House File 2782 H-8461 Amend House File 2782 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 DEPARTMENT OF VETERANS AFFAIRS —— FY 2026-2027 5 Section 1. DEPARTMENT OF VETERANS AFFAIRS. There is 6 appropriated from the general fund of the state to the 7 department of veterans affairs for the fiscal year beginning 8 July 1, 2026, and ending June 30, 2027, the following amounts, 9 or so much thereof as is necessary, to be used for the purposes 10 designated: 11 1. DEPARTMENT OF VETERANS AFFAIRS ADMINISTRATION 12 For salaries, support, maintenance, and miscellaneous 13 purposes, and for not more than the following full-time 14 equivalent positions: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,369,205 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 15.00 17 2. IOWA VETERANS HOME 18 For salaries, support, maintenance, and miscellaneous 19 purposes: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,145,736 21 a. The Iowa veterans home billings involving the department 22 of health and human services shall be submitted to the 23 department on at least a monthly basis. 24 b. The Iowa veterans home expenditure report shall be 25 submitted monthly to the general assembly. 26 3. HOME OWNERSHIP ASSISTANCE PROGRAM 27 For transfer to the Iowa finance authority for the 28 continuation of the home ownership assistance program for 29 persons who are or were eligible members of the armed forces 30 of the United States or eligible service members pursuant to 31 section 16.54: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200,000 33 DIVISION II 34 AGING AND DISABILITY SERVICES —— FY 2026-2027 35 -1- HF 2782.4478 (1) 91 ak/ko 1/ 37 #1.
Sec. 2. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— AGING 1 AND DISABILITY SERVICES. There is appropriated from the 2 general fund of the state to the department of health and human 3 services for the fiscal year beginning July 1, 2026, and ending 4 June 30, 2027, the following amount, or so much thereof as is 5 necessary, to be used for the purposes designated: 6 For aging programs for the department of health and human 7 services and area agencies on aging to provide citizens of 8 Iowa who are 60 years of age and older with case management; 9 for Iowa’s aging and disabilities resource centers; for the 10 return to community program; for the purposes of chapter 231E; 11 to administer the prevention of elder abuse, neglect, and 12 exploitation program pursuant to section 231.56A, in accordance 13 with the requirements of the federal Older Americans Act of 14 1965, 42 U.S.C. §3001 et seq., as amended; for the operation 15 of the dependent adult abuse services program pursuant to 16 chapter 235B; for matching funding for programs to enable 17 persons with severe physical or mental disabilities to function 18 more independently; for costs associated with centers for 19 independent living; and for other services which may include 20 but are not limited to adult day care, respite care, chore, 21 information and assistance, and material aid; for information 22 and options counseling for persons with disabilities; and 23 for salaries, support, administration, maintenance, and 24 miscellaneous purposes, and for not more than the following 25 full-time equivalent positions: 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,379,531 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 101.00 28 1. Moneys appropriated in this section may be used to 29 supplement federal moneys received under federal regulations. 30 To receive moneys appropriated in this section, a local area 31 agency on aging shall match the moneys with moneys from other 32 sources according to rules adopted by the department. Moneys 33 appropriated in this section may be used for services not 34 specifically enumerated in this section only if approved by the 35 -2- HF 2782.4478 (1) 91 ak/ko 2/ 37
department as part of an area agency on aging’s area plan. 1 2. Of the moneys appropriated in this section, $949,282 2 is allocated to be used for the comprehensive family support 3 program created in section 231.80 as enacted under this Act. 4 3. Of the moneys appropriated in this section, $33,632 5 is allocated to be used to build community capacity through 6 the coordination and provision of training opportunities in 7 accordance with the consent decree of Conner v. Branstad, No. 8 4-86-CV-30871 (S.D. Iowa, July 15, 1994). 9 DIVISION III 10 BEHAVIORAL HEALTH —— FY 2026-2027 11 Sec. 3. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 12 BEHAVIORAL HEALTH. There is appropriated from the general fund 13 of the state to the department of health and human services for 14 the fiscal year beginning July 1, 2026, and ending June 30, 15 2027, the following amount, or so much thereof as is necessary, 16 to be used for the purposes designated: 17 For behavioral health prevention, education, early 18 intervention, treatment, recovery support, and crisis 19 services in order to support statewide access to treatment for 20 behavioral health conditions; stabilization and mitigation of 21 behavioral health crises; and recovery for individuals and 22 families impacted by behavioral health conditions. Activities 23 shall align with accepted best practice guidance standards for 24 behavioral health including those published by the centers for 25 disease control and prevention of the United States department 26 of health and human services, and the substance abuse and 27 mental health services administration of the United States 28 department of health and human services, for health promotion; 29 universal, selective, and indicated prevention; treatment; and 30 recovery services and supports; and shall include a 24-hour 31 helpline, public information resources, professional training, 32 youth prevention, program evaluation, and efforts at the state 33 and local levels, and for not more than the following full-time 34 equivalent positions: 35 -3- HF 2782.4478 (1) 91 ak/ko 3/ 37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,127,121 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 70.00 2 1. Of the moneys appropriated in this section, $300,000 3 is allocated to support the work of the children’s behavioral 4 health system including evidence-based behavioral health 5 prevention, treatment, and recovery services and supports for 6 children and their families. 7 2. Of the moneys appropriated in this section, $950,000 8 is allocated for an integrated substance use disorder managed 9 care system. The department shall maintain the level of mental 10 health and substance use disorder treatment services provided 11 by the managed care contractors, and shall take the steps 12 necessary to continue the federal waivers as needed to maintain 13 the level of services. 14 Sec. 4. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— SPORTS 15 WAGERING RECEIPTS FUND. There is appropriated from the 16 sports wagering receipts fund created in section 8.57I, to the 17 department of health and human services for the fiscal year 18 beginning July 1, 2026, and ending June 30, 2027, the following 19 amount, or so much thereof as is necessary, to be used for 20 behavioral health prevention, education, early intervention, 21 treatment, recovery support, and crisis services in order to 22 support statewide access to treatment for behavioral health 23 conditions; stabilization and mitigation of behavioral health 24 crises; and recovery for individuals and families impacted by 25 behavioral health conditions: 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,750,000 27 DIVISION IV 28 PUBLIC HEALTH —— FY 2026-2027 29 Sec. 5. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— PUBLIC 30 HEALTH. There is appropriated from the general fund of the 31 state to the department of health and human services for the 32 fiscal year beginning July 1, 2026, and ending June 30, 2027, 33 the following amount, or so much thereof as is necessary, to be 34 used for the purposes designated: 35 -4- HF 2782.4478 (1) 91 ak/ko 4/ 37
For programs that support health promotion, protect the 1 health and safety of the public, conduct disease surveillance 2 and investigation to reduce the incidence of morbidity and 3 mortality, serve individuals with chronic conditions including 4 but not limited to cancer, support the Iowa donor registry as 5 specified in section 142C.18, and strengthen the health care 6 delivery system and workforce to improve health outcomes for 7 all Iowans, and for not more than the following full-time 8 equivalent positions: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,168,369 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 348.60 11 1. Of the moneys appropriated in this section, $191,000 12 is allocated to the university of Iowa hospitals and clinics 13 to administer a child vision screening program through 14 continuation of an existing contract. The program shall submit 15 a report to the department regarding the use of funds allocated 16 under this subsection. The report shall include the objectives 17 and results for the program year including the target 18 population and how the funds allocated assisted the program in 19 meeting the objectives; the number, age, and location within 20 the state of individuals served; the type of services provided 21 to the individuals served; the distribution of moneys based on 22 the services provided; and the continuing needs of the program. 23 2. Of the moneys appropriated in this section, $144,000 is 24 allocated for the public purpose of allowing the department 25 to continue an existing contract with an existing affiliated 26 organization to provide education, client-centered programs, 27 and client and family support, for people living with epilepsy 28 and their families. The moneys allocated in excess of $50,000 29 shall be matched dollar for dollar by the existing affiliated 30 organization. Moneys under this section shall be distributed 31 in their entirety on July 1, 2026, for the purpose specified. 32 3. Of the moneys appropriated in this section, the following 33 amounts are allocated to the department of health and human 34 services to be used as follows to support the goals of 35 -5- HF 2782.4478 (1) 91 ak/ko 5/ 37
