House Study Bill 773 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON MOHR) A BILL FOR An Act relating to and making appropriations for the economic 1 development of the state, including to the economic 2 development authority, Iowa finance authority, department 3 of workforce development, and state board of regents and 4 certain regents institutions, and codifying the housing 5 renewal program. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5002YC (11) 91 nls/ko
H.F. _____ DIVISION I 1 FY 2026-2027 APPROPRIATIONS 2 Section 1. GOALS AND ACCOUNTABILITY —— ECONOMIC 3 DEVELOPMENT. 4 1. For the fiscal year beginning July 1, 2026, the goals 5 for the economic development authority shall be to expand and 6 stimulate the state economy, increase the wealth of Iowans, and 7 increase the population of the state. 8 2. To achieve the goals in subsection 1, the economic 9 development authority shall do all of the following for the 10 fiscal year beginning July 1, 2026: 11 a. Concentrate its efforts on programs and activities that 12 result in commercially viable products and services. 13 b. Adopt practices and services consistent with free 14 market, private sector philosophies. 15 c. Ensure economic growth and development throughout the 16 state. 17 d. Work with businesses and communities to continually 18 improve the economic development climate along with the 19 economic well-being and quality of life for Iowans. 20 e. Coordinate with other state agencies to ensure that they 21 are attentive to the needs of an entrepreneurial culture. 22 f. Establish a strong and aggressive marketing image to 23 showcase Iowa’s workforce, existing industry, and potential. 24 The authority shall prioritize recruitment of new businesses, 25 business expansion, and retention of existing Iowa businesses. 26 In addition, the authority shall emphasize entrepreneurial 27 development through helping entrepreneurs secure capital, 28 and developing networks and a business climate conducive to 29 entrepreneurs and small businesses. 30 g. Encourage the development of communities and quality of 31 life to foster economic growth. 32 h. Prepare communities for future growth and development 33 through development, expansion, and modernization of 34 infrastructure. 35 -1- LSB 5002YC (11) 91 nls/ko 1/ 20
H.F. _____ i. Develop public-private partnerships with Iowa businesses 1 in the tourism industry, Iowa tour groups, Iowa tourism 2 organizations, and political subdivisions in this state to 3 assist in the development of advertising efforts. 4 Sec. 2. ECONOMIC DEVELOPMENT AUTHORITY. 5 1. APPROPRIATION 6 a. There is appropriated from the general fund of the state 7 to the economic development authority for the fiscal year 8 beginning July 1, 2026, and ending June 30, 2027, the following 9 amount, or so much thereof as is necessary, to be used for the 10 purposes designated in this subsection, and for not more than 11 the following full-time equivalent positions: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,903,510 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 102.60 14 b. (1) For salaries, support, miscellaneous purposes, 15 programs, marketing, administration, business development, 16 community development, small business development, and any 17 divisions the authority may organize. 18 (2) For business development operations and programs, 19 international trade, export assistance, workforce recruitment, 20 and the partner state program. 21 (3) For transfer to a fund created pursuant to section 22 15.313 for purposes of financing strategic infrastructure 23 projects. 24 (4) For community economic development programs, tourism 25 operations, community assistance, and the community development 26 block grant. 27 (5) For achieving the goals and accountability, and 28 fulfilling the requirements and duties required under this Act. 29 (6) The full-time equivalent positions authorized under 30 this subsection are funded, in whole or in part, by the moneys 31 appropriated under this subsection or by other moneys received 32 by the authority, including certain federal moneys. 33 c. Notwithstanding section 8.33 , moneys appropriated in 34 this subsection that remain unencumbered or unobligated at the 35 -2- LSB 5002YC (11) 91 nls/ko 2/ 20
