diff --git a/src/components/CategoryPicker/index.js b/src/components/CategoryPicker/index.js
index ee591a851c13..ef8b1d71ad1d 100644
--- a/src/components/CategoryPicker/index.js
+++ b/src/components/CategoryPicker/index.js
@@ -54,13 +54,13 @@ function CategoryPicker({selectedCategory, policyCategories, policyRecentlyUsedC
         let categoryInitialFocusedIndex = 0;
 
         if (!_.isEmpty(searchValue) || isCategoriesCountBelowThreshold) {
-            const index = _.findIndex(lodashGet(sections, '[0].data', []), (category) => category.searchText === iou.category);
+            const index = _.findIndex(lodashGet(sections, '[0].data', []), (category) => category.searchText === selectedCategory);
 
             categoryInitialFocusedIndex = index === -1 ? 0 : index;
         }
 
         return categoryInitialFocusedIndex;
-    }, [iou.category, searchValue, isCategoriesCountBelowThreshold, sections]);
+    }, [selectedCategory, searchValue, isCategoriesCountBelowThreshold, sections]);
 
     const headerMessage = OptionsListUtils.getHeaderMessage(lodashGet(sections, '[0].data.length', 0) > 0, false, searchValue);
     const shouldShowTextInput = !isCategoriesCountBelowThreshold;