# Iowa SF 659: 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.

Iowa SF 659, 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., is a 91st General Assembly (2025–2026) Senate bill sponsored by COMMITTEE ON APPROPRIATIONS; status signed, last action 2025-06-27 (Explanations of votes.); PRIA reads it as touching household money (as of 2026-10-18).

- Canonical: https://policyrisk.com/state-bill/IA-SF659-2025-2026
- As of: 2026-10-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Iowa SF 659
- State: Iowa
- Session: 91st General Assembly (2025–2026)
- Title: 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.
- Status: signed
- Chamber: Senate
- Introduced: 2025-05-14
- Last action: 2025-06-27, Explanations of votes.
- Sponsor: COMMITTEE ON APPROPRIATIONS
- Cosponsors: 0
- Touches household money: yes
- Roll calls: 2 (106 yes, 14 no in all)
- Economic provisions PRIA read: 13

## Summary

No summary available.

## Bill overview: provisions PRIA read

- School tax rates capped after extra aid: benefit, low. 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…
- Broader psilocybin prescribing after required rescheduling: benefit, low. 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: benefit, low. 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, a…
- State investigates school employee student abuse: benefit, low. 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 employ…
- State funds can cover employee raises: benefit, low. 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 se…
- Less state funding for Iowa schools: cost, low. 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 exce…
- Nonpublic school transportation payments face cap: cost, low. 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: cost, low. 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 direct…
- State entities barred from insurance association: cost, low. 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 specif…
- Tighter school aid rules for open enrollment: cost, low. 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 n…
- Medical applicants face later residency check: mixed, low. 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 app…
- District aid funds nonpublic student services: mixed, low. 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: mixed, low. 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-de…

## Sponsors and cosponsors

- Sponsor: COMMITTEE ON APPROPRIATIONS

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2025-05-14 | Senate | Passed Senate | pass | 28 | 11 |   |
| 2025-05-14 | House | Passed House | pass | 78 | 3 |   |

## Actions (17)

- 2025-06-27: Explanations of votes. (House)
- 2025-06-11: Signed by Governor. (Senate)
- 2025-06-03: NOBA: Final (legislature)
- 2025-05-23: Reported correctly enrolled, signed by President and Speaker, and sent to Governor. (Senate)
- 2025-05-20: Explanation of vote. (House)
- 2025-05-14: Message from House. (Senate)
- 2025-05-14: Immediate message. (House)
- 2025-05-14: NOBA: Senate Full Approps (Senate)
- 2025-05-14: Passed House, yeas 78, nays 3. (House)
- 2025-05-14: Substituted for HF 1055. (House)
- 2025-05-14: Read first time, passed on file. (House)
- 2025-05-14: Message from Senate. (House)
- 2025-05-14: Immediate message. (Senate)
- 2025-05-14: Passed Senate, yeas 28, nays 11. (Senate)
- 2025-05-14: Amendment S-3195 filed, adopted. (Senate)
- 2025-05-14: Committee report, approving bill. (Senate)
- 2025-05-14: Introduced, placed on Appropriations calendar. (Senate)

## Bill text

- As Introduced: [PDF](https://www.legis.iowa.gov/docs/publications/LGI/91/SF659.pdf)
- Enrolled: [PDF](https://www.legis.iowa.gov/docs/publications/LGE/91/SF659.pdf)

## Related bills

- HF 2801: A bill for an act modifying the major economic growth attraction program, and including effective date provisions. (Formerly HSB 785.) Effective date: 10/02/20… (signed)
- SF 2472: A bill for an act relating to state and local government taxes, fees, financial authority, and budgets, by modifying property assessment provisions, divisions… (signed)
- HF 2601: A bill for an act relating to campaign finance, including participation in ballot issue campaigns by foreign nationals and investigations of election misconduc… (signed)
- SF 2399: A bill for an act relating to bail and bond amounts and conditions. (Formerly SSB 3162.) Effective date: 07/01/2026. (signed)
- SF 2471: A bill for an act relating to fees for lifetime fur harvester licenses. (Formerly SF 2317, SSB 3121.) Effective date: 07/01/2026. (signed)
- SF 2299: A bill for an act relating to the district-to-community college sharing or concurrent enrollment program. (Formerly SF 2176.) Vetoed 6-2-26. (vetoed)

## Sources
- [As Introduced (PDF)](https://www.legis.iowa.gov/docs/publications/LGI/91/SF659.pdf)
- [Enrolled (PDF)](https://www.legis.iowa.gov/docs/publications/LGE/91/SF659.pdf)

## Related
- [HF 2801: A bill for an act modifying the major economic growth attraction program, and i…](https://policyrisk.com/state-bill/IA-HF2801-2025-2026)
- [SF 2472: A bill for an act relating to state and local government taxes, fees, financial…](https://policyrisk.com/state-bill/IA-SF2472-2025-2026)
- [HF 2601: A bill for an act relating to campaign finance, including participation in ball…](https://policyrisk.com/state-bill/IA-HF2601-2025-2026)
- [SF 2399: A bill for an act relating to bail and bond amounts and conditions. (Formerly S…](https://policyrisk.com/state-bill/IA-SF2399-2025-2026)
- [SF 2471: A bill for an act relating to fees for lifetime fur harvester licenses. (Former…](https://policyrisk.com/state-bill/IA-SF2471-2025-2026)
- [SF 2299: A bill for an act relating to the district-to-community college sharing or conc…](https://policyrisk.com/state-bill/IA-SF2299-2025-2026)
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Source: PRIA, https://policyrisk.com/state-bill/IA-SF659-2025-2026 (as of 2026-10-18).
