All Roll Calls
Yes: 115 • No: 93
IowaHF 280091st General Assembly (2025–2026)HouseWALLET
A bill for an act relating to state and local government and finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers, authorizing expenditure of unappropriated moneys in special funds, making corrections, and providing for properly related matters including the national electrical code, local civil rights laws, political party state central committees, noxious weeds, nonresident deer hunting licenses, proprietary treatment systems, poultry associations, tax credits, alternative nicotine and vapor products, public assistance programs, judicial branch and county attorney salaries, civil litigation abuse, human trafficking, federal grants and loans notifications, quarterly payments to area education agencies, civic proficiency in higher education, charter schools under the Iowa public employees’ retirement system, school district incentives, extracurricular interscholastic eligibility, and levy increases, and including effective date, applicability, and retroactive applicability provisions. (Formerly HSB 784.) Contingent effective date, effective 06/02/2026, 06/19/2026, 07/01/2026, 01/01/2027. Applicability date: 01/01/2026, 05/12/2026, 06/02/2026, 07/01/2026, 07/01/2028.
Sponsored By: COMMITTEE ON APPROPRIATIONS
Signed by Governor
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Bill Overview
Analyzed Economic Effects
35 provisions identified: 15 benefits, 6 costs, 14 mixed.
Public retirement access for charter workers
Employees of charter schools established under chapter 256E gain access to the Iowa Public Employees’ Retirement System. Schools must meet applicable federal participation requirements and are included as employers in the system. The law ties retroactive coverage to House File 2754’s effective date, contingent on that act’s enactment. The supplied text does not give that date or an individual benefit amount.
Late dealer reports jeopardize tax credits
Retail dealers lose eligibility for three specified tax credits when they miss the required reporting deadline. This applies to the latest determination period ending on or before their tax year ends. The affected credits are those under Iowa Code sections 422.11O, 422.11P, and 422.11Y. The revenue department can also impose up to $100 per occurrence for missing required reports or records.
More grocery help for SNAP families
Starting in FY 2026–2027, Iowa provides $1 million each year from sports wagering receipts for Double Up Food Bucks. The money goes through the health department to the Iowa Healthiest State Initiative. It supports fresh fruit and vegetable purchases for Iowa SNAP recipients at participating markets, stores, and other locations. The grant recipient must provide at least a dollar-for-dollar match.
Technology funding for benefits and child support
For July 1, 2026, through June 30, 2027, Iowa funds technology for Medicaid, essential-needs eligibility, and child support. The amounts are $31 million for Medicaid, $30.5 million for eligibility systems, and $34 million for child support technology. Another $5 million implements 2023 Iowa Acts, chapter 104, and Senate File 2422 if enacted; otherwise, only chapter 104. Any remaining state information technology fund balance goes to the Medicaid management information system. This funds state systems, not household payments, and cannot cover department maintenance, operations, staffing, or other corporate technology needs.
Clearer rules for patient decision makers
The law defines who is authorized to consent, refuse consent, or withdraw consent for a patient. The person must be selected using the priority order in Iowa Code section 144A.7(1)(b). That person must follow the patient’s expressed or implied wishes and be reasonably available, willing, and competent.
Elected officials gain party committee access
Iowa political parties cannot use their state constitutions or bylaws to bar elected officials from state central committee service. The law removes that restriction on officials’ access to party leadership roles.
One more nonresident deer hunting license
The number of nonresident deer hunting licenses available for allocation rises from 125 to 126. The Iowa State Fair Foundation decides who receives the added license.
More funding for children’s cancer care
For FY 2026–2027, $3 million from sports wagering receipts goes to the Regents for pediatric cancer research and therapy access. It supports laboratory research and clinical trials at University of Iowa Hospitals and Clinics, plus therapy access at Stead Family Children’s Hospital. Starting July 1, 2027, the first $3 million in added nicotine and vapor taxes collected each fiscal year funds pediatric cancer research and clinical therapy access at Stead. Both appropriations depend on enactment of 2026 Senate File 2480 and exclude overhead, administration, and unrelated uses; physician-scientist leadership is no longer a designated nicotine-tax funding purpose. The Regents must report use of the FY 2026–2027 appropriation by October 1, 2027.
