Bills Associated with Iowa Public Transit Association

Requires commercial drivers demonstrate sufficient English language proficiency to receive or renew a CDL or CLP. The Department of Transportation must administer a computer-based English proficiency exam, and commercial motor carriers are prohibited from employing drivers who do not meet the standard. Civil penalties are imposed on carriers and drivers for violations, and criminal penalties apply to non-proficient drivers operating commercial vehicles. The bill also outlines procedures for handling vehicles and cargo when violations occur, and protects compliance with federal law.

Key Points & Impacts:

• Adds a new requirement that applicants for commercial driver’s licenses or learner’s permits must pass an English language proficiency exam administered by the Department of Transportation.

• Prohibits issuance or renewal of a CDL or CLP unless the applicant demonstrates sufficient English proficiency as defined under federal regulations (49 C.F.R §391.11(b)(2)).

• Allows applicants to retake the English proficiency exam, subject to availability.

• Prohibits commercial motor carriers from employing or contracting with commercial drivers who lack sufficient English proficiency; civil penalties of $3,000, $5,000, and $10,000 apply for first, second, and subsequent violations, respectively.

• Prohibits non-proficient individuals from operating commercial motor vehicles; violations result in a $1,000 civil penalty and a serious misdemeanor charge.

• Establishes procedures for the removal and transfer of vehicles and cargo when a violation is detected, and limits liability for related damages to the state, local authorities, and cargo owners.

• Requires payment of civil penalties before a carrier can reclaim a vehicle and mandates notification of cargo owners if the carrier fails to comply within 12 hours.

• Directs the Department of Transportation to waive provisions if compliance would jeopardize federal funds or violate federal law.

Signed by Governor May 2, 2026, Takes effect July 1, 2026.