increased access, health system integration, and engagement: 1 a. $600,000 for distribution to a nonprofit organization 2 that established the first statewide drug donation repository 3 for continuation of the pharmaceutical infrastructure for 4 safety net providers established as described in 2007 Iowa 5 Acts, chapter 218, section 108, and for the prescription drug 6 donation repository program established in chapter 135M. 7 Moneys under this paragraph shall be distributed in their 8 entirety on July 1, 2026, for the purpose specified. 9 b. $374,000 for distribution to free clinics, as defined in 10 section 135.24, and a nonprofit organization that facilitates 11 the initiation, operation, and collaboration of free clinics 12 for necessary infrastructure, statewide coordination, provider 13 recruitment, service delivery, and provision of assistance to 14 patients in securing a medical home inclusive of oral health 15 care. Of the moneys allocated, $40,000 shall be used to lower 16 fees associated with using an electronic prescribing system. 17 Moneys under this paragraph shall be distributed in their 18 entirety on July 1, 2026, for the purpose specified. 19 c. $25,000 for distribution to an organization that raises 20 awareness about issues related to rural health clinics for 21 necessary infrastructure and service delivery transformation. 22 Moneys under this paragraph shall be distributed in their 23 entirety on July 1, 2026, for the purpose specified. 24 4. Of the moneys appropriated in this section, $400,000 25 is allocated for rural psychiatric residencies for residents 26 selected on or before June 30, 2026. 27 5. Of the moneys appropriated in this section, $20,000 is 28 allocated to make radon test kits available, free of charge, 29 to homeowners and renters in the state. The department shall 30 provide a link on the department’s internet site for homeowners 31 and renters in the state to order radon test kits. 32 6. Of the moneys appropriated in this section, $1,500,000 is 33 allocated for awarding grants for medical residency programs in 34 the state that meet the following criteria: 35 -6- HF 2782.4478 (1) 91 ak/ko 6/ 37
a. The medical residency program is not related to the 1 practice of family medicine. 2 b. The medical residency program is not located in a county 3 that has a population of one hundred fifty thousand or more 4 based on the most recent federal decennial census, and in which 5 the main campus of an institution of higher learning governed 6 by the state board of regents is located. 7 7. The university of Iowa hospitals and clinics under 8 the control of the state board of regents shall not receive 9 indirect costs from the moneys appropriated in this section. 10 The university of Iowa hospitals and clinics billings to the 11 department shall be, at a minimum, on a quarterly basis. 12 DIVISION V 13 COMMUNITY ACCESS AND ELIGIBILITY —— CHILD SUPPORT SERVICES —— 14 TANF —— FY 2026-2027 15 Sec. 6. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— COMMUNITY 16 ACCESS AND ELIGIBILITY. There is appropriated from the 17 general fund of the state to the department of health and human 18 services for the fiscal year beginning July 1, 2026, and ending 19 June 30, 2027, the following amount, or so much thereof as is 20 necessary, to be used for the purposes designated: 21 To be used for salaries, support, maintenance, and 22 miscellaneous purposes and for family investment program (FIP) 23 assistance in accordance with chapter 239B, and for other costs 24 associated with providing needs-based benefits or assistance 25 including but not limited to maternal and child health, oral 26 health, obesity prevention, the promoting independence and 27 self-sufficiency through employment, job opportunities and the 28 basic skills (PROMISE JOBS) program, supplemental nutrition 29 assistance program (SNAP) employment and training, the FIP 30 diversion program, family planning, rent reimbursement, 31 and eligibility determinations for medical assistance, food 32 assistance, and the children’s health insurance program, and 33 for not more than the following full-time equivalent positions: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 76,371,516 35 -7- HF 2782.4478 (1) 91 ak/ko 7/ 37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 883.90 1 1. Of the child support collections assigned under FIP, 2 the federal share of the child support collections shall be 3 credited to the child support services appropriation made in 4 this division of this Act. Of the remainder of the child 5 support collections assigned under FIP, a portion shall be 6 credited to community access and eligibility, and the remaining 7 moneys may be used to increase recoveries, to sustain cash flow 8 in the collection services center refund account as provided in 9 section 252B.13A, or for technology needs. If child support 10 collections assigned under FIP are greater than estimated or 11 are otherwise determined not to be required for maintenance of 12 efforts, the state share of either amount is appropriated to 13 the department for child support services as described in this 14 division of this Act, or may be transferred to or retained in 15 the collection services center refund account. 16 2. Of the moneys appropriated in this section, $3,075,000 is 17 allocated for continuation of the department’s initiative to 18 provide for adequate developmental surveillance and screening 19 during a child’s first five years. The moneys shall first be 20 used to fully fund the current participating counties to ensure 21 that those counties are fully operational, with the remaining 22 moneys to be used for expanding participation to additional 23 counties. Full implementation and expansion shall include 24 enhancing the scope of the initiative through collaboration 25 with child health specialty clinics to promote the use of 26 developmental surveillance and screening to support healthy 27 child development through early identification and response to 28 biomedical and social determinants of healthy development by 29 providing practitioner consultation and continuous improvement 30 through training and education, particularly for children 31 with behavioral conditions and needs. The department shall 32 also collaborate with the Medicaid program and child health 33 specialty clinics to assist in coordinating the activities 34 of the first five initiative into the establishment of 35 -8- HF 2782.4478 (1) 91 ak/ko 8/ 37
patient-centered medical homes developed to improve health 1 quality and population health while reducing health care costs. 2 To the maximum extent possible, moneys allocated in this 3 subsection shall be utilized as matching moneys for Medicaid 4 program reimbursement. 5 3. Of the moneys appropriated in this section, $1,145,102 is 6 allocated to the Iowa commission on volunteer service created 7 in section 15H.2 for programs and grants. 8 4. The university of Iowa hospitals and clinics under 9 the control of the state board of regents shall not receive 10 indirect costs from the moneys appropriated in this section. 11 The university of Iowa hospitals and clinics billings to the 12 department shall be, at a minimum, on a quarterly basis. 13 Sec. 7. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— CHILD 14 SUPPORT SERVICES. There is appropriated from the general fund 15 of the state to the department of health and human services for 16 the fiscal year beginning July 1, 2026, and ending June 30, 17 2027, the following amount, or so much thereof as is necessary, 18 to be used for the purposes designated: 19 For child support services, including salaries, support, 20 maintenance, and miscellaneous purposes, and for not more than 21 the following full-time equivalent positions: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,644,114 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 464.00 24 1. Federal access and visitation grant moneys shall be used 25 for services designed to increase compliance with the child 26 access provisions of court orders, including but not limited to 27 neutral visitation sites and mediation services. 28 2. Moneys appropriated in this section may be used 29 throughout the fiscal year in the manner necessary for 30 cash flow management. For cash flow management under this 31 subsection, the department may temporarily draw more than the 32 amount appropriated provided the amount appropriated is not 33 exceeded at the close of the fiscal year. 34 Sec. 8. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 35 -9- HF 2782.4478 (1) 91 ak/ko 9/ 37
