IowaHF 278391st General Assembly (2025–2026)HouseWALLET

A bill for an act relating to and making appropriations to the education system, including the funding and operation of the department for the blind, department of education, state board of regents, department of workforce development, and Iowa special education council. (Formerly HSB 778.) Effective date: 07/01/2026.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

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Bill Overview

Analyzed Economic Effects

41 provisions identified: 36 benefits, 4 costs, 1 mixed.

More students qualify for vocational grants

Beginning July 1, 2026, Iowa residents with financial need can get grants for covered full-time or part-time vocational programs. These include community college vocational and career-option programs, plus programs at eligible institutions. Qualifying private barbering and cosmetology schools must meet state licensing and national accreditation requirements. The law removes those schools' requirement to provide matching aid. Students making satisfactory academic progress can get one extra enrollment period when additional classes are needed to finish covered programs.

For-profit students lose dedicated tuition grants

Beginning July 1, 2026, Iowa ends its separate tuition grant program for students at for-profit institutions. Students lose access to that specific state grant. The repeal does not state how their other student aid changes.

Vocational grants get funding and limits

At eligible institutions, full-time fall-and-spring grants cover demonstrated need up to $6,000; summer grants equal half that amount. Part-time grants equal the full-time amount times enrolled hours divided by 12, for three to fewer than 12 semester hours. Other aid counts toward resources, and combined state and federal education aid cannot exceed tuition and required fees. Annual program funding rises from $1.750185 million to $1.863099 million for fiscal years beginning on or after July 1, 2025. On July 1, 2026, unused, uncommitted money from the for-profit tuition grant fund moves into this program.

Opportunity scholarships cover private college students

For July 1, 2026, through June 30, 2027, the All Iowa Opportunity Scholarship includes accredited private colleges. This access applies because program funding exceeds $500,000; the law provides about $3.23 million. Students must still qualify for the scholarship, and this provision does not set individual awards.

Tuition and career training receive funding

For July 1, 2026, through June 30, 2027, Iowa provides $5 million for skilled workforce shortage tuition grants. It also puts $4.8 million into the Pathways for Academic Career and Employment Fund. Unused money under this workforce funding section stays available for its stated purposes through June 30, 2028. These provisions do not set individual awards or add student eligibility rules.

Iowa funds public universities and aid

For FY 2026–2027, the University of Iowa gets $223.496355 million and up to 5,058.32 full-time-equivalent positions. Iowa State University gets $229.864938 million and up to 4,062.34 full-time-equivalent positions. The University of Northern Iowa gets $101.894146 million and up to 1,250.28 full-time-equivalent positions. These appropriations support operations, equipment, and financial aid, but do not set individual aid awards. The Regents office also gets $764,642 for operations and up to 2.48 full-time-equivalent positions.

Students lose state work-study funding

Iowa provides $0 in general fund support for state work-study from July 1, 2026, through June 30, 2027. This removes that funding source for the year and may limit student work-study opportunities. The provision does not end federal work-study or identify other available funding.

Children's specialized health services receive funding

Iowa provides $634,502 for specialized child health services from July 1, 2026, through June 30, 2027. Funding supports childhood cancer diagnosis and treatment networks, rural hemophilia care, and follow-up for high-risk infants. It also allows up to 4.16 full-time-equivalent staff positions. The provision does not set individual eligibility or payment amounts.

Prescription funds support deaf and blind students

The Department of Administrative Services pays prescription expenses using money collected from counties during July 2026 through June 2027. Payments go to the Iowa School for the Deaf and Iowa Educational Services for the Blind and Visually Impaired. The money covers prescriptions for students attending those programs. Payments are limited to those county collections; no individual payment amount is specified.

Chiropractors gain another loan forgiveness source

Money deposited in Iowa's chiropractic loan revolving fund from July 1, 2026, through June 30, 2027, can support loan forgiveness. This overrides the usual restriction on that fund's use. The law does not set forgiveness amounts or change participant eligibility.

