IowaHF 277291st General Assembly (2025–2026)HouseWALLET

A bill for an act relating to and making appropriations for the economic development of the state, including to the economic development authority, Iowa finance authority, department of workforce development, and state board of regents and certain regents institutions, and codifying the housing renewal program. (Formerly HSB 773.) Effective date: 07/01/2026.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 12 benefits, 0 costs, 7 mixed.

Housing renewal help with resale limits

Beginning July 1, 2026, the law establishes housing renewal grants and provides $550,000 through a nonprofit Iowa affiliate. Cities, counties, local-government groups, and qualifying nonprofits can receive up to $100,000 per home. Projects can acquire, repair, rebuild, and resell one- or two-family homes, or acquire and demolish blighted buildings. Buyers must live in the home and have household income no higher than 120% of area median income. Deeds must bar resale to buyers above that income limit for five calendar years after the first sale. The program reserves 25% of its money for Iowa's 88 least-populated counties, based on the latest decennial census. Projects must finish within 36 months of signing a contract. Awards must be returned after 12 months without activity unless the affiliate grants more time for good cause. Participant administration and state oversight each have separate 5% limits. Sales proceeds and repayments stay available for new projects, and an annual impact report is due December 31.

Tuition help for neighboring-state college students

Beginning July 1, 2026, the University of Northern Iowa receives $1 million for qualifying students' in-state tuition and mandatory fees. Students must live in a state bordering Iowa and enroll in an undergraduate program at the university. They must also be classified as Iowa residents for tuition and fee purposes. The law does not set an award per student or automatically grant resident status.

Refugees receive targeted integration service funding

Beginning July 1, 2026, the law transfers $210,000 to Health and Human Services for refugee support. Services include learning, English literacy, life skills, cultural skills, and community integration. Services are limited to a county with more than 350,000 residents under the 2020 census. The department must select a provider through a request-for-proposals process. This is service funding, not cash paid to refugees.

Rent help for eligible care recipients

For July 2026 through June 2027, Iowa provides $873,000 for its home and community-based services rent subsidy program. The money reimburses rent expenses for people eligible under that program. Up to $35,000 of the total can cover administration. The law sets no payment amount per person. The State Auditor must also review the Iowa Finance Authority's outside audit.

Adult learners get education program funding

For July 2026 through June 2027, the law provides $4.5 million for adult education, literacy, and related services. Within that total, $3.125 million follows the community college funding formula. Up to $1.015 million funds English instruction based on regional need, and up to $150,000 covers program implementation. The total also includes a separate $210,000 refugee services transfer. Another $500,000 funds community college English instruction using the same application process and criteria as related state grants.

Job preparation for people leaving prison

Beginning July 1, 2026, the law provides $387,158 and up to four full-time-equivalent positions for employment reentry services. Workforce Development must partner with Corrections to offer employment resources inside correctional facilities. The program helps people prepare to find and keep work. It does not establish a cash payment to participants.

Work and business help for disabled Iowans

For July 2026 through June 2027, vocational rehabilitation receives about $6.23 million and authorization for 233 full-time-equivalent positions. This includes $138,506 for the Entrepreneurs with Disabilities program. The division must make its best efforts to work with community providers on job placement and retention for people with significant disabilities. An outreach report is due January 15, 2027. The law guarantees neither a job placement nor a set payment to participants.

Apprenticeship funding for small business training

For July 2026 through June 2027, the law provides $760,000 for registered apprenticeship programs. The funding encourages small and midsize businesses to start or grow these programs. It does not set an award for each business or apprentice.

State funding supports World Food Prize

For July 2026 through June 2027, the law provides $450,000 to support the World Food Prize. This replaces its standing appropriation for that year. The money supports the organization rather than direct payments to households.

University bioscience and manufacturing research funding

For July 2026 through June 2027, Iowa State receives about $2.96 million for bioscience innovation, with 14.81 authorized full-time-equivalent positions. The University of Iowa receives $1 million for the same effort, with 4.35 positions. Working with the Economic Development Authority, the universities support bio-based chemicals, digital agriculture, vaccines, and medical devices. Uncommitted funds for these two universities remain available through June 30, 2028. Northern Iowa receives $394,321 for additive manufacturing and investment-casting equipment and technology, with 2.73 authorized positions. Its money is available through June 30, 2027, and it must make a good-faith effort to seek supplemental private funding.

Funding keeps Iowa workforce services running

For July 2026 through June 2027, workforce operations receive about $6.90 million and authorization for 157.09 full-time-equivalent positions. That includes $150,000 for the State Library to license online workplace and vocational test-preparation resources. Another $4.62 million from the Special Employment Security Contingency Fund supports field offices. The law also provides $228,822 for state accounting services and $125,555 for workplace injury and safety surveys. The surveys have authorization for 1.90 full-time-equivalent positions, and available penalty and interest revenue can support the department's mission.

Northern Iowa nursing program receives funding

For July 2026 through June 2027, the University of Northern Iowa receives $600,000 to expand its nursing program. This funds program capacity, not a promised scholarship or tuition payment for individual students.

Business growth and rural investment funding

For July 2026 through June 2027, the Skilled Worker and Job Creation Fund provides $11.7 million for business growth incentives. Within that total, up to $1 million can support Main Street Iowa infrastructure grants. Manufacturing 4.0 receives $2.35 million for technology investments, and Empower Rural Iowa receives $700,000. Recipients must testify about spending when requested by the legislative economic development appropriations subcommittee. These appropriations do not set an award for each business or community.

