Senate File 626 - Introduced SENATE FILE 626 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 1216) A BILL FOR An Act relating to federal moneys and regulations, including 1 the appropriation of federal moneys made available from 2 federal block grants and other nonstate sources, the 3 allocation of portions of federal block grants, the 4 procedures if federal moneys or federal block grants are 5 more or less than anticipated, and the authorization of 6 certain city regulations when required under federal law, 7 and including effective date and retroactive applicability 8 provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1021SV (2) 91 dg/ns

S.F. 626 DIVISION I 1 APPROPRIATIONS OF FEDERAL MONEYS 2 Section 1. SUBSTANCE ABUSE APPROPRIATIONS. 3 1. a. There is appropriated from the fund created pursuant 4 to section 8.41 to the department of health and human services 5 for the following federal fiscal years beginning October 1, and 6 ending September 30, the following amounts: 7 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,116,120 8 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,116,120 9 b. The appropriations made in this subsection are in the 10 amounts anticipated to be received from the federal government 11 for the designated federal fiscal years under 42 U.S.C. ch. 12 6A, subch. XVII, part B, subpart ii, which provides for the 13 prevention and treatment of substance abuse block grant. 14 The department shall expend the moneys appropriated in this 15 subsection as provided in the federal law making the moneys 16 available and in conformance with chapter 17A . 17 c. Of the moneys appropriated for each federal fiscal year 18 in this subsection, an amount not exceeding 5 percent shall be 19 used by the department for administrative expenses. 20 d. (1) For the state fiscal year beginning July 1, 2025, 21 the department shall expend no less than an amount equal to 22 the amount expended for treatment services in the state fiscal 23 year beginning July 1, 2024, for pregnant women and women with 24 dependent children. 25 (2) For the state fiscal year beginning July 1, 2026, the 26 department shall expend no less than an amount equal to the 27 amount expended for treatment services in the state fiscal 28 year beginning July 1, 2025, for pregnant women and women with 29 dependent children. 30 2. At least 20 percent of the moneys remaining from the 31 appropriation made in subsection 1 for each federal fiscal year 32 shall be allocated for prevention programs. 33 3. In implementing the federal prevention and treatment 34 of substance abuse block grant under 42 U.S.C. ch. 6A, subch. 35 -1- LSB 1021SV (2) 91 dg/ns 1/ 18

S.F. 626 XVII, and any other applicable provisions of the federal Public 1 Health Service Act under 42 U.S.C. ch. 6A, the department shall 2 apply the provisions of Pub. L. No. 106-310, §3305, as codified 3 in 42 U.S.C. §300x-65, relating to services under such federal 4 law being provided by religious and other nongovernmental 5 organizations. 6 Sec. 2. COMMUNITY MENTAL HEALTH SERVICES APPROPRIATIONS. 7 1. a. There is appropriated from the fund created pursuant 8 to section 8.41 to the department of health and human services 9 for the following federal fiscal years beginning October 1, and 10 ending September 30, the following amounts: 11 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,754,083 12 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,754,083 13 b. The appropriations made in this subsection are in the 14 amounts anticipated to be received from the federal government 15 for the designated federal fiscal years under 42 U.S.C. ch. 16 6A, subch. XVII, part B, subpart i, which provides for the 17 community mental health services block grant. The department 18 shall expend the moneys appropriated in this subsection as 19 provided in the federal law making the moneys available and in 20 conformance with chapter 17A . 21 c. The department shall allocate not less than 95 percent 22 of the amount of the block grant each federal fiscal year for 23 eligible community mental health services for carrying out 24 the plan submitted to and approved by the federal substance 25 abuse and mental health services administration or required 26 by the federal substance abuse and mental health services 27 administration for the fiscal year involved. 28 2. An amount not exceeding 5 percent of the moneys 29 appropriated in subsection 1 for each federal fiscal year shall 30 be used by the department of health and human services for 31 administrative expenses. From the moneys set aside by this 32 subsection for administrative expenses, the department shall 33 pay to the auditor of state an amount sufficient to pay the 34 cost of auditing the use and administration of the state’s 35 -2- LSB 1021SV (2) 91 dg/ns 2/ 18

