House File 2396 - Introduced HOUSE FILE 2396 BY CROKEN A BILL FOR An Act modifying provisions related to programs administered by 1 the college student aid commission, including the skilled 2 workforce shortage tuition grant program, Iowa workforce 3 grant and incentive program, vocational-technical tuition 4 grant program, the future ready Iowa skilled workforce 5 last-dollar scholarship program, and the gap tuition 6 assistance program, and making appropriations. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5266YH (3) 91 jda/jh

H.F. 2396 Section 1. Section 15H.10, subsections 1 and 4, Code 2026, 1 are amended to read as follows: 2 1. Subject to an appropriation of funds by the general 3 assembly for this purpose, the commission shall establish a 4 volunteer mentor program to support implementation of the 5 future ready Iowa skilled workforce last-dollar scholarship 6 and the future ready Iowa skilled workforce grant programs 7 program created in sections 256.228 and section 256.229 . 8 The commission, in collaboration with the department of 9 workforce development and the college student aid commission, 10 shall adopt rules pursuant to chapter 17A to implement and 11 administer the volunteer mentor program, and shall establish 12 standards, guidelines, and expectations for a productive 13 and appropriate relationship between mentors and mentees, 14 including helping students meet the future ready Iowa skilled 15 workforce last-dollar scholarship program or future ready Iowa 16 skilled workforce grant requirements , as appropriate ; identify 17 work-based learning opportunities; and make career-related 18 connections that are advantageous to persons participating in 19 the volunteer mentor program. 20 4. The commission, in collaboration with the department of 21 workforce development and the college student aid commission, 22 and in cooperation with an eligible institution as defined 23 in section 256.228 or 256.229 , as appropriate, shall assign 24 a student, who is a recipient of a future ready Iowa skilled 25 workforce last-dollar scholarship under section 256.228 or 26 a future ready Iowa skilled workforce grant under section 27 256.229 , who requests the assignment of a mentor, and who 28 enters into an agreement under subsection 3 , to a mentor 29 appropriate to the prospective mentee’s field of study whenever 30 possible. 31 Sec. 2. Section 84A.1B, subsection 3, unnumbered paragraph 32 1, Code 2026, is amended to read as follows: 33 Create, and update as necessary, a list of high-demand jobs 34 statewide for purposes of the future ready Iowa registered 35 -1- LSB 5266YH (3) 91 jda/jh 1/ 11

H.F. 2396 apprenticeship programs created in chapter 84F , the summer 1 youth intern pilot program established under section 84A.12 , 2 the Iowa employer innovation program established under section 3 84A.13 , the future ready Iowa skilled workforce last-dollar 4 scholarship program established under section 256.228 , the 5 future ready Iowa skilled workforce grant program established 6 under section 256.229 , and postsecondary summer classes 7 for high school students as provided under section 261E.8, 8 subsection 8 . In addition to the list created by the workforce 9 development board under this subsection , each community 10 college, in consultation with regional career and technical 11 education planning partnerships, and with the approval of the 12 board of directors of the community college, may identify and 13 maintain a list of not more than five regional high-demand jobs 14 in the community college region, and shall share the lists 15 with the workforce development board. The lists submitted by 16 community colleges under the subsection may be used in that 17 community college region for purposes of programs identified 18 under this subsection . The workforce development board 19 shall have full discretion to select and prioritize statewide 20 high-demand jobs after consulting with business and education 21 stakeholders, as appropriate, and seeking public comment. The 22 workforce development board may add to the list of high-demand 23 jobs as it deems necessary. For purposes of this subsection , 24 “high-demand job” means a job in the state that the board, or 25 a community college in accordance with this subsection , has 26 identified in accordance with this subsection . In creating 27 a list under this subsection , the following criteria, at a 28 minimum, shall apply: 29 Sec. 3. Section 84A.13, subsection 3, paragraph b, Code 30 2026, is amended to read as follows: 31 b. Whether the proposal increases the number of eligible 32 students receiving financial assistance under the future ready 33 Iowa skilled workforce last-dollar scholarship or future ready 34 Iowa skilled workforce grant programs program established under 35 -2- LSB 5266YH (3) 91 jda/jh 2/ 11