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT. There is 1 appropriated from the special fund created in section 8.41 to 2 the department of health and human services for the fiscal year 3 beginning July 1, 2026, and ending June 30, 2027, from moneys 4 received under the federal temporary assistance for needy 5 families (TANF) block grant pursuant to the federal Personal 6 Responsibility and Work Opportunity Reconciliation Act of 1996, 7 Pub. L. No. 104-193, and successor legislation, including TANF 8 block grant moneys received in any prior fiscal year that 9 were deposited in the special fund and remain unencumbered 10 or unobligated on June 30, 2026, the following amounts, or 11 so much thereof as is necessary, to be used for the purposes 12 designated: 13 1. For community access and eligibility: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,566,312 15 2. For community access and eligibility to provide 16 pregnancy prevention grants on the condition that family 17 planning services are funded: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,913,203 19 Pregnancy prevention grants shall be awarded to programs 20 in existence on or before July 1, 2026, if the programs have 21 demonstrated positive outcomes. Grants shall be awarded 22 to pregnancy prevention programs developed after July 1, 23 2026, if the programs are based on existing models that have 24 demonstrated positive outcomes. Grants must comply with the 25 requirements provided in 1997 Iowa Acts, chapter 208, section 26 14, subsections 1 and 2, including the requirement that a 27 program awarded a grant must emphasize sexual abstinence. 28 Priority in awarding grants shall be given to programs 29 that serve areas of the state which demonstrate the highest 30 percentage of unplanned pregnancies of females of childbearing 31 age within the geographic area to be served by the grant. 32 3. To meet one of the four purposes of TANF as specified 33 in 45 C.F.R. §260.20, including by modernizing the program 34 to promote economic mobility and self-sufficiency, ensuring 35 -10- HF 2782.4478 (1) 91 ak/ko 10/ 37
that families are able to overcome benefit cliffs, encouraging 1 healthy families, and streamlining service delivery to reduce 2 duplication: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000 4 4. For early intervention and supports for child abuse 5 prevention and the family development and self-sufficiency 6 (FaDSS) grant program in accordance with section 216A.107: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,013,980 8 5. For accountability, compliance, program integrity, 9 technology needs, and other resources necessary to meet 10 federal and state reporting, tracking, and case management 11 requirements, and other departmental needs: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,533,647 13 6. For state child care assistance: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,281,826 15 7. For child protective services: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,364,100 17 DIVISION VI 18 MEDICAL ASSISTANCE PROGRAM —— STATE SUPPLEMENTARY ASSISTANCE —— 19 HEALTHY AND WELL KIDS IN IOWA PROGRAM AND OTHER HEALTH-RELATED 20 PROGRAMS —— FY 2026-2027 21 Sec. 9. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— MEDICAL 22 ASSISTANCE PROGRAM, STATE SUPPLEMENTARY ASSISTANCE, AND HEALTHY 23 AND WELL KIDS IN IOWA PROGRAM. There is appropriated from the 24 general fund of the state to the department of health and human 25 services for the fiscal year beginning July 1, 2026, and ending 26 June 30, 2027, the following amount, or so much thereof as is 27 necessary, to be used for the purposes designated: 28 For medical assistance program reimbursement and associated 29 costs as specifically provided in the reimbursement 30 methodologies in effect on June 30, 2026, except as otherwise 31 expressly authorized by law, consistent with options under 32 federal law and regulations, and contingent upon receipt of 33 approval from the office of the governor of reimbursement for 34 each abortion performed under the medical assistance program; 35 -11- HF 2782.4478 (1) 91 ak/ko 11/ 37
for the state supplementary assistance program; for the health 1 insurance premium payment program; and for maintenance of 2 the healthy and well kids in Iowa (Hawki) program pursuant 3 to chapter 514I, including supplemental dental services, 4 for receipt of federal financial participation under Tit. 5 XXI of the federal Social Security Act, which creates the 6 children’s health insurance program; and for other specified 7 health-related programs: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,992,550,706 9 1. Of the moneys appropriated in this section, 10 $1,919,596,113 is allocated for medical assistance program 11 reimbursement and associated costs. Of the moneys allocated 12 in this subsection, $3,383,880 shall be used for program 13 administration, outreach, and enrollment activities of the 14 state family planning services program pursuant to section 15 217.41B , and of this amount, the department may use $200,000 16 for administrative expenses. 17 2. Iowans support reducing the number of abortions 18 performed in our state. Moneys appropriated under this section 19 shall not be used for abortions, unless otherwise authorized 20 under this section. 21 3. The provisions of this section relating to abortions 22 shall also apply to the Iowa health and wellness plan created 23 pursuant to chapter 249N . 24 4. Of the moneys appropriated in this section, $4,479,762 is 25 allocated for the state supplementary assistance program. 26 5. Of the moneys appropriated in this section, $68,474,831 27 is allocated for maintenance of the Hawki program pursuant 28 to chapter 514I , including supplemental dental services, for 29 receipt of federal financial participation under Tit. XXI of 30 the federal Social Security Act, which creates the children’s 31 health insurance program. 32 Sec. 10. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— HEALTH 33 PROGRAM OPERATIONS. There is appropriated from the general 34 fund of the state to the department of health and human 35 -12- HF 2782.4478 (1) 91 ak/ko 12/ 37
services for the fiscal year beginning July 1, 2026, and ending 1 June 30, 2027, the following amount, or so much thereof as is 2 necessary, to be used for the purposes designated: 3 For health program operations and the autism support program 4 under section 225D.2, and for not more than the following 5 full-time equivalent positions: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,342,766 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 97.00 8 1. The department of inspections, appeals, and licensing 9 shall provide all state matching moneys for survey and 10 certification activities performed by the department of 11 inspections, appeals, and licensing. The department of health 12 and human services shall be solely responsible for distributing 13 the federal matching moneys for such activities. 14 2. Of the moneys appropriated in this section, a sufficient 15 amount is allocated for the administration of the health 16 insurance premium payment program, including salaries, support, 17 maintenance, and miscellaneous purposes. 18 3. Of the moneys appropriated in this section, $750,000 is 19 allocated for a nonprofit organization that provides access 20 to emergency poison information and treatment. Pursuant to 21 the directive under 2014 Iowa Acts, chapter 1140, section 22 102, the federal matching moneys available to the nonprofit 23 organization from the department under the federal Children’s 24 Health Insurance Program Reauthorization Act of 2009 shall be 25 subject to the federal administrative cap rule of 10 percent 26 applicable to moneys provided under Tit. XXI of the federal 27 Social Security Act, and shall be included in the department’s 28 calculations of the cap. 29 4. Unless otherwise provided by law, if a contract for 30 services provided under this section initially entered into 31 during the fiscal year beginning July 1, 2026, and ending 32 June 30, 2027, provides for an annual increase of the cost of 33 services provided under the contract, the annual increase shall 34 not exceed the amount by which the consumer price index for 35 -13- HF 2782.4478 (1) 91 ak/ko 13/ 37