Court reporters receive equipment grant funding

Iowa provides $50,000 for court reporter equipment grants from July 1, 2026, through June 30, 2027. The money goes into the equipment grant program fund. The provision does not state individual award amounts or eligibility details.

Education job seekers get centralized listings

Iowa provides $265,000 to run its online education job board from July 1, 2026, through June 30, 2027. The Department of Education, school districts, charter schools, area education agencies, and accredited nonpublic schools can post openings. Job seekers get a central place to find these education jobs.

Iowa funds rural veterinarian loan repayment

Beginning July 1, 2026, Iowa provides $700,000 to the rural veterinary care trust fund for FY 2026–2027. The existing program includes loan repayment. This provision does not state individual repayment amounts or further eligibility terms.

Iowa funds scholarships and tuition help

For FY 2026–2027, Iowa provides $23.927005 million for Future Ready Iowa last-dollar scholarships. It also provides $3.229468 million for All Iowa Opportunity scholarships and $425,000 for Future Ready Iowa skilled workforce grants. Another $2 million goes to gap tuition assistance. Scholarship recipients must qualify under existing program rules; these provisions do not set individual awards. The College Student Aid Commission gets $591,533 and up to 4.95 full-time-equivalent positions for administration, including last-dollar scholarships.

Iowa funds teacher credentials and awards

Beginning July 1, 2026, Iowa provides $335,000 in grants to offset advanced dyslexia specialist endorsement costs. Recipients must hold an Iowa Board of Educational Examiners license and use the money for endorsement costs. For FY 2026–2027, Iowa also provides $508,250 for National Board Certification awards. At least $85,000 of that amount must support administration of the ambassador to education position. These provisions do not set individual award amounts.

National Guard members receive scholarship funding

Iowa provides $6.6 million for National Guard service scholarships from July 1, 2026, through June 30, 2027. Students must qualify through the existing scholarship program. The funding provision does not change eligibility or set individual awards.

Teacher grants include rural school support

For FY 2026–2027, Iowa provides $1.045248 million for the Teach Iowa Scholar Fund. Of that amount, $96,533 is reserved for eligible teachers in qualifying rural school districts. The district must be in an Iowa city with fewer than 26,000 people. That city must be more than 20 miles from a city with more than 50,000 people. Applicants must meet existing Teach Iowa Scholar rules; the law does not set individual grant amounts.

Intellectual freedom center receives state support

Beginning July 1, 2026, Iowa provides $1 million to support the Center for Intellectual Freedom. The money funds the center rather than creating household payments or changing individual eligibility.

Iowa Flood Center receives operating funds

Iowa provides about $1.21 million for the Iowa Flood Center from July 1, 2026, through June 30, 2027. The University of Iowa College of Engineering uses the money for the center. This is institutional funding, not a household flood-relief payment.

Nonprofit resource center receives operating support

Iowa provides $156,389 for the Larned A. Waterman Iowa nonprofit resource center from July 2026 through June 2027. The law allows up to 2.75 full-time-equivalent staff positions. This supports the center, not direct household payments.

State universities cannot cut police budgets

From July 1, 2026, through June 30, 2027, the Board of Regents and its universities cannot reduce police budgets. The protection applies to amounts already budgeted for institutional police departments. The law does not set a dollar amount.

Primary care teaching receives state funding

Beginning July 1, 2026, Iowa provides $624,374 for the University of Iowa College of Medicine's primary health care initiative. Of that total, $254,889 must support Department of Family Practice faculty and staff. This funds education and staffing, not a guarantee of patient care.

Public health labs and research receive funding

For July 2026 through June 2027, Iowa provides about $4.82 million for State Hygienic Laboratory operations and 102.51 full-time-equivalent positions. The statewide cancer registry receives $143,410 and up to 2.10 positions. The birth defects registry receives $36,839 and up to 0.38 positions. The Iowa Consortium for Substance Abuse Research and Evaluation receives $53,427 and up to 0.99 positions. These appropriations support laboratory work, registries, and research, not direct household treatment payments.

