Senate File 626 - Reprinted SENATE FILE 626 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 1216) (As Amended and Passed by the Senate April 21, 2025 ) 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 SF 626 (3) 91 dg/ns/mb

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- SF 626 (3) 91 dg/ns/mb 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 d. For the federal fiscal year beginning October 1, 29 2025, and ending September 30, 2026, of the moneys allocated 30 to providers under paragraph “c”, 70 percent of the moneys 31 allocated shall be distributed by a behavioral health 32 administrative services organization or the department of 33 health and human services to the state’s accredited community 34 mental health centers designated by the department of health 35 -2- SF 626 (3) 91 dg/ns/mb 2/ 18

S.F. 626 and human services under section 225A.3, as enacted by 2024 1 Iowa Acts, chapter 1161, section 3. Community mental health 2 centers that receive moneys distributed under this paragraph 3 shall use the moneys for the purposes of training staff, 4 providing services to adults with a serious mental illness, 5 or providing services to children with a serious emotional 6 disturbance, and shall bill treatment dollars related to such 7 services to the department of health and human services through 8 the department’s claims system. The department of health and 9 human services shall publish the amounts to be distributed to 10 community mental health centers on the department’s internet 11 site on or before October 1, 2025, and distribute the moneys to 12 the recipients on a quarterly basis. Recipients of the moneys 13 shall submit quarterly reports to the department of health and 14 human services containing data consistent with performance 15 measures approved by the federal substance abuse and mental 16 health services administration. 17 2. An amount not exceeding 5 percent of the moneys 18 appropriated in subsection 1 for each federal fiscal year shall 19 be used by the department of health and human services for 20 administrative expenses. From the moneys set aside by this 21 subsection for administrative expenses, the department shall 22 pay to the auditor of state an amount sufficient to pay the 23 cost of auditing the use and administration of the state’s 24 portion of the moneys appropriated in subsection 1. The 25 auditor of state shall bill the department for the costs of the 26 audits. 27 Sec. 3. MATERNAL AND CHILD HEALTH SERVICES APPROPRIATIONS. 28 1. a. There is appropriated from the fund created pursuant 29 to section 8.41 to the department of health and human services 30 for the following federal fiscal years beginning October 1, and 31 ending September 30, the following amounts: 32 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,775,530 33 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,775,530 34 b. The appropriations made in this subsection are in the 35 -3- SF 626 (3) 91 dg/ns/mb 3/ 18

S.F. 626 amounts anticipated to be received from the federal government 1 for the designated federal fiscal years under 42 U.S.C. ch. 2 7, subch. V, which provides for the maternal and child health 3 services block grant. The department shall expend the moneys 4 appropriated in this subsection as provided in the federal law 5 making the moneys available and in conformance with chapter 6 17A . 7 c. Moneys appropriated in this subsection shall not be used 8 by the university of Iowa hospitals and clinics for indirect 9 costs. 10 2. An amount not exceeding 10 percent of the moneys 11 appropriated in subsection 1 for each federal fiscal year shall 12 be used by the department of health and human services for 13 administrative expenses. 14 3. The department of health and human services, department 15 of education, and the university of Iowa’s mobile and regional 16 child health specialty clinics shall continue to pursue to the 17 maximum extent feasible the coordination and integration of 18 services to women and children. 19 4. a. Sixty-three percent of the amount remaining after the 20 allocation made in subsection 2 for each federal fiscal year 21 shall be allocated to supplement appropriations for maternal 22 and child health programs within the department of health and 23 human services. Of these moneys, the following amounts shall 24 be set aside for the statewide perinatal care program for the 25 following federal fiscal years: 26 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,291 27 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,291 28 b. Thirty-seven percent of the amount remaining after 29 the allocation made in subsection 2 for each federal fiscal 30 year shall be allocated to the university of Iowa hospitals 31 and clinics under the control of the state board of regents 32 for mobile and regional child health specialty clinics. The 33 university of Iowa hospitals and clinics shall not receive an 34 allocation for indirect costs from the moneys for this program. 35 -4- SF 626 (3) 91 dg/ns/mb 4/ 18