S.F. 626 portion of the moneys appropriated in subsection 1. The 1 auditor of state shall bill the department for the costs of the 2 audits. 3 Sec. 3. MATERNAL AND CHILD HEALTH SERVICES APPROPRIATIONS. 4 1. a. There is appropriated from the fund created pursuant 5 to section 8.41 to the department of health and human services 6 for the following federal fiscal years beginning October 1, and 7 ending September 30, the following amounts: 8 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,775,530 9 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,775,530 10 b. The appropriations made in this subsection are in the 11 amounts anticipated to be received from the federal government 12 for the designated federal fiscal years under 42 U.S.C. ch. 13 7, subch. V, which provides for the maternal and child health 14 services block grant. The department shall expend the moneys 15 appropriated in this subsection as provided in the federal law 16 making the moneys available and in conformance with chapter 17 17A . 18 c. Moneys appropriated in this subsection shall not be used 19 by the university of Iowa hospitals and clinics for indirect 20 costs. 21 2. An amount not exceeding 10 percent of the moneys 22 appropriated in subsection 1 for each federal fiscal year shall 23 be used by the department of health and human services for 24 administrative expenses. 25 3. The department of health and human services, department 26 of education, and the university of Iowa’s mobile and regional 27 child health specialty clinics shall continue to pursue to the 28 maximum extent feasible the coordination and integration of 29 services to women and children. 30 4. a. Sixty-three percent of the amount remaining after the 31 allocation made in subsection 2 for each federal fiscal year 32 shall be allocated to supplement appropriations for maternal 33 and child health programs within the department of health and 34 human services. Of these moneys, the following amounts shall 35 -3- LSB 1021SV (2) 91 dg/ns 3/ 18

S.F. 626 be set aside for the statewide perinatal care program for the 1 following federal fiscal years: 2 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,291 3 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,291 4 b. Thirty-seven percent of the amount remaining after 5 the allocation made in subsection 2 for each federal fiscal 6 year shall be allocated to the university of Iowa hospitals 7 and clinics under the control of the state board of regents 8 for mobile and regional child health specialty clinics. The 9 university of Iowa hospitals and clinics shall not receive an 10 allocation for indirect costs from the moneys for this program. 11 Priority shall be given to establishment and maintenance of a 12 statewide system of mobile and regional child health specialty 13 clinics. 14 5. The department of health and human services shall 15 administer the statewide maternal and child health program 16 and the disabled children’s program by conducting mobile and 17 regional child health specialty clinics and conducting other 18 activities to improve the health of low-income women and 19 children and to promote the welfare of children with actual 20 or potential handicapping conditions and chronic illnesses 21 in accordance with the requirements of Tit. V of the federal 22 Social Security Act. 23 Sec. 4. PREVENTIVE HEALTH AND HEALTH SERVICES 24 APPROPRIATIONS. 25 1. a. There is appropriated from the fund created pursuant 26 to section 8.41 to the department of health and human services 27 for the following federal fiscal years beginning October 1, and 28 ending September 30, the following amounts: 29 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,955,591 30 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,955,591 31 b. The appropriations made in this subsection are in the 32 amounts anticipated to be received from the federal government 33 for the designated federal fiscal years under 42 U.S.C. ch. 6A, 34 subch. XVII, part A, which provides for the preventive health 35 -4- LSB 1021SV (2) 91 dg/ns 4/ 18

S.F. 626 and health services block grant. The department shall expend 1 the moneys appropriated in this subsection as provided in the 2 federal law making the moneys available and in conformance with 3 chapter 17A . 4 2. Of the moneys appropriated in subsection 1 for each 5 federal fiscal year, an amount not exceeding 10 percent shall 6 be used by the department for administrative expenses. 7 3. Of the moneys appropriated in subsection 1 for each 8 federal fiscal year, the specific amount of moneys stipulated 9 by the notice of the block grant award shall be allocated 10 for services to victims of sex offenses and for sex offense 11 prevention. 12 4. After deducting the moneys allocated in subsections 2 and 13 3, the remaining moneys appropriated in subsection 1 for each 14 federal fiscal year may be used by the department for healthy 15 people 2030 and Iowa’s health improvement plan 2023-2027 16 program objectives, preventive health advisory committee, and 17 risk reduction services, including nutrition programs, health 18 incentive programs, chronic disease services, emergency medical 19 services, monitoring of the fluoridation program and start-up 20 fluoridation grants, and acquired immune deficiency syndrome 21 services. The moneys specified in this subsection shall not be 22 used by the university of Iowa hospitals and clinics or by the 23 state hygienic laboratory for the funding of indirect costs. 24 Sec. 5. RESIDENTIAL SUBSTANCE ABUSE TREATMENT FOR STATE 25 PRISONERS FORMULA GRANT PROGRAM APPROPRIATIONS. There is 26 appropriated from the fund created pursuant to section 8.41 to 27 the office of drug control policy of the department of public 28 safety for the following federal fiscal years beginning October 29 1, and ending September 30, the following amounts: 30 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 422,329 31 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 307,388 32 The appropriations made in this section are the amounts 33 anticipated to be received from the federal government for the 34 designated federal fiscal years under 42 U.S.C. ch. 46, subch. 35 -5- LSB 1021SV (2) 91 dg/ns 5/ 18