H.F. _____ close of the fiscal year shall not revert but shall remain 1 available for expenditure for the purposes designated in this 2 subsection until the close of the succeeding fiscal year. 3 2. FINANCIAL ASSISTANCE RESTRICTIONS 4 a. A business creating jobs through moneys appropriated in 5 subsection 1 shall be subject to contract provisions requiring 6 new and retained jobs to be filled by individuals who are 7 citizens of the United States who reside within the United 8 States, or individuals authorized to work in the United States 9 pursuant to federal law, including legal resident aliens 10 residing in the United States. 11 b. Any vendor who receives moneys appropriated in 12 subsection 1 shall adhere to such contract provisions and 13 provide periodic assurances as the state shall require that the 14 jobs are filled solely by citizens of the United States who 15 reside within the United States, or individuals authorized to 16 work in the United States pursuant to federal law, including 17 legal resident aliens residing in the United States. 18 c. A business that receives financial assistance from 19 the authority from moneys appropriated in subsection 1 shall 20 only employ individuals legally authorized to work in this 21 state. In addition to all other applicable penalties provided 22 by current law, all or a portion of the assistance received 23 by a business which is found to knowingly employ individuals 24 not legally authorized to work in this state is subject to 25 recapture by the authority. 26 3. USES OF APPROPRIATIONS 27 a. From the moneys appropriated in subsection 1, the 28 authority may provide financial assistance in the form of a 29 grant to a community economic development entity for conducting 30 a local workforce recruitment effort designed to recruit 31 citizens who are former residents of the state, and former 32 students at colleges and universities in the state, to meet the 33 needs of local employers. 34 b. From the moneys appropriated in subsection 1, the 35 -3- LSB 5002YC (11) 91 nls/ko 3/ 20
H.F. _____ authority may provide financial assistance to early stage 1 industry companies being established by women entrepreneurs. 2 c. From the moneys appropriated in subsection 1, the 3 authority may provide financial assistance in the form of 4 grants, loans, or forgivable loans for advanced research and 5 commercialization projects involving value-added agriculture, 6 advanced technology, or biotechnology. 7 d. The authority shall not use any moneys appropriated in 8 subsection 1 for purposes of providing financial assistance 9 for any program or project that involves the installation of 10 geothermal systems for melting snow and ice from streets or 11 sidewalks. 12 4. WORLD FOOD PRIZE 13 In lieu of the standing appropriation in section 15.368 , 14 there is appropriated from the general fund of the state to the 15 economic development authority for the fiscal year beginning 16 July 1, 2026, and ending June 30, 2027, the following amount to 17 be used for support of the world food prize: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 19 5. COUNCILS OF GOVERNMENTS —— ASSISTANCE 20 There is appropriated from the general fund of the state 21 to the economic development authority for the fiscal year 22 beginning July 1, 2026, and ending June 30, 2027, the following 23 amount to be used for the purposes of providing financial 24 assistance to Iowa’s councils of governments: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350,000 26 6. TOURISM OFFICE 27 a. There is appropriated from the general fund of the state 28 to the economic development authority for the fiscal year 29 beginning July 1, 2026, and ending June 30, 2027, the following 30 amount, or so much thereof as is necessary, to be used for the 31 tourism office for the advertisement, promotion, placement, 32 and implementation of the economic development authority’s 33 strategic plan for tourism and travel: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,050,000 35 -4- LSB 5002YC (11) 91 nls/ko 4/ 20
H.F. _____ b. Notwithstanding section 8.33 , moneys appropriated in 1 this subsection that remain unencumbered or unobligated at the 2 close of the fiscal year shall not revert but shall remain 3 available for expenditure for the purposes designated until the 4 close of the succeeding fiscal year. 5 c. The economic development authority shall submit an 6 annual report on or before January 15 to the general assembly 7 regarding the tourism office’s activities funded with moneys 8 appropriated under this subsection. The report must be 9 provided in an electronic format and must include metrics 10 and criteria that allow the general assembly to quantify and 11 evaluate the effectiveness and economic impact of the tourism 12 office’s activities related to the advertisement, promotion, 13 placement, and implementation of the economic development 14 authority’s strategic plan for tourism and travel. 15 7. CULTURAL AFFAIRS ACTIVITIES 16 a. There is appropriated from the general fund of the state 17 to the economic development authority 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 support of the Iowa arts council: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,601,800 22 b. Of the moneys appropriated in paragraph “a”, the economic 23 development authority shall allocate $321,800 for deposit in 24 the arts and culture enhancement fund established in section 25 15.436 . 26 c. Notwithstanding section 8.33 , moneys appropriated in 27 this subsection that remain unencumbered or unobligated at the 28 close of the fiscal year shall not revert but shall remain 29 available for expenditure for the purposes designated until the 30 close of the succeeding fiscal year. 31 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 32 2026-2027. Notwithstanding the standing appropriations in the 33 following designated sections for the fiscal year beginning 34 July 1, 2026, and ending June 30, 2027, the amount appropriated 35 -5- LSB 5002YC (11) 91 nls/ko 5/ 20