Appropriates $2.56 billion to fund various health, veterans, and human services (including Medicaid) for fiscal year 2027, which begins on July 1, 2026. This is a $3.1 million increase. Veterans: No change in funding for Veterans Home, Department of Veterans Affairs and Veteran Homeownership Program. Disability & Aging Services: Funding for the Statewide Independent Living Councils and Centers for Independent Living that had been funded in the Economic Development Budget are moved here ($171,351). Re-establishes and level funds ($949,282) the Comprehensive Family Support Program that was accidentally eliminated in 2024 (HF 2673), allowing the children at home program to continue (this change is effective back to July 1, 2025). No change in the Office of Long Term Care Ombudsman ($1,148,959).  Behavioral Health:  Eliminates funding for tobacco use and gambling prevention marketing materials ($580,200), Quitline ($500,000), and Iowa Students for Tobacco Education and Prevention (STEP) Summit ($120,000). Iowa HHS says Quitline will be paid for with federal funds. Eliminates funding for the Center for Excellence in Behavioral Health ($100,000). No change in funding for the children's behavioral health system ($300,000).  Transfers $5.6 million payment from the Behavioral Health Fund to Medicaid.  Requires HHS to provide the Legislature with a report on behavioral health expenditures to children and adults annually on December 15 (to include a summary of funding sources used). Public Health: Adds back line item for child vision screening ($191,000) and epilepsy education and support ($144,000), which were eliminated in 2023 (FY 2024). While the line items were eliminated, HHS continued to fund them. No change in funding for prescription drug donation program/SafeNetRX ($600,000), free clinics ($374,000), rural health clinics ($25,000), free radon test kits ($20,000), and state poison control center ($750,000). Eliminates funding for the volunteer specialty care provider network managed by Polk County Medical Society ($225,000), and the survey of Adverse Childhood Experiences/ACES ($40,000). Adds $1,171,999 to pay for the summer EBT program to help with childhood food insecurity. Adds new $1.5 million appropriation for medical residency grants outside of Johnson County (not to include family practice).  Medicaid: Level funds Medicaid, but includes transfers in funds that cover the expected $151.9 million shortfall.  Increases rates for elderly waiver ($3 million), ambulatory surgical centers ($1.2 million), and special population nursing facilities ($333,000). Continues HHS' recommended cost containment (savings noted): allowing dispensing of 90-day prescriptions ($150,000), shifting some behavioral services to Medicare ($308,000), cutting rates for telehealth-delivered services/site of service differential ($491,000), adjusting codes for venipuncture and therapy rehabilitation ($602,000), 30-day readmission for same diagnosis policy changes ($1.1 million), speech/language pathology service adjustments ($1.2 million), Medicaid paying lowest available price ($2.2 million), and facility and provider based billing adjustments ($5.4 million). Codifies current reimbursement structure for On With Life and ChildServe (special population nursing facilities), ending their need to go through an exception to policy. No change in funding for family planning program ($3,383,880). Increases funding for the children's health insurance program (Hawki) by $7.2 million, for total of $68,474,831 appropriation.  Shifts $6.5 million in costs to MCOs and reduces general fund spending because of influx of revenues from the temporary HMO tax ($132.9 million). Requires HHS to annually review all Medicaid provider reimbursement rates that are on a fee schedule and compare those rates to Medicare (for dental, rates are compared to neighboring state Medicaid rates), with a report due to the Legislature on January 15. Child Welfare: Increases child welfare provider rates ($1,590,842 for shelter, $3,245,594 for QRTP). Requires HHS to review child welfare provider (shelter care, QRTP) rates every two years, based on their cost reports, and report findings to Legislature by October 1.  Ends contracts for Treatment Outcome Package (TOP) protocols and instead use existing lower-cost tool ($1.4 million). Reduces state funding for childcare by $3 million ($32.7 million total appropriation) and federal block grant funding for childcare by $4.9 million ($42.3 million total appropriation). Increases funding for the More Options for Maternal Health (MOMS) Program by $1,493,299 and allows any remaining unspent funds at the end of the year to carry forward. Reduces funding for Eldora by $673,000. Eliminates "duplicative" funding for child abuse prevention administrator ($300,000). No change in funding for Early Childhood Iowa/ECI ($29,256,799) but eliminates funding for decategorization projects ($1.7 million). Reduces state funding by $1 million because of the "establishment of a central consulting model that is expected to decrease overtime hours for social workers." No change in funding for court-ordered juvenile services ($748,000) and child protection center grants ($1,658,000).  State Institutions: Reduces funding for MHIs by $1.75 million and Woodward by $1.9 million. Continues to fund the now-vacant Glenwood at $942,000 (a decrease of $648,000).  Directs HHS to apply for a waiver of Medicaid's "Institution for Mental Diseases" (IMD) exclusion, which would allow HHS to draw down federal matching funds to offset the costs of the state's two Mental Health Institutes (MHIs). This will increase Medicaid costs between $300,000-$350,000 but will reduce costs for MHIs (for an overall state budget savings). Other Appropriations: Allows automatic appropriation to continue for Child Abuse Prevention ($233,000), Center for Congenital & Inherited Disorders Registry ($224,000), and Behavioral Health Fund ($1 million). Appropriates $3 million in opioid settlement funds for the Renewal Falls Recovery Center in Cedar Falls. Transfers $9.9 million in funds left in funds eliminated last year in HF 972 (Health Care Workforce Shortage Interest Account, Medical Residency Training Account, Family Medicine Obstetrics Fellowship Program Fund, Rural Psychiatry Residency and Fellowships) to fund graduate medical education (GME) for residencies other than family medicine. Adds a new (additional) $1.5 million appropriation to support GME.  Other: Continues allocating 70% of community mental health block grant funds to designated community mental health centers (this formula was to expire September 30, 2026). Requires HHS to make staffing (FTE) information available on a public website. Gives HHS the ability to adopt emergency rules to implement federal changes (but must let Legislature know if those emergency rules increase costs to the state). Cuts 9.5 staff positions from the Bureau of Refugee Services due to reorganization. Increased expenses due to One Big Beautiful Bill Act (OBBA) and Senate File 2422 (Eligibility Verification/Public Assistance): Increases funding for the administration of the Supplemental Nutrition Assistance Program (SNAP) by $10,122,527 as required by OBBBA (there are two different line items in the budget for this - $8,738,907 and $1,383,620).  Adds $859,200 in funding to pay for the increased costs of public assistance eligibility determination as a result of OBBBA.  Adds a total of $123,444 to pay for the cost of determining Medicaid waiver neutrality per SF 2422 (there are two line items for this as well - $58,874 and $64,570). Adds $670,333 to Medicaid to pay for eligibility verification changes in SF 2422. You can read more details at: https://www.legis.iowa.gov/docs/publications/NOBA/1605124.pdf. Effective 7/1/2026. LINE ITEM VETO: The Governor vetoed the requirement that 70% of the mental health block grant continue to go to CMHCs and the $3 million opioid settlement earmark for Renewal Falls Recovery Center in Cedar Falls. You can read the Governor's veto message here.