S.F. 626 XII-G, which provides grants for substance abuse treatment 1 programs in state and local correctional facilities. The 2 drug policy director shall expend the moneys appropriated in 3 this section as provided in the federal law making the moneys 4 available and in conformance with chapter 17A . 5 Sec. 6. EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT 6 PROGRAM APPROPRIATIONS. There is appropriated from the fund 7 created pursuant to section 8.41 to the office of drug control 8 policy of the department of public safety for the following 9 federal fiscal years beginning October 1, and ending September 10 30, the following amounts: 11 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,964,093 12 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,178,973 13 The appropriations made in this section are in the amounts 14 anticipated to be received from the federal government for the 15 designated fiscal years under 42 U.S.C. ch. 46, subch. V, which 16 provides for the Edward Byrne memorial justice assistance grant 17 program. The drug policy director shall expend the moneys 18 appropriated in this section as provided in the federal law 19 making the moneys available and in conformance with chapter 20 17A . 21 Sec. 7. COMMUNITY SERVICES APPROPRIATIONS. 22 1. a. There is appropriated from the fund created pursuant 23 to section 8.41 to the department of health and human services 24 for the following federal fiscal years beginning October 1, and 25 ending September 30, the following amounts: 26 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,300,123 27 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,300,123 28 b. The appropriations made in this subsection are in the 29 amounts anticipated to be received from the federal government 30 for the designated federal fiscal years under 42 U.S.C. ch. 31 106, which provides for the community services block grant. 32 The department of health and human services shall expend the 33 moneys appropriated in this subsection as provided in the 34 federal law making the moneys available and in conformance with 35 -6- LSB 1021SV (2) 91 dg/ns 6/ 18

S.F. 626 chapter 17A . 1 c. Each federal fiscal year, the department of health and 2 human services shall allocate not less than 96 percent of 3 the amount of the block grants to eligible community action 4 agencies for programs benefiting low-income persons. Each 5 eligible agency shall receive a minimum allocation of not less 6 than $185,000. The minimum allocation shall be achieved by 7 redistributing increased moneys from agencies experiencing 8 a greater share of available moneys. The moneys shall be 9 distributed on the basis of the poverty-level population in the 10 area represented by the community action areas compared to the 11 size of the poverty-level population in the state. 12 2. An amount not exceeding 4 percent of the moneys 13 appropriated in subsection 1 for each federal fiscal year 14 shall be used by the department of health and human services 15 for administrative expenses. From the moneys set aside by 16 this subsection for administrative expenses, the department 17 of health and human services shall pay to the auditor of 18 state an amount sufficient to pay the cost of auditing the 19 use and administration of the state’s portion of the moneys 20 appropriated in subsection 1. The auditor of state shall bill 21 the department of health and human services for the costs of 22 the audits. 23 Sec. 8. COMMUNITY DEVELOPMENT APPROPRIATIONS. 24 1. a. There is appropriated from the fund created pursuant 25 to section 8.41 to the economic development authority for the 26 following federal fiscal years beginning October 1, and ending 27 September 30, the following amounts: 28 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,500,000 29 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,500,000 30 b. The appropriations made in this subsection are in the 31 amounts anticipated to be received from the federal government 32 for the designated federal fiscal years under 42 U.S.C. ch. 33 69, which provides for community development block grants. 34 The economic development authority shall expend the moneys 35 -7- LSB 1021SV (2) 91 dg/ns 7/ 18

