Senate Study Bill 3188 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BUDGET BILL) 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. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5011XG (7) 91 nls/ko

S.F. _____ H.F. _____ Section 1. GOALS AND ACCOUNTABILITY —— ECONOMIC 1 DEVELOPMENT. 2 1. For the fiscal year beginning July 1, 2026, the goals 3 for the economic development authority shall be to expand and 4 stimulate the state economy, increase the wealth of Iowans, and 5 increase the population of the state. 6 2. To achieve the goals in subsection 1, the economic 7 development authority shall do all of the following for the 8 fiscal year beginning July 1, 2026: 9 a. Concentrate its efforts on programs and activities that 10 result in commercially viable products and services. 11 b. Adopt practices and services consistent with free 12 market, private sector philosophies. 13 c. Ensure economic growth and development throughout the 14 state. 15 d. Work with businesses and communities to continually 16 improve the economic development climate along with the 17 economic well-being and quality of life for Iowans. 18 e. Establish a strong and aggressive marketing image to 19 showcase Iowa’s workforce, existing industry, and potential. 20 The authority shall prioritize recruitment of new businesses, 21 business expansion, and retention of existing Iowa businesses. 22 In addition, the authority shall emphasize entrepreneurial 23 development through helping entrepreneurs secure capital, 24 and developing networks and a business climate conducive to 25 entrepreneurs and small businesses. 26 f. Encourage the development of communities and quality of 27 life to foster economic growth. 28 g. Prepare communities for future growth and development 29 through development, expansion, and modernization of 30 infrastructure. 31 h. Develop public-private partnerships with Iowa businesses 32 in the tourism industry, Iowa tour groups, Iowa tourism 33 organizations, and political subdivisions in this state to 34 assist in the development of advertising efforts. 35 -1- LSB 5011XG (7) 91 nls/ko 1/ 15

S.F. _____ H.F. _____ Sec. 2. ECONOMIC DEVELOPMENT AUTHORITY. 1 1. APPROPRIATION 2 a. There is appropriated from the general fund of the state 3 to the economic development authority for the fiscal year 4 beginning July 1, 2026, and ending June 30, 2027, the following 5 amount, or so much thereof as is necessary, to be used for the 6 purposes designated in this subsection: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,903,510 8 b. (1) For salaries, support, miscellaneous purposes, 9 programs, marketing, administration, business development, 10 community development, small business development, and any 11 divisions the authority may organize. 12 (2) For business development operations and programs, 13 international trade, export assistance, workforce recruitment, 14 and the partner state program. 15 (3) For transfer to a fund created pursuant to section 16 15.313 for purposes of financing strategic infrastructure 17 projects. 18 (4) For community economic development programs, tourism 19 operations, community assistance, and the community development 20 block grant. 21 (5) For achieving the goals and accountability, and 22 fulfilling the requirements and duties required under this Act. 23 c. Notwithstanding section 8.33 , moneys appropriated in 24 this subsection that remain unencumbered or unobligated at the 25 close of the fiscal year shall not revert but shall remain 26 available for expenditure for the purposes designated in this 27 subsection until the close of the succeeding fiscal year. 28 2. FINANCIAL ASSISTANCE RESTRICTIONS 29 a. A business creating jobs through moneys appropriated in 30 subsection 1 shall be subject to contract provisions requiring 31 new and retained jobs to be filled by individuals who are 32 citizens of the United States who reside within the United 33 States, or individuals authorized to work in the United States 34 pursuant to federal law, including legal resident aliens 35 -2- LSB 5011XG (7) 91 nls/ko 2/ 15