Longer funding window for school mergers
The law extends specified school reorganization and whole-grade-sharing incentives to qualifying actions taking effect by July 1, 2035. The prior deadline was July 1, 2024. Extra pupil weighting lasts up to three years, including three years after qualifying reorganizations. Second- and third-year supplementary weighting requires study information showing progress toward reorganization by July 1, 2035.
Apprenticeship money stays available longer
Unused apprenticeship appropriations covered by the law no longer return to the general fund at year-end. Uncommitted money stays available in later years. The workforce department can use it to operate the Iowa Office of Apprenticeship or support other apprenticeship activities it considers appropriate.
Funding to update Iowa’s unemployment system
Effective upon enactment, Iowa authorizes up to $12 million for unemployment administration and system updates. The authority covers FY 2025–2026 and FY 2026–2027. Funding must come from specified federal incentive payments transferred under section 903 of the Social Security Act. It does not change claimant eligibility or benefit amounts.
More funding options for state salaries
For FY 2026–2027, the management department can fund salary adjustments already provided elsewhere using qualifying unappropriated money. Eligible sources include specified revolving, trust, and special funds without an operating budget appropriation. Constitutional limits still apply. This authority does not itself set or raise salaries.
New salary rules for legal officials
Counties no longer must set full-time county attorney salaries between 45% and 100% of a district judge’s salary. The county resolution must still state the starting salary, which remains until changed through the required process. Business court judges’ annual salaries are tied to the district judge salary set by law. These changes do not specify a new dollar amount.
Yearly funding for special education oversight
Starting in FY 2027–2028, the education department receives $10 million each year for special education oversight. The money comes from the school funding reduction under Iowa Code section 257.35. It supports supervision, compliance, staff, maintenance, and related work.
Insurers get health-care investment tax credit
Eligible Iowa-based insurers get a tax credit worth 25% of qualifying health-care spending, with a $3 million annual cap across applicants. The credit applies retroactively to tax years beginning January 1, 2026, through December 31, 2033. Qualifying spending supports rural health-care access, qualifying value-based provider payments, or improved health-information sharing or transparency. Insurers must file annual statements under section 508.11, pass the national insurance commissioners’ health statement test, and have policies under chapter 513B. They must apply to Iowa’s Department of Revenue and provide requested information; this is not a household tax credit.
Nuclear facilities receive revised tax treatment
The law applies specified sales and use tax treatment to property, covered digital products, and services for nuclear power facilities. Its application is subject to Iowa Code section 423.3(111)(c). For facilities undertaking the activity described in section 423.3(111)(a)(1)(i), the change applies retroactively to January 1, 2026. The supplied text does not describe that activity or quantify the tax savings.
College students face new civics courses
The requirement covers undergraduates starting enrollment in academic years beginning on or after July 1, 2028. Iowa Board of Regents schools must require introductory American history and American government courses, each worth at least three semester hours. Both courses count toward social sciences or humanities requirements, and substantially similar prior coursework receives equivalent credit. Students in programs designated as three years or less are exempt.
Judicial officers face temporary unpaid leave
During FY 2026–2027, the Iowa Supreme Court can order judicial officers onto unpaid leave. The leave day must coincide with a temporary layoff day for judicial-branch employees. Affected officers’ biweekly pay is reduced for the pay period containing that day. The Judicial Branch can use an amount equal to the salary savings for purposes other than judicial salaries. This authority ends June 30, 2027.
Local civil rights protections face limits
Iowa cities and local governments cannot enact or enforce civil rights rules broader than the Iowa Civil Rights Act. They also cannot use different categories of unfair or discriminatory practices. This limits residents’ access to separate or broader local protections.
School aid cuts and transportation limits
Beginning in FY 2026–2027, Iowa cuts specified school district funding by $32.5 million each year. Each district’s cut is proportional to the amount it otherwise receives. Instructional support state aid is also set at zero for FY 2026–2027. That year, nonpublic school transportation reimbursements are capped at $8.997091 million. The education department reduces approved transportation claims proportionally when their total exceeds the cap.
Carriers must report nicotine product shipments
Beginning January 1, 2027, covered carriers must electronically report tobacco, alternative nicotine, and vapor product shipments into Iowa. The requirement covers carriers that knowingly transport these products. Reports are due by the 10th each month for the prior month’s deliveries. Deliveries to qualifying licensed public warehouses of first destination are excluded. The law makes this requirement contingent on enactment of 2026 Senate File 2480.