H.F. _____ from the general fund of the state pursuant to the following 1 sections for the following purposes shall not exceed the 2 following amounts: 3 1. For the arts and culture enhancement fund under section 4 99F.11, subsection 4 , paragraph “d”, subparagraph (1): 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 448,403 6 2. For the purposes of tourism marketing under section 7 99F.11, subsection 4 , paragraph “d”, subparagraph (2): 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,443,700 9 Sec. 4. FINANCIAL ASSISTANCE REPORTING —— ECONOMIC 10 DEVELOPMENT AUTHORITY. The economic development authority 11 shall submit an annual report to the general assembly no later 12 than November 1, 2026, that details the amount of every direct 13 loan, forgivable loan, tax credit, tax exemption, tax refund, 14 grant, or any other financial assistance awarded to a person 15 during the prior fiscal year by the authority under an economic 16 development program administered by the authority. The report 17 must identify the county where the project associated with each 18 such award is located. 19 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys 20 collected by the insurance division of the department of 21 insurance and financial services in excess of the anticipated 22 gross revenues under section 505.7, subsection 3 , during 23 the fiscal year beginning July 1, 2026, $100,000 shall be 24 transferred to the economic development authority for insurance 25 economic development and international insurance economic 26 development. 27 Sec. 6. IOWA FINANCE AUTHORITY. 28 1. There is appropriated from the general fund of the state 29 to the Iowa finance authority for the fiscal year beginning 30 July 1, 2026, and ending June 30, 2027, the following amounts, 31 or so much thereof as is necessary, to be used for the purposes 32 designated: 33 a. Rent subsidy program 34 (1) To provide reimbursement for rent expenses to eligible 35 -6- LSB 5002YC (11) 91 nls/ko 6/ 20
H.F. _____ persons under the home and community-based services rent 1 subsidy program established in section 16.55 : 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 873,000 3 (2) Of the moneys appropriated in this paragraph, not more 4 than $35,000 may be used for administrative costs. 5 b. Housing renewal program 6 To provide housing renewal moneys to the nonprofit Iowa 7 affiliate to award grants to eligible communities for the 8 housing renewal program created in section 16.52, as enacted in 9 Division II of this Act: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 550,000 11 2. Notwithstanding section 8.33 , moneys appropriated in 12 this section that remain unencumbered or unobligated at the 13 close of the fiscal year shall not revert but shall remain 14 available for expenditure for the purposes designated until the 15 close of the succeeding fiscal year. 16 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 17 is requested to review the audit of the Iowa finance authority 18 performed by the auditor hired by the authority. 19 Sec. 8. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 20 is appropriated from the general fund of the state to the 21 department of workforce development for the fiscal year 22 beginning July 1, 2026, and ending June 30, 2027, the following 23 amounts, or so much thereof as is necessary, to be used for the 24 purposes designated: 25 1. WORKFORCE DEVELOPMENT OPERATIONS 26 a. For the operation of field offices and the workforce 27 development board, and for not more than the following 28 full-time equivalent positions: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,902,636 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 157.09 31 b. Of the moneys appropriated in paragraph “a”, the 32 department shall allocate $150,000 to the state library for 33 the purpose of licensing an online resource which prepares 34 individuals to succeed in the workplace through programs which 35 -7- LSB 5002YC (11) 91 nls/ko 7/ 20