S.F. _____ H.F. _____ residing in the United States. 1 b. Any vendor who receives moneys appropriated in 2 subsection 1 shall adhere to such contract provisions and 3 provide periodic assurances as the state shall require that the 4 jobs are filled solely by citizens of the United States who 5 reside within the United States, or individuals authorized to 6 work in the United States pursuant to federal law, including 7 legal resident aliens residing in the United States. 8 c. A business that receives financial assistance from 9 the authority from moneys appropriated in subsection 1 shall 10 only employ individuals legally authorized to work in this 11 state. In addition to all other applicable penalties provided 12 by current law, all or a portion of the assistance received 13 by a business which is found to knowingly employ individuals 14 not legally authorized to work in this state is subject to 15 recapture by the authority. 16 3. USES OF APPROPRIATIONS 17 a. From the moneys appropriated in subsection 1, the 18 authority may provide financial assistance in the form of 19 grants, loans, or forgivable loans for advanced research and 20 commercialization projects involving value-added agriculture, 21 advanced technology, or biotechnology. 22 b. The authority shall not use any moneys appropriated in 23 subsection 1 for purposes of providing financial assistance 24 for any program or project that involves the installation of 25 geothermal systems for melting snow and ice from streets or 26 sidewalks. 27 4. WORLD FOOD PRIZE 28 In lieu of the standing appropriation in section 15.368 , 29 there is appropriated from the general fund of the state to the 30 economic development authority for the fiscal year beginning 31 July 1, 2026, and ending June 30, 2027, the following amount to 32 be used for support of the world food prize: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 34 5. TOURISM OFFICE 35 -3- LSB 5011XG (7) 91 nls/ko 3/ 15

S.F. _____ H.F. _____ a. There is appropriated from the general fund of the state 1 to the economic development authority for the fiscal year 2 beginning July 1, 2026, and ending June 30, 2027, the following 3 amount, or so much thereof as is necessary, to be used for the 4 tourism office for the advertisement, promotion, placement, 5 and implementation of the economic development authority’s 6 strategic plan for tourism and travel: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,050,000 8 b. Notwithstanding section 8.33 , moneys appropriated in 9 this subsection that remain unencumbered or unobligated at the 10 close of the fiscal year shall not revert but shall remain 11 available for expenditure for the purposes designated until the 12 close of the succeeding fiscal year. 13 c. The economic development authority shall submit an 14 annual report on or before January 15 to the general assembly 15 regarding the tourism office’s activities funded with moneys 16 appropriated under this subsection. The report must be 17 provided in an electronic format and must include metrics 18 and criteria that allow the general assembly to quantify and 19 evaluate the effectiveness and economic impact of the tourism 20 office’s activities related to the advertisement, promotion, 21 placement, and implementation of the economic development 22 authority’s strategic plan for tourism and travel. 23 6. CULTURAL AFFAIRS ACTIVITIES 24 a. There is appropriated from the general fund of the state 25 to the economic development authority for the fiscal year 26 beginning July 1, 2026, and ending June 30, 2027, the following 27 amount, or so much thereof as is necessary, to be used for 28 support of the Iowa arts council: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,601,800 30 b. Of the moneys appropriated in paragraph “a”, the economic 31 development authority shall allocate $321,800 for deposit in 32 the arts and culture enhancement fund established in section 33 15.436 . 34 c. Notwithstanding section 8.33 , moneys appropriated in 35 -4- LSB 5011XG (7) 91 nls/ko 4/ 15

S.F. _____ H.F. _____ this subsection that remain unencumbered or unobligated at the 1 close of the fiscal year shall not revert but shall remain 2 available for expenditure for the purposes designated until the 3 close of the succeeding fiscal year. 4 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 5 2026-2027. Notwithstanding the standing appropriations in the 6 following designated sections for the fiscal year beginning 7 July 1, 2026, and ending June 30, 2027, the amount appropriated 8 from the general fund of the state pursuant to the following 9 sections for the following purposes shall not exceed the 10 following amounts: 11 1. For the arts and culture enhancement fund under section 12 99F.11, subsection 4 , paragraph “d”, subparagraph (1): 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 448,403 14 2. For the purposes of tourism marketing under section 15 99F.11, subsection 4 , paragraph “d”, subparagraph (2): 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,443,700 17 Sec. 4. FINANCIAL ASSISTANCE REPORTING —— ECONOMIC 18 DEVELOPMENT AUTHORITY. The economic development authority 19 shall submit an annual report to the general assembly no later 20 than November 1, 2026, that details the amount of every direct 21 loan, forgivable loan, tax credit, tax exemption, tax refund, 22 grant, or any other financial assistance awarded to a person 23 during the prior fiscal year by the authority under an economic 24 development program administered by the authority. The report 25 must identify the county where the project associated with each 26 such award is located. 27 Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys 28 collected by the insurance division of the department of 29 insurance and financial services in excess of the anticipated 30 gross revenues under section 505.7, subsection 3 , during 31 the fiscal year beginning July 1, 2026, $100,000 shall be 32 transferred to the economic development authority for insurance 33 economic development and international insurance economic 34 development. 35 -5- LSB 5011XG (7) 91 nls/ko 5/ 15