Home wiring exemptions and fan-ready boxes
Arc-fault circuit interrupters are not required in one-family or two-family homes or townhouses; the code’s requirement also excludes kitchens and laundry areas. Outlets serving sump pumps or refrigerators do not need ground-fault circuit interrupter protection, and garages are excluded from electrical-load floor-area calculations. These exemptions reduce installation requirements but remove required electrical protections. Ceiling outlet boxes in typical fan locations must accommodate ceiling fans in family rooms, living rooms, parlors, libraries, dens, bedrooms, sunrooms, recreation rooms, and similar areas. Without a fan installed, those boxes must meet electrical-code section 314.27(C)(1) or (C)(2).
New outlet rules for Iowa homes
On single-phase kitchen circuits rated 150 volts or less to ground, ground-fault protection is required only for countertop-serving outlets. The code’s protection requirements also cover unfinished basements not intended as living spaces. Each island or peninsula at least 24 inches long and 12 inches wide needs an outlet; peninsula measurements start at the connected perpendicular wall. Outlets are banned within or directly over tubs and shower stalls. Local governments cannot adopt electrical codes stricter than the national electrical code.
Treatment system checks and public reports
For work from July 1, 2026, manufacturer-certified technicians must follow manufacturer instructions for proprietary systems certified by ANSI-accredited third parties. Technicians must report inspection results to owners and the applicable authority within 30 days, and report maintenance or discontinuance. Required reports to the natural resources department cover systems installed on or after January 1, 2018. Starting July 1, 2026, the department must maintain a public database of inspection outcomes and unplanned failures or repairs, identifying systems, products, and models but excluding personal information. The department cannot charge fees to receive or collect required reports.
Dismissed cases can include restitution payments
Courts can include restitution when dismissing a public offense or ordinance violation. The order can require payment of a victim’s financial losses and category B restitution, including court costs. Both the defendant and prosecutor must consent.
Japanese knotweed joins noxious weed list
Iowa adds Japanese knotweed, also called Fallopia japonica, to its statutory noxious weed list. The plant now falls under the state’s noxious weed framework. This affects agencies administering those rules and people responsible for land where it grows.
Private parties can sue over litigation abuse
For proceedings resolved on or after June 19, 2026, private parties gain a statutory claim for abuse of civil process. The claimant must win the underlying proceeding and show a specific, willful improper act serving mainly an ulterior purpose. No special injury is required, and actual damages include reasonable attorney fees and costs. The claim excludes criminal proceedings and actions involving governments or their officers or employees acting officially. It replaces the common-law abuse-of-process claim between private parties.
Trafficking law sections repealed and delayed
Starting July 1, 2026, the law repeals sections 1 and 4 of 2026 House File 1036. It also delays that act’s amendment to Iowa Code section 910.1 from July 1, 2026, to July 1, 2027. The supplied text does not explain the affected sections, so specific gains or losses cannot be identified.
Health conscience discrimination rules become narrower
Conscience-protection rules exclude a nongovernmental entity’s or individual’s negotiation, purchase, or refusal to use or buy insurance or health services. A health care institution’s good-faith effort to accommodate someone’s conscience is also excluded. These actions no longer count as discrimination under those specific rules.
Education agencies move to quarterly payments
For the fiscal year beginning July 1, 2025, specified area education agency payments remain monthly, September 15 through June 15. Starting with the year beginning July 1, 2026, those payments become quarterly, July 15 through April 15. This includes payments for services to nonpublic school students. The law changes timing, not the stated funding amounts.
School levy flexibility requires offsetting cuts
For school budget year 2026–2027, qualifying districts can exceed the usual cash reserve levy limit. Eligibility requires a single-property correction that reduced taxable value for 2025–2026 school taxes by at least $100 million. Districts must cut other property tax levies by at least the same amount. Total property tax dollars must stay within the statutory combined limit. Districts must notify the management department, which adjusts levy rates.
Health law amounts follow new dates
For specified provisions of Iowa Code section 135.61(16), the law sets an amount of $4 million for 2027–2031. It sets $4.5 million for January 1, 2032, through December 31, 2036. The supplied text does not explain how these amounts affect health services or household payments.