H.F. 2396 sections 256.228 and section 256.229 ; or increases the donation 1 of books, transportation, child care, and other wrap-around 2 support to assist eligible students receiving financial 3 assistance under section 256.228 or section 256.229 . 4 Sec. 4. Section 256.7, subsection 34, Code 2026, is amended 5 by striking the subsection. 6 Sec. 5. Section 256.194, subsection 3, Code 2026, is amended 7 by striking the subsection. 8 Sec. 6. Section 256.227, subsection 8, paragraph b, Code 9 2026, is amended to read as follows: 10 b. Adopt rules for approving career-technical or career 11 option programs in industries identified by the department of 12 workforce development; determining financial need; defining 13 residence for the purposes of this section ; processing and 14 approving applications for grants; and determining priority for 15 grants. The rules adopted by the commission shall not require 16 a student to attain any particular grade point average to be 17 awarded a skilled workforce shortage tuition grant. 18 Sec. 7. Section 256.227, subsection 9, paragraph b, Code 19 2026, is amended to read as follows: 20 b. Be responsible for the submission of the financial 21 information required for evaluation of the applicant’s need for 22 a grant, including the free application for federal student 23 aid, on forms determined by the commission. 24 Sec. 8. Section 256.227, Code 2026, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 10. a. A skilled workforce shortage 27 tuition grant program fund is established in the state 28 treasury. The fund shall be administered by the commission and 29 shall consist of moneys appropriated by the general assembly 30 and other moneys received by the commission for deposit in 31 the fund. The moneys in the fund are appropriated to the 32 commission for the skilled workforce shortage tuition grant 33 program. 34 b. For the fiscal year commencing July 1, 2026, and each 35 -3- LSB 5266YH (3) 91 jda/jh 3/ 11

H.F. 2396 succeeding fiscal year, there is appropriated from the general 1 fund of the state to the commission to be credited to the 2 skilled workforce shortage tuition grant program fund the 3 moneys necessary to pay all grants approved for that fiscal 4 year. 5 Sec. 9. Section 256.229, subsection 4, paragraph d, Code 6 2026, is amended by striking the paragraph. 7 Sec. 10. Section 256.230, subsection 3, paragraphs a and b, 8 Code 2026, are amended to read as follows: 9 a. A full-time eligible student may receive an Iowa 10 workforce grant for not more than four eight semesters, or 11 the equivalent, or until the eligible student completes the 12 eligible program, whichever occurs first. A part-time eligible 13 student may receive the grant for not more than eight sixteen 14 semesters, or the equivalent, on a prorated basis, or until 15 the eligible student completes the eligible program, whichever 16 occurs first. 17 b. The amount of an Iowa workforce grant to a full-time 18 eligible student shall not exceed two thousand dollars per 19 semester, or the equivalent the lesser of a student’s tuition 20 and fees for the eligible program or the amount of the 21 student’s financial need . The amount of an Iowa workforce 22 grant to a part-time eligible student shall be equal to the 23 amount that would be awarded to a full-time student except that 24 the commission shall prorate the amount based on the recipient 25 student’s semester hour or equivalent enrollment. 26 Sec. 11. Section 256.230, subsection 7, paragraph b, Code 27 2026, is amended to read as follows: 28 b. Adopt rules under chapter 17A for administration of this 29 section , including establishing the duties and responsibilities 30 of eligible institutions under the program, defining residence 31 and satisfactory academic progress for purposes of the program, 32 determining financial need, and establishing procedures for 33 grant and incentive payment application, processing, and 34 approval. The rules shall provide for determining the priority 35 -4- LSB 5266YH (3) 91 jda/jh 4/ 11

