IowaSF 64591st General Assembly (2025–2026)SenateWALLET

A bill for an act relating to and making appropriations for the economic development of the state, including to the economic development authority, Iowa finance authority, department of workforce development, and the state board of regents and certain regents institutions, and extending the repeal date for the housing renewal pilot program. (Formerly SSB 1236.) Effective date: 07/01/2025.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

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Bill Overview

Analyzed Economic Effects

26 provisions identified: 20 benefits, 4 costs, 2 mixed.

Housing renewal pilot gets three more years

The law moves the housing renewal pilot's end date from July 1, 2025, to July 1, 2028. The program continues for three more years under its existing eligibility rules. The extension itself sets no new funding amount or household benefit formula.

Rent help for eligible service recipients

Beginning July 1, 2025, Iowa provides $873,000 for its home- and community-based services rent subsidy program. Rent help is limited to people eligible for that program. No more than $35,000 can pay for administration. The funding remains available through June 30, 2027, but the law does not set each person's payment.

Adult education and English learning funding

For July 1, 2025–June 30, 2026, Iowa provides $5.5 million for adult education and literacy. This includes $3.883 million distributed by the state formula and up to $150,000 for program administration. Up to $1.257 million supports community college English-language education, with another $500,000 provided through the same application process and criteria. English-language grants must reflect regional needs, using census data and outreach. The $5.5 million also includes a $210,000 transfer for refugee and international resource services.

Disability employment and independent living support

For July 1, 2025–June 30, 2026, vocational rehabilitation receives $6.226739 million and authorization for 251 full-time-equivalent positions. Beginning July 1, the division must make its best efforts to coordinate job placement and retention for people with significant or most significant disabilities. The law also provides $138,506 for entrepreneurs with disabilities. It provides $84,804 in matching funds for programs helping people with severe physical or mental disabilities live more independently. Centers for independent living receive $86,547; these appropriations do not guarantee individual payments or service levels.

Internship funding for students and youth

For July 1, 2025–June 30, 2026, Iowa provides $250,000 for its summer youth internship pilot. It targets young people at risk of not graduating high school, offering work experience and skills for high-demand careers. Another $633,325 funds internships for students studying science, technology, engineering, or mathematics. Those internships must be with eligible Iowa employers. The law does not set individual pay amounts.

Job support for people leaving prison

For July 1, 2025–June 30, 2026, Iowa provides $387,158 and up to five full-time-equivalent positions for employment reentry services. Workforce Development must run the program with the Department of Corrections. The program provides resources in correctional facilities to help people build job skills and find and keep work.

Learning and integration help for refugees

For July 1, 2025–June 30, 2026, Iowa transfers $210,000 to Health and Human Services for international resources and refugee support. Services include English literacy, life skills, cultural learning, and help joining community life. The program serves refugees and other Iowans and new Iowans in a county exceeding 350,000 people in the 2020 census. The department must select the service provider through a request for proposals.

Apprenticeship support for smaller businesses

Iowa provides $760,000 for registered apprenticeship development programs that help small and midsize businesses start or grow apprenticeships. Funding is available from July 1, 2025, through June 30, 2027. The law does not set an award amount for each business.

Financial help authorized for women-led startups

For July 1, 2025–June 30, 2026, Iowa's Economic Development Authority may provide financial help to early-stage industry companies being established by women entrepreneurs. The law authorizes assistance but does not guarantee an award or set an amount.

Funding for grocers and food processors

For July 1, 2025–June 30, 2026, the law provides $1.25 million from the Grow Iowa Values Fund. It directs the money to the grocer reinvestment and local food processing fund only upon enactment of House File 1032. The funding supports eligible grocers and local food processors, but the law does not set individual award amounts.

Funding to investigate worker misclassification

For July 1, 2025–June 30, 2026, Workforce Development receives $379,631 to strengthen investigations of employers that misclassify workers. The law authorizes up to four full-time-equivalent positions for this work. This funds enforcement rather than creating a new worker payment.

Funding for Iowa tourism and arts

For the fiscal year beginning July 1, 2025, Iowa provides $1.05 million for tourism advertising and its travel strategy. The Iowa Arts Council receives $1.7718 million. Of the arts funding, $321,800 goes to the arts and culture enhancement fund only upon enactment of House File 975. Unspent tourism and arts money remains available through June 30, 2027. The authority must report tourism results and economic impact annually by January 15.

Funding for manufacturing technology and equipment

For July 1, 2025–June 30, 2026, Iowa provides $2.016675 million for its Manufacturing 4.0 technology investment program. Northern Iowa also receives $394,321 and up to 2.73 full-time-equivalent positions for additive manufacturing equipment and investment-casting industry support. The university must make a good-faith effort to seek supplemental funding with private partners. No individual business award amount is set.

Funding supports the World Food Prize

For July 1, 2025–June 30, 2026, Iowa provides $500,000 for the World Food Prize. This replaces the standing appropriation for that year. The money supports the organization and its work, not direct household payments.

Iowa funds business growth and recruitment

For July 1, 2025–June 30, 2026, Iowa's Economic Development Authority receives $12.92151 million and up to 112.50 full-time-equivalent positions. It may grant money to community groups recruiting former Iowa residents or former Iowa college students for local employers. It may also offer grants, loans, or forgivable loans for advanced research or commercialization in value-added agriculture, advanced technology, or biotechnology. A $100,000 transfer from excess insurance division collections supports insurance and international insurance business development. By November 1, 2025, the authority must report prior-year financial assistance, including loans, tax assistance, grants, and county locations.

