All Roll Calls
Yes: 175 • No: 6
IowaSF 62691st General Assembly (2025–2026)SenateWALLET
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
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 12 benefits, 0 costs, 3 mixed.
Child care funding and carryover
The child care program receives $109,630,285 in FFY 2025–26 and $109,630,285 in FFY 2026–27. Any money left at year‑end reverts and is available for child care the next year, helping keep funding flowing.
Road and bridge funding statewide
The state provides $192,600,000 in FFY 2025–26 and $192,600,000 in FFY 2026–27 for transportation projects. The state transportation commission distributes the funds under federal law for state and local roads and bridges.
Maternal and child health funding
The state provides $6,775,530 in FFY 2025–26 and the same in FFY 2026–27 for Title V maternal and child health. After up to 10% for admin, 63% supports state programs, including $300,291 each year for perinatal care. The remaining 37% goes to the University of Iowa for mobile and regional child health specialty clinics. The university cannot take indirect costs from these funds.
More community help for low-income
Community Services Block Grant funding is $8,300,123 in FFY 2025–26 and $8,300,123 in FFY 2026–27. At least 96% must go to community action agencies, and each eligible agency gets at least $185,000 based on local poverty share. Admin is capped at 4%, and audits are paid from that set‑aside. Any extra federal CSBG dollars all stay with the CSBG program.
More community mental health funding
The state provides $7,754,083 in FFY 2025–26 and $7,754,083 in FFY 2026–27 for community mental health. At least 95% must pay for eligible services under the federally approved plan. By October 1, 2025, the department posts distribution amounts, pays quarterly, and requires quarterly reports. For the year starting October 1, 2025, 70% of provider funds go to accredited centers for staff training and services for adults with serious mental illness and children with serious emotional disturbance, billed through the state claims system.
More support for addiction services
The state provides $14,116,120 in FFY 2025–26 and the same in FFY 2026–27 for substance abuse prevention and treatment. No more than 5% may fund admin, and at least 20% of the remaining money must fund prevention. The health department must follow federal protections for religious and nonprofit providers. For state fiscal years starting July 1, 2025 and July 1, 2026, the state must spend at least last year’s amount on treatment for pregnant women and women with dependent children.
Social services funding and annual plan
Social Services Block Grant funding is $15,264,832 in FFY 2025–26 and $15,264,832 in FFY 2026–27. Each year the department must prepare and submit a plan for next year’s funds, listing programs, funding sources, and county distributions.
Energy help rules and funding
The state provides $58,058,248 in FFY 2025–26 and the same in FFY 2026–27 for home energy help (LIHEAP). Up to 15% of funds can go to weatherization, or 25% with a federal waiver; only 10% of that part may be used for admin. After weatherization is set aside, at least 8.4% must cover contractors’ admin and up to 1.6% may cover state admin; audits come from the state share. The department can carry forward no more than 10% of received funds to the next year. If LIHEAP brings in extra money, up to 15% of the extra may go to weatherization and up to 10% to admin.
Community development and housing funds
The state provides $26,500,000 in FFY 2025–26 and $26,500,000 in FFY 2026–27 for Community Development Block Grants. Up to $1,160,000 each year may cover administration, including $630,000 federal and a $530,000 state match. Audit costs come from this set‑aside. The rest supports local housing and community projects under federal rules.
Rules for changing federal funds
If federal block grants come in lower than this Act’s amounts, the Governor prorates funds by the Act’s percentages after notifying legislative leaders and allowing two weeks for review. Sex offense victim services and prevention are not prorated. When grants exceed amounts, extra funds are split by the Act’s percentages and not for admin, with separate rules for LIHEAP and CSBG. Federal and other nonstate grants in SFY 2026 and SFY 2027 are appropriated to named agencies for their grant purposes. Agencies may spend grants that arrive after session if spending is needed before March 15, with notice to the fiscal committee within 30 days.
Preventive health and victim services funding
The state provides $1,955,591 in FFY 2025–26 and the same in FFY 2026–27 for preventive health. The department may use up to 10% for admin. Each year, an amount named in the federal award goes to sex offense victim services and prevention. Remaining funds may support Healthy People 2030 work, nutrition and chronic disease services, EMS, fluoridation monitoring and start‑up grants, and AIDS services. The University of Iowa Hospitals and Clinics and the State Hygienic Lab cannot charge indirect costs to these funds.
Justice and prison treatment grants
Law enforcement and justice programs receive $1,964,093 in FFY 2025–26 and $2,178,973 in FFY 2026–27 (Byrne JAG). Residential substance abuse treatment for state prisoners receives $422,329 in FFY 2025–26 and $307,388 in FFY 2026–27. Funds must be used under federal rules and state procedures.
Energy aid admin costs capped
The law caps spending on Low-Income Home Energy Assistance Program (LIHEAP) assessments at 5% of the funds received each year. This applies to the Department of Health and Human Services and its contractors. More money stays available for direct help with heating and energy bills. The 5% limit is calculated each federal fiscal year on funds actually received.
PATH homeless mental health services
When the PATH grant arrives for state fiscal years starting July 1, 2025 and July 1, 2026, projects must do outreach, assess and enroll people with serious mental illness, give case management and training, and make referrals to mental health and housing services. Projects must provide a 25% local match.
Limits on city mandates for builders
Cities cannot require developers or contractors to meet pay or training rules beyond what state law allows, or tie incentives to those rules, unless federal law requires it. These limits take effect on enactment and apply back to March 28, 2025.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON APPROPRIATIONS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/13/2025
Passed House
Yes: 85 • No: 6
Senate vote • 5/13/2025
Passed Senate
Yes: 45 • No: 0
Senate vote • 4/21/2025
Passed Senate
Yes: 45 • No: 0
Actions Timeline
Explanations of votes.
6/27/2025legislatureSigned by Governor.
6/11/2025GovernorNOBA: Final
6/2/2025legislatureReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/23/2025SenateMessage from Senate.
5/13/2025SenateImmediate message.
5/13/2025legislaturePassed Senate, yeas 45, nays 0.
5/13/2025SenateSenate concurred with S-3177.
5/13/2025SenateMessage from House, with amendment S-3177.
5/13/2025HouseImmediate message.
5/13/2025legislaturePassed House, yeas 85, nays 6.
5/13/2025HouseCommittee amendment H-1288 adopted.
5/13/2025legislatureNOBA: House Full Approps
5/2/2025HouseCommittee amendment H-1288 filed.
5/1/2025legislaturePlaced on Appropriations calendar.
5/1/2025legislatureCommittee vote: Yeas, 25. Nays, 0.
5/1/2025legislatureCommittee report, recommending amendment and passage.
5/1/2025legislatureNOBA: House Sub
4/30/2025HouseNOBA: Senate Floor
4/22/2025SenateRead first time, referred to Appropriations.
4/21/2025legislatureMessage from Senate.
4/21/2025SenateImmediate message.
4/21/2025legislaturePassed Senate, yeas 45, nays 0.
4/21/2025SenateAmendment S-3116 filed, adopted.
4/21/2025legislatureNOBA: Senate Full Approps
4/17/2025Senate
Bill Text
As Introduced
Enrolled
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