S.F. 626 appropriated in this subsection as provided in the federal law 1 making the moneys available and in conformance with chapter 2 17A . 3 2. a. An amount not exceeding $1,160,000 for the federal 4 fiscal year beginning October 1, 2025, shall be used by the 5 economic development authority for administrative expenses for 6 the community development block grant. The total amount used 7 for administrative expenses includes $630,000 for the federal 8 fiscal year beginning October 1, 2025, of moneys appropriated 9 in subsection 1 and a matching contribution from the state 10 equal to $530,000 from the appropriation of state moneys for 11 the community development block grant and state appropriations 12 for related activities of the economic development authority. 13 From the moneys set aside for administrative expenses by this 14 subsection, the economic development authority shall pay to 15 the auditor of state an amount sufficient to pay the cost of 16 auditing the use and administration of the state’s portion of 17 the moneys appropriated in subsection 1. The auditor of state 18 shall bill the authority for the costs of the audit. 19 b. An amount not exceeding $1,160,000 for the federal 20 fiscal year beginning October 1, 2026, shall be used by the 21 economic development authority for administrative expenses for 22 the community development block grant. The total amount used 23 for administrative expenses includes $630,000 for the federal 24 fiscal year beginning October 1, 2026, of moneys appropriated 25 in subsection 1 and a matching contribution from the state 26 equal to $530,000 from the appropriation of state moneys for 27 the community development block grant and state appropriations 28 for related activities of the economic development authority. 29 From the moneys set aside for administrative expenses by this 30 subsection, the economic development authority shall pay to 31 the auditor of state an amount sufficient to pay the cost of 32 auditing the use and administration of the state’s portion of 33 the moneys appropriated in subsection 1. The auditor of state 34 shall bill the authority for the costs of the audit. 35 -8- LSB 1021SV (2) 91 dg/ns 8/ 18

S.F. 626 Sec. 9. SURFACE TRANSPORTATION BLOCK GRANT PROGRAM 1 APPROPRIATIONS. There is appropriated from the fund created 2 pursuant to section 8.41 to the department of transportation 3 for the following federal fiscal years beginning October 1, and 4 ending September 30, the following amounts: 5 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $192,600,000 6 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $192,600,000 7 The appropriations made in this section are the amounts 8 anticipated to be received from the federal government for 9 the designated fiscal years under 23 U.S.C. ch. 1, §133, 10 which provides funding allocated by the state transportation 11 commission for state and local transportation projects. The 12 department shall expend the moneys appropriated in this section 13 as provided in the federal law making the moneys available and 14 in conformance with chapter 17A . 15 Sec. 10. LOW-INCOME HOME ENERGY ASSISTANCE APPROPRIATIONS. 16 1. a. There is appropriated from the fund created pursuant 17 to section 8.41 to the department of health and human services 18 for the following federal fiscal years beginning October 1, and 19 ending September 30, the following amounts: 20 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,058,248 21 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,058,248 22 b. The appropriations made in this subsection are in the 23 amounts anticipated to be received from the federal government 24 for the designated federal fiscal years under 42 U.S.C. 25 ch. 94, subch. II, which provides for the low-income home 26 energy assistance block grants. The department of health and 27 human services shall expend the moneys appropriated in this 28 subsection as provided in the federal law making the moneys 29 available and in conformance with chapter 17A . 30 2. Up to 15 percent, or up to 25 percent if a waiver is 31 approved by the United States department of health and human 32 services, of the amount appropriated in this section that is 33 actually received for each federal fiscal year shall be used 34 for residential weatherization or other related home repairs 35 -9- LSB 1021SV (2) 91 dg/ns 9/ 18

S.F. 626 for low-income households. Of this allocation amount, not more 1 than 10 percent may be used for administrative expenses. 2 3. After subtracting the allocation in subsection 2, no 3 less than 8.4 percent of the remaining moneys for each federal 4 fiscal year are allocated for administrative expenses of the 5 low-income home energy assistance program contractors, and 6 up to 1.6 percent of the remaining moneys are allocated each 7 federal fiscal year for the low-income home energy assistance 8 program for administrative expenses of the department of 9 health and human services. The costs of auditing the use and 10 administration of the portion of the appropriation in this 11 section that is retained by the state shall be paid from the 12 amount allocated in this subsection each federal fiscal year to 13 the department of health and human services. The auditor of 14 state shall bill the department of health and human services 15 for the audit costs. 16 4. The remaining moneys of the appropriation made in this 17 section for each federal fiscal year following the allocations 18 made in subsections 2 and 3, shall be used to help eligible 19 households as defined in 42 U.S.C. ch. 94, subch. II, to meet 20 home energy costs. 21 5. Not more than 10 percent of the amount appropriated in 22 this section each federal fiscal year that is actually received 23 may be carried forward for use in the succeeding federal fiscal 24 year. 25 6. Expenditures for assessment and resolution of energy 26 problems shall be limited to not more than 5 percent of the 27 amount appropriated in this section for each federal fiscal 28 year that is actually received. 29 Sec. 11. SOCIAL SERVICES APPROPRIATIONS. 30 1. There is appropriated from the fund created pursuant to 31 section 8.41 to the department of health and human services for 32 the following federal fiscal years beginning October 1, and 33 ending September 30, the following amounts: 34 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,264,832 35 -10- LSB 1021SV (2) 91 dg/ns 10/ 18

