IowaSF 61591st General Assembly (2025–2026)SenateWALLET

A bill for an act relating to work requirements for the Iowa health and wellness plan, public assistance programs, an information technology fund, the public assistance modernization fund, and the Medicaid for employed people with disabilities program, and including effective date provisions. (Formerly SF 599, SF 363.) Effective date: 06/06/2025, 07/01/2025.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

Medicaid asset exclusions for disabled workers

Beginning July 1, 2025, Medicaid for Employed People with Disabilities excludes up to $10,000 in resources for individuals or $21,000 for couples. It also excludes additional savings in retirement accounts, medical savings accounts, and other accounts approved by state rules. Applicants must be under 65, have a disability and earned income, and have family income below 250% of federal poverty guidelines. They must qualify for medical assistance when earnings are left out of the eligibility test; unearned income is also disregarded. These rules operate within federal law and regulations.

Iowa health plan faces conditional shutdown

Effective June 6, 2025, the law ties the Iowa Health and Wellness Plan's future to federal work-rule policy. Iowa must discontinue the plan if federal officials first approve its work requirement and federal law or regulations later exclude it. Ending the plan also requires federal approval. If federal law bars discontinuation, Iowa may offer an alternative Medicaid plan only with prior approval through state law.

Work rules for Iowa health coverage

Effective June 6, 2025, the law requires Iowa to seek federal approval for work requirements in the Iowa Health and Wellness Plan. The rule starts only after federal approval and a real-time system for member reporting and agency review are in place. Members must then work at least 80 hours each month to keep coverage, unless exempt. Exemptions cover people under 19 or 65 and older, people Social Security determines are disabled, and people medically frail or exempt under Medicaid. They also cover caretakers of children under 6, high-risk pregnancies, unemployment compensation recipients, and substance-use treatment for up to six consecutive months. The agency director can grant good-cause exemptions; exemptions must be substantially similar to those in other public assistance programs. Iowa must adopt rules to carry out the requirement once the approval and system are in place, and may reapply after a federal denial.

Iowa redirects funds for benefits technology

Beginning July 1, 2025, Iowa creates a health agency technology fund and makes its money available for systems and related upgrades. Unspent, uncommitted appropriations remain available through the end of the next fiscal year, and interest stays in the fund. The law transfers any unobligated or unencumbered balance remaining in the Public Assistance Modernization Fund on June 30, 2025. It also repeals the old fund's authorizing law. No dollar amount or direct household payment is specified.

Iowa aligns public assistance work rules

Beginning July 1, 2025, Iowa's health agency must work with federal health and agriculture agencies to align public assistance work rules. This includes SNAP employment and training rules. The law does not specify new participant requirements or changes to benefit amounts.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON APPROPRIATIONS

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 238 • No: 124

Senate vote • 5/14/2025

House concurred in Senate amendment H-1342

Yes: 55 • No: 31

House vote • 5/14/2025

Passed House

Yes: 56 • No: 30

Senate vote • 5/13/2025

Passed Senate

Yes: 33 • No: 13

House vote • 3/26/2025

Passed House

Yes: 61 • No: 35

Senate vote • 3/25/2025

Passed Senate

Yes: 33 • No: 15

Actions Timeline

  1. Explanations of votes.

    6/27/2025House
  2. Signed by Governor.

    6/6/2025Senate
  3. Fiscal note.

    6/6/2025legislature
  4. Reported correctly enrolled, signed by President and Speaker, and sent to Governor.

    5/23/2025Senate
  5. Explanation of vote.

    5/20/2025House
  6. Message from House.

    5/14/2025Senate
  7. Immediate message.

    5/14/2025House
  8. Passed House, yeas 56, nays 30.

    5/14/2025House
  9. House concurred in Senate amendment H-1342, yeas 55, nays 31.

    5/14/2025House
  10. Fiscal note.

    5/13/2025legislature
  11. Senate amendment H-1342 filed.

    5/13/2025House
  12. Message from Senate.

    5/13/2025House
  13. Immediate message.

    5/13/2025Senate
  14. Passed Senate, yeas 33, nays 13.

    5/13/2025Senate
  15. Senate concurred with S-3059, as amended.

    5/13/2025Senate
  16. Amendment S-3168 to S-3059 filed, adopted.

    5/13/2025Senate
  17. Explanation of vote.

    4/22/2025House
  18. Fiscal note.

    3/28/2025legislature
  19. Message from House, with amendment S-3059.

    3/27/2025Senate
  20. Immediate message.

    3/26/2025House
  21. Passed House, yeas 61, nays 35.

    3/26/2025House
  22. Amendment H-1198 adopted.

    3/26/2025House
  23. Amendment H-1200 to amendment H-1198 filed, withdrawn.

    3/26/2025House
  24. Substituted for HF 948.

    3/26/2025House
  25. Amendment H-1198 filed.

    3/25/2025House

Bill Text

Related Bills

Back to State Legislation