Recovery balances move to health technology
On July 1, 2026, Iowa transfers available coronavirus recovery and specified CARES Act balances to the health department’s technology fund. Only money not already committed or obligated transfers, including interest and earnings. The provision states no total amount and makes no direct household payment.
Preschool providers face administrative spending cap
Beginning in FY 2026–2027, approved community-based providers directly participating in Iowa’s preschool program face a 5% administrative spending cap. The cap applies to their state preschool funding each year. Allowed administrative uses include outreach and rent for facilities the provider does not own.
Temporary tax rules for health insurers
From January 1 through September 30, 2026, Iowa health maintenance organizations face a temporary health care-related tax. The tax equals 3.5% of the applicable percentage of their taxable funds. The difference from the amount calculated under the referenced statutory rate is exempt from the specified prepayment requirement. The provision does not state an effect on household premiums.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON APPROPRIATIONS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/3/2026
Passed Senate
Yes: 29 • No: 11
House vote • 5/2/2026
Passed House
Yes: 58 • No: 26
legislature vote • 5/2/2026
Amendment H-8494 to amendment H-8491
Yes: 28 • No: 56
Actions Timeline
Item vetoed, signed by Governor.
6/2/2026HouseNOBA: Final
5/19/2026legislatureReported correctly enrolled, signed by Speaker and President, and sent to Governor.
5/18/2026HouseMessage from Senate.
5/3/2026HouseImmediate message.
5/3/2026SenatePassed Senate, yeas 29, nays 11.
5/3/2026SenateSubstituted for SF 2507.
5/3/2026SenateRead first time, attached to SF 2507.
5/3/2026SenateMessage from House.
5/3/2026SenateImmediate message.
5/2/2026HouseExplanation of vote.
5/2/2026HouseExplanation of vote.
5/2/2026HousePassed House, yeas 58, nays 26.
5/2/2026HouseAmendment H-8491 adopted.
5/2/2026HouseAmendment H-8493 to amendment H-8491 filed, withdrawn.
5/2/2026HouseExplanation of vote.
5/2/2026HouseAmendment H-8494 to amendment H-8491, yeas 28, nays 56, filed, lost.
5/2/2026HouseAmendment H-8492 to amendment H-8491 filed, withdrawn.
5/2/2026HouseAmendment H-8491 filed.
5/2/2026HouseIntroduced, placed on Appropriations calendar.
5/2/2026House
Bill Text
As Introduced
Enrolled
Related Bills
HF 2801, A bill for an act modifying the major economic growth attraction program, and including effective date provisions. (Formerly HSB 785.) Effective date: 10/02/2026.
SF 2472, A bill for an act relating to state and local government taxes, fees, financial authority, and budgets, by modifying property assessment provisions, divisions of revenue, and funding from the secure an advanced vision for education fund, establishing a program for first-time homebuyers, modifying and making appropriations, and including effective date, applicability, and retroactive applicability provisions. (Formerly SSB 3001.) Effective date: 05/18/2026, 07/01/2026, 01/01/2027. Applicability date: 01/01/2026, 07/01/2026, 01/01/2027, 07/01/2027, 07/01/2028.
HF 2769, A bill for an act relating to and making appropriations to the judicial branch. (Formerly HSB 776.) Effective date: 07/01/2026.
HF 2782, A bill for an act relating to and making appropriations to the department of veterans affairs and the department of health and human services, including aging and disability services, behavioral health, public health, and community access and eligibility; the medical assistance program, state supplementary assistance, Hawki, and other health-related programs; family well-being and protection; state-operated specialty care; administration and compliance; transfers, cash flow, and nonreversions; report on nonreversion of moneys; more options for maternal support program; reimbursement rates review; mental diseases exclusion waiver; full-time equivalent dashboard; comprehensive family support program; federal community mental health services block grant; behavioral health expenditure report; opioid settlement fund; emergency rules; graduate medical education; and special population nursing facilities; and including effective date and retroactive applicability provisions. (Formerly HSB 777.) Effective date: 06/02/2026, 07/01/2026. Applicability date: 07/01/2025.
HF 2783, 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.
HF 2770, A bill for an act relating to and making appropriations to the justice system, providing fees, and including applicability provisions. (Formerly HSB 775.) Effective date: 07/01/2026. Applicability date: 07/01/2026.