S.F. _____ H.F. _____ Sec. 6. IOWA FINANCE AUTHORITY. 1 1. There is appropriated from the general fund of the state 2 to the Iowa finance authority for the fiscal year beginning 3 July 1, 2026, and ending June 30, 2027, the following amounts, 4 or so much thereof as is necessary, to be used for the purposes 5 designated: 6 a. To provide reimbursement for rent expenses to eligible 7 persons under the home and community-based services rent 8 subsidy program established in section 16.55 : 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 873,000 10 b. Of the moneys appropriated in paragraph “a”, not more 11 than $35,000 may be used for administrative costs. 12 2. Notwithstanding section 8.33 , moneys appropriated in 13 this section that remain unencumbered or unobligated at the 14 close of the fiscal year shall not revert but shall remain 15 available for expenditure for the purposes designated until the 16 close of the succeeding fiscal year. 17 Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state 18 is requested to review the audit of the Iowa finance authority 19 performed by the auditor hired by the authority. 20 Sec. 8. DEPARTMENT OF WORKFORCE DEVELOPMENT. There 21 is appropriated from the general fund of the state to the 22 department of workforce development for the fiscal year 23 beginning July 1, 2026, and ending June 30, 2027, the following 24 amounts, or so much thereof as is necessary, to be used for the 25 purposes designated: 26 1. WORKFORCE DEVELOPMENT OPERATIONS 27 a. For the operation of field offices and the workforce 28 development board: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,902,636 30 b. Of the moneys appropriated in paragraph “a”, the 31 department shall allocate $150,000 to the state library for 32 the purpose of licensing an online resource which prepares 33 individuals to succeed in the workplace through programs which 34 improve job skills and vocational test-taking abilities. 35 -6- LSB 5011XG (7) 91 nls/ko 6/ 15

S.F. _____ H.F. _____ 2. OFFENDER REENTRY PROGRAM 1 a. For the development and administration of an offender 2 reentry program to provide offenders with employment skills: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 387,158 4 b. The department of workforce development shall partner 5 with the department of corrections to provide staff within 6 the correctional facilities resources to improve offenders’ 7 abilities to find and retain productive employment. 8 3. STATE ACCOUNTING SYSTEM 9 For the payment of services provided by the department of 10 administrative services related to the state accounting system: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,822 12 4. WORKPLACE INJURY AND SAFETY SURVEYS 13 For the operation of workplace safety surveys and workplace 14 data collection and analysis, including salaries, support, 15 maintenance, and miscellaneous purposes: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,555 17 5. VOCATIONAL REHABILITATION SERVICES DIVISION 18 a. For salaries, support, maintenance, and miscellaneous 19 purposes: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,226,739 21 For purposes of optimizing the job placement of individuals 22 with disabilities, the division shall make its best efforts 23 to work with community rehabilitation program providers for 24 job placement and retention services for individuals with 25 significant disabilities and most significant disabilities. By 26 January 15, 2027, the division shall submit a written report to 27 the general assembly regarding the division’s outreach efforts 28 with community rehabilitation program providers. 29 b. For the entrepreneurs with disabilities program 30 described in section 84H.4 : 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138,506 32 6. ADULT EDUCATION AND LITERACY PROGRAMS 33 For distribution as grants to community colleges for 34 the purpose of adult basic education programs for students 35 -7- LSB 5011XG (7) 91 nls/ko 7/ 15

