology-enabled student transportation.