S.F. 626 Priority shall be given to establishment and maintenance of a 1 statewide system of mobile and regional child health specialty 2 clinics. 3 5. The department of health and human services shall 4 administer the statewide maternal and child health program 5 and the disabled children’s program by conducting mobile and 6 regional child health specialty clinics and conducting other 7 activities to improve the health of low-income women and 8 children and to promote the welfare of children with actual 9 or potential handicapping conditions and chronic illnesses 10 in accordance with the requirements of Tit. V of the federal 11 Social Security Act. 12 Sec. 4. PREVENTIVE HEALTH AND HEALTH SERVICES 13 APPROPRIATIONS. 14 1. a. There is appropriated from the fund created pursuant 15 to section 8.41 to the department of health and human services 16 for the following federal fiscal years beginning October 1, and 17 ending September 30, the following amounts: 18 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,955,591 19 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,955,591 20 b. The appropriations made in this subsection are in the 21 amounts anticipated to be received from the federal government 22 for the designated federal fiscal years under 42 U.S.C. ch. 6A, 23 subch. XVII, part A, which provides for the preventive health 24 and health services block grant. The department shall expend 25 the moneys appropriated in this subsection as provided in the 26 federal law making the moneys available and in conformance with 27 chapter 17A . 28 2. Of the moneys appropriated in subsection 1 for each 29 federal fiscal year, an amount not exceeding 10 percent shall 30 be used by the department for administrative expenses. 31 3. Of the moneys appropriated in subsection 1 for each 32 federal fiscal year, the specific amount of moneys stipulated 33 by the notice of the block grant award shall be allocated 34 for services to victims of sex offenses and for sex offense 35 -5- SF 626 (3) 91 dg/ns/mb 5/ 18

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

S.F. 626 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,964,093 1 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,178,973 2 The appropriations made in this section are in the amounts 3 anticipated to be received from the federal government for the 4 designated fiscal years under 42 U.S.C. ch. 46, subch. V, which 5 provides for the Edward Byrne memorial justice assistance grant 6 program. The drug policy director shall expend the moneys 7 appropriated in this section as provided in the federal law 8 making the moneys available and in conformance with chapter 9 17A . 10 Sec. 7. COMMUNITY SERVICES APPROPRIATIONS. 11 1. a. There is appropriated from the fund created pursuant 12 to section 8.41 to the department of health and human services 13 for the following federal fiscal years beginning October 1, and 14 ending September 30, the following amounts: 15 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,300,123 16 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,300,123 17 b. The appropriations made in this subsection are in the 18 amounts anticipated to be received from the federal government 19 for the designated federal fiscal years under 42 U.S.C. ch. 20 106, which provides for the community services block grant. 21 The department of health and human services shall expend the 22 moneys appropriated in this subsection as provided in the 23 federal law making the moneys available and in conformance with 24 chapter 17A . 25 c. Each federal fiscal year, the department of health and 26 human services shall allocate not less than 96 percent of 27 the amount of the block grants to eligible community action 28 agencies for programs benefiting low-income persons. Each 29 eligible agency shall receive a minimum allocation of not less 30 than $185,000. The minimum allocation shall be achieved by 31 redistributing increased moneys from agencies experiencing 32 a greater share of available moneys. The moneys shall be 33 distributed on the basis of the poverty-level population in the 34 area represented by the community action areas compared to the 35 -7- SF 626 (3) 91 dg/ns/mb 7/ 18

