8.55  Iowa economic emergency fund.
  1.  The Iowa economic emergency fund is created. The fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state. The moneys credited to the fund are not subject to section 8.33 and shall not be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this section.
  2.  The maximum balance of the fund is the amount equal to two and one-half percent of the adjusted revenue estimate for the fiscal year. If the amount of moneys in the Iowa economic emergency fund is equal to the maximum balance, moneys in excess of this amount shall be distributed as follows:
  a.  The difference between the actual net revenue for the general fund of the state for the fiscal year and the adjusted revenue estimate for the fiscal year shall be transferred to the taxpayer relief fund created in section 8.57E.
  b.  The remainder of the excess, if any, shall be transferred to the general fund of the state.
  3.  a.  Except as provided in paragraphs “b”, “c”, “d”, and “f”, the moneys in the Iowa economic emergency fund shall only be used pursuant to an appropriation made by the general assembly. An appropriation shall only be made for the fiscal year in which the appropriation is made. The moneys shall only be appropriated by the general assembly for emergency expenditures.
  b.  Moneys in the fund may be used for cash flow purposes during a fiscal year provided that any moneys so allocated are returned to the fund by the end of that fiscal year.
  c.  There is appropriated from the Iowa economic emergency fund to the general fund of the state for the fiscal year in which moneys in the fund were used for cash flow purposes, for the purposes of reducing or preventing any overdraft on or deficit in the general fund of the state, the amount from the Iowa economic emergency fund that was used for cash flow purposes pursuant to paragraph “b” and that was not returned to the Iowa economic emergency fund by June 30 of the fiscal year. The appropriation in this paragraph shall not exceed one percent of the adjusted revenue estimate for the fiscal year for which the appropriation is made and is contingent upon all of the following having occurred:
  (1)  Prior to an appropriation being made pursuant to this paragraph, the balance of the general fund of the state at the end of the fiscal year for which the appropriation is made is negative.
  (2)  The governor issues an official proclamation and notifies the legislative fiscal committee and the legislative services agency that the balance of the general fund is negative and that an appropriation made pursuant to this paragraph brings the general fund of the state into balance.
  d.  There is appropriated from the Iowa economic emergency fund to the executive council an amount sufficient to pay the expenses authorized by the executive council, as addressed in section 7D.29.
  e.  If an appropriation is made pursuant to paragraph “c” for a fiscal year, there is appropriated from the general fund of the state to the Iowa economic emergency fund for the following fiscal year, the amount of the appropriation made pursuant to paragraph “c”.
  f.  (1)  It is the intent of the general assembly for this paragraph to enable the executive branch to react to disasters impacting this state, including the ability to protect citizens, safeguard property, ensure safety, and provide for economic stability during disaster emergencies.
  (2)  For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, there is appropriated from the Iowa economic emergency fund to the department of management ten percent of the maximum balance of the Iowa economic emergency fund as calculated for the immediately preceding fiscal year, to be used for disaster response, disaster recovery activities, or disaster aid to citizens. For purposes of this subparagraph, “disaster response, disaster recovery activities, or disaster aid to citizens” includes any of the following:
  (a)  Disaster aid provided to businesses engaged in disaster recovery as described in section 15.111, and housing businesses engaged in disaster recovery housing projects as defined in section 15.354, subsection 6.
  (b)  Disaster recovery housing assistance provided under chapter 16, subchapter VII, part 6.
  (c)  Support for programs under chapter 29C, including support for the director of the department of homeland security and emergency management in executing the director’s powers and duties under section 29C.8.
  (d)  Support for any other program through which disaster response, recovery activities, or aid is effected, provided the program is not inconsistent with the intent set forth in this paragraph. 
  (3)  The department of management’s disbursements of moneys appropriated to the department under this paragraph are contingent upon all of the following:
  (a)  The issuance of a proclamation of disaster emergency by the governor under section 29C.6, which proclamation covers the disaster for which the moneys will be used.
  (b)  The disbursement occurs at the direction of the governor, with the approval of the executive council, pursuant to section 29C.6, subsection 18.
  (4)  Subject to the approval of the governor, the department of management may provide for an interdepartmental transfer of moneys appropriated in this paragraph to another department or establishment for the purposes specified in this paragraph, subject to the notification and reporting requirements set forth in section 8.39, subsections 4 and 5, but notwithstanding the other limitations and requirements of section 8.39. Disbursements by the department of management under this paragraph to another department or establishment shall not be counted in calculating the aggregate amount of intradepartmental and interdepartmental transfers under section 8.39, subsection 3. 
  (5)  Moneys appropriated in this paragraph shall not supplant other appropriated moneys.
  (6)  (a)  Notwithstanding section 8.33, moneys disbursed by the department of management under this paragraph to another department or establishment shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year, at which time the moneys shall revert to the Iowa economic emergency fund.
  (b)  Moneys not disbursed as described in subparagraph division (a) shall revert to the Iowa economic emergency fund at the close of the fiscal year for which the moneys were appropriated, as required under section 8.33.
  4.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the Iowa economic emergency fund shall be credited to the rebuild Iowa infrastructure fund.
84 Acts, ch 1305, §21; 92 Acts, ch 1227, §5; 94 Acts, ch 1181, §8; 95 Acts, ch 214, §13
; 2001 Acts, 2nd Ex, ch 6, §27, 28, 37
; 2002 Acts, ch 1169, §1; 2002 Acts, ch 1175, §73
; 2002 Acts, 2nd Ex, ch 1001, §25, 26, 33, 52
; 2003 Acts, ch 35, §45, 49; 2003 Acts, ch 179, §29, 30, 40; 2004 Acts, ch 1175, §216; 2005 Acts, ch 179, §24, 25; 2006 Acts, ch 1173, §1, 3; 2011 Acts, ch 123, §29, 32
; 2011 Acts, ch 131, §14, 15, 158
; 2012 Acts, ch 1021, §1; 2016 Acts, ch 1011, §1; 2018 Acts, ch 1028, §10, 13; 2018 Acts, ch 1161, §47, 53, 55 – 57; 2024 Acts, ch 1185, §21; 2025 Acts, ch 28, §81, 82; 2025 Acts, ch 136, §134
Referred to in §7D.29, 8.54, 8.58, 29C.6
Subsection 3, paragraph a amended
Subsection 3, NEW paragraph f