S.F. _____ H.F. _____ requiring instruction in English as a second language: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 2 In issuing grants under this subsection, the department of 3 workforce development shall use the same application process 4 and criteria as are used for purposes of awarding grants to 5 community colleges for the purpose of adult basic education 6 programs for students requiring instruction in English as a 7 second language using moneys that are appropriated to the 8 department from the Iowa skilled worker and job creation fund 9 created in section 8.57J . 10 7. REGISTERED APPRENTICESHIP PROGRAMS 11 For the funding of the registered apprenticeship programs 12 under chapter 84F to encourage small to midsize businesses to 13 start or grow registered apprenticeships: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000 15 8. REVERSION 16 Notwithstanding section 8.33 , moneys appropriated in this 17 section that remain unencumbered or unobligated at the close of 18 the fiscal year shall not revert but shall remain available for 19 expenditure for the purposes designated until the close of the 20 succeeding fiscal year. 21 Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT —— SPECIAL 22 EMPLOYMENT SECURITY CONTINGENCY FUND. 23 1. There is appropriated from the special employment 24 security contingency fund created in section 96.13 to the 25 department of workforce development for the fiscal year 26 beginning July 1, 2026, and ending June 30, 2027, the following 27 amount, or so much thereof as is necessary, to be used for 28 field offices: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,616,084 30 2. Any remaining additional penalty and interest revenue 31 collected by the department of workforce development is 32 appropriated to the department for the fiscal year beginning 33 July 1, 2026, and ending June 30, 2027, to accomplish the 34 mission of the department. 35 -8- LSB 5011XG (7) 91 nls/ko 8/ 15

S.F. _____ H.F. _____ Sec. 10. IOWA SKILLED WORKER AND JOB CREATION FUND. 1 1. There is appropriated from the Iowa skilled worker and 2 job creation fund created in section 8.57J to the following 3 departments, agencies, and institutions for the fiscal year 4 beginning July 1, 2026, and ending June 30, 2027, the following 5 amounts, or so much thereof as is necessary, to be used for the 6 purposes designated: 7 a. ECONOMIC DEVELOPMENT AUTHORITY 8 (1) For providing financial assistance to eligible 9 businesses for the business incentives for growth program 10 pursuant to chapter 15, subchapter II, part 33: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,700,000 12 (a) Of the moneys appropriated in this subparagraph (1), 13 not more than $1,000,000 may be used for purposes of providing 14 infrastructure grants to main street communities under the main 15 street Iowa program. 16 (b) As a condition of receiving moneys appropriated in this 17 subparagraph (1), an entity shall testify upon the request of 18 the joint appropriations subcommittee on economic development 19 regarding the expenditure of such moneys. 20 (2) For support of the manufacturing 4.0 technology 21 investment program established in section 15.371 : 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,350,000 23 (3) For the empower rural Iowa program: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000 25 b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS 26 (1) STATE BOARD OF REGENTS. For capacity building 27 infrastructure in areas related to technology 28 commercialization, marketing and business development 29 efforts in areas related to technology commercialization, 30 entrepreneurship, and business growth, and infrastructure 31 projects and programs needed to assist in implementation of 32 activities under chapter 262B : 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 34 (a) Of the moneys appropriated pursuant to this 35 -9- LSB 5011XG (7) 91 nls/ko 9/ 15

S.F. _____ H.F. _____ subparagraph (1), 35 percent shall be allocated for Iowa state 1 university of science and technology, 35 percent shall be 2 allocated for the state university of Iowa, and 30 percent 3 shall be allocated for the university of northern Iowa. 4 (b) The institutions shall provide a one-to-one match 5 of additional moneys for the activities funded with moneys 6 appropriated under this subparagraph (1). 7 (c) The state board of regents shall submit a report by 8 January 15, 2027, to the governor and the general assembly 9 regarding the activities, projects, and programs funded with 10 moneys appropriated under this subparagraph (1). The report 11 must be provided in an electronic format and must include a 12 list of metrics and criteria mutually agreed to in advance by 13 the board of regents and the economic development authority. 14 The metrics and criteria must allow the governor’s office and 15 the general assembly to quantify and evaluate the progress 16 of the board of regents institutions with regard to their 17 activities, projects, and programs in the areas of technology 18 commercialization, entrepreneurship, regional development, and 19 market research. 20 (2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY. For 21 small business development centers, the research park, and the 22 center for industrial research and service: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,424,302 24 (a) Of the moneys appropriated in this subparagraph (2), 25 Iowa state university of science and technology shall allocate 26 at least $735,728 for purposes of funding small business 27 development centers. Iowa state university of science and 28 technology may allocate the appropriated moneys to the various 29 small business development centers in any manner necessary to 30 achieve the purposes of this subparagraph (2). 31 (b) Iowa state university of science and technology shall 32 do all of the following: 33 (i) Direct expenditures for research toward projects that 34 will provide economic stimulus for Iowa. 35 -10- LSB 5011XG (7) 91 nls/ko 10/ 15