all urban consumers increased during the immediately preceding 1 calendar year. This subsection does not affect a contract 2 entered into on or before June 30, 2026, that is for a term of 3 more than one year. 4 Sec. 11. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 5 PHARMACEUTICAL SETTLEMENT ACCOUNT. There is appropriated 6 from the pharmaceutical settlement account created in section 7 249A.33 to the department of health and human services for the 8 fiscal year beginning July 1, 2026, and ending June 30, 2027, 9 the following amount, or so much thereof as is necessary, to be 10 used for the purposes designated: 11 Notwithstanding any provision of law to the contrary, to 12 supplement the appropriation made in this Act from the general 13 fund of the state for health program operations under the 14 medical assistance program for the same fiscal year: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 234,193 16 Sec. 12. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— QUALITY 17 ASSURANCE TRUST FUND. 18 1. Notwithstanding any provision of law to the contrary, and 19 subject to the availability of moneys, there is appropriated 20 from the quality assurance trust fund created in section 249L.4 21 to the department of health and human services for the fiscal 22 year beginning July 1, 2026, and ending June 30, 2027, the 23 following amount, or so much thereof as is necessary, for the 24 purposes designated: 25 To supplement the appropriation made in this Act from the 26 general fund of the state to the department of health and human 27 services for medical assistance for the same fiscal year: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $111,216,205 29 2. Notwithstanding section 249L.4, subsection 2, after the 30 appropriation in subsection 1, any moneys remaining in the 31 quality assurance trust fund for the fiscal year beginning 32 July 1, 2026, and ending June 30, 2027, are appropriated to 33 the department of health and human services to supplement the 34 appropriation made in this Act from the general fund of the 35 -14- HF 2782.4478 (1) 91 ak/ko 14/ 37
state for the medical assistance program for the same fiscal 1 year. 2 Sec. 13. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— HOSPITAL 3 HEALTH CARE ACCESS TRUST FUND. 4 1. Notwithstanding any provision of law to the contrary, and 5 subject to the availability of moneys, there is appropriated 6 from the hospital health care access trust fund created in 7 section 249M.4, to the department of health and human services 8 for the fiscal year beginning July 1, 2026, and ending June 30, 9 2027, the following amount, or so much thereof as is necessary, 10 for the purposes designated: 11 To supplement the appropriation made in this Act from the 12 general fund of the state to the department of health and human 13 services for medical assistance for the same fiscal year: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33,920,554 15 2. Notwithstanding section 249M.4, subsection 2, after 16 the appropriation in subsection 1, any moneys remaining in 17 the hospital health care access trust fund for the fiscal 18 year beginning July 1, 2026, and ending June 30, 2027, are 19 appropriated to the department of health and human services to 20 supplement the appropriation made in this Act from the general 21 fund of the state for the medical assistance program for the 22 same fiscal year. 23 Sec. 14. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 24 BEHAVIORAL HEALTH FUND. Notwithstanding section 225A.7, 25 subsection 2, and subject to the availability of moneys, there 26 is appropriated from the behavioral health fund established in 27 section 225A.7, to the department of health and human services 28 for the fiscal year beginning July 1, 2026, and ending June 30, 29 2027, the following amount, or so much thereof as is necessary, 30 for the purposes designated: 31 To supplement the appropriation made in this Act from the 32 general fund of the state to the department of health and human 33 services for medical assistance for the fiscal year beginning 34 July 1, 2026, and ending June 30, 2027: 35 -15- HF 2782.4478 (1) 91 ak/ko 15/ 37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,580,938 1 Sec. 15. REIMBURSEMENT RATES. 2 1. Reimbursement for medical assistance, state 3 supplementary assistance, and social service providers and 4 services reimbursed under the purview of the department of 5 health and human services shall remain at the reimbursement 6 rate in effect on June 30, 2026, or shall be determined 7 pursuant to the reimbursement methodology in effect on June 30, 8 2026, with the exception of the following: 9 a. If reimbursement is otherwise negotiated by contract or 10 pursuant to an updated fee schedule. 11 b. As otherwise provided in this section. 12 2. a. (1) Notwithstanding any provision of law to the 13 contrary, for the fiscal year beginning July 1, 2026, and 14 ending June 30, 2027, the department of health and human 15 services shall reimburse case-mix nursing facility rates based 16 on the methodology in effect on June 30, 2026. 17 (2) July 1, 2025, through December 31, 2025, the department 18 of health and human services shall calculate each nursing 19 facility’s case-mix index for rates effective July 1, 2026. 20 (3) January 1, 2026, through June 30, 2026, the department 21 of health and human services shall calculate each nursing 22 facility’s case-mix index for rates effective January 1, 2027. 23 (4) All nursing facility rate adjustments under this 24 paragraph shall be budget neutral. 25 b. For the fiscal year beginning July 1, 2026, $1,167,867 26 shall be used to increase to the extent possible reimbursement 27 rates for ambulatory surgical centers compared to rates in 28 effect on June 30, 2026. 29 c. For the fiscal year beginning July 1, 2026, $3,000,000 30 shall be used to increase to the extent possible, compared 31 with rates in effect on June 30, 2026, reimbursement rates for 32 providers of Medicaid home and community-based services waiver 33 services used most frequently by elderly waiver recipients 34 including attendant care, homemaker, and assisted living 35 -16- HF 2782.4478 (1) 91 ak/ko 16/ 37
services. 1 d. (1) Adjustments to Medicaid reimbursement rates 2 developed using cost reports shall be applied starting on the 3 effective date specified in the applicable rate letter issued 4 to a provider. 5 (2) Minimum Medicaid reimbursement rates for all provider 6 and service types shall be no lower than the reimbursement 7 rates established in the department’s minimum fee schedule. 8 (3) Any increase in a Medicaid reimbursement rate specified 9 under this section shall be effective October 1, 2026. 10 DIVISION VII 11 FAMILY WELL-BEING AND PROTECTION —— FY 2026-2027 12 Sec. 16. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— STATE 13 CHILD CARE ASSISTANCE. There is appropriated from the general 14 fund of the state to the department of health and human 15 services for the fiscal year beginning July 1, 2026, and ending 16 June 30, 2027, the following amount, or so much thereof as is 17 necessary, to be used for the purposes designated: 18 For state child care assistance in accordance with sections 19 237A.13 and 237A.14, and for not more than the following 20 full-time equivalent positions: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,723,000 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 53.00 23 1. If the appropriation made for purposes of the state child 24 care assistance program for the fiscal year is determined to 25 be insufficient, it is the intent of the general assembly to 26 appropriate sufficient moneys for the fiscal year to avoid 27 application of waiting list requirements. 28 2. A portion of the state match for the federal child care 29 and development block grant shall be provided as necessary to 30 meet federal matching moneys requirements through the state 31 general fund appropriation made for child development grants 32 and other programs for at-risk children in section 279.51. 33 Sec. 17. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— EARLY 34 INTERVENTION AND SUPPORTS. There is appropriated from the 35 -17- HF 2782.4478 (1) 91 ak/ko 17/ 37
general fund of the state to the department of health and human 1 services for the fiscal year beginning July 1, 2026, and ending 2 June 30, 2027, the following amount, or so much thereof as is 3 necessary, to be used for the purposes designated: 4 For promotion of optimum health status for children and 5 adolescents from birth through 21 years of age, and for 6 families, and for not more than the following full-time 7 equivalent positions: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,495,203 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 28.00 10 1. Of the moneys appropriated in this section, not more than 11 $734,000 is allocated for the healthy opportunities for parents 12 to experience success (HOPES) healthy families Iowa (HFI) 13 program established pursuant to section 135.106. 14 2. Of the moneys appropriated in this section, $4,313,854 15 is allocated for the FaDSS grant program, and not more 16 than 5 percent of the allocated moneys shall be used for 17 administration of the grant program. 18 3. Of the moneys appropriated in this section, $29,256,799 19 shall be deposited in the early childhood Iowa fund created in 20 section 256I.11. 21 4. Of the moneys appropriated in this section, $1,493,299 is 22 allocated for program administration and provision of pregnancy 23 support services through the more options for maternal support 24 program pursuant to section 217.41C. 25 Sec. 18. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— CHILD 26 PROTECTIVE SERVICES. There is appropriated from the general 27 fund of the state to the department of health and human 28 services for the fiscal year beginning July 1, 2026, and ending 29 June 30, 2027, the following amount, or so much thereof as is 30 necessary, to be used for the purposes designated: 31 For child, family, and adoption services, and for salaries, 32 support, maintenance, and miscellaneous purposes, and for not 33 more than the following full-time equivalent positions: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $164,527,690 35 -18- HF 2782.4478 (1) 91 ak/ko 18/ 37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 977.00 1 1. Based on client need, a portion of the moneys 2 appropriated in this section may be used to provide other 3 resources required to support family preservation, emergency 4 client need, or family reunification efforts. 5 2. Of the moneys appropriated in this section, a sufficient 6 amount is allocated for foster family care, group foster care 7 maintenance and services, shelter care, child welfare emergency 8 services, qualified residential treatment programs, supervised 9 apartment living contracts, and for medical assistance program 10 reimbursement and associated costs. 11 3. Federal moneys received by the state during the fiscal 12 year beginning July 1, 2026, as the result of the expenditure 13 of state moneys appropriated during a previous state fiscal 14 year for a service or activity funded under this section, 15 are appropriated to the department to be used as additional 16 moneys for services and purposes provided under this section. 17 Notwithstanding section 8.33, moneys appropriated under this 18 subsection that remain unencumbered or unobligated at the close 19 of the fiscal year shall not revert but shall remain available 20 for the purposes designated until the close of the succeeding 21 fiscal year. 22 4. a. Of the moneys appropriated in this section, $748,000 23 is allocated for the payment of the expenses of court-ordered 24 services provided to children who are under the supervision 25 of the department, which expenses are a charge upon the state 26 pursuant to section 232.141, subsection 4. 27 b. Notwithstanding chapter 232 or any other provision of 28 law to the contrary, a district or juvenile court shall not 29 order any service which is a charge upon the state pursuant to 30 section 232.141, subsection 4, if the moneys allocated under 31 paragraph “a” for court-ordered services are insufficient to 32 pay for the service. 33 5. Of the moneys appropriated in this section, $4,359,500 34 is allocated for the preparation for adult living program 35 -19- HF 2782.4478 (1) 91 ak/ko 19/ 37
established pursuant to section 234.46. 1 6. Of the moneys appropriated in this section, a portion may 2 be used for family-centered services for purposes of complying 3 with the federal Family First Prevention Services Act of 2018, 4 Pub. L. No. 115-123, and successor legislation. 5 7. a. Of the moneys appropriated in this section, 6 $38,414,178 is allocated for adoption subsidy payments and 7 related costs. 8 b. Any moneys remaining after the allocation under 9 paragraph “a” is designated and allocated as state savings 10 resulting from implementation of the federal Fostering 11 Connections to Success and Increasing Adoptions Act of 2008, 12 Pub. L. No. 110-351, and successor legislation, as determined 13 in accordance with 42 U.S.C. §673(a)(8), and shall be used for 14 post-adoption services and for other purposes allowed under 15 those federal Acts and regulations, and Tit. IV-B or Tit. IV-E 16 of the federal Social Security Act. 17 8. Of the moneys appropriated in this section, a sufficient 18 amount is allocated to support training needs for child welfare 19 providers and to address disproportionality within the child 20 welfare system. 21 9. Of the moneys appropriated in this subsection, 22 $1,658,000 shall be allocated for child protection centers 23 located in Iowa pursuant to the child protection center grant 24 program under section 135.118. The grant amounts under the 25 program shall be equalized so that each center receives a 26 uniform base amount of $245,000, and the remaining moneys 27 are awarded through a funding formula based upon the volume 28 of children served by a center. To increase access to child 29 protection center services for children in rural areas, the 30 funding formula for awarding the remaining moneys shall provide 31 for awarding an enhanced amount to eligible grantees to develop 32 and maintain satellite centers in underserved regions of the 33 state. 34 10. Of the moneys appropriated in this subsection, up to 35 -20- HF 2782.4478 (1) 91 ak/ko 20/ 37
$227,000 shall be used for the public purpose of continuing a 1 grant to a nonprofit human services organization that provides 2 services to individuals and families in multiple locations in 3 southwest Iowa and Nebraska, for support of a project providing 4 immediate, sensitive support and forensic interviews, medical 5 exams, needs assessments, and referrals for victims of child 6 abuse and their nonoffending family members. 7 11. If a separate funding source is available that reduces 8 the need for state moneys within an allocation under this 9 section, the allocated state moneys may be redistributed to 10 other allocations under this section for the same fiscal year. 11 DIVISION VIII 12 STATE-OPERATED SPECIALTY CARE —— FY 2026-2027 13 Sec. 19. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 14 STATE-OPERATED SPECIALTY CARE. There is appropriated from the 15 general fund of the state to the department of health and human 16 services for the fiscal year beginning July 1, 2026, and ending 17 June 30, 2027, the following amount, or so much thereof as is 18 necessary, to be used for the purposes designated: 19 For salaries, support, maintenance, and miscellaneous 20 purposes at institutions under the jurisdiction of the 21 department of health and human services, and for not more than 22 the following full-time equivalent positions: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,225,768 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1,304.45 25 1. The department shall utilize the moneys appropriated in 26 this section as necessary to maximize bed capacity and to most 27 effectively meet the needs of the individuals served. 28 2. Of the moneys appropriated in this section, the following 29 amounts are allocated to each institution as follows: 30 a. For the state mental health institute at Cherokee: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,878,962 32 b. For the state mental health institute at Independence: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,760,205 34 c. For the civil commitment unit for sexual offenders at 35 -21- HF 2782.4478 (1) 91 ak/ko 21/ 37
Cherokee: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,272,111 2 d. For the state resource center at Woodward: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,567,092 4 e. For the state training school at Eldora: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,805,171 6 f. For outstanding obligations related to workers’ 7 compensation, the sick leave insurance program, unemployment, 8 and other costs related to the closure of the state resource 9 center at Glenwood: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 942,227 11 DIVISION IX 12 ADMINISTRATION AND COMPLIANCE —— FY 2026-2027 13 Sec. 20. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 14 ACCOUNTABILITY, COMPLIANCE, AND PROGRAM INTEGRITY. There 15 is appropriated from the general fund of the state to the 16 department of health and human services for the fiscal year 17 beginning July 1, 2026, and ending June 30, 2027, the following 18 amount, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 For accountability, compliance, and program integrity, 21 including salaries, support, maintenance, and miscellaneous 22 purposes, and for not more than the following full-time 23 equivalent positions: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,152,404 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 382.00 26 1. Of the moneys appropriated in this section, $2,602,312 27 is allocated for foster care review and the court appointed 28 special advocate program, including for salaries, support, 29 maintenance, and miscellaneous purposes. 30 2. Of the moneys appropriated in this section, $1,148,959 31 is allocated for the office of long-term care ombudsman 32 for salaries, support, administration, maintenance, and 33 miscellaneous purposes. 34 DIVISION X 35 -22- HF 2782.4478 (1) 91 ak/ko 22/ 37