S.F. 626 size of the poverty-level population in the state. 1 2. An amount not exceeding 4 percent of the moneys 2 appropriated in subsection 1 for each federal fiscal year 3 shall be used by the department of health and human services 4 for administrative expenses. From the moneys set aside by 5 this subsection for administrative expenses, the department 6 of health and human services shall pay to the auditor of 7 state an amount sufficient to pay the cost of auditing the 8 use and administration of the state’s portion of the moneys 9 appropriated in subsection 1. The auditor of state shall bill 10 the department of health and human services for the costs of 11 the audits. 12 Sec. 8. COMMUNITY DEVELOPMENT APPROPRIATIONS. 13 1. a. There is appropriated from the fund created pursuant 14 to section 8.41 to the economic development authority for the 15 following federal fiscal years beginning October 1, and ending 16 September 30, the following amounts: 17 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,500,000 18 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,500,000 19 b. The appropriations made in this subsection are in the 20 amounts anticipated to be received from the federal government 21 for the designated federal fiscal years under 42 U.S.C. ch. 22 69, which provides for community development block grants. 23 The economic development authority shall expend the moneys 24 appropriated in this subsection as provided in the federal law 25 making the moneys available and in conformance with chapter 26 17A . 27 2. a. An amount not exceeding $1,160,000 for the federal 28 fiscal year beginning October 1, 2025, shall be used by the 29 economic development authority for administrative expenses for 30 the community development block grant. The total amount used 31 for administrative expenses includes $630,000 for the federal 32 fiscal year beginning October 1, 2025, of moneys appropriated 33 in subsection 1 and a matching contribution from the state 34 equal to $530,000 from the appropriation of state moneys for 35 -8- SF 626 (3) 91 dg/ns/mb 8/ 18

S.F. 626 the community development block grant and state appropriations 1 for related activities of the economic development authority. 2 From the moneys set aside for administrative expenses by this 3 subsection, the economic development authority shall pay to 4 the auditor of state an amount sufficient to pay the cost of 5 auditing the use and administration of the state’s portion of 6 the moneys appropriated in subsection 1. The auditor of state 7 shall bill the authority for the costs of the audit. 8 b. An amount not exceeding $1,160,000 for the federal 9 fiscal year beginning October 1, 2026, shall be used by the 10 economic development authority for administrative expenses for 11 the community development block grant. The total amount used 12 for administrative expenses includes $630,000 for the federal 13 fiscal year beginning October 1, 2026, of moneys appropriated 14 in subsection 1 and a matching contribution from the state 15 equal to $530,000 from the appropriation of state moneys for 16 the community development block grant and state appropriations 17 for related activities of the economic development authority. 18 From the moneys set aside for administrative expenses by this 19 subsection, the economic development authority shall pay to 20 the auditor of state an amount sufficient to pay the cost of 21 auditing the use and administration of the state’s portion of 22 the moneys appropriated in subsection 1. The auditor of state 23 shall bill the authority for the costs of the audit. 24 Sec. 9. SURFACE TRANSPORTATION BLOCK GRANT PROGRAM 25 APPROPRIATIONS. There is appropriated from the fund created 26 pursuant to section 8.41 to the department of transportation 27 for the following federal fiscal years beginning October 1, and 28 ending September 30, the following amounts: 29 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $192,600,000 30 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $192,600,000 31 The appropriations made in this section are the amounts 32 anticipated to be received from the federal government for 33 the designated fiscal years under 23 U.S.C. ch. 1, §133, 34 which provides funding allocated by the state transportation 35 -9- SF 626 (3) 91 dg/ns/mb 9/ 18

S.F. 626 commission for state and local transportation projects. The 1 department shall expend the moneys appropriated in this section 2 as provided in the federal law making the moneys available and 3 in conformance with chapter 17A . 4 Sec. 10. LOW-INCOME HOME ENERGY ASSISTANCE APPROPRIATIONS. 5 1. a. There is appropriated from the fund created pursuant 6 to section 8.41 to the department of health and human services 7 for the following federal fiscal years beginning October 1, and 8 ending September 30, the following amounts: 9 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,058,248 10 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,058,248 11 b. The appropriations made in this subsection are in the 12 amounts anticipated to be received from the federal government 13 for the designated federal fiscal years under 42 U.S.C. 14 ch. 94, subch. II, which provides for the low-income home 15 energy assistance block grants. The department of health and 16 human services shall expend the moneys appropriated in this 17 subsection as provided in the federal law making the moneys 18 available and in conformance with chapter 17A . 19 2. Up to 15 percent, or up to 25 percent if a waiver is 20 approved by the United States department of health and human 21 services, of the amount appropriated in this section that is 22 actually received for each federal fiscal year shall be used 23 for residential weatherization or other related home repairs 24 for low-income households. Of this allocation amount, not more 25 than 10 percent may be used for administrative expenses. 26 3. After subtracting the allocation in subsection 2, no 27 less than 8.4 percent of the remaining moneys for each federal 28 fiscal year are allocated for administrative expenses of the 29 low-income home energy assistance program contractors, and 30 up to 1.6 percent of the remaining moneys are allocated each 31 federal fiscal year for the low-income home energy assistance 32 program for administrative expenses of the department of 33 health and human services. The costs of auditing the use and 34 administration of the portion of the appropriation in this 35 -10- SF 626 (3) 91 dg/ns/mb 10/ 18