H.F. _____ improve job skills and vocational test-taking abilities. 1 2. OFFENDER REENTRY PROGRAM 2 a. For the development and administration of an offender 3 reentry program to provide offenders with employment skills, 4 and for not more than the following full-time equivalent 5 positions: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 387,158 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.00 8 b. The department of workforce development shall partner 9 with the department of corrections to provide staff within 10 the correctional facilities resources to improve offenders’ 11 abilities to find and retain productive employment. 12 3. STATE ACCOUNTING SYSTEM 13 For the payment of services provided by the department of 14 administrative services related to the state accounting system: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,822 16 4. WORKPLACE INJURY AND SAFETY SURVEYS 17 For the operation of workplace safety surveys and workplace 18 data collection and analysis, including salaries, support, 19 maintenance, and miscellaneous purposes, and for not more than 20 the following full-time equivalent positions: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,555 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.90 23 5. VOCATIONAL REHABILITATION SERVICES DIVISION 24 a. For salaries, support, maintenance, and miscellaneous 25 purposes, and for not more than the following full-time 26 equivalent positions: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,226,739 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 233.00 29 For purposes of optimizing the job placement of individuals 30 with disabilities, the division shall make its best efforts 31 to work with community rehabilitation program providers for 32 job placement and retention services for individuals with 33 significant disabilities and most significant disabilities. By 34 January 15, 2027, the division shall submit a written report to 35 -8- LSB 5002YC (11) 91 nls/ko 8/ 20
H.F. _____ the general assembly regarding the division’s outreach efforts 1 with community rehabilitation program providers. 2 b. For the entrepreneurs with disabilities program 3 described in section 84H.4 : 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138,506 5 6. ADULT EDUCATION AND LITERACY PROGRAMS 6 For distribution as grants to community colleges for 7 the purpose of adult basic education programs for students 8 requiring instruction in English as a second language: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 10 In issuing grants under this subsection, the department of 11 workforce development shall use the same application process 12 and criteria as are used for purposes of awarding grants to 13 community colleges for the purpose of adult basic education 14 programs for students requiring instruction in English as a 15 second language using moneys that are appropriated to the 16 department from the Iowa skilled worker and job creation fund 17 created in section 8.57J . 18 7. REGISTERED APPRENTICESHIP PROGRAMS 19 For the funding of the registered apprenticeship programs 20 under chapter 84F to encourage small to midsize businesses to 21 start or grow registered apprenticeships: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000 23 8. REVERSION 24 Notwithstanding section 8.33 , moneys appropriated in this 25 section that remain unencumbered or unobligated at the close of 26 the fiscal year shall not revert but shall remain available for 27 expenditure for the purposes designated until the close of the 28 succeeding fiscal year. 29 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT —— SPECIAL 30 EMPLOYMENT SECURITY CONTINGENCY FUND. 31 1. There is appropriated from the special employment 32 security contingency fund created in section 96.13 to the 33 department of workforce development for the fiscal year 34 beginning July 1, 2026, and ending June 30, 2027, the following 35 -9- LSB 5002YC (11) 91 nls/ko 9/ 20
H.F. _____ amount, or so much thereof as is necessary, to be used for 1 field offices: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,616,084 3 2. Any remaining additional penalty and interest revenue 4 collected by the department of workforce development is 5 appropriated to the department for the fiscal year beginning 6 July 1, 2026, and ending June 30, 2027, to accomplish the 7 mission of the department. 8 Sec. 10. IOWA SKILLED WORKER AND JOB CREATION FUND. 9 1. There is appropriated from the Iowa skilled worker and 10 job creation fund created in section 8.57J to the following 11 departments, agencies, and institutions for the fiscal year 12 beginning July 1, 2026, and ending June 30, 2027, the following 13 amounts, or so much thereof as is necessary, to be used for the 14 purposes designated: 15 a. ECONOMIC DEVELOPMENT AUTHORITY 16 (1) For providing financial assistance to eligible 17 businesses for the business incentives for growth program 18 pursuant to chapter 15, subchapter II, part 33: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,700,000 20 (a) Of the moneys appropriated in this subparagraph (1), 21 not more than $1,000,000 may be used for purposes of providing 22 infrastructure grants to main street communities under the main 23 street Iowa program. 24 (b) As a condition of receiving moneys appropriated in this 25 subparagraph (1), an entity shall testify upon the request of 26 the joint appropriations subcommittee on economic development 27 regarding the expenditure of such moneys. 28 (2) For support of the manufacturing 4.0 technology 29 investment program established in section 15.371 : 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,350,000 31 (3) For the empower rural Iowa program: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000 33 b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS 34 (1) STATE BOARD OF REGENTS 35 -10- LSB 5002YC (11) 91 nls/ko 10/ 20