S.F. _____ H.F. _____ (ii) Emphasize providing services to Iowa-based companies. 1 (c) It is the intent of the general assembly that the 2 center for industrial research and service industrial incentive 3 program focus on Iowa industrial sectors and seek contributions 4 and in-kind donations from businesses, industrial foundations, 5 and trade associations, and that moneys for the program shall 6 be allocated only for projects which are matched by private 7 sector moneys for directed contract research or for nondirected 8 research. The match required of small businesses as defined 9 in section 15.102 for directed contract research or for 10 nondirected research shall be $1 for each $3 of state funds. 11 The match required for other businesses for directed contract 12 research or for nondirected research shall be $1 for each $1 of 13 state funds. The match required of industrial foundations or 14 trade associations shall be $1 for each $1 of state funds. 15 (d) Iowa state university of science and technology shall 16 report annually to the general assembly the total amount of 17 private contributions, the proportion of contributions from 18 small businesses and other businesses, and the proportion for 19 directed contract research and nondirected research of benefit 20 to Iowa businesses and industrial sectors. 21 (3) STATE UNIVERSITY OF IOWA 22 (a) For the state university of Iowa research park and for 23 university of Iowa pharmaceuticals located at the research 24 park, including salaries, support, maintenance, equipment, and 25 miscellaneous purposes: 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209,279 27 The state university of Iowa shall do all of the following: 28 (i) Direct expenditures for research toward projects that 29 will provide economic stimulus for Iowa. 30 (ii) Emphasize providing services to Iowa-based companies. 31 (b) For the purpose of implementing the entrepreneurship 32 and economic growth initiative: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 34 (4) UNIVERSITY OF NORTHERN IOWA 35 -11- LSB 5011XG (7) 91 nls/ko 11/ 15

S.F. _____ H.F. _____ (a) For the metal casting and foundry 4.0 centers, 1 advance Iowa, family business center, and the institute for 2 decision making, including salaries, support, maintenance, and 3 miscellaneous purposes: 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,466,419 5 The university of northern Iowa shall do all of the 6 following: 7 (i) Direct expenditures for research toward projects that 8 will provide economic stimulus for Iowa. 9 (ii) Emphasize providing services to Iowa-based companies. 10 (b) For the purpose of providing in-state undergraduate 11 tuition and undergraduate mandatory fees to individuals 12 who reside in a state contiguous to Iowa, who enroll in an 13 undergraduate program offered by the university of northern 14 Iowa, and who are classified as residents of this state for 15 purposes of undergraduate tuition and undergraduate mandatory 16 fees: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 18 (c) For the purpose of expanding the nursing program: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000 20 (5) DUTY TO TESTIFY 21 As a condition of receiving moneys appropriated in this 22 lettered paragraph “b”, an entity shall testify upon the 23 request of the joint appropriations subcommittee on economic 24 development regarding the expenditure of such moneys. 25 c. DEPARTMENT OF WORKFORCE DEVELOPMENT 26 (1) For staffing costs related to completing workforce 27 preparation outcome reporting in conjunction with the 28 department of education: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,000 30 (2) For distribution to community colleges for the purposes 31 of implementing adult education and literacy programs pursuant 32 to section 84A.19 : 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,500,000 34 (a) From the moneys appropriated in this numbered 35 -12- LSB 5011XG (7) 91 nls/ko 12/ 15