S.F. 626 section that is retained by the state shall be paid from the 1 amount allocated in this subsection each federal fiscal year to 2 the department of health and human services. The auditor of 3 state shall bill the department of health and human services 4 for the audit costs. 5 4. The remaining moneys of the appropriation made in this 6 section for each federal fiscal year following the allocations 7 made in subsections 2 and 3, shall be used to help eligible 8 households as defined in 42 U.S.C. ch. 94, subch. II, to meet 9 home energy costs. 10 5. Not more than 10 percent of the amount appropriated in 11 this section each federal fiscal year that is actually received 12 may be carried forward for use in the succeeding federal fiscal 13 year. 14 6. Expenditures for assessment and resolution of energy 15 problems shall be limited to not more than 5 percent of the 16 amount appropriated in this section for each federal fiscal 17 year that is actually received. 18 Sec. 11. SOCIAL SERVICES APPROPRIATIONS. 19 1. There is appropriated from the fund created pursuant to 20 section 8.41 to the department of health and human services for 21 the following federal fiscal years beginning October 1, and 22 ending September 30, the following amounts: 23 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,264,832 24 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,264,832 25 2. The appropriations made in this section are in the 26 amounts anticipated to be received from the federal government 27 for the designated federal fiscal years under 42 U.S.C. ch. 7, 28 subch. XX, which provides for the social services block grant. 29 The department of health and human services shall expend the 30 moneys appropriated in this section as provided in the federal 31 law making the moneys available and in conformance with chapter 32 17A . 33 Sec. 12. SOCIAL SERVICES BLOCK GRANT PLAN. 34 1. The department of health and human services during each 35 -11- SF 626 (3) 91 dg/ns/mb 11/ 18

S.F. 626 state fiscal year shall develop a plan for the use of federal 1 social services block grant moneys for the subsequent state 2 fiscal year. 3 2. The proposed plan shall include all programs and services 4 at the state level which the department proposes to fund with 5 federal social services block grant moneys, and shall identify 6 state and other moneys which the department proposes to use to 7 fund the state programs and services. 8 3. The proposed plan shall also include all local programs 9 and services which are eligible to be funded with federal 10 social services block grant moneys, the total amount of federal 11 social services block grant moneys available for the local 12 programs and services, and the manner of distribution of the 13 federal social services block grant moneys to the counties. 14 The proposed plan shall identify state and local moneys which 15 will be used to fund the local programs and services. 16 4. The proposed plan shall be submitted with the 17 department’s budget requests to the governor and the general 18 assembly. 19 Sec. 13. PROJECTS FOR ASSISTANCE IN TRANSITION FROM 20 HOMELESSNESS. 21 1. Upon receipt of the minimum formula grant from the 22 substance abuse and mental health services administration to 23 provide mental health services for the homeless, for the state 24 fiscal years beginning July 1, 2025, and July 1, 2026, the 25 department of health and human services shall assure that a 26 project which receives moneys under the formula grant shall do 27 all of the following: 28 a. Provide outreach and engagement to homeless individuals 29 and individuals at risk of homelessness and assesses those 30 individuals for serious mental illness. 31 b. Enroll those individuals with serious mental illness who 32 are willing to accept services through the project. 33 c. Provide case management to homeless persons. 34 d. Provide appropriate training to persons who provide 35 -12- SF 626 (3) 91 dg/ns/mb 12/ 18