TRANSFERS, CASH FLOW, AND NONREVERSIONS —— FY 2026-2027 1 Sec. 21. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 2 TRANSFERS AND CASH FLOW. 3 1. Notwithstanding any provision of law to the contrary, 4 the department of health and human services may transfer moneys 5 appropriated in this Act to support continuing alignment 6 efforts, to maximize federal support in accordance with the 7 department’s federal costs allocation plan, and to secure 8 resources necessary to implement and administer the services 9 for which moneys are appropriated. The department shall report 10 any transfers made pursuant to this subsection to the general 11 assembly. On or before December 1, 2026, the department shall 12 report to the chairpersons of the health and human services 13 appropriations subcommittee the allocations and full-time 14 equivalent positions for each division of the department for 15 the fiscal year beginning July 1, 2027. 16 2. If, due to ongoing cost management efforts, 17 appropriations under this Act for the Medicaid program 18 exceed the associated costs for the Medicaid program for the 19 fiscal year, the department may transfer any savings to the 20 appropriations made in this Act for health program operations, 21 or for accountability, compliance, and program integrity, 22 to defray the costs associated with ongoing cost management 23 efforts. 24 3. Notwithstanding any provision of law to the contrary, 25 the department may transfer moneys appropriated under this Act 26 for child protective services to pay the nonfederal share costs 27 of services reimbursed under the medical assistance program, 28 state child care assistance program, or family investment 29 program which are provided to children who would otherwise 30 receive services paid by the appropriation for child protective 31 services. 32 4. The department may transfer moneys from the temporary 33 assistance for needy families block grant to the federal social 34 services block grant appropriation, and to the child care and 35 -23- HF 2782.4478 (1) 91 ak/ko 23/ 37
development block grant appropriation, in accordance with 1 federal law. 2 5. To the extent the department determines that moneys 3 appropriated under this Act, or allocated for a specific 4 purpose under this Act, will remain unencumbered or unobligated 5 at the close of the fiscal year, such unencumbered or 6 unobligated moneys may be used in the same fiscal year for any 7 other purpose for which the appropriated moneys may be used, or 8 for any other allocation within the same appropriation. 9 Sec. 22. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 10 NONREVERSIONS. 11 1. Notwithstanding section 8.33, moneys appropriated under 12 this Act from the general fund of the state and the temporary 13 assistance for needy families block grant to the department of 14 health and human services for the fiscal year beginning July 15 1, 2026, and ending June 30, 2027, for the purposes of the 16 FaDSS grant program, that remain unencumbered or unobligated at 17 the close of the fiscal year shall not revert but shall remain 18 available for expenditure for the purposes designated until the 19 close of the succeeding fiscal year. 20 2. Notwithstanding section 8.33, of the moneys appropriated 21 under this Act from the general fund of the state, the quality 22 assurance trust fund, and the hospital health care access trust 23 fund to the department of health and human services for the 24 fiscal year beginning July 1, 2026, and ending June 30, 2027, 25 for the purposes of the medical assistance program, the amount 26 in excess of actual expenditures for the medical assistance 27 program that remains unencumbered or unobligated at the close 28 of the fiscal year shall not revert but shall remain available 29 for expenditure for the medical assistance program until the 30 close of the succeeding fiscal year. 31 3. Notwithstanding section 8.33, and notwithstanding the 32 nonreversion amount limitation specified for state resource 33 centers in section 222.92, subsection 4, moneys appropriated 34 under this Act from the general fund of the state to the 35 -24- HF 2782.4478 (1) 91 ak/ko 24/ 37
department of health and human services for the fiscal year 1 beginning July 1, 2026, and ending June 30, 2027, for the 2 purposes of state-operated specialty care, that remain 3 unencumbered or unobligated at the close of the fiscal year 4 shall not revert but shall remain available for expenditure for 5 the purposes designated for subsequent fiscal years. 6 4. Notwithstanding section 8.33, moneys appropriated in 7 this Act from the general fund of the state to the department 8 of health and human services for the fiscal year beginning July 9 1, 2026, and ending June 30, 2027, for the Iowa commission 10 on volunteer service for programs and grants, that remain 11 unencumbered or unobligated at the close of the fiscal year 12 shall not revert but shall remain available for expenditure for 13 the purposes designated for subsequent fiscal years. 14 5. Notwithstanding section 8.33, moneys appropriated under 15 this Act from the general fund of the state to the department 16 of health and human services for the fiscal year beginning 17 July 1, 2026, and ending June 30, 2027, and allocated for 18 rural psychiatric residencies, that remain unencumbered or 19 unobligated at the close of the fiscal year shall not revert 20 but shall remain available for expenditure for the purposes 21 designated until the close of the succeeding fiscal year. 22 6. Notwithstanding section 8.33, moneys appropriated under 23 this Act from the general fund of the state to the department 24 of health and human services for the fiscal year beginning July 25 1, 2026, and ending June 30, 2027, and allocated for adoption 26 subsidy payments and related costs, or for post-adoption 27 services and allowable related purposes, that remain 28 unencumbered or unobligated at the close of the fiscal year 29 shall not revert but shall remain available for expenditure for 30 adoption reinvestment obligations. 31 7. Notwithstanding section 8.33, moneys appropriated under 32 this Act from the general fund of the state to the department 33 of health and human services for the fiscal year beginning July 34 1, 2026, and ending June 30, 2027, and allocated for child 35 -25- HF 2782.4478 (1) 91 ak/ko 25/ 37
protective services, that remain unencumbered or unobligated at 1 the close of the fiscal year shall not revert but shall remain 2 available for expenditure for the purposes designated until the 3 close of the succeeding fiscal year. 4 DIVISION XI 5 REPORT ON NONREVERSION OF MONEYS 6 Sec. 23. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— REPORT 7 ON NONREVERSION OF MONEYS. The department of health and 8 human services shall report the expenditure of any moneys for 9 which nonreversion authorization was provided for the fiscal 10 year beginning July 1, 2026, and ending June 30, 2027, to the 11 general assembly on a quarterly basis beginning October 1, 12 2027. 13 DIVISION XII 14 EMERGENCY RULES 15 Sec. 24. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 16 EMERGENCY RULES. 17 1. If necessary to comply with federal requirements, 18 including time frames, the department of health and human 19 services shall adopt administrative rules under section 17A.4, 20 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 21 to implement the applicable provisions of this Act. The rules 22 shall be effective immediately upon filing unless a later date 23 is specified in the rules. Any rules adopted in accordance 24 with this section shall also be published as a notice of 25 intended action as provided in section 17A.4. 26 2. If the department of health and human services adopts 27 emergency rules in accordance with this section, or as 28 otherwise directed or authorized by state law, and the rules 29 will result in an increase in expenditures beyond the amount 30 anticipated in the budget for the fiscal year, or if the 31 expenditures were not addressed in the budget for the fiscal 32 year, the department shall notify the general assembly and the 33 department of management concerning the rules and the increase 34 in expenditures. The notification shall be provided at least 35 -26- HF 2782.4478 (1) 91 ak/ko 26/ 37
thirty calendar days prior to the date notice of the rules 1 is submitted to the administrative rules coordinator and the 2 administrative code editor. 3 DIVISION XIII 4 MORE OPTIONS FOR MATERNAL SUPPORT PROGRAM APPROPRIATION 5 NONREVERSION 6 Sec. 25. 2025 Iowa Acts, chapter 169, section 27 , is amended 7 by adding the following new subsection: 8 NEW SUBSECTION . 8. Notwithstanding section 8.33, moneys 9 appropriated from the general fund of the state to the 10 department of health and human services for the fiscal year 11 beginning July 1, 2025, and ending June 30, 2026, for the more 12 options for maternal support program created in section 217.41C 13 that remain unencumbered or unobligated at the close of the 14 fiscal year shall not revert but shall remain available for 15 expenditure for the purposes designated until the close of the 16 succeeding fiscal year. 17 Sec. 26. EFFECTIVE DATE. This division of this Act, being 18 deemed of immediate importance, takes effect upon enactment. 19 Sec. 27. RETROACTIVE APPLICABILITY. This division of this 20 Act applies retroactively to July 1, 2025. 21 DIVISION XIV 22 REIMBURSEMENT RATES —— REVIEW 23 Sec. 28. Section 235.2, Code 2026, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 9. Upon implementation by the department 26 of a uniform cost report for shelter care and qualified 27 residential treatment providers, biennially conduct a review of 28 shelter care and qualified residential treatment provider costs 29 compared to current shelter care and qualified residential 30 treatment provider rates. On or before October 1 of the 31 calendar year immediately succeeding the calendar year in 32 which the review is conducted, the department shall submit a 33 report to the governor and the general assembly detailing the 34 results of the department’s review and recommendations for rate 35 -27- HF 2782.4478 (1) 91 ak/ko 27/ 37