S.F. 626 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,264,832 1 2. The appropriations made in this section are in the 2 amounts anticipated to be received from the federal government 3 for the designated federal fiscal years under 42 U.S.C. ch. 7, 4 subch. XX, which provides for the social services block grant. 5 The department of health and human services shall expend the 6 moneys appropriated in this section as provided in the federal 7 law making the moneys available and in conformance with chapter 8 17A . 9 Sec. 12. SOCIAL SERVICES BLOCK GRANT PLAN. 10 1. The department of health and human services during each 11 state fiscal year shall develop a plan for the use of federal 12 social services block grant moneys for the subsequent state 13 fiscal year. 14 2. The proposed plan shall include all programs and services 15 at the state level which the department proposes to fund with 16 federal social services block grant moneys, and shall identify 17 state and other moneys which the department proposes to use to 18 fund the state programs and services. 19 3. The proposed plan shall also include all local programs 20 and services which are eligible to be funded with federal 21 social services block grant moneys, the total amount of federal 22 social services block grant moneys available for the local 23 programs and services, and the manner of distribution of the 24 federal social services block grant moneys to the counties. 25 The proposed plan shall identify state and local moneys which 26 will be used to fund the local programs and services. 27 4. The proposed plan shall be submitted with the 28 department’s budget requests to the governor and the general 29 assembly. 30 Sec. 13. PROJECTS FOR ASSISTANCE IN TRANSITION FROM 31 HOMELESSNESS. 32 1. Upon receipt of the minimum formula grant from the 33 substance abuse and mental health services administration to 34 provide mental health services for the homeless, for the state 35 -11- LSB 1021SV (2) 91 dg/ns 11/ 18

S.F. 626 fiscal years beginning July 1, 2025, and July 1, 2026, the 1 department of health and human services shall assure that a 2 project which receives moneys under the formula grant shall do 3 all of the following: 4 a. Provide outreach and engagement to homeless individuals 5 and individuals at risk of homelessness and assesses those 6 individuals for serious mental illness. 7 b. Enroll those individuals with serious mental illness who 8 are willing to accept services through the project. 9 c. Provide case management to homeless persons. 10 d. Provide appropriate training to persons who provide 11 services to persons targeted by the grant. 12 e. Assure a local match share of 25 percent. 13 f. Refer homeless individuals and individuals at risk of 14 homelessness to primary health care, job training, educational 15 services, and relevant housing services. 16 2. A project may expend moneys for community mental health 17 services, diagnostic services, crisis intervention services, 18 habilitation and rehabilitation services, substance-related 19 disorder services, supportive and supervisory services to 20 homeless persons living in residential settings that are 21 not otherwise supported, and housing services including 22 minor renovation, expansion, and repair of housing, security 23 deposits, planning of housing, technical assistance in 24 applying for housing, improving the coordination of housing 25 services, the costs associated with matching eligible homeless 26 individuals with appropriate housing, and one-time rental 27 payments to prevent eviction. 28 Sec. 14. CHILD CARE AND DEVELOPMENT APPROPRIATIONS. 29 1. a. There is appropriated from the fund created pursuant 30 to section 8.41 to the department of health and human services 31 for the following federal fiscal years beginning October 1, and 32 ending September 30, the following amounts: 33 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $109,630,285 34 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $109,630,285 35 -12- LSB 1021SV (2) 91 dg/ns 12/ 18