S.F. 626 services to persons targeted by the grant. 1 e. Assure a local match share of 25 percent. 2 f. Refer homeless individuals and individuals at risk of 3 homelessness to primary health care, job training, educational 4 services, and relevant housing services. 5 2. A project may expend moneys for community mental health 6 services, diagnostic services, crisis intervention services, 7 habilitation and rehabilitation services, substance-related 8 disorder services, supportive and supervisory services to 9 homeless persons living in residential settings that are 10 not otherwise supported, and housing services including 11 minor renovation, expansion, and repair of housing, security 12 deposits, planning of housing, technical assistance in 13 applying for housing, improving the coordination of housing 14 services, the costs associated with matching eligible homeless 15 individuals with appropriate housing, and one-time rental 16 payments to prevent eviction. 17 Sec. 14. CHILD CARE AND DEVELOPMENT APPROPRIATIONS. 18 1. a. There is appropriated from the fund created pursuant 19 to section 8.41 to the department of health and human services 20 for the following federal fiscal years beginning October 1, and 21 ending September 30, the following amounts: 22 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $109,630,285 23 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $109,630,285 24 b. The appropriations made in this section are in the 25 amounts anticipated to be received from the federal government 26 for the designated federal fiscal years under 42 U.S.C. 27 ch. 105, subch. II-B, which provides for the child care and 28 development block grant. The department shall expend the 29 moneys appropriated in this section as provided in the federal 30 law making the moneys available and in conformance with chapter 31 17A . 32 2. Moneys appropriated in this section that remain 33 unencumbered or unobligated at the close of the fiscal year 34 shall revert to be available for appropriation for purposes of 35 -13- SF 626 (3) 91 dg/ns/mb 13/ 18

S.F. 626 the child care and development block grant in the succeeding 1 fiscal year. 2 Sec. 15. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 3 APPROPRIATIONS. 4 1. a. There is appropriated from the fund created in 5 section 8.41 to the department of health and human services for 6 the following federal fiscal years beginning October 1, and 7 ending September 30, the following amounts: 8 FFY 2025-2026: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,980,383 9 FFY 2026-2027: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,980,383 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 the federal 13 Personal Responsibility and Work Opportunity Reconciliation 14 Act of 1996, Pub. L. No. 104-193, and successor legislation, 15 which provides for the temporary assistance for needy families 16 block grant. The department of health and human services 17 shall expend the moneys appropriated in this subsection in 18 conformance with chapter 17A, and as provided in the federal 19 law making the moneys available, to meet one of the four 20 core purposes of the temporary assistance for needy families 21 block grant as described in 45 C.F.R. §260.20, including by 22 modernizing applicable programs to promote economic mobility 23 and self-sufficiency, ensuring families are able to overcome 24 benefit cliffs, encouraging healthy families, and streamlining 25 service delivery to reduce duplication of services. 26 2. Up to 15 percent of the moneys appropriated in subsection 27 1 for each federal fiscal year shall be used by the department 28 of health and human services for administrative expenses in 29 accordance with the federal Personal Responsibility and Work 30 Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193, 31 and successor legislation. The costs of auditing the use and 32 administration of the portion of the appropriation in this 33 section that is retained by the state shall be paid from the 34 amount allocated in this subsection each federal fiscal year to 35 -14- SF 626 (3) 91 dg/ns/mb 14/ 18

S.F. 626 the department of health and human services. The auditor of 1 state shall bill the department of health and human services 2 for the audit costs. 3 3. Notwithstanding section 8.33, moneys appropriated in 4 this section for the federal fiscal year beginning October 1, 5 2025, and ending September 30, 2026, that remain unencumbered 6 or unobligated at the close of the fiscal year shall not revert 7 but shall remain available for expenditure for the purposes 8 designated until the close of the succeeding fiscal year. 9 Sec. 16. PROCEDURE FOR REDUCED FEDERAL MONEYS. 10 1. Unless otherwise necessary to meet federal requirements, 11 if the moneys received from the federal government for 12 the block grants specified in this Act are less than the 13 amounts appropriated, the moneys actually received shall be 14 prorated by the governor for the various programs, other 15 than for the services to victims of sex offenses and for sex 16 offense prevention under section 4, subsection 3, of this 17 Act, for which each block grant is available according to 18 the percentages that each program is to receive as specified 19 in this Act. However, if the governor determines that the 20 moneys allocated by the percentages will not be sufficient to 21 accomplish the purposes of a particular program, or if the 22 appropriation is not allocated by percentage, the governor may 23 allocate the moneys in a manner which will accomplish to the 24 greatest extent possible the purposes of the various programs 25 for which the block grants are available. 26 2. Before the governor implements the actions provided for 27 in subsection 1, the following procedures shall be taken: 28 a. The chairpersons and ranking members of the senate and 29 house standing committees on appropriations, the appropriate 30 chairpersons and ranking members of subcommittees of those 31 committees, and the director of the legislative services agency 32 shall be notified of the proposed action. 33 b. The notice shall include the proposed allocations, 34 and information on the reasons why particular percentages or 35 -15- SF 626 (3) 91 dg/ns/mb 15/ 18

