All Roll Calls
Yes: 106 • No: 14
IowaSF 65991st General Assembly (2025–2026)SenateWALLET
A bill for an act relating to state government and finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers; authorizing expenditure of unappropriated moneys in special funds; providing for properly related matters including crystalline polymorph psilocybin, medical residency and fellowship positions, state membership in the Iowa individual health benefit reinsurance association, student abuse by school employees, modified supplemental amounts for school budgets, wagering taxes, a state fire marshal study, certain legislative interim studies, and 911 emergency communications services; making corrections; and including effective date, applicability, and retroactive applicability provisions. (Formerly SSB 1241.) Effective date: 06/11/2025, 07/01/2025. Applicability date: 01/01/2020, 04/30/2025, 07/01/2025.
Sponsored By: COMMITTEE ON APPROPRIATIONS
Signed by Governor
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 5 benefits, 5 costs, 3 mixed.
School tax rates capped after extra aid
Districts receiving the specified open-enrollment supplemental amount face a limit on their combined school property tax rate. Their rate for all school levies cannot rise in the next budget year above the rate in the aid year. This applies to supplemental amounts granted for budget years beginning on or after July 1, 2025. The limit caps the tax rate, not an individual property's tax bill.
Broader psilocybin prescribing after required rescheduling
After the required rescheduling, the law allows crystalline polymorph psilocybin to be prescribed, distributed, and marketed. It removes the former limit to COMP 360 or another Food and Drug Administration-approved trade name. This does not make the drug available before the required rescheduling.
Schools get model student device policies
The Department of Education must develop and distribute model policies for students' personal electronic devices. Districts that adopt them satisfy their legal responsibilities for these policies, but adoption is optional. The models were due May 1, 2025. This provision took effect June 11, 2025, and applies retroactively to April 30, 2025.
State investigates school employee student abuse
Iowa's Department of Health and Human Services investigates accepted student-abuse reports involving school employees, starting within 24 hours and finishing within 30 business days. After required notice of a qualifying identifiable-source report, public and nonpublic schools must place the employee on leave and bar school entry until completion. The department issues written reports to school authorities and, when applicable, the educator licensing board, keeping records separate from child-abuse records. It must refer and jointly investigate alleged conduct it determines is criminal with law enforcement. Schools must fire employees after the specified written abuse finding; student abuse also becomes a basis for reviewing employee driving qualifications.
State funds can cover employee raises
For FY 2025-2026, the Department of Management may use unappropriated money in specified revolving, trust, and special funds for salary adjustments. The adjustments must already be provided for, and use of the money remains subject to constitutional limits. The law does not create a new raise or set its amount.
Less state funding for Iowa schools
Beginning July 1, 2025, Iowa reduces specified school district funding by $7.5 million each year. For FY 2025-2026, it cuts another $25 million from state aid and provides no instructional support state aid. Districts share the reductions proportionally. The law also uses $21.881303 million in excess emergency-fund money transferred for FY 2024-2025 to pay FY 2025-2026 foundation aid. That money replaces an equal amount of other general fund money; it does not add school aid.
Nonpublic school transportation payments face cap
Iowa provides $8.997091 million for approved nonpublic school transportation claims in FY 2025-2026. If approved claims exceed that amount, the Department of Education reduces each payment proportionally.
Local 911 boards must repay costs
Joint 911 service boards must repay reasonable costs of delivering 911 calls to emergency answering centers when the program manager requests reimbursement. Payment to Iowa's Department of Homeland Security and Emergency Management is due within 30 days of the request. The provision does not directly charge households.
State entities barred from insurance association
Iowa and its departments and independent agencies cannot belong to the Iowa comprehensive health insurance association. The exclusion also covers the State Board of Regents and institutions it controls. It took effect June 11, 2025, and applies retroactively to January 1, 2020. The provision specifies no direct change to household premiums, coverage, or benefits.
Tighter school aid rules for open enrollment
Effective June 11, 2025, this supplemental aid calculation requires open-enrollment students to make up at least 45% of district enrollment. Districts cannot qualify if most open-enrollment students receive online instruction from a private provider. The amount is capped at 50% of a formula using net open-enrollment changes, district per-pupil cost differences, and supplements. The formula includes professional-development and early-intervention supplements, but excludes the teacher-salary supplement. Before requesting aid, the board must hold a public hearing and publish notice 10 to 20 days beforehand.
Medical applicants face later residency check
For covered medical and dental programs and University of Iowa Hospitals and Clinics residencies, the four-year Iowa residency check moves later. Applicants must have lived in Iowa for four consecutive years immediately before classes or residency begins, rather than before applying. Time after applying now counts, but the required residency period must run immediately before the start.
District aid funds nonpublic student services
Iowa may deduct money from school districts' state aid to pay for services for nonpublic students within agency boundaries. The deductions cover media and educational services provided by area education agencies. The state pays the agencies monthly from September 15 through June 15 each school year.
Wagering revenue shifts to racing oversight
The law redirects horse-race revenue from the 2% simulcast wagering tax above $25 million annually to a new Iowa horse racing fund. This replaces the former county allocation without changing that tax's stated rate or threshold; remaining tax revenue goes to the commission. A separate 2% advance-deposit wagering tax also funds the account in place of other wagering taxes. The commission distributes fund money to eligible horse-racing regulators under the federal Horseracing Integrity and Safety Act. Interest stays in the fund, which is protected from the general year-end sweep; repeal of that federal law sends its money to Iowa's infrastructure fund.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON APPROPRIATIONS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/14/2025
Passed Senate
Yes: 28 • No: 11
House vote • 5/14/2025
Passed House
Yes: 78 • No: 3
Actions Timeline
Explanations of votes.
6/27/2025HouseSigned by Governor.
6/11/2025SenateNOBA: Final
6/3/2025legislatureReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/23/2025SenateExplanation of vote.
5/20/2025HouseMessage from House.
5/14/2025SenateImmediate message.
5/14/2025HouseNOBA: Senate Full Approps
5/14/2025SenatePassed House, yeas 78, nays 3.
5/14/2025HouseSubstituted for HF 1055.
5/14/2025HouseRead first time, passed on file.
5/14/2025HouseMessage from Senate.
5/14/2025HouseImmediate message.
5/14/2025SenatePassed Senate, yeas 28, nays 11.
5/14/2025SenateAmendment S-3195 filed, adopted.
5/14/2025SenateCommittee report, approving bill.
5/14/2025SenateIntroduced, placed on Appropriations calendar.
5/14/2025Senate
Bill Text
As Introduced
Enrolled
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