H.F. 2396 awarding of grants and incentives if moneys available for 1 purposes of this section are insufficient to pay all eligible 2 applicants adopted by the commission shall not require a 3 student to attain any particular grade point average to be 4 awarded an Iowa workforce grant . 5 Sec. 12. Section 256.230, subsection 8, Code 2026, is 6 amended to read as follows: 7 8. Fund created. 8 a. An Iowa workforce grant and incentive program fund 9 is created in the state treasury under the control of the 10 commission. All moneys deposited or paid into the fund 11 are appropriated to the commission to be used for grants 12 and incentive payments awarded as provided in this section . 13 Notwithstanding section 8.33 , moneys in the fund that remain 14 unencumbered or unobligated at the close of a fiscal year shall 15 not revert but shall remain available for expenditure for the 16 purposes designated. Notwithstanding section 12C.7, subsection 17 2 , interest or earnings on moneys in the fund shall be credited 18 to the fund and are appropriated to the college student aid 19 commission for purposes of administering any program described 20 in this subchapter VII, part 4 . 21 b. For the fiscal year commencing July 1, 2026, and each 22 succeeding fiscal year, there is appropriated from the general 23 fund of the state to the commission to be credited to the Iowa 24 workforce grant and incentive program fund the moneys necessary 25 to pay all grants and incentive payments approved for that 26 fiscal year. 27 Sec. 13. Section 260C.18A, subsection 2, paragraph f, Code 28 2026, is amended to read as follows: 29 f. Development and implementation of programs for the gap 30 tuition assistance program under chapter 260I . 31 Sec. 14. Section 260I.1, Code 2026, is amended to read as 32 follows: 33 260I.1 Title. 34 This chapter shall be known and may be cited as the “Gap 35 -5- LSB 5266YH (3) 91 jda/jh 5/ 11

H.F. 2396 Tuition Assistance Act” . 1 Sec. 15. Section 260I.2, subsections 1 and 2, Code 2026, are 2 amended to read as follows: 3 1. A gap tuition assistance program is established to 4 provide funding to community colleges for need-based tuition 5 assistance to applicants to enable completion of continuing 6 education certificate training programs for in-demand 7 occupations. 8 2. a. There is established for the community colleges 9 a gap tuition assistance fund in the state treasury to be 10 administered by the department of education. The funds in the 11 gap tuition assistance fund are appropriated to the department 12 of education for the gap tuition assistance program. 13 b. The aggregate total of grants awarded from the gap 14 tuition assistance fund during a fiscal year shall not be more 15 than two million dollars. 16 c. Except as provided in section 260I.10, subsection 4 , 17 moneys in the fund shall be allocated pursuant to the formula 18 established in section 260C.18C . Notwithstanding section 19 8.33 , moneys in the fund at the close of the fiscal year 20 shall not revert to the general fund of the state but shall 21 remain available for expenditure for the purpose designated 22 for subsequent fiscal years. Notwithstanding section 12C.7, 23 subsection 2 , interest or earnings on moneys in the fund shall 24 be credited to the fund. 25 Sec. 16. Section 260I.3, subsection 1, Code 2026, is amended 26 to read as follows: 27 1. The state board of education shall adopt rules pursuant 28 to chapter 17A defining eligibility criteria for persons 29 applying to receive tuition assistance under this chapter . 30 Sec. 17. Section 260I.3, subsection 2, paragraph a, 31 unnumbered paragraph 1, Code 2026, is amended to read as 32 follows: 33 An applicant for tuition assistance under this chapter must 34 have a demonstrated capacity to achieve the following outcomes: 35 -6- LSB 5266YH (3) 91 jda/jh 6/ 11

