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
20 provisions identified: 11 benefits, 0 costs, 9 mixed.
School aid cuts and fund shifts
For FY 2025–2026 the state sets instructional support aid to $0. It permanently cuts $7.5 million each year from payments tied to section 257.10(7), plus a one‑time $25 million cut for FY 2025–2026. Nonpublic pupil transportation is capped at $8,997,091 and approved claims over that amount are prorated. The state may deduct amounts from district aid and pay AEAs monthly (Sep 15–Jun 15) for media and educational services to nonpublic students. To help pay foundation aid, $21,881,303 from excess 2024 transfers is used in place of other general fund money.
Cap on school property tax rates
Starting July 1, 2025, if a district gets a modified supplemental amount, its combined school property tax rate next year cannot be higher than the rate for the year the aid was granted. This limits school tax rate increases in those districts.
State can fund 2025–26 pay raises
For FY 2025–2026, the Department of Management can use unspent balances in certain special funds to pay salary adjustments, consistent with constitutional limits.
Study countywide fire protection options
The State Fire Marshal studies whether countywide fire protection would improve coverage and response times, with a focus on the four largest counties. The report is due to the Legislature by June 30, 2026.
Study subacute mental health care
Lawmakers will study subacute mental health services, including services offered, facility structure, provider types, and commitment and discharge. Findings and recommendations are due by January 12, 2026.
Reimburse 911 call delivery costs faster
The 911 program manager can bill each joint 911 service board for reasonable costs to deliver 911 calls to public safety answering points. Each board must reimburse the department within 30 days of the request.
Faster student abuse probes and firings
The Department of Health and Human Services investigates reports of student abuse by school employees. It must start within 24 hours and finish within 30 business days, and the employee is put on leave during the probe. Schools must fire an employee when the department’s written report says the employee committed student abuse. Offenses involving sexual involvement with a minor student now also affect driving‑privilege rules.
Private health plans must join association
All entities that provide health benefit plans in Iowa must join the state’s health insurance association. State agencies and state‑run institutions are excluded. This changes how insurers share risk in the market.
Limits on state STORM loan fund
The STORM fund can make loans under the STORM Act, and the money is not part of the state’s general fund balance. The fund cannot make loans to a private entity to buy real property.
New horse‑racing taxes and fund
A 2% tax applies to a licensee’s simulcast wagering above $25,000,000 in a year, with 0.5% of gross horse wagering sent to the track’s county. A new 2% tax also applies to advance‑deposit pari‑mutuel wagers and goes to the Iowa Horse Racing Fund. Money is deposited and used as state budget law directs, and the racing commission follows state budget and audit rules.
More notice on medical/IEP consent
When the department delegates the right to consent for a child’s medical care or IEP participation to a licensee or approved kinship caregiver, it must notify the caregiver and the parents. It must also notify the Department of Education.
Faster PBM appeals and transparency
Your pharmacy benefits manager must answer your appeal within seven business days after it receives it. Health plans must also report average and median times to decide nonurgent prior authorization requests, across all services.
School safety teams and device rules
Districts and accredited nonpublic schools may set up safety assessment teams to evaluate and act when a student may pose a threat. By May 1, 2025, the Department of Education must share model policies on student personal electronic devices that schools can adopt.
Extra time for rehabilitation projects
The administering authority may extend a qualified rehabilitation project’s completion date by up to 12 more months. You must apply before your current extension ends and show extenuating circumstances outside your control.
No school spending on religious instruction
School districts and accredited nonpublic schools cannot spend money on religious instruction. Only de minimis costs to process parent notices and track attendance are allowed.
Criminal history check fees aligned
Criminal history check fees under two insurance‑related sections now match the fee used in section 522B.5A. The law does not set the dollar amount here.
Access to new and investigational treatments
If the FDA approves COMP 360 (a crystalline psilocybin product), Iowa removes it from Schedule I and allows legal prescribing under federal and state rules. Manufacturers or eligible facilities may offer investigational drugs, devices, or individualized treatments to eligible patients, but they do not have to. They may also require patients to pay the costs to make or provide them.
Four-year Iowa residency for medicine programs
To apply to the University of Iowa medical or dental programs, or to start a residency at University of Iowa Hospitals and Clinics, you must have lived in Iowa for four straight years right before you apply or begin.
Repeal of a 2024 law section
The law repeals a section of the 2024 Iowa Acts (chapter 1152, section 45). The effect depends on what that repealed section did.
Study ATV and off‑road rules
Lawmakers will study ATV and off‑road utility vehicle operation on highways, including possible registration and a fee. A report or a proposed bill is due by January 12, 2026.
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.
6/27/2025legislatureSigned by Governor.
6/11/2025GovernorNOBA: Final
6/3/2025legislatureReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/23/2025SenateExplanation of vote.
5/20/2025legislatureMessage from House.
5/14/2025HouseImmediate message.
5/14/2025legislatureNOBA: Senate Full Approps
5/14/2025SenatePassed House, yeas 78, nays 3.
5/14/2025HouseSubstituted for HF 1055.
5/14/2025legislatureRead first time, passed on file.
5/14/2025legislatureMessage from Senate.
5/14/2025SenateImmediate message.
5/14/2025legislaturePassed Senate, yeas 28, nays 11.
5/14/2025SenateAmendment S-3195 filed, adopted.
5/14/2025legislatureCommittee report, approving bill.
5/14/2025legislatureIntroduced, placed on Appropriations calendar.
5/14/2025legislature
Bill Text
As Introduced
Enrolled
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