Blind residents' services receive operating funds

Iowa provides about $3.21 million for Department for the Blind operations from July 1, 2026, through June 30, 2027. The law allows up to 103.74 full-time-equivalent staff positions. This supports department services rather than setting a direct payment for residents.

High-need schools get yearly state assistance

Beginning July 1, 2027, Iowa provides $10 million each fiscal year for supplemental assistance to high-need schools. The Department of Education may use up to $100,000 annually for administration and one full-time-equivalent position. The money supports participating schools and students, not a set household payment.

Iowa creates a civic education center

Beginning July 1, 2026, Iowa provides $1 million to establish and operate a civic education center. It serves college students, prekindergarten through grade 12 students, teachers, and the public. The center provides learning strategies and resources on free speech, civic leadership, public service, citizenship, respectful dialogue, and civic knowledge.

Iowa funds safer school email systems

Beginning July 1, 2026, Iowa provides $500,000 to protect school district email systems. The money covers secure email gateway equipment, artificial-intelligence-powered security subscriptions, and support services. Uncommitted or unobligated money remains available for those purposes through June 30, 2030, instead of returning at the budget year's end.

Iowa funds science and advanced classes

Beginning July 1, 2026, Iowa provides $700,000 for STEM BEST for FY 2026–2027. Another $463,616 supports the Iowa Online Advanced Placement Academy's science, technology, engineering, and mathematics initiative. These provisions fund the programs without setting individual student payments or new eligibility rules.

Iowa funds specialized classroom support

For FY 2026–2027, Iowa provides $2.351382 million to the therapeutic classroom incentive fund. The Department of Education's special education division gets $10 million for oversight, compliance, and operations, with up to 60 full-time-equivalent positions. Another $200,000 supports Lead-K guidance and services for children who are deaf or hard of hearing. Lead-K funding supports consistent statewide help with language and communication outcomes. These provisions do not set direct family payments.

Iowa funds teacher training and mentoring

For FY 2026–2027, Iowa provides $1.676458 million for required professional development in public and nonpublic schools. It authorizes up to $728,216 for professional development requirements, teacher quality committee model evidence, and evaluator training. That authorization allows administration costs and up to four full-time-equivalent positions. Up to $1.077810 million supports teacher development academies, including administration. Another authorization provides up to $50,000 for mentoring beginning fine arts teachers.

Iowa supports teacher recruitment and leadership

Beginning July 1, 2026, Iowa provides $1.5 million through Educators for Iowa to recruit students into teacher-licensure opportunities. For FY 2026–2027, up to $626,191 supports school career paths and leadership roles in partnership with area education agencies. This includes planning grants, technical help, training, staff development, and contracted experts. Districts with certified enrollments below 600 students must get priority. The department may use part of this funding for administration and up to five full-time-equivalent positions.

Community colleges get building project funds

Beginning July 1, 2026, Iowa provides $6 million for qualifying community college building projects. Projects must support accelerated career education or major renovations and repairs, including health, fire safety, or disability access needs. Of that amount, $3.5 million goes to the career training physical expansion fund only when both legal conditions apply. The fund must be enacted through the specified 2026 legislation or successor legislation. It must also receive no other General Assembly appropriation for FY 2026–2027; the deposit is not extra money.

Educator licensing board keeps all fees

Beginning July 1, 2026, the Board of Educational Examiners keeps all licensing fees to fund its duties. Previously, 25 percent went to Iowa's general fund. This changes where fee money goes, not the amount educators pay.

Iowa funds health worker training incentives

For FY 2026–2027, Iowa provides $7.985911 million to the health care professional incentive fund. Another $2.220598 million supports qualified family practice residency program participants and up to 2.71 full-time-equivalent positions. The College of Medicine dean allocates residency funds with advisory board approval. Beginning July 1, 2026, $2.8 million funds additional University of Iowa nursing instructors to increase graduates. These provisions do not set individual incentives or payments, or change nursing tuition, admissions, or aid eligibility.

Iowa funds real estate education

Beginning July 1, 2026, Iowa provides $123,523 for the University of Northern Iowa real estate education program. The FY 2026–2027 funding allows up to 0.86 full-time-equivalent positions. It supports the program without setting individual payments or changing eligibility.