H.F. _____ For capacity building infrastructure in areas related 1 to technology commercialization, marketing and business 2 development efforts in areas related to technology 3 commercialization, entrepreneurship, and business growth, 4 and infrastructure projects and programs needed to assist in 5 implementation of activities under chapter 262B : 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 7 (a) Of the moneys appropriated pursuant to this 8 subparagraph (1), 35 percent shall be allocated for Iowa state 9 university of science and technology, 35 percent shall be 10 allocated for the state university of Iowa, and 30 percent 11 shall be allocated for the university of northern Iowa. 12 (b) The institutions shall provide a one-to-one match 13 of additional moneys for the activities funded with moneys 14 appropriated under this subparagraph (1). 15 (c) The state board of regents shall submit a report by 16 January 15, 2027, to the governor and the general assembly 17 regarding the activities, projects, and programs funded with 18 moneys appropriated under this subparagraph (1). The report 19 must be provided in an electronic format and must include a 20 list of metrics and criteria mutually agreed to in advance by 21 the board of regents and the economic development authority. 22 The metrics and criteria must allow the governor’s office and 23 the general assembly to quantify and evaluate the progress 24 of the board of regents institutions with regard to their 25 activities, projects, and programs in the areas of technology 26 commercialization, entrepreneurship, regional development, and 27 market research. 28 (2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY 29 For small business development centers, the research park, 30 and the center for industrial research and service, and for not 31 more than the following full-time equivalent positions: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,424,302 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 50.94 34 (a) Of the moneys appropriated in this subparagraph (2), 35 -11- LSB 5002YC (11) 91 nls/ko 11/ 20
H.F. _____ Iowa state university of science and technology shall allocate 1 at least $735,728 for purposes of funding small business 2 development centers. Iowa state university of science and 3 technology may allocate the appropriated moneys to the various 4 small business development centers in any manner necessary to 5 achieve the purposes of this subparagraph (2). 6 (b) Iowa state university of science and technology shall 7 do all of the following: 8 (i) Direct expenditures for research toward projects that 9 will provide economic stimulus for Iowa. 10 (ii) Emphasize providing services to Iowa-based companies. 11 (c) It is the intent of the general assembly that the 12 center for industrial research and service industrial incentive 13 program focus on Iowa industrial sectors and seek contributions 14 and in-kind donations from businesses, industrial foundations, 15 and trade associations, and that moneys for the program shall 16 be allocated only for projects which are matched by private 17 sector moneys for directed contract research or for nondirected 18 research. The match required of small businesses as defined 19 in section 15.102 for directed contract research or for 20 nondirected research shall be $1 for each $3 of state funds. 21 The match required for other businesses for directed contract 22 research or for nondirected research shall be $1 for each $1 of 23 state funds. The match required of industrial foundations or 24 trade associations shall be $1 for each $1 of state funds. 25 (d) Iowa state university of science and technology shall 26 report annually to the general assembly the total amount of 27 private contributions, the proportion of contributions from 28 small businesses and other businesses, and the proportion for 29 directed contract research and nondirected research of benefit 30 to Iowa businesses and industrial sectors. 31 (3) STATE UNIVERSITY OF IOWA 32 (a) For the state university of Iowa research park and for 33 university of Iowa pharmaceuticals located at the research 34 park, including salaries, support, maintenance, equipment, and 35 -12- LSB 5002YC (11) 91 nls/ko 12/ 20