S.F. 626 b. The appropriations made in this section are in the 1 amounts anticipated to be received from the federal government 2 for the designated federal fiscal years under 42 U.S.C. 3 ch. 105, subch. II-B, which provides for the child care and 4 development block grant. The department shall expend the 5 moneys appropriated in this section as provided in the federal 6 law making the moneys available and in conformance with chapter 7 17A . 8 2. Moneys appropriated in this section that remain 9 unencumbered or unobligated at the close of the fiscal year 10 shall revert to be available for appropriation for purposes of 11 the child care and development block grant in the succeeding 12 fiscal year. 13 Sec. 15. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 14 APPROPRIATIONS. 15 1. a. There is appropriated from the fund created in 16 section 8.41 to the department of health and human services for 17 the following federal fiscal years beginning October 1, and 18 ending September 30, the following amounts: 19 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,980,383 20 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,980,383 21 b. The appropriations made in this subsection are in the 22 amounts anticipated to be received from the federal government 23 for the designated federal fiscal years under the federal 24 Personal Responsibility and Work Opportunity Reconciliation 25 Act of 1996, Pub. L. No. 104-193, and successor legislation, 26 which provides for the temporary assistance for needy families 27 block grant. The department of health and human services 28 shall expend the moneys appropriated in this subsection in 29 conformance with chapter 17A, and as provided in the federal 30 law making the moneys available, to meet one of the four 31 core purposes of the temporary assistance for needy families 32 block grant as described in 45 C.F.R. §260.20, including by 33 modernizing applicable programs to promote economic mobility 34 and self-sufficiency, ensuring families are able to overcome 35 -13- LSB 1021SV (2) 91 dg/ns 13/ 18

S.F. 626 benefit cliffs, encouraging healthy families, and streamlining 1 service delivery to reduce duplication of services. 2 2. Up to 15 percent of the moneys appropriated in subsection 3 1 for each federal fiscal year shall be used by the department 4 of health and human services for administrative expenses in 5 accordance with the federal Personal Responsibility and Work 6 Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193, 7 and successor legislation. The costs of auditing the use and 8 administration of the portion of the appropriation in this 9 section that is retained by the state shall be paid from the 10 amount allocated in this subsection each federal fiscal year to 11 the department of health and human services. The auditor of 12 state shall bill the department of health and human services 13 for the audit costs. 14 3. Notwithstanding section 8.33, moneys appropriated in 15 this section for the federal fiscal year beginning October 1, 16 2025, and ending September 30, 2026, that remain unencumbered 17 or unobligated at the close of the fiscal year shall not revert 18 but shall remain available for expenditure for the purposes 19 designated until the close of the succeeding fiscal year. 20 Sec. 16. PROCEDURE FOR REDUCED FEDERAL MONEYS. 21 1. Unless otherwise necessary to meet federal requirements, 22 if the moneys received from the federal government for 23 the block grants specified in this Act are less than the 24 amounts appropriated, the moneys actually received shall be 25 prorated by the governor for the various programs, other 26 than for the services to victims of sex offenses and for sex 27 offense prevention under section 4, subsection 3, of this 28 Act, for which each block grant is available according to 29 the percentages that each program is to receive as specified 30 in this Act. However, if the governor determines that the 31 moneys allocated by the percentages will not be sufficient to 32 accomplish the purposes of a particular program, or if the 33 appropriation is not allocated by percentage, the governor may 34 allocate the moneys in a manner which will accomplish to the 35 -14- LSB 1021SV (2) 91 dg/ns 14/ 18

S.F. 626 greatest extent possible the purposes of the various programs 1 for which the block grants are available. 2 2. Before the governor implements the actions provided for 3 in subsection 1, the following procedures shall be taken: 4 a. The chairpersons and ranking members of the senate and 5 house standing committees on appropriations, the appropriate 6 chairpersons and ranking members of subcommittees of those 7 committees, and the director of the legislative services agency 8 shall be notified of the proposed action. 9 b. The notice shall include the proposed allocations, 10 and information on the reasons why particular percentages or 11 amounts of moneys are allocated to the individual programs, 12 the departments and programs affected, and other information 13 deemed useful. Chairpersons and ranking members notified shall 14 be allowed at least two weeks to review and comment on the 15 proposed action before the action is taken. 16 Sec. 17. PROCEDURE FOR INCREASED FEDERAL MONEYS. 17 1. Unless otherwise necessary to meet federal requirements, 18 if moneys received from the federal government in the form of 19 block grants exceed the amounts appropriated in sections 1, 2, 20 3, 4, and 8 of this Act, the excess shall be prorated to the 21 appropriate programs according to the percentages specified in 22 those sections, except additional moneys shall not be prorated 23 for administrative expenses. 24 2. If actual moneys received from the federal government 25 from block grants exceed the amount appropriated in section 10 26 of this Act for the low-income home energy assistance program, 27 not more than 15 percent of the excess may be allocated to the 28 low-income residential weatherization program and not more than 29 10 percent of the excess may be used for administrative costs. 30 3. If moneys received from the federal government from 31 community services block grants exceed the amount appropriated 32 in section 7 of this Act, 100 percent of the excess is 33 allocated to the community services block grant program. 34 Sec. 18. PROCEDURE FOR EXPENDITURE OF ADDITIONAL FEDERAL 35 -15- LSB 1021SV (2) 91 dg/ns 15/ 18