H.F. 2396 Sec. 18. Section 260I.3, subsection 2, paragraph b, 1 unnumbered paragraph 1, Code 2026, is amended to read as 2 follows: 3 The community college receiving the application shall only 4 approve an applicant for tuition assistance under this chapter 5 if the community college determines the applicant has a strong 6 likelihood of achieving the outcomes described in paragraph “a” 7 after considering factors including but not limited to: 8 Sec. 19. Section 260I.4, subsections 1 and 3, Code 2026, are 9 amended to read as follows: 10 1. Only an applicant eligible to work in the United States 11 shall be approved for tuition assistance under this chapter . 12 3. Eligibility for tuition assistance under this chapter 13 shall not be construed to guarantee enrollment in any community 14 college certificate program. 15 Sec. 20. Section 260I.5, unnumbered paragraph 1, Code 2026, 16 is amended to read as follows: 17 Costs of a certificate program eligible for coverage by 18 tuition assistance shall include but are not limited to: 19 Sec. 21. Section 260I.5, subsection 1, Code 2026, is amended 20 by striking the subsection. 21 Sec. 22. Section 260I.8, Code 2026, is amended to read as 22 follows: 23 260I.8 Program interview. 24 An applicant for tuition assistance under this chapter shall 25 meet with a member of the staff for an eligible certificate 26 program offered by the community college receiving the 27 application. The staff member shall discuss the relevant 28 industry, any applicable occupational research, and any 29 applicable training relating to the eligible certificate 30 program. The discussion shall include an evaluation of 31 the applicant’s capabilities, needs, family situation, work 32 history, educational background, attitude and motivation, 33 employment skills, vocational and technical potential, and 34 employment barriers. The discussion shall also include 35 -7- LSB 5266YH (3) 91 jda/jh 7/ 11

H.F. 2396 potential start dates, support needs, and other requirements 1 for an eligible certificate program. 2 Sec. 23. Section 260I.9, subsection 1, unnumbered paragraph 3 1, Code 2026, is amended to read as follows: 4 A participant in an eligible certificate program who 5 receives tuition assistance pursuant to this chapter shall do 6 all of the following: 7 Sec. 24. Section 260I.9, subsection 2, Code 2026, is amended 8 to read as follows: 9 2. A community college may terminate tuition assistance 10 for a participant who fails to meet the requirements of this 11 section . 12 Sec. 25. Section 260I.10, subsections 1 and 3, Code 2026, 13 are amended to read as follows: 14 1. The department of education, in coordination with the 15 community colleges, shall establish a steering committee. The 16 steering committee shall determine if the performance measures 17 of the gap tuition assistance program are being met and shall 18 take necessary steps to correct any deficiencies. The steering 19 committee shall meet at least quarterly to evaluate and monitor 20 the performance of the gap tuition assistance program. 21 3. The department of education shall coordinate statewide 22 oversight, evaluation, and reporting efforts for the gap 23 tuition assistance program. 24 Sec. 26. REPEAL. Sections 256.192 and 256.228, Code 2026, 25 are repealed. 26 Sec. 27. VOCATIONAL-TECHNICAL TUITION GRANTS FUND AND 27 FUTURE READY IOWA SKILLED WORKFORCE LAST-DOLLAR SCHOLARSHIP 28 FUND —— TRANSFER TO SKILLED WORKFORCE SHORTAGE TUITION GRANT 29 FUND. 30 1. Any moneys appropriated to the college student aid 31 commission for deposit in the vocational-technical tuition 32 grants fund established in section 256.192, subsection 8, that 33 remain unencumbered or unobligated as of July 1, 2026, shall 34 be deposited in the skilled workforce shortage tuition grant 35 -8- LSB 5266YH (3) 91 jda/jh 8/ 11