H.F. _____ miscellaneous purposes, and for not more than the following 1 full-time equivalent positions: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209,279 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 6.00 4 The state university of Iowa shall do all of the following: 5 (i) Direct expenditures for research toward projects that 6 will provide economic stimulus for Iowa. 7 (ii) Emphasize providing services to Iowa-based companies. 8 (b) For the purpose of implementing the entrepreneurship 9 and economic growth initiative, and for not more than the 10 following full-time equivalent positions: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 8.00 13 (4) UNIVERSITY OF NORTHERN IOWA 14 (a) For the metal casting and foundry 4.0 centers, 15 advance Iowa, family business center, and the institute for 16 decision making, including salaries, support, maintenance, and 17 miscellaneous purposes, and for not more than the following 18 full-time equivalent positions: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,466,419 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.00 21 The university of northern Iowa shall do all of the 22 following: 23 (i) Direct expenditures for research toward projects that 24 will provide economic stimulus for Iowa. 25 (ii) Emphasize providing services to Iowa-based companies. 26 (b) For the purpose of providing in-state undergraduate 27 tuition and undergraduate mandatory fees to individuals 28 who reside in a state contiguous to Iowa, who enroll in an 29 undergraduate program offered by the university of northern 30 Iowa, and who are classified as residents of this state for 31 purposes of undergraduate tuition and undergraduate mandatory 32 fees: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 34 (c) For the purpose of expanding the nursing program: 35 -13- LSB 5002YC (11) 91 nls/ko 13/ 20
H.F. _____ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000 1 (5) DUTY TO TESTIFY 2 As a condition of receiving moneys appropriated in this 3 lettered paragraph “b”, an entity shall testify upon the 4 request of the joint appropriations subcommittee on economic 5 development regarding the expenditure of such moneys. 6 c. DEPARTMENT OF WORKFORCE DEVELOPMENT 7 (1) For staffing costs related to completing workforce 8 preparation outcome reporting in conjunction with the 9 department of education: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,000 11 (2) For distribution to community colleges for the purposes 12 of implementing adult education and literacy programs pursuant 13 to section 84A.19 : 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,500,000 15 (a) From the moneys appropriated in this numbered 16 subparagraph, $3,125,000 shall be allocated pursuant to the 17 formula established in section 260C.18C . 18 (b) From the moneys appropriated in this numbered 19 subparagraph, not more than $150,000 shall be used by the 20 department of workforce development for implementation of adult 21 education and literacy programs pursuant to section 84A.19 . 22 (c) From the moneys appropriated in this numbered 23 subparagraph, not more than $1,015,000 shall be distributed 24 as grants to community colleges for the purpose of adult 25 basic education programs for students requiring instruction 26 in English as a second language. The department of workforce 27 development shall establish an application process and criteria 28 to award grants pursuant to this subparagraph division to 29 community colleges. The criteria must be based on need for 30 instruction in English as a second language in the region 31 served by each community college as determined by factors 32 including data from the latest federal decennial census and 33 outreach efforts to determine regional needs. 34 (d) From the moneys appropriated in this numbered 35 -14- LSB 5002YC (11) 91 nls/ko 14/ 20
H.F. _____ subparagraph, $210,000 shall be transferred to the department 1 of health and human services for purposes of administering 2 a program to provide access to international resources to 3 Iowans and new Iowans to provide economic and leadership 4 development resulting in Iowa being a more welcoming place 5 to live, work, and raise a family. The program must provide 6 supplemental support services for international refugees to 7 improve learning, English literacy, life skills, cultural 8 competencies, and integration in a county with a population 9 over 350,000 as determined by the 2020 federal decennial 10 census. The department of health and human services shall 11 utilize a request-for-proposals process to identify the entity 12 best qualified to implement the program. 13 2. Notwithstanding section 8.33 , moneys appropriated in 14 this section that remain unencumbered or unobligated at the 15 close of the fiscal year shall not revert but shall remain 16 available for expenditure for the purposes designated until the 17 close of the succeeding fiscal year. 18 Sec. 11. GENERAL FUND —— CERTAIN REGENTS INSTITUTIONS. 