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

17 provisions identified: 15 benefits, 1 costs, 1 mixed.

More job and living help for Iowans with disabilities

Beginning July 1, 2025, Vocational Rehabilitation Services gets $6,226,739 and up to 251 staff to help people with disabilities get and keep jobs. The division works with community providers and must report outreach by January 15, 2026. The law also gives $86,547 to centers for independent living. It adds $84,804 in matching funds for programs that help people with severe disabilities live more independently.

Keep workforce offices and tools running statewide

Beginning July 1, 2025, $6,902,636 supports the Department of Workforce Development and up to 167.45 staff. $150,000 licenses an online job‑prep resource through the State Library. $4,616,084 keeps field offices open. $228,822 pays for shared IT services. Any leftover penalty and interest money also funds the department, and $125,000 covers staff to complete workforce outcome reports.

More adult education, ESL, and refugee help

Beginning July 1, 2025, the state provides $5,500,000 to community colleges for adult education and literacy. $3,883,000 follows the statutory formula, up to $150,000 runs the program, and up to $1,257,000 funds ESL grants by regional need. $210,000 goes to Health and Human Services for a refugee support program in a county over 350,000. Another $500,000 goes to colleges for adult ESL grants using the same application rules as similar workforce grants.

More funding for jobs, manufacturing, and rural projects

Beginning July 1, 2025, $11.7 million funds the High Quality Jobs program; up to $1 million can go to main street infrastructure, and recipients may be asked to testify on spending. $2,016,675 supports the Manufacturing 4.0 program. $700,000 supports Empower Rural Iowa projects. $1,250,000 will go to a new grocer and local food processing fund only if the separate bill creating that fund is enacted. $100,000 shifts to insurance economic development from excess insurance division receipts.

University research and business support funding

Beginning July 1, 2025, the Board of Regents gets $3,000,000 for tech commercialization and entrepreneurship (35% ISU, 35% UI, 30% UNI), with a dollar‑for‑dollar match and a report due January 15, 2026. Iowa State gets $2,424,302 (up to 50.94 FTEs), with at least $735,728 for small business development centers. The University of Iowa gets $209,279 (6 FTEs) for the research park and $2,000,000 (8 FTEs) for entrepreneurship. UNI gets $1,466,419 (up to 13 FTEs) for centers like Foundry 4.0 and the Family Business Center. Biosciences and manufacturing work get $2,963,995 at ISU (9.18 FTEs), $1,000,000 at UI (4.35 FTEs), and $394,321 at UNI (2.73 FTEs); ISU and UI funds may carry to the next year if unspent, and UNI seeks private matches.

EDA funding with new guardrails on grants

Beginning July 1, 2025, the Economic Development Authority gets $12,921,510 and up to 112.50 staff for business and community programs. Unspent EDA funds can carry over to the next fiscal year. The Authority must pursue goals to grow Iowa’s economy and population, and recipients must testify about spending if asked. Businesses getting EDA funds must fill new and retained jobs only with U.S. citizens or people authorized to work; the state can take back money for knowing violations. The named appropriation cannot fund geothermal snow‑ and ice‑melt systems.

Rent help for HCBS participants

Beginning July 1, 2025, the Iowa Finance Authority provides $873,000 to reimburse rent for people eligible for the HCBS rent subsidy program. Up to $35,000 can cover administrative costs. This helps eligible people with disabilities pay rent during FY 2025–2026.

Job help for people leaving prison

Beginning July 1, 2025, $387,158 funds an offender reentry program with up to 5 staff. The program places staff in correctional facilities and provides job skills and reentry support to people returning from incarceration.

STEM internships for college students

Beginning July 1, 2025, the state provides $633,325 to support STEM internships with eligible Iowa employers. The money helps place students in paid or supported roles during FY 2025–2026.

Stronger checks on worker status and safety data

Beginning July 1, 2025, the state funds $379,631 and up to 4 staff to investigate worker misclassification. This helps protect pay and benefits for employees. It also funds $125,555 and up to 2.55 staff to run workplace safety surveys and analyze injury data. Better data helps make jobs safer over time.

Summer jobs for at-risk teens

Beginning July 1, 2025, the state funds $250,000 for a summer intern pilot. It helps young people at risk of not finishing high school get paid work experience in high‑demand careers. Only youth in the pilot get placements.

Business help for entrepreneurs with disabilities

Beginning July 1, 2025, the state funds the entrepreneurs with disabilities program. Grants pay for training and business help so you can start or grow a small business. Support covers FY 2025–2026.

Capital for women and research startups

Beginning July 1, 2025, the Economic Development Authority can fund early‑stage companies started by women. It can also offer grants, loans, or forgivable loans to commercialize value‑added agriculture, advanced technology, or biotech. Funding comes from the designated appropriations.

Grants to grow apprenticeships at small employers

Beginning July 1, 2025, the state provides $760,000 to help small and midsize employers start or expand registered apprenticeships. Grants support program development, employer outreach, and more apprenticeship slots.

Housing renewal pilot extended and funded

Beginning July 1, 2025, the housing renewal pilot stays in effect through July 1, 2028. The law also provides $550,000 to the Iowa Finance Authority for a nonprofit to award grants to eligible communities. These funds support local housing renewal projects.

Grants to bring former Iowans back

Beginning July 1, 2025, the Economic Development Authority may grant funds to local groups to recruit former Iowa residents and alumni back to live and work. Grants come from the stated appropriation.

Funding caps for arts and tourism marketing

For FY 2025–2026, arts and culture enhancement is capped at $448,403. Tourism marketing is capped at $1,443,700. These limits override standing appropriations for that year.

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.

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

    6/11/2025Governor
  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.

    5/13/2025House
  6. Immediate message.

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

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

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

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

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

    5/13/2025Senate
  12. Immediate message.

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

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

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

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

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

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

    4/30/2025legislature

Bill Text

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