adjustments. 1 Sec. 29. Section 249A.4, Code 2026, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 15. a. Conduct an annual review of 4 provider reimbursement rates for medical and health services 5 provided under this chapter that are reimbursed by a statewide 6 fee schedule and that are not periodically updated or rebased 7 pursuant to federal or state law or rule. The department shall 8 compare each provider reimbursement rate in the following 9 manner: 10 (1) For all medical and health services other than dental 11 services, to reimbursement rates under the federal Medicare 12 program. 13 (2) For dental services, to reimbursement rates for 14 Medicaid programs in states contiguous to Iowa. 15 b. On or before January 15 of each calendar year, the 16 department shall submit to the general assembly a report 17 summarizing the department’s review under paragraph “a” . 18 DIVISION XV 19 MENTAL DISEASES EXCLUSION —— WAIVER 20 Sec. 30. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— MEDICAL 21 DISEASES EXCLUSION WAIVER. No later than July 1, 2027, the 22 department of health and human services shall apply to the 23 centers for Medicare and Medicaid services of the United 24 States department of health and human services for a waiver of 25 Medicaid’s institution for mental diseases exclusion. 26 DIVISION XVI 27 DEPARTMENT OF HEALTH AND HUMAN SERVICES —— FULL-TIME EQUIVALENT 28 DASHBOARD 29 Sec. 31. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 30 FULL-TIME EQUIVALENT DASHBOARD. Pursuant to section 217.22, 31 the department of health and human services shall make publicly 32 available information on full-time equivalent positions as 33 described in section 8.36A, that details all of the following: 34 1. The number of full-time equivalent positions authorized 35 -28- HF 2782.4478 (1) 91 ak/ko 28/ 37
by the general assembly for the department, categorized by the 1 department division or appropriation. 2 2. The number of filled full-time, part-time, or temporary 3 positions by department division or appropriation. 4 3. The percentage of moneys from each federal, state, 5 or other funding source for each department division and 6 department appropriation. 7 DIVISION XVII 8 COMPREHENSIVE FAMILY SUPPORT PROGRAM 9 Sec. 32. NEW SECTION . 231.80 Comprehensive family support 10 program. 11 1. For the purposes of this section, unless the context 12 otherwise requires: 13 a. “Comprehensive family support” means services and 14 supports that assist families caring for an individual with 15 a disability who is a member of the family, including but 16 not limited to programs, services, parent-to-parent support, 17 assistive devices, and various adaptations that allow an 18 individual with a disability to participate more fully in 19 family and community life. 20 b. (1) “Family” means a group of interdependent persons 21 living in the same household. A family consists of an 22 individual with a disability and any of the following: 23 (a) The individual’s parent. 24 (b) The individual’s sibling. 25 (c) The individual’s grandparent, aunt, or uncle. 26 (d) The individual’s legal custodian. 27 (e) A person providing short-term foster care to the 28 individual with a disability subject to a case permanency plan 29 that provides for reunification between the individual and the 30 individual’s parent. 31 (2) “Family” does not include a person who is employed 32 to provide services to an individual with a disability in an 33 out-of-home setting, including but not limited to a hospital, 34 nursing facility, personal care home, board and care home, 35 -29- HF 2782.4478 (1) 91 ak/ko 29/ 37
group foster care home, or other institutional setting. 1 c. “Individual with a disability” means an individual who is 2 less than twenty-two years of age and meets the definition of 3 developmental disability in 42 U.S.C. §15002. 4 d. “Services and support” means assistance intended 5 to enable an individual with a disability to control 6 the individual’s environment, to remain living with the 7 individual’s family, to function more independently, and 8 to increase the integration of the individual into the 9 individual’s community including but not limited to funding 10 for purchase of equipment, respite care, supplies, assistive 11 technology, and payment of other costs attributable to 12 the individual’s disability which are identified by the 13 individual’s family. 14 2. A comprehensive family support program is created under 15 the purview of the department to provide a statewide system of 16 services and support to eligible families. The program shall 17 be implemented in a manner that enables a family member of an 18 individual with a disability to identify the needed services 19 and support. 20 3. Eligibility for the program is limited to families who 21 meet all of the following criteria: 22 a. The family resides in the state of Iowa. 23 b. The family intends for the family member who is an 24 individual with a disability to remain living in the family’s 25 home. 26 c. The family’s taxable income is less than sixty thousand 27 dollars for the most recently completed tax year. 28 4. A family may apply to the department or to a family 29 support center for assistance under the comprehensive family 30 support program. The department or family support center shall 31 determine eligibility for the comprehensive family support 32 program in accordance with subsection 3. 33 5. The department shall adopt rules pursuant to chapter 34 17A to implement the comprehensive family support program. 35 -30- HF 2782.4478 (1) 91 ak/ko 30/ 37
The comprehensive family support program must do all of the 1 following: 2 a. To the extent possible, incorporate in the application 3 process the eligibility determination processes that the 4 department uses for other disability services programs. 5 b. Ensure the ability of families to maintain control of 6 decisions which affect an individual with a disability who is a 7 member of a family. 8 c. Utilize existing local agencies to provide facilities and 9 a single entry point for program applicants. 10 d. Ensure services and support are provided in a timely 11 manner and emergency access to needed services and support is 12 provided. 13 e. Ensure technical assistance is provided to providers and 14 users of services and support. 15 f. Utilize state, regional, and local media to publicize the 16 program. 17 g. Incorporate a process to appeal the department’s or 18 family support center’s denial of services and support to a 19 family under the program, including reasonable efforts by the 20 department to utilize telecommunications in the appeal process. 21 h. Identify the services and support, and service provider 22 components, included in the program. 23 i. Upon request by a family member, provide a family with 24 assistance in locating a service provider. 25 j. Make payment for services and support directly to 26 families by voucher or other appropriate means. 27 k. Utilize a voucher system for payment for the family 28 support center component of the program under subsection 7. 29 6. Services and support provided under the comprehensive 30 family support program shall not be used to supplant other 31 services and support available to a family of an individual 32 with a disability but shall be used to meet family needs that 33 will not be met without the program. 34 7. The comprehensive family support program shall include a 35 -31- HF 2782.4478 (1) 91 ak/ko 31/ 37
family support center component. Under the component, a family 1 member of an individual with a disability shall be assisted 2 by a family support center in identifying the services and 3 support to be provided to the family under the family support 4 subsidy program or the comprehensive family support program. 5 The identification of services and support must be based upon 6 the specific needs of the individual with a disability and 7 the individual’s family which are not met by other service 8 programs available to the individual with a disability and the 9 individual’s family. 10 8. The comprehensive family support program shall be funded 11 by appropriations made by the general assembly for purposes of 12 the program. Notwithstanding section 8.33, moneys appropriated 13 for the comprehensive family support program under this section 14 that remain unobligated or unexpended at the close of each 15 fiscal year shall not revert but shall remain available for 16 expenditure for the purposes designated until the close of the 17 immediately succeeding fiscal year. 18 Sec. 33. CODE EDITOR DIRECTIVE. The Code editor is directed 19 to designate section 231.80, as enacted in this division 20 of this Act, as subchapter VIII of chapter 231 entitled 21 “Comprehensive Family Support Program”. 22 Sec. 34. EFFECTIVE DATE. This division of this Act, being 23 deemed of immediate importance, takes effect upon enactment. 24 Sec. 35. RETROACTIVE APPLICABILITY. This division of this 25 Act applies retroactively to July 1, 2025. 26 DIVISION XVIII 27 FEDERAL COMMUNITY MENTAL HEALTH SERVICES BLOCK GRANT 28 Sec. 36. 2025 Iowa Acts, chapter 152, section 2, subsection 29 1, paragraph d, is amended to read as follows: 30 d. For the federal fiscal year beginning October 1, 2025, 31 and ending September 30, 2026, of Of the moneys allocated 32 to providers under paragraph “c”, 70 percent of the moneys 33 allocated each federal fiscal year shall be distributed by 34 a behavioral health administrative services organization or 35 -32- HF 2782.4478 (1) 91 ak/ko 32/ 37