H.F. 2396 program fund created in section 256.227, subsection 10, as 1 enacted by this Act. 2 2. Any moneys appropriated to the college student aid 3 commission for deposit in the future ready Iowa skilled 4 workforce last-dollar scholarship fund established in section 5 256.228, subsection 5, that remain unencumbered or unobligated 6 as of July 1, 2026, shall be deposited in the skilled workforce 7 shortage tuition grant program fund created in section 256.227, 8 subsection 10, as enacted by this Act. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill modifies provisions related to programs 13 administered by the college student aid commission (CSAC), 14 including the skilled workforce shortage tuition grant 15 program, Iowa workforce grant and incentive program, 16 vocational-technical tuition grant program, the future ready 17 Iowa skilled workforce last-dollar scholarship program, and the 18 gap tuition assistance program. 19 Under current law, a grant under the skilled workforce 20 shortage tuition grant program may be awarded to any resident 21 of Iowa who establishes financial need and who is admitted 22 and in attendance as a full-time or part-time student in 23 a career-technical or career option program to pursue an 24 associate’s degree or other training at a community college in 25 the state. Currently, the maximum amount of a grant under the 26 program is one-half of the average community college tuition 27 and fee rate. The bill increases the maximum amount of a grant 28 under the program to 100 percent of the average community 29 college tuition and fee rate. The bill establishes a skilled 30 workforce shortage tuition grant program fund in the state 31 treasury and, beginning July 1, 2026, appropriates from the 32 general fund of the state to the fund the moneys necessary to 33 pay all grants approved for that fiscal year. Additionally, 34 the bill prohibits CSAC from adopting rules that require a 35 -9- LSB 5266YH (3) 91 jda/jh 9/ 11

H.F. 2396 student to attain any particular grade point average to be 1 awarded a skilled workforce shortage tuition grant. The bill 2 requires students participating in the program to submit the 3 free application for federal student aid to CSAC for evaluation 4 of need for a grant under the program. 5 Under current law, a grant under the Iowa workforce grant 6 and incentive program may be awarded to any resident of Iowa 7 who establishes financial need and who is admitted and in 8 attendance as a full-time or part-time student in either a 9 program of study or an academic major jointly approved by the 10 workforce development board and the state board of regents 11 or a teacher preparation program that leads to a bachelor’s 12 degree, initial teaching license, or intern teaching license. 13 Currently, the maximum amount of a grant under the program is 14 $2,000 per semester for full-time students for not more than 15 four semesters. The bill increases the maximum amount of a 16 grant under the program to 100 percent of the student’s tuition 17 and fees for the eligible program and provides that a full-time 18 student may receive grants under the program for not more than 19 eight semesters. Beginning July 1, 2026, the bill appropriates 20 from the general fund of the state to the Iowa workforce grant 21 and incentive program fund the moneys necessary to pay all 22 grants approved for that fiscal year. Also, the bill prohibits 23 CSAC from adopting rules that require a student to attain any 24 particular grade point average to be awarded an Iowa workforce 25 grant. 26 Current Code section 256.192 establishes the 27 vocational-technical tuition grants program, which provides 28 grants to Iowa residents who demonstrate financial need and who 29 are enrolled in career or technical education programs at Iowa 30 community colleges. Current Code section 256.228 establishes 31 the future ready Iowa skilled workforce last-dollar scholarship 32 program, which provides grants intended to cover any gap 33 between federal and state grant or scholarship programs and the 34 tuition and fees charged by Iowa community colleges to Iowa 35 -10- LSB 5266YH (3) 91 jda/jh 10/ 11

H.F. 2396 residents who demonstrate financial need and who are enrolled 1 in certain specified career or technical education programs at 2 a community college. The bill repeals Code sections 256.192 3 and 256.228 and transfers any moneys appropriated to CSAC for 4 deposit in the vocational-technical tuition grants fund or the 5 future ready Iowa skilled workforce last-dollar scholarship 6 fund that remain unencumbered or unobligated as of July 1, 7 2026, to the skilled workforce shortage tuition grant program 8 fund. 9 The gap tuition assistance program provides funding to 10 community colleges for need-based tuition assistance to 11 enable applicants to complete continuing education certificate 12 training programs for in-demand occupations. Under current 13 law, the gap tuition assistance program covers, among other 14 things, tuition costs for eligible certificate training 15 programs. The bill strikes this provision, leaving only the 16 following costs to be covered by the gap tuition assistance 17 program: direct training and support services, required books 18 and equipment, certain specified fees, and costs of providing 19 direct staff support services. As a result of this change, 20 the bill changes the name of this program from the gap tuition 21 assistance program to the gap assistance program. 22 The bill makes conforming changes. 23 -11- LSB 5266YH (3) 91 jda/jh 11/ 11