IowaSF 62691st General Assembly (2025–2026)Senate

A bill for an act relating to federal moneys and regulations, including the appropriation of federal moneys made available from federal block grants and other nonstate sources, the allocation of portions of federal block grants, the procedures if federal moneys or federal block grants are more or less than anticipated, and the authorization of certain city regulations when required under federal law, and including effective date and retroactive applicability provisions. (Formerly SSB 1216.) Effective date: 06/11/2025, 07/01/2025. Applicability date: 03/28/2025.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

appropriations

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.

Free to download

Bill Overview

Analyzed Economic Effects

15 provisions identified: 13 benefits, 0 costs, 2 mixed.

Child care funding for Iowa families

Iowa Health and Human Services receives about $109.6 million annually for child care grants in 2025-2026 and 2026-2027. These are federal budget years. The money must support uses allowed by federal child care grant law. Funds not committed or obligated return for appropriation in the next fiscal year. This law sets no household payment amount or new family eligibility rules.

Energy bill help for low-income households

Iowa provides about $58.1 million for home energy assistance in each federal budget year, 2025-2026 and 2026-2027. Households must meet federal energy assistance eligibility rules. Weatherization and related repairs can receive up to 15% of receipts, or 25% with federal waiver approval. After that allocation, at least 8.4% goes to contractor administration, up to 1.6% to department administration, and the balance to energy assistance. Weatherization administration is capped at 10% of its allocation; carryover is capped at 10% of receipts, and energy assessments and problem resolution at 5%. Beginning July 1, 2025, excess receipts have separate caps: 15% for weatherization and 10% for administration.

Homelessness projects offer care and housing help

For state budget years beginning July 1, 2025, and July 1, 2026, homelessness projects have required outreach duties. These apply when Iowa receives the minimum federal Projects for Assistance in Transition from Homelessness formula grant. Projects must assess serious mental illness, enroll willing people with that illness, provide case management, train providers, and make service referrals. Projects must secure a 25% local match. Beginning July 1, 2025, allowed spending includes mental health, crisis, rehabilitation, substance use, and supportive services, plus minor housing repairs, deposits, housing coordination, and one-time rent payments to prevent eviction.

Iowa funds state and local transportation

Iowa's transportation department receives $192.6 million in each federal budget year, 2025-2026 and 2026-2027. The money supports state and local transportation projects through the federal Surface Transportation Block Grant Program. The state transportation commission allocates the funds, which must follow federal spending rules. The law does not name project locations.

Iowa funds prison treatment and justice

Iowa's Office of Drug Control Policy receives anticipated federal grants for correctional substance use treatment and justice programs. Treatment in state and local correctional facilities receives $422,329 in federal budget year 2025-2026 and $307,388 in 2026-2027. Edward Byrne Memorial Justice Assistance Grants receive about $1.96 million and $2.18 million, respectively. Both grants must follow federal spending rules. Neither creates a direct household payment or service entitlement.

Community agencies get low-income service funding

Iowa provides about $8.3 million for community services in each federal budget year, 2025-2026 and 2026-2027. At least 96% goes to eligible community action agencies serving low-income people; administration is capped at 4%. Agency shares follow local poverty populations, and each eligible agency must receive at least $185,000. That minimum comes from redistributing funding increases from agencies receiving larger shares. Beginning July 1, 2025, all receipts above the appropriation go to the Community Services Block Grant program.

Health funding supports mothers and children

Iowa provides about $6.78 million for maternal and child health in each federal budget year, 2025-2026 and 2026-2027. Administration can use up to 10%. Of the remaining money, 63% supports state programs, including $300,291 annually for care around childbirth. The other 37% goes to University of Iowa Hospitals and Clinics for mobile and regional child specialty clinics. A statewide clinic system gets priority, and the university hospital cannot charge indirect costs against these funds.

Iowa funds federally allowed social services

Iowa Health and Human Services receives about $15.3 million annually through the federal Social Services Block Grant. The appropriation covers federal budget years 2025-2026 and 2026-2027. The department must spend the money as federal law allows. This law does not set a household payment amount or identify which households receive services.

Mental health funding supports community care

Iowa provides about $7.75 million for community mental health care in each federal budget year, 2025-2026 and 2026-2027. At least 95% must support eligible services under the federal plan; administration is capped at 5%. In 2025-2026, designated accredited centers receive 70% of provider-directed funds for staff training or care. That care serves adults with serious mental illness and children with serious emotional disturbance. Centers must bill treatment through the department's claims system and report performance quarterly; Iowa must publish allocations by October 1, 2025, and distribute funds quarterly.

Prevention funding includes sexual violence services

Iowa provides about $1.96 million for preventive health services in each federal budget year, 2025-2026 and 2026-2027. Administration is capped at 10%. The federal award notice sets the required funding for sex-offense victim services and prevention. Remaining money can support health improvement, nutrition, chronic disease care, emergency medical services, fluoridation, and HIV/AIDS services. University of Iowa Hospitals and Clinics and the State Hygienic Laboratory cannot charge indirect costs against these funds.

Treatment funding protects mothers and families

Iowa provides about $14.1 million for substance use treatment and prevention in each federal budget year, 2025-2026 and 2026-2027. Administration can use no more than 5%; prevention must receive at least 20% of what remains. Treatment spending for pregnant women and women with dependent children cannot fall below the prior state budget year's level. That floor applies in state budget years 2025-2026 and 2026-2027, using 2024-2025 and 2025-2026 spending, respectively. Iowa must also follow federal rules for services provided by religious and other nongovernmental groups.

Agencies can use additional outside grants

For state budget years beginning July 1, 2025, and July 1, 2026, listed agencies can spend available nonstate funds. Unless another law says otherwise, the money must follow the grant's purposes and conditions. The law also appropriates necessary additional outside funds that were not available or awarded while the legislature was in session. That authority applies when an agency must spend those funds before March 15 of the fiscal year. The Legislative Council fiscal committee must receive notice within 30 days of receipt and an opportunity to comment.

Iowa communities receive development grant funding

Iowa provides $26.5 million for community development in each federal budget year, 2025-2026 and 2026-2027. Annual administration can use up to $1.16 million, including $630,000 in federal funds and a $530,000 state match. Funds must follow the federal Community Development Block Grant spending rules. The law does not select projects or set household benefits.

Cities retain limits on contractor standards

Iowa cities remain barred from adding employee pay, training, or similar requirements beyond what state law expressly allows. The limits cover developers, contractors, and subcontractors, including conditions tied to city incentives or eligibility for them. Cities can attach these incentive conditions when federal law requires them. The change took effect June 11, 2025, and applies retroactively to March 28, 2025.

Grant funding adjusts to federal receipts

Beginning July 1, 2025, lower-than-expected federal block grants generally follow the law's percentage allocations, except sex-offense victim services and prevention. The governor can use another allocation when percentages are insufficient or absent, allowing resources to shift among programs. Legislative leaders and the Legislative Services Agency director must receive notice and at least two weeks to review and comment. Excess receipts for covered grants follow program percentages, with none allocated to administration. These rules manage available funding; they do not guarantee household 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: 175 • No: 6

Senate vote • 5/13/2025

Passed Senate

Yes: 45 • No: 0

House vote • 5/13/2025

Passed House

Yes: 85 • No: 6

Senate vote • 4/21/2025