IowaSF 64791st General Assembly (2025–2026)SenateWALLET

A bill for an act relating to and making appropriations to the education system, including the funding and operation of the department for the blind, department of education, and state board of regents, and including contingent effective date provisions. (Formerly SSB 1231.) Effective date: 07/01/2025.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

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Bill Overview

Analyzed Economic Effects

39 provisions identified: 34 benefits, 2 costs, 3 mixed.

Conditional incentives for health professionals

Beginning July 1, 2025, the state sets aside $7,985,911 for a health care professional incentive program. The deposit happens only if the program is enacted in specified 2025 legislation. If enacted, eligible health care professionals may receive incentives funded by this money.

Loan repayment for rural veterinarians

Beginning July 1, 2025, the state provides $700,000 for the rural veterinarian loan repayment program for FY 2025–2026. Eligible rural veterinarians can receive loan repayment help, lowering education debt and supporting rural animal care.

More All Iowa Opportunity scholarships

Beginning July 1, 2025, the state provides $3,229,468 for the All Iowa Opportunity Scholarship. For the fiscal year starting July 1, 2025, students can also use the scholarship at accredited private colleges because funding exceeds $500,000. The fund keeps year‑end balances and interest so more awards remain available.

More college aid and training grants

Beginning July 1, 2025, the state deposits $23,927,005 into the Future Ready Iowa last-dollar scholarship fund. It also provides $5,000,000 for skilled workforce tuition grants tied to shortage fields. The law creates two standing funds for tuition grants at accredited private and eligible for‑profit colleges that keep interest and do not revert each year. These steps expand money available to pay remaining tuition and related costs for qualifying students.

More Future Ready grants and training

Beginning July 1, 2025, the state boosts Future Ready Iowa. It deposits $425,000 into the skilled workforce grant fund and $6,500,000 into the workforce grant and incentive fund. It gives $300,000 to build a statewide work‑based learning clearinghouse. It provides $591,533 and 4.95 staff to run the last‑dollar scholarship. These funds keep their year‑end balances and interest so more grants and scholarships remain available.

More support for Teach Iowa Scholars

Beginning July 1, 2025, the state provides $948,715 for the Teach Iowa Scholar program. The fund keeps its year‑end balance and interest so more teacher scholarships remain available.

Ongoing aid for high-need schools

Starting July 1, 2025, the state provides $10,000,000 every year for supplemental help to high‑need schools. Up to $100,000 each year can pay administrative costs and one staff position. Families at qualifying schools may see more supports.

Scholarships for Iowa National Guard

Beginning July 1, 2025, the state provides $6,600,000 for National Guard service scholarships. Eligible Guard members can receive awards under the program rules.

Stronger special education and classroom supports

Beginning July 1, 2025, $5,000,000 and 60 full‑time positions support special education supervision and oversight across regions. The law deposits $2,351,382 into the therapeutic classroom incentive fund. It also provides $35,000 for Best Buddies to support friendships, jobs, and leadership for students with intellectual and developmental disabilities. Groups receiving Best Buddies funds must report student‑identifying data each year as required.

Funding for deaf and blind education services

Beginning July 1, 2025, the Iowa School for the Deaf gets $12,049,644 and 121 staff positions. Services for the Blind and Visually Impaired receive $5,012,169 and 56 positions. The Department for the Blind gets $3,207,190 and 88.98 positions to continue services. The law also provides $200,000 to develop statewide family support mentoring guidelines for language and communication needs.

Large funding for community colleges

Starting July 1, 2025, the state provides $243,358,161 to community colleges for FY 2025–2026. The money supports college operations and state financial aid.

State universities and Regents programs funded

Beginning July 1, 2025, the State University of Iowa receives $223,496,355 and 5,058.55 FTE for salaries, operations, equipment, and financial aid. The Office of the State Board of Regents gets $764,642 and 2.48 FTE, and the Western Iowa Regents Resource Center gets $268,297. The Oakdale campus receives $2,103,819 and 38.25 FTE. Targeted centers, like the Center for Biocatalysis and the Iowa Nonprofit Resource Center, are also funded. The law pays $115,000 for Iowa’s membership in the Midwestern Higher Education Compact, with any unspent MHEC money staying available into the next year.

Steady tuition grants; old reserve ends

The law creates a Vocational‑Technical Tuition Grants Fund that keeps interest and does not revert. Starting July 1, 2025 and every year, the state deposits $53,761,210 to private‑college grants, $112,914 to for‑profit‑college grants, and $1,750,185 to vocational‑technical grants. Any earlier unspent tuition grant money moves into the new funds on July 1, 2025. The law also repeals the old scholarship and tuition grant reserve fund.