19 1. There is appropriated from the general fund of the state 20 to the following institutions for the fiscal year beginning 21 July 1, 2026, and ending June 30, 2027, the following amounts, 22 or so much thereof as is necessary, to be used for the purposes 23 designated: 24 a. IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY 25 In cooperation with the economic development authority, for 26 support of a biosciences innovation ecosystem, to strengthen 27 Iowa’s leadership positions in the area of bio-based chemicals, 28 digital agriculture, vaccines, and medical devices, including 29 salaries, support, maintenance, and miscellaneous purposes, and 30 for not more than the following full-time equivalent positions: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,963,995 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 14.81 33 b. STATE UNIVERSITY OF IOWA 34 In cooperation with the economic development authority, for 35 -15- LSB 5002YC (11) 91 nls/ko 15/ 20
H.F. _____ support of a biosciences innovation ecosystem, to strengthen 1 Iowa’s leadership positions in the area of bio-based chemicals, 2 digital agriculture, vaccines, and medical devices, including 3 salaries, support, maintenance, and miscellaneous purposes, and 4 for not more than the following full-time equivalent positions: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 4.35 7 c. UNIVERSITY OF NORTHERN IOWA 8 For equipment and technology to expand the university’s 9 additive manufacturing capabilities related to investment 10 castings technology and industry support, including salaries, 11 support, maintenance, and miscellaneous purposes, and for not 12 more than the following full-time equivalent positions: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 394,321 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 2.73 15 The university of northern Iowa shall make a good-faith 16 effort to coordinate with private entities to seek moneys to 17 supplement this appropriation to support the expansion of the 18 university’s additive manufacturing capabilities. 19 2. Notwithstanding section 8.33 , moneys appropriated in 20 subsection 1, paragraphs “a” and “b”, that remain unencumbered 21 or unobligated at the close of the fiscal year shall not revert 22 but shall remain available for expenditure for the purposes 23 designated until the close of the succeeding fiscal year. 24 DIVISION II 25 HOUSING RENEWAL PROGRAM 26 Sec. 12. NEW SECTION . 16.52 Housing renewal program. 27 1. For purposes of this section, unless the context 28 otherwise requires: 29 a. “Eligible participant” includes cities, counties, 30 consortiums of local governments, and organizations exempt from 31 taxation pursuant to section 501(c)(3) of the Internal Revenue 32 Code. 33 b. “Nonprofit Iowa affiliate” means a nonprofit Iowa 34 affiliate of a nonprofit international organization whose 35 -16- LSB 5002YC (11) 91 nls/ko 16/ 20
H.F. _____ primary activity is the promotion of the construction, 1 remodeling, or rehabilitation of one-family or two-family 2 dwellings for use by low-income families. 3 2. a. A housing renewal program fund is created in the 4 state treasury under the control of the Iowa finance authority. 5 The fund shall consist of moneys appropriated to or deposited 6 in the fund. Moneys in the fund are appropriated to the Iowa 7 finance authority to administer the housing renewal program. 8 b. Notwithstanding section 8.33, moneys appropriated to 9 the housing renewal program fund that remain uncumbered or 10 unobligated at the close of a fiscal year shall not revert 11 but shall remain available for expenditure for the purposes 12 designated until the close of the succeeding fiscal year. 13 c. Notwithstanding section 12C.7, subsection 2, interest or 14 earnings on moneys in the housing renewal program fund shall be 15 credited to the fund. Payment of interest, income generated 16 from the sale of an ownership unit pursuant to subsection 6, 17 recaptures of financial assistance awards, and other repayments 18 under the housing renewal program shall be deposited in the 19 fund. 20 3. a. The Iowa finance authority shall provide moneys from 21 the housing renewal program fund to a nonprofit Iowa affiliate 22 that shall use the moneys to award financial assistance under 23 the housing renewal program to eligible participants. 24 b. Eligible participants shall use financial assistance 25 awarded under the housing renewal program only for purposes of 26 the acquisition, rehabilitation, and resale of ownership units; 27 the acquisition and demolition of blighted structures; and the 28 redevelopment of ownership units. 29 4. Twenty-five percent of moneys appropriated to the 30 housing renewal program fund shall be allocated to financial 31 assistance awards for eligible participants located in the 32 eighty-eight least populated counties in the state. 33 5. a. The nonprofit Iowa affiliate shall determine the 34 criteria used to evaluate eligible participants and to award 35 -17- LSB 5002YC (11) 91 nls/ko 17/ 20