S.F. 626 MONEYS. If other federal grants, receipts, and moneys and 1 other nonstate grants, receipts, and moneys become available 2 or are awarded which are not available or awarded during the 3 period in which the general assembly is in session, but which 4 require expenditure by the applicable department or agency 5 prior to March 15 of the fiscal years beginning July 1, 2025, 6 and July 1, 2026, these grants, receipts, and moneys are 7 appropriated to the extent necessary, provided that the fiscal 8 committee of the legislative council is notified within 30 days 9 of receipt of the grants, receipts, or moneys and the fiscal 10 committee of the legislative council has an opportunity to 11 comment on the expenditure of the grants, receipts, or moneys. 12 Sec. 19. OTHER GRANTS, RECEIPTS, AND MONEYS. Federal 13 grants, receipts, and moneys and other nonstate grants, 14 receipts, and moneys, available in whole or in part of the 15 state fiscal years beginning July 1, 2025, and July 1, 2026, 16 are appropriated to the following departments and agencies that 17 are designated by and for the purposes set forth in the grants, 18 receipts, or conditions accompanying the receipt of the moneys, 19 unless otherwise provided by law: 20 1. Department of administrative services. 21 2. Department of agriculture and land stewardship. 22 3. Office of auditor of state. 23 4. Department for the blind. 24 5. Department of corrections. 25 6. Economic development authority. 26 7. Department of education. 27 8. Iowa ethics and campaign disclosure board. 28 9. Iowa finance authority. 29 10. Offices of the governor and lieutenant governor. 30 11. Department of health and human services. 31 12. Department of homeland security and emergency 32 management. 33 13. Department of inspections, appeals, and licensing. 34 14. Department of insurance and financial services. 35 -16- LSB 1021SV (2) 91 dg/ns 16/ 18

S.F. 626 15. Judicial branch. 1 16. Department of justice. 2 17. Iowa law enforcement academy. 3 18. Department of management. 4 19. Department of natural resources. 5 20. Board of parole. 6 21. Department of public defense. 7 22. Department of public safety. 8 23. State board of regents. 9 24. Department of revenue. 10 25. Office of secretary of state. 11 26. Iowa state fair authority. 12 27. Office for state-federal relations. 13 28. Iowa telecommunications and technology commission. 14 29. Office of treasurer of state. 15 30. Department of transportation. 16 31. Iowa utilities commission. 17 32. Department of veterans affairs. 18 33. Department of workforce development. 19 DIVISION II 20 CITY REGULATION OF DEVELOPERS, CONTRACTORS, AND SUBCONTRACTORS 21 Sec. 20. Section 364.3, subsection 20, as enacted by 2025 22 Iowa Acts, Senate File 603, is amended to read as follows: 23 20. A city shall not adopt or enforce an ordinance, 24 motion, resolution, or amendment that imposes restrictions, 25 qualifications, or requirements on developers, contractors, 26 or subcontractors related to a developer’s or contractor’s 27 employee compensation or training beyond what is expressly 28 authorized by state law. A city shall not make receipt of any 29 incentives, or the eligibility for such incentives, contingent 30 upon compliance with any such restrictions, qualifications, or 31 requirements , except as required under federal law . 32 Sec. 21. EFFECTIVE DATE. This division of this Act, being 33 deemed of immediate importance, takes effect upon enactment. 34 Sec. 22. RETROACTIVE APPLICABILITY. This division of this 35 -17- LSB 1021SV (2) 91 dg/ns 17/ 18