More help for career and STEM

Beginning July 1, 2025, the state deposits $4,800,000 into the Pathways for Academic Career and Employment fund. It deposits $2,000,000 into the Gap Tuition Assistance fund to help cover remaining tuition. It also provides $700,000 for the STEM BEST program, and any unspent money carries over to the next year.

More training and support for teachers

For FY 2025–2026, the state funds teacher supports. Up to $626,191 builds a delivery system for career paths and leadership roles, prioritizing districts with under 600 students. $508,250 funds national board certification awards, with at least $85,000 for the ambassador to education. Up to $728,216 supports professional development and evaluator training. Up to $1,077,810 establishes teacher development academies. Up to $50,000 supports mentoring for beginning fine arts teachers.

One statewide site for school jobs

Beginning July 1, 2025, the state funds an online job portal for education jobs. Schools and other education employers post openings in one place. Job seekers can search statewide listings on a single site.

More support for school meal programs

Beginning July 1, 2025, the state provides $2,176,797 and 26.42 FTE as the state match for federal school meal programs. The money helps school districts run meal programs under federal rules.

More school-based mental health support

Beginning July 1, 2025, $3,383,936 goes to area education agencies for school‑based children’s mental health services and awareness training. Of this, $200,000 funds a rural grief and loss pilot run by a statewide not‑for‑profit health care organization. That organization must report spending and outcomes by September 30, 2026.

STEM learning and youth career programs

Beginning July 1, 2025, the STEM collaborative initiative gets $6,354,848 and 5 FTE. At least $500,000 supports a public‑private tech education partnership, and up to 5% of unencumbered funds may be held for summer programs. The state provides $600,000 so resident high school students can take community college classes in the summer; unused funds can carry over. Jobs for America’s Graduates receives $9,946,450 for specialists in schools, with funds that can carry over. The online AP STEM academy gets $463,616 to deliver AP STEM courses statewide.

Support for testing and school report cards

Beginning July 1, 2025, $3,000,000 offsets statewide student assessment costs. Up to $300,000 may support Iowa testing programs to lower costs at accredited nonpublic schools. Another $250,000 and 1.85 FTE fund goal‑setting, school report cards, and data systems. The Department of Education must send an antibullying program and spending report to lawmakers by January 15, 2026.

Teacher training and quality programs funded

Beginning July 1, 2025, the state provides $2,176,458 for required professional development for public and accredited nonpublic schools. It funds $2,990,467 and 5.87 FTE for the Student Achievement and Teacher Quality program. It also deposits $500,000 into the computer science teacher training incentive fund.

Workforce training and community college projects

Beginning July 1, 2025, $15,100,000 goes into workforce training and economic development funds; up to $100,000 may be used for administration. Career and technical education is supported with $721,779 for administration and $2,952,459 to reimburse eligible regional CTE partnerships. Community colleges receive $6,000,000 for building upgrades, safety, and ADA work. Another $75,000 runs the workforce outcome reporting system to track results for funded programs.

Less state aid for college students

For FY 2025–2026, the state sets work-study funding to $0. Students who relied on state work-study may see fewer jobs and less pay. On July 1, 2025, any unspent money in the scholarship and tuition grant reserve moves to the general fund. The law also repeals subsection 4 of section 256.177, removing an administrative rule.

Early reading help and possible test fees

Beginning July 1, 2025, schools receive $7,824,782 for the early readers program. The state buys a statewide literacy screening system for pre‑K through grade 6 with $1,915,000. Districts and accredited nonpublic schools may be charged a per‑student fee for any remaining screening costs after this funding. The Iowa Reading Research Center gets $1,500,000, with up to $250,000 for work on teacher preparation and a dyslexia specialist endorsement, and it must report how this money is spent.

Conditional funding for UI speech center

Beginning July 1, 2025, the state provides $1,000,000 for the Center for Intellectual Freedom at the University of Iowa only if a separate law creating it is enacted. If enacted, any unspent funds stay available through the next fiscal year.

Loan forgiveness allowed for chiropractors

For FY 2025–2026, the chiropractic loan fund can be used for loan forgiveness under the program rules. Eligible chiropractors may receive forgiveness during this period.

Rural veterinary care fund protections

The law creates the Rural Veterinary Care Trust Fund. Money left on June 30 does not revert, and interest stays in the fund. Money promised to an eligible person is set aside for the length of their agreement. Repayments go back into the fund. This takes effect July 1, 2025.

Funding for university entrepreneurship centers

The law gives $125,000 for FY 2025–2026 to the three regent universities for John Pappajohn entrepreneurship centers. The money is split equally and must supplement, not replace, other funding. Funds start July 1, 2025.