S.F. 626 amounts of moneys are allocated to the individual programs, 1 the departments and programs affected, and other information 2 deemed useful. Chairpersons and ranking members notified shall 3 be allowed at least two weeks to review and comment on the 4 proposed action before the action is taken. 5 Sec. 17. PROCEDURE FOR INCREASED FEDERAL MONEYS. 6 1. Unless otherwise necessary to meet federal requirements, 7 if moneys received from the federal government in the form of 8 block grants exceed the amounts appropriated in sections 1, 2, 9 3, 4, and 8 of this Act, the excess shall be prorated to the 10 appropriate programs according to the percentages specified in 11 those sections, except additional moneys shall not be prorated 12 for administrative expenses. 13 2. If actual moneys received from the federal government 14 from block grants exceed the amount appropriated in section 10 15 of this Act for the low-income home energy assistance program, 16 not more than 15 percent of the excess may be allocated to the 17 low-income residential weatherization program and not more than 18 10 percent of the excess may be used for administrative costs. 19 3. If moneys received from the federal government from 20 community services block grants exceed the amount appropriated 21 in section 7 of this Act, 100 percent of the excess is 22 allocated to the community services block grant program. 23 Sec. 18. PROCEDURE FOR EXPENDITURE OF ADDITIONAL FEDERAL 24 MONEYS. If other federal grants, receipts, and moneys and 25 other nonstate grants, receipts, and moneys become available 26 or are awarded which are not available or awarded during the 27 period in which the general assembly is in session, but which 28 require expenditure by the applicable department or agency 29 prior to March 15 of the fiscal years beginning July 1, 2025, 30 and July 1, 2026, these grants, receipts, and moneys are 31 appropriated to the extent necessary, provided that the fiscal 32 committee of the legislative council is notified within 30 days 33 of receipt of the grants, receipts, or moneys and the fiscal 34 committee of the legislative council has an opportunity to 35 -16- SF 626 (3) 91 dg/ns/mb 16/ 18

S.F. 626 comment on the expenditure of the grants, receipts, or moneys. 1 Sec. 19. OTHER GRANTS, RECEIPTS, AND MONEYS. Federal 2 grants, receipts, and moneys and other nonstate grants, 3 receipts, and moneys, available in whole or in part of the 4 state fiscal years beginning July 1, 2025, and July 1, 2026, 5 are appropriated to the following departments and agencies that 6 are designated by and for the purposes set forth in the grants, 7 receipts, or conditions accompanying the receipt of the moneys, 8 unless otherwise provided by law: 9 1. Department of administrative services. 10 2. Department of agriculture and land stewardship. 11 3. Office of auditor of state. 12 4. Department for the blind. 13 5. Department of corrections. 14 6. Economic development authority. 15 7. Department of education. 16 8. Iowa ethics and campaign disclosure board. 17 9. Iowa finance authority. 18 10. Offices of the governor and lieutenant governor. 19 11. Department of health and human services. 20 12. Department of homeland security and emergency 21 management. 22 13. Department of inspections, appeals, and licensing. 23 14. Department of insurance and financial services. 24 15. Judicial branch. 25 16. Department of justice. 26 17. Iowa law enforcement academy. 27 18. Department of management. 28 19. Department of natural resources. 29 20. Board of parole. 30 21. Department of public defense. 31 22. Department of public safety. 32 23. State board of regents. 33 24. Department of revenue. 34 25. Office of secretary of state. 35 -17- SF 626 (3) 91 dg/ns/mb 17/ 18