Job and community development funding

For July 1, 2025–June 30, 2026, Iowa provides $11.7 million for High Quality Jobs program assistance. Up to $1 million of that amount may fund infrastructure grants in Main Street communities. The law also provides $700,000 for Empower Rural Iowa and $350,000 for regional councils of governments. High Quality Jobs funding recipients must testify about spending when the economic development appropriations subcommittee requests it.

University bioscience funding lasts longer

For July 1, 2025–June 30, 2026, Iowa State receives $2.963995 million and up to 9.18 full-time-equivalent positions for bioscience development. The University of Iowa receives $1 million and up to 4.35 positions. Both must work with the Economic Development Authority on bio-based chemicals, digital agriculture, vaccines, and medical devices. Money left uncommitted at June 30, 2026, remains available for those purposes through June 30, 2027.

Housing renewal grants for eligible communities

Beginning July 1, 2025, the Iowa Finance Authority receives $550,000 for the housing renewal pilot program. A nonprofit Iowa affiliate awards grants to communities eligible under the pilot. Funding remains available through June 30, 2027. These are community grants, not direct household payments.

Job preparation tools and results tracking

For July 1, 2025–June 30, 2026, Workforce Development allocates $150,000 to the State Library for an online job-preparation resource. The resource helps people prepare for workplace success and vocational tests. Another $125,000 pays staff to report workforce preparation results with the Department of Education. The reporting funding does not change who qualifies for services.

Worker and job funds last longer

Recipients have until June 30, 2027, to use designated skilled worker and job creation funds left uncommitted on June 30, 2026. The money remains available only for its designated purposes. This extra time does not create household payments or change individual eligibility.

Work authorization rules for assisted businesses

For July 1, 2025–June 30, 2026, businesses using the specified Economic Development Authority funding may employ only legally authorized workers. Qualifying funded jobs must go to U.S. citizens living in the United States or people federally authorized to work there. Assisted businesses and vendors must provide employment eligibility assurances. The authority may recover some or all assistance for knowing violations.

Arts funding faces a state cap

For July 1, 2025–June 30, 2026, the law caps general fund support for the arts and culture enhancement fund at $448,403. This cap applies if House File 975 was enacted. It limits program funding, not household taxes or benefits.

No development aid for geothermal snowmelt

For July 1, 2025–June 30, 2026, the Economic Development Authority cannot use its specified appropriation for geothermal snowmelt projects. The ban covers financial help to install systems that melt snow or ice from streets or sidewalks. It limits state aid, not whether households or local governments may install these systems using other money.

State tourism marketing funding is capped

For July 1, 2025–June 30, 2026, the law caps the specified general fund tourism marketing appropriation at $1.4437 million. This limits state marketing funding. It does not directly change household taxes, benefits, or prices.

University business services with research matches

For July 1, 2025–June 30, 2026, Iowa State receives $2.424302 million and up to 50.94 full-time-equivalent positions for business services and research. At least $735,728 supports small business development centers; industrial incentive research requires small businesses to match $1 per $3 in state funds, and other businesses, industrial foundations, and trade associations to match dollar-for-dollar. The University of Iowa receives $209,279 and up to six positions for its research park and pharmaceutical work. Northern Iowa receives $1.466419 million and up to 13 positions for metal casting, Foundry 4.0, Advance Iowa, its Family Business Center, and the Institute for Decision Making. Research spending must support Iowa's economy and emphasize services to Iowa-based companies.

University startup funding requires matching money

For July 1, 2025–June 30, 2026, Iowa provides $3 million for university infrastructure, technology commercialization, entrepreneurship, and business development. Iowa State and the University of Iowa each receive 35%; Northern Iowa receives 30%. Each university must add $1 for every state dollar, and recipients must testify about spending when the appropriations subcommittee requests it. Separately, the University of Iowa receives $2 million and up to eight full-time-equivalent positions for its entrepreneurship and economic growth initiative.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON APPROPRIATIONS

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 95 • No: 44

Senate vote • 5/13/2025

Passed Senate

Yes: 34 • No: 14

House vote • 5/13/2025

Passed House

Yes: 61 • No: 30

Actions Timeline

  1. Explanations of votes.

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

    6/11/2025Senate
  3. NOBA: Final

    5/28/2025legislature
  4. Reported correctly enrolled, signed by President and Speaker, and sent to Governor.

    5/23/2025Senate
  5. Message from House.

    5/13/2025Senate
  6. Immediate message.

    5/13/2025House
  7. NOBA: Senate Floor

    5/13/2025Senate
  8. Passed House, yeas 61, nays 30.

    5/13/2025House
  9. Substituted for HF 1040.

    5/13/2025House
  10. Read first time, passed on file.

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

    5/13/2025House
  12. Immediate message.

    5/13/2025Senate
  13. Passed Senate, yeas 34, nays 14.

    5/13/2025Senate
  14. Amendment S-3151 adopted.

    5/13/2025Senate
  15. Amendment S-3151 filed.

    5/9/2025Senate
  16. NOBA: Senate Full Approps

    5/1/2025Senate
  17. Committee report, approving bill.

    4/30/2025Senate
  18. Introduced, placed on Appropriations calendar.

    4/30/2025Senate

Bill Text

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