H.F. _____ financial assistance to eligible participants selected by the 1 nonprofit Iowa affiliate. 2 b. The nonprofit Iowa affiliate shall not award an eligible 3 participant more than one hundred thousand dollars per 4 ownership unit. The nonprofit Iowa affiliate may use up to 5 five percent of the financial assistance awarded to an eligible 6 participant for administrative expenses related to the housing 7 renewal program. 8 c. (1) An eligible participant shall have a maximum of 9 thirty-six months from the date a contract is executed between 10 the nonprofit Iowa affiliate and the eligible participant 11 for the eligible participant to complete the eligible 12 participant’s project. The eligible participant’s project 13 shall be considered complete when all financial assistance 14 awarded to the eligible participant has been expended, and all 15 ownership units that are covered by the contract are finished 16 and available for sale. 17 (2) Unless the nonprofit Iowa affiliate authorizes 18 additional time for good cause shown, if an eligible 19 participant has no project activity within twelve months 20 from the date a contract is executed between the nonprofit 21 Iowa affiliate and the eligible participant, the financial 22 assistance award shall be returned to the Iowa finance 23 authority for deposit in the housing renewal program fund. 24 d. An eligible participant shall sell each completed 25 ownership unit to a homebuyer whose income is under the one 26 hundred twenty percent area median income and who must occupy 27 the ownership unit as the homebuyer’s primary residence. The 28 deed to the ownership unit must contain a restrictive resale 29 requirement that prohibits the homebuyer or a subsequent owner 30 from selling the ownership unit to a person with an income 31 above the one hundred twenty percent area median income for 32 five calendar years from the date the eligible participant sold 33 the ownership unit to the first homebuyer whose income is under 34 the one hundred twenty percent area median income. 35 -18- LSB 5002YC (11) 91 nls/ko 18/ 20
H.F. _____ 6. The nonprofit Iowa affiliate shall use income generated 1 from the sale of an ownership unit only for the purpose of 2 awarding financial assistance to eligible participants under 3 the housing renewal program. 4 7. The Iowa finance authority shall not use more than five 5 percent of moneys appropriated to the housing renewal program 6 fund for administration and oversight of the housing renewal 7 program. 8 8. The Iowa finance authority, in coordination with the 9 nonprofit Iowa affiliate, shall submit an annual report to 10 the general assembly on or before December 31 describing the 11 community, economic, and financial impact of the housing 12 renewal program. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill relates to and makes appropriations for the 17 economic development of the state, and codifies the housing 18 renewal program. 19 DIVISION I —— FY 2026-2027 APPROPRIATIONS. The bill 20 appropriates moneys for FY 2026-2027 from the general fund of 21 the state to the economic development authority (IEDA), Iowa 22 finance authority (IFA), department of workforce development 23 (IWD), Iowa state university of science and technology (ISU), 24 state university of Iowa, and university of northern Iowa. 25 For FY 2026-2027, the bill limits standing appropriations 26 for the world food prize, the arts and culture enhancement 27 fund, and tourism marketing. 28 The bill transfers certain moneys collected by the insurance 29 division in excess of the anticipated gross revenues under Code 30 section 505.7 to IEDA. 31 The bill appropriates moneys for FY 2026-2027 from the 32 special employment security contingency fund to IWD. The bill 33 also appropriates moneys for FY 2026-2027 from the Iowa skilled 34 worker and job creation fund to IEDA, IWD, and the state board 35 -19- LSB 5002YC (11) 91 nls/ko 19/ 20
H.F. _____ of regents and institutions under the control of the board. 1 The auditor of state is requested to review the audit of IFA 2 performed by the auditor hired by IFA. 3 The bill requires IEDA, the vocational rehabilitation 4 services division of IWD, the state board of regents, and ISU 5 to submit various reports to the general assembly. 6 DIVISION II —— HOUSING RENEWAL PROGRAM. The bill codifies 7 the housing renewal program created pursuant to 2022 Iowa Acts, 8 chapter 1148, section 20, as amended by 2023 Iowa Acts, chapter 9 110, section 18, and 2025 Iowa Acts, chapter 155, section 14. 10 -20- LSB 5002YC (11) 91 nls/ko 20/ 20