S.F. _____ H.F. _____ subparagraph, $3,125,000 shall be allocated pursuant to the 1 formula established in section 260C.18C . 2 (b) From the moneys appropriated in this numbered 3 subparagraph, not more than $150,000 shall be used by the 4 department of workforce development for implementation of adult 5 education and literacy programs pursuant to section 84A.19 . 6 (c) From the moneys appropriated in this numbered 7 subparagraph, not more than $1,015,000 shall be distributed 8 as grants to community colleges for the purpose of adult 9 basic education programs for students requiring instruction 10 in English as a second language. The department of workforce 11 development shall establish an application process and criteria 12 to award grants pursuant to this subparagraph division to 13 community colleges. The criteria must be based on need for 14 instruction in English as a second language in the region 15 served by each community college as determined by factors 16 including data from the latest federal decennial census and 17 outreach efforts to determine regional needs. 18 (d) From the moneys appropriated in this numbered 19 subparagraph, $210,000 shall be transferred to the department 20 of health and human services for purposes of administering 21 a program to provide access to international resources to 22 Iowans and new Iowans to provide economic and leadership 23 development resulting in Iowa being a more welcoming place 24 to live, work, and raise a family. The program must provide 25 supplemental support services for international refugees to 26 improve learning, English literacy, life skills, cultural 27 competencies, and integration in a county with a population 28 over 350,000 as determined by the 2020 federal decennial 29 census. The department of health and human services shall 30 utilize a request-for-proposals process to identify the entity 31 best qualified to implement the program. 32 2. Notwithstanding section 8.33 , moneys appropriated in 33 this section that remain unencumbered or unobligated at the 34 close of the fiscal year shall not revert but shall remain 35 -13- LSB 5011XG (7) 91 nls/ko 13/ 15

S.F. _____ H.F. _____ available for expenditure for the purposes designated until the 1 close of the succeeding fiscal year. 2 Sec. 11. GENERAL FUND —— CERTAIN REGENTS INSTITUTIONS. 3 1. There is appropriated from the general fund of the state 4 to the following institutions for the fiscal year beginning 5 July 1, 2026, and ending June 30, 2027, the following amounts, 6 or so much thereof as is necessary, to be used for the purposes 7 designated: 8 a. IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY 9 In cooperation with the economic development authority, for 10 support of a biosciences innovation ecosystem, to strengthen 11 Iowa’s leadership positions in the area of bio-based chemicals, 12 digital agriculture, vaccines, and medical devices, including 13 salaries, support, maintenance, and miscellaneous purposes: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,963,995 15 b. STATE UNIVERSITY OF IOWA 16 In cooperation with the economic development authority, for 17 support of a biosciences innovation ecosystem, to strengthen 18 Iowa’s leadership positions in the area of bio-based chemicals, 19 digital agriculture, vaccines, and medical devices, including 20 salaries, support, maintenance, and miscellaneous purposes: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 22 c. UNIVERSITY OF NORTHERN IOWA 23 For equipment and technology to expand the university’s 24 additive manufacturing capabilities related to investment 25 castings technology and industry support, including salaries, 26 support, maintenance, and miscellaneous purposes: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 394,321 28 The university of northern Iowa shall make a good-faith 29 effort to coordinate with private entities to seek moneys to 30 supplement this appropriation to support the expansion of the 31 university’s additive manufacturing capabilities. 32 2. Notwithstanding section 8.33 , moneys appropriated in 33 subsection 1, paragraphs “a” and “b”, that remain unencumbered 34 or unobligated at the close of the fiscal year shall not revert 35 -14- LSB 5011XG (7) 91 nls/ko 14/ 15

S.F. _____ H.F. _____ but shall remain available for expenditure for the purposes 1 designated until the close of the succeeding fiscal year. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill relates to and makes appropriations for the 6 economic development of the state. 7 The bill appropriates moneys for FY 2026-2027 from the 8 general fund of the state to the economic development authority 9 (IEDA), Iowa finance authority (IFA), department of workforce 10 development (IWD), Iowa state university of science and 11 technology (ISU), state university of Iowa, and university of 12 northern Iowa. 13 For FY 2026-2027, the bill limits standing appropriations 14 for the world food prize, the arts and culture enhancement 15 fund, and tourism marketing. 16 The bill transfers certain moneys collected by the insurance 17 division in excess of the anticipated gross revenues under Code 18 section 505.7 to IEDA. 19 The bill appropriates moneys for FY 2026-2027 from the 20 special employment security contingency fund to IWD. The bill 21 also appropriates moneys for FY 2026-2027 from the Iowa skilled 22 worker and job creation fund to IEDA, IWD, and the state board 23 of regents and institutions under the control of the board. 24 The auditor of state is requested to review the audit of IFA 25 performed by the auditor hired by IFA. 26 The bill requires IEDA, the vocational rehabilitation 27 services division of IWD, the state board of regents, and ISU 28 to submit various reports to the general assembly. 29 -15- LSB 5011XG (7) 91 nls/ko 15/ 15