Funding for Iowa Flood Center research

The law gives $1,205,593 to the Iowa Flood Center for FY 2025–2026. The money supports flood research, modeling, and engineering work. Funds start July 1, 2025.

Funding for public health labs and registries

Beginning July 1, 2025, the state funds key public health work. It gives $4,822,610 and 102.5 FTE to the State Hygienic Laboratory. It funds the statewide cancer registry ($143,410; 2.10 FTE), the substance abuse consortium ($53,427; 0.99 FTE), and the birth defects registry ($36,839; 0.38 FTE).

More early help for babies and toddlers

The law gives $1,721,400 for birth-to-three services under IDEA for July 1, 2025 to June 30, 2026. Of that, $383,769 goes to Child Health Specialty Clinics at the University of Iowa to help premature, drug-exposed, and medically fragile infants and toddlers. It also provides $574,500 for Early Head Start, including prenatal support. Groups that already ran a state-funded Early Head Start get first priority.

More funds for kids' specialty care

The law gives $634,502 for child health services at the University of Iowa for FY 2025–2026. It supports childhood cancer networks, rural hemophilia care, and high-risk infant follow-up. County-collected money also covers prescription drugs for students at the Iowa School for the Deaf and the Iowa Educational Services for the Blind and Visually Impaired during FY 2025–2026. Funding starts July 1, 2025.

More support for family medicine training

The law gives $2,220,598 for the family practice residency program and $624,374 for the primary health care initiative for FY 2025–2026. The dean allocates residency funds under chapter 148D, and it supports 2.71 full-time jobs. Of the primary care money, $254,889 goes to the Department of Family Practice and supports 6.22 full-time jobs. Funds start July 1, 2025.

Education department operations stay funded

Beginning July 1, 2025, the Department of Education receives $7,073,808 and 71.62 FTE for salaries and support for FY 2025–2026. This keeps statewide education administration running.

Help paying college classes in high school

Beginning July 1, 2025, the state provides $1,000,000 to pay community colleges for concurrent enrollment of accredited nonpublic school students. Any unspent money stays available through the next fiscal year.

New rules for regents budgets and projects

For FY 2025–2026, regent universities cannot cut police department budgets. The Board of Regents must send quarterly financial reports to the Legislature; the December 31, 2025 report must include five-year graduation rates. The Board may issue bonds or notes to fund energy-saving projects that pay for themselves in about six years.

Public broadcasting services stay funded

Beginning July 1, 2025, the Public Broadcasting Division receives $8,165,236 and 57.11 FTE for salaries, support, and capital needs. This keeps public broadcasting services operating for Iowa residents.

Cap on funding for at-risk kids

For FY 2025–2026, the law caps funding for at-risk children programs at $10,524,389. If funding is below prior levels, reductions are prorated across the listed programs. The cap takes effect July 1, 2025.

New court reporter equipment grants

Beginning July 1, 2025, a new court reporter equipment grant program opens for trainees enrolled in an in‑state program. The state deposits $50,000 to support these grants and moves any leftover, unencumbered money from the old incentive fund into the new fund. The old court reporter incentive fund is repealed.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON APPROPRIATIONS

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 120 • No: 108

legislature vote 5/13/2025

Amendment H-1344

Yes: 27 • No: 62

House vote 5/13/2025

Passed House

Yes: 59 • No: 32

Senate vote 5/12/2025

Passed Senate

Yes: 34 • No: 14

Actions Timeline

  1. Explanations of votes.

    6/27/2025legislature
  2. Explanation of vote.

    6/27/2025legislature
  3. Explanation of vote.

    6/27/2025legislature
  4. Item vetoed, signed by Governor.

    6/11/2025Governor
  5. NOBA: Final

    6/2/2025legislature
  6. Reported correctly enrolled, signed by President and Speaker, and sent to Governor.

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

    5/14/2025House
  8. Immediate message.

    5/13/2025legislature
  9. Passed House, yeas 59, nays 32.

    5/13/2025House
  10. Amendment H-1344, yeas 27, nays 62, filed, lost.

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

    5/13/2025Senate
  12. Amendment H-1345, yeas 29, nays 62, filed, lost.

    5/13/2025legislature
  13. Substituted for HF 1045.

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

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

    5/13/2025Senate
  16. Immediate message.

    5/12/2025legislature
  17. Passed Senate, yeas 34, nays 14.

    5/12/2025Senate
  18. Amendment S-3144 adopted, as amended.

    5/12/2025legislature
  19. Amendment S-3157 to S-3144 filed, adopted.

    5/12/2025legislature
  20. Amendment S-3144 filed.

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

    5/6/2025Senate
  22. Committee report, approving bill.

    5/6/2025legislature
  23. Introduced, placed on Appropriations calendar.

    5/6/2025legislature

Bill Text

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