the department of health and human services to the state’s 1 accredited community mental health centers designated by 2 the department of health and human services under section 3 225A.3 , as enacted by 2024 Iowa Acts, chapter 1161, section 4 3 . Community mental health centers that receive moneys 5 distributed under this paragraph shall use the moneys for the 6 purposes of training staff, providing services to adults with 7 a serious mental illness, or providing services to children 8 with a serious emotional disturbance, and shall bill treatment 9 dollars related to such services to the department of health 10 and human services through the department’s claims system. 11 The department of health and human services shall publish the 12 amounts to be distributed to community mental health centers on 13 the department’s internet site on or before October 1, 2025, 14 and on or before October 1, 2026, and distribute the moneys to 15 the recipients on a quarterly basis. Recipients of the moneys 16 shall submit quarterly reports to the department of health and 17 human services containing data consistent with performance 18 measures approved by the federal substance abuse and mental 19 health services administration. 20 DIVISION XIX 21 DEPARTMENT OF HEALTH AND HUMAN SERVICES —— BEHAVIORAL HEALTH 22 EXPENDITURE REPORT 23 Sec. 37. NEW SECTION . 225A.10 Behavioral health services 24 expenditure report. 25 No later than December 15 of each year, the department shall 26 submit to the general assembly a summary of the department’s 27 expenditures for behavioral health services for adults and 28 children for the immediately preceding fiscal year, including a 29 summary of which appropriations or funding sources were used to 30 fund the expenditures. 31 DIVISION XX 32 OPIOID SETTLEMENT FUND —— FY 2026-2027 33 Sec. 38. OPIOID SETTLEMENT FUND —— DEPARTMENT OF HEALTH AND 34 HUMAN SERVICES. 35 -33- HF 2782.4478 (1) 91 ak/ko 33/ 37
1. There is appropriated from the opioid settlement fund 1 created in section 12.51 to the department of health and human 2 services for the fiscal year beginning July 1, 2026, and ending 3 June 30, 2027, the following amount, or so much thereof is as 4 necessary, for the purposes designated: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 6 2. Notwithstanding any provision of law to the contrary, 7 of the moneys appropriated to the department of health and 8 human services under subsection 1, the department shall 9 disburse to an opioid treatment program that operates a 10 facility with at least one hundred fifty licensed beds that 11 provides medical detoxification stabilization and residential 12 substance abuse disorder treatment to support comprehensive 13 addiction and co-occuring mental health treatment, and provides 14 24-hour medical detoxification, residential treatment, and 15 medication-assisted treatment. 16 a. Moneys disbursed under this subsection shall be used 17 by the recipient in compliance with the requirements of the 18 national opioid settlement agreements and section 12.51. 19 b. The recipient shall utilize the indicators and outcomes 20 identified under section 12.51, subsection 2, paragraph “b”, 21 subparagraph (3), subparagraph division (c), to determine 22 whether the services and activities that are funded by the 23 disbursement achieve the intended outcomes, and shall report 24 the recipient’s findings to the department of health and human 25 services. 26 DIVISION XXI 27 GRADUATE MEDICAL EDUCATION 28 Sec. 39. 2025 Iowa Acts, chapter 120, section 19, is amended 29 to read as follows: 30 SEC. 19. TRANSFER OF MONEYS. Notwithstanding section 31 8.33 or any other provision to the contrary, any unobligated 32 or unencumbered moneys in any of the following accounts or 33 funds or constituting any specified appropriation, shall not 34 revert but are appropriated to the department of health and 35 -34- HF 2782.4478 (1) 91 ak/ko 34/ 37
human services to fund Medicaid graduate medical education 1 efforts award grants to start medical residency programs in 2 the state that are not related to the practice of family 3 medicine, are not located in a county which has a population 4 of one hundred fifty thousand or more based on the most recent 5 federal decennial census, and in which the main campus of an 6 institution of higher learning governed by the state board of 7 regents is located . 8 1. The health care workforce shortage fund created in 9 section 135.175, subsection 1 , paragraph “b”, Code 2025. 10 2. The medical residency training account created in 11 section 135.175, subsection 5 , paragraph “a”, Code 2025 , except 12 $298,000 of such moneys is appropriated to the department of 13 health and human services for the purposes of implementing the 14 waiver of Medicaid’s institution for mental diseases exclusion 15 the department must apply for under this 2026 Iowa Act . 16 3. The nurse residency state matching grants program 17 account created in section 135.175, subsection 5 , paragraph 18 “b”, Code 2025. 19 4. The health care workforce shortage national initiatives 20 account created in section 135.175, subsection 5 , paragraph 21 “c”, Code 2025. 22 5. The family medicine obstetrics fellowship program fund 23 created in section 135.193 , Code 2025. 24 6. Moneys appropriated to the department of health and human 25 services for rural psychiatric residencies to fund psychiatric 26 residents to provide mental health services in underserved 27 areas of the state as described in the following: 28 a. 2024 Iowa Acts, chapter 1157, section 5, subsection 3 , 29 and 2024 Iowa Acts, chapter 1157, section 22, subsection 5 . 30 b. 2023 Iowa Acts, chapter 112, section 5, subsection 4, 31 paragraph “j” , as amended by 2024 Iowa Acts, chapter 1157, 32 section 29 . 33 c. 2022 Iowa Acts, chapter 1131, section 3, subsection 4, 34 paragraph “j” , as amended by 2024 Iowa Acts, chapter 1157, 35 -35- HF 2782.4478 (1) 91 ak/ko 35/ 37
section 23 . 1 d. 2021 Iowa Acts, chapter 182, section 3, subsection 4, 2 paragraph “j” . 3 e. 2019 Iowa Acts, chapter 85, section 3, subsection 4, 4 paragraph “j” , as amended by 2020 Iowa Acts, chapter 1121, 5 section 19 . 6 DIVISION XXII 7 MEDICAID REIMBURSEMENT RATE —— SPECIAL POPULATION NURSING 8 FACILITIES 9 Sec. 40. Section 249A.2, Code 2026, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 15. “Special population nursing facility” 12 refers to a nursing facility that serves one of the following 13 populations and has been designated as a special population 14 nursing facility by the department: 15 a. One hundred percent of the residents served are aged 16 thirty and under and require a skilled level of care. 17 b. Seventy percent of the residents served require a skilled 18 level of care for neurological disorders. 19 c. One hundred percent of the residents require care from a 20 facility licensed by the department of inspections, appeals, 21 and licensing as an intermediate care facility for persons with 22 mental illness. 23 d. One hundred percent of the residents require care from a 24 facility licensed by the department of inspections, appeals, 25 and licensing as an intermediate care facility for persons with 26 medical complexity. 27 Sec. 41. NEW SECTION . 249A.38C Medicaid reimbursement rate 28 —— special population nursing facilities. 29 The provider reimbursement rate for each special population 30 nursing facility must be the special population nursing 31 facility’s average allowable per diem costs as adjusted in 32 compliance with applicable federal laws and regulations, 33 including the upper payment limits specified in 42 C.F.R. 34 §447.272(b). If a special population nursing facility subject 35 -36- HF 2782.4478 (1) 91 ak/ko 36/ 37
to this section increases the special population nursing 1 facility’s number of beds or expands to provide additional 2 services on or after July 1, 2026, the reimbursement rate in 3 this section shall apply to such additional beds or services. > 4 2. Title page, by striking lines 12 through 19 and inserting 5 < waiver; full-time equivalent dashboard; comprehensive family 6 support program; federal community mental health services block 7 grant; behavioral health expenditure report; opioid settlement 8 fund; emergency rules; graduate medical education; and special 9 population nursing facilities; and including effective date and 10 retroactive applicability provisions. > 11 ______________________________ A. MEYER of Webster -37- HF 2782.4478 (1) 91 ak/ko 37/ 37 #2.