Iowa funds university campus and research

For FY 2026–2027, Iowa provides $2.103819 million for University of Iowa Oakdale campus operations. That funding allows up to 38.25 full-time-equivalent positions. The university's Center for Biocatalysis gets $696,342 and up to 6.28 full-time-equivalent positions. These funds support campus and research-center operations, not direct household payments.

Iowa funds workforce training and grants

For FY 2026–2027, Iowa provides $6.5 million to the Iowa workforce grant and incentive program fund. Beginning July 1, 2026, it also provides $15.1 million for workforce training and economic development funds. The Department of Education may use no more than $100,000 of that appropriation for administration. Another $75,000 supports a system reporting education and employment outcomes for workforce programs funded under the same section. These provisions do not set individual grant amounts.

State universities can finance energy savings

From July 1, 2026, through June 30, 2027, the Board of Regents can borrow for energy-saving projects. It can use notes, bonds, or similar debt. Project costs must be recoverable within an average of six years. The law does not promise lower student tuition or household energy bills.

University entrepreneurship centers get state funding

For FY 2026–2027, Iowa provides $125,000 to the John Pappajohn entrepreneurship centers at its three Regents universities. The University of Iowa, Iowa State University, and University of Northern Iowa centers receive equal shares. The money must add to, not replace, their other funding. It supports entrepreneurship programs rather than direct grants to households or businesses.

Iowa ends its special education council

Beginning July 1, 2026, Iowa repeals the law establishing the Iowa Special Education Council. The repeal does not specify a replacement or a direct change to students' special education eligibility or services.

At-risk children's programs face funding cap

Iowa caps general fund support for specified at-risk children's programs at $10.524389 million for July 2026 through June 2027. Any reduction must be shared proportionally among the covered programs. The law does not give prior funding levels or show whether an actual cut occurs.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON APPROPRIATIONS

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 144 • No: 67

Senate vote • 4/30/2026

Passed Senate

Yes: 27 • No: 15

legislature vote • 4/30/2026

Amendment H-8439

Yes: 59 • No: 25

House vote • 4/30/2026

Passed House

Yes: 58 • No: 27

Actions Timeline

  1. Item vetoed, signed by Governor.

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

    5/18/2026House
  3. NOBA: Final

    5/2/2026legislature
  4. Explanation of vote.

    5/1/2026House
  5. Explanation of vote.

    5/1/2026House
  6. Explanation of vote.

    5/1/2026House
  7. Explanation of vote.

    5/1/2026House
  8. Explanation of vote.

    5/1/2026House
  9. Explanation of vote.

    5/1/2026House
  10. Message from Senate.

    4/30/2026House
  11. Immediate message.

    4/30/2026Senate
  12. Passed Senate, yeas 27, nays 15.

    4/30/2026Senate
  13. Substituted for SF 2482.

    4/30/2026Senate
  14. Read first time, attached to SF 2482.

    4/30/2026Senate
  15. Message from House.

    4/30/2026Senate
  16. Immediate message.

    4/30/2026House
  17. Passed House, yeas 58, nays 27.

    4/30/2026House
  18. Amendment H-8395 out of order.

    4/30/2026House
  19. Amendment H-8439, yeas 59, nays 25, adopted, as amended.

    4/30/2026House
  20. Amendment H-8446 to amendment H-8439, yeas 30, nays 55, filed, lost.

    4/30/2026House
  21. Amendment H-8444 to amendment H-8439, yeas 25, nays 60, filed, lost.

    4/30/2026House
  22. Amendment H-8443 to amendment H-8439, yeas 26, nays 59, filed, lost.

    4/30/2026House
  23. Amendment H-8442 to amendment H-8439, yeas 26, nays 59, filed, lost.

    4/30/2026House
  24. Amendment H-8445 to amendment H-8439 filed, adopted.

    4/30/2026House
  25. Amendment H-8439 filed.

    4/30/2026House

Bill Text

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