Business research help requires private matching

For July 2026 through June 2027, Iowa State receives about $2.42 million for business centers, its research park, and industrial research services. At least $735,728 must support small business development centers; staffing authorization is capped at 50.94 full-time-equivalent positions. For covered research, small businesses must provide $1 privately for every $3 in state funds. Other businesses, industrial foundations, and trade associations must provide $1 for every $1 in state funds. Research must support Iowa's economy, emphasize Iowa companies, and receive annual reporting on private contributions and research allocations.

Earlier Iowa provision is repealed

Beginning July 1, 2026, the law repeals an earlier provision enacted in 2022 and amended in 2023 and 2025. The supplied text does not explain that provision's subject or practical effect. It therefore does not establish whether households gain or lose assistance, rights, or obligations.

Arts funding includes annual spending limit

For July 2026 through June 2027, Iowa Arts Council support receives about $1.60 million. Of that amount, $321,800 must go into the arts and culture enhancement fund. Separately, the law limits that fund's standing general fund appropriation to $448,403 for the year. Uncommitted Arts Council funds remain available through June 30, 2028.

Tourism promotion funding has annual cap

For July 2026 through June 2027, the tourism office receives $1.05 million for advertising and its travel promotion plan. Uncommitted funds remain available through June 30, 2028. Separately, the law limits the standing general fund appropriation for tourism marketing to about $1.44 million that year. The authority must report tourism performance measures by January 15.

Business development funding carries spending restrictions

For July 2026 through June 2027, Iowa's Economic Development Authority receives about $12.90 million and 111.50 authorized full-time-equivalent positions. Its work covers business recruitment, trade, exports, entrepreneurship, workforce recruitment, community development, tourism, and infrastructure financing. The authority can fund research through grants, loans, or forgivable loans in value-added agriculture, advanced technology, and biotechnology. Assisted businesses and covered vendors must employ legally authorized workers; knowingly violating this rule can trigger repayment of assistance. The authority cannot use this appropriation for geothermal systems that melt street or sidewalk snow and ice. A separate $100,000 transfer from excess Insurance Division collections supports insurance-sector development. Uncommitted operating funds remain available through June 30, 2028, and a project-and-county assistance report is due November 1, 2026.

Universities fund business growth with matching

For July 2026 through June 2027, Regents universities receive $3 million to help turn research into products and businesses. Iowa State and the University of Iowa each receive 35%; Northern Iowa receives 30%. The institutions must match this funding dollar-for-dollar with non-state cash and report activities and results by January 15, 2027. Separately, Iowa receives $209,279 for its research park and pharmaceutical operations, with up to six full-time-equivalent positions. Iowa also receives $2 million for entrepreneurship, with up to eight positions. Northern Iowa receives about $1.47 million for metal casting, foundry technology, Advance Iowa, family business, and decision-making centers, with up to 13 positions. Research spending must support Iowa's economy and emphasize Iowa companies; Northern Iowa must also pursue private funding and expanded additive manufacturing. Recipients of the commercialization funding must testify about spending when requested by the legislative economic development appropriations subcommittee.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON APPROPRIATIONS

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 115 • No: 110

legislature vote • 4/28/2026

Motion to suspend rules for immediate consideration of amendment H-8427

Yes: 28 • No: 62

Senate vote • 4/28/2026

Passed Senate

Yes: 30 • No: 16

House vote • 4/28/2026

Passed House

Yes: 57 • No: 32

Actions Timeline

  1. Signed by Governor.

    6/2/2026House
  2. Reported correctly enrolled, signed by Speaker and President, and sent to Governor.

    5/6/2026House
  3. NOBA: Final

    4/29/2026legislature
  4. Message from Senate.

    4/29/2026House
  5. Immediate message.

    4/28/2026Senate
  6. Passed Senate, yeas 30, nays 16.

    4/28/2026Senate
  7. Substituted for SF 2485.

    4/28/2026Senate
  8. Read first time, attached to SF 2485.

    4/28/2026Senate
  9. Message from House.

    4/28/2026Senate
  10. Immediate message.

    4/28/2026House
  11. Passed House, yeas 57, nays 32.

    4/28/2026House
  12. Motion to suspend rules failed.

    4/28/2026House
  13. Motion to suspend rules for immediate consideration of amendment H-8427, yeas 28, nays 62.

    4/28/2026House
  14. Point of order raised on amendment H-8427, ruled not germane.

    4/28/2026House
  15. Amendment H-8427 filed.

    4/28/2026House
  16. Motion to suspend rules failed.

    4/28/2026House
  17. Motion to suspend rules for immediate consideration of amendment H-8426, yeas 30, nays 60.

    4/28/2026House
  18. Point of order raised on amendment H-8426, ruled not germane.

    4/28/2026House
  19. Amendment H-8426 filed.

    4/28/2026House
  20. Motion to suspend rules failed.

    4/28/2026House
  21. Motion to suspend rules for immediate consideration of amendment H-8425, yeas 28, nays 62.

    4/28/2026House
  22. Point of order raised on amendment H-8425, ruled not germane.

    4/28/2026House
  23. Amendment H-8425 filed.

    4/28/2026House
  24. Motion to suspend rules failed.

    4/28/2026House
  25. Motion to suspend rules for immediate consideration of amendment H-8424, yeas 29, nays 61.

    4/28/2026House

Bill Text

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