Changes standing (automatic) appropriations, makes other appropriations left out of other budgets, fixes mistakes in other bills, and drops in changes that were part of last-minute negotiations. Education: Maintains current reductions in standing appropriations - AEAs ($7.5 million) and non-public school transportation ($9 million). Requires state universities require all undergraduates to complete two three-credit courses as part of their general education requirement (American History and American Government), but this does not apply to any degree that is completed in three years or less. Applies to students beginning college on or after July 1, 2028. Requires the ISU Center for Cyclone Civics and the UI Center for Intellectual Freedom are to designate which courses meet these requirements. Continues incentives for school mergers through July 1, 2035 (expired July 1, 2024). Makes an exception for a school district to increase their cash reserve levy if a single property in their district's change in valuation caused a loss of more than $100 million (effective upon enactment).  Health/Human Services: Appropriates $1 million from the sports wagering fund for Double Up Food Bucks. Appropriates $3 million to the University of Iowa for pediatric cancer research. Requires a report detailing how funds were used to be filed with Legislature by 10/1/2027. Prohibits funding provide for pediatric cancer research from being used for administrative/overhead costs not directly related to research. Makes public assistance reforms enacted in SF 2422 effective when new eligibility systems go live. Requires a trained child protection worker to screen a child for commercial sex abuse if HHS identifies known risk factors in the child's background. Changes the effective date of moving victim restitution from category "B" to "A" in HF 1036 (Human Trafficking) from July 1, 2026 to July 1, 2027.  Fund Balance Transfers: Allows use of $12 million in federal incentive payments from FY26 to be used for administering the unemployment compensation insurance program and for modernization efforts. Transfers COVID funding balances in HHS to the HHS Information Technology Fund and appropriates the following from that fund: $31 million for the Medicaid management information system, $30.5 million for the eligibility determination system, $34 million for child welfare IT projects, and $5 million for implementation of SF 2422 (public assistance reforms). Allows special funds (gambling enforcement, road use tax fund, fish and game, IPERS, etc) to be used for salary adjustments. Allows funds remaining in the Future Ready Iowa Apprenticeship Fund to be used to support the Iowa Office of Apprenticeships. Requires state agencies and the judicial branch to notify the House and Senate Appropriations Committee Chairs and Ranking Members and the Chair and Ranking Member of the House Federal Funds Appropriations Subcommittee of any federal grant or loan in excess of $5 million received or applied for in the previous month (but exempts the Iowa Department of Defense & Board of Regents) and any grant or loan applied for or received that requires a state match.  Other: Adopts national electrical code. Amends Civil Rights legislation (SF 579) to not only prohibit the enactment of civil rights ordinances/regulations that go further than the state law, but also prohibit enforcement of existing ordinances and regulations. Prohibits a state political party's platform from prohibiting an elected official from serving on the state party central committee, and requires each party's state central committee to adopt a Chair, Vice Chair, Treasurer, and Secretary. Makes Japanese Knotweed a noxious weed. Requires the Iowa State Fair Foundation to issue 126 (instead of 125) nonresident deer hunting licenses, with the 126th license to be used at the discretion of the fair. Regulates proprietary water treatment systems. Renames the poultry association. Eliminates cap on full-time county attorney salaries (currently 45-100% of district court judge salary). Creates a new civil cause of action for "civil litigation abuse," defined as filing lawsuits between two private parties intended to harass, cause financial harm, or interfere with business relationships in done for "ulterior purposes." Corrections: Makes technical corrections for a number of bills passed earlier in session (non substantive). You can read more detail at: https://www.legis.iowa.gov/docs/publications/NOBA/1605279.pdf. Effective 7/1/2026. LINE ITEM VETO:  The Governor vetoed the transfer of remaining COVID relief funds to the Information Technology Fund, limitations on use of information technology funds by HHS, changes to the HMO tax that would have held Wellmark harmless (and risked $120 million in federal funding coming into Medicaid next year fiscal year), and the new civil cause for "litigation abuse."  You can read the Governor's veto message here. 

Sets budget for the Iowa Department of Transportation at $495.3 million for fiscal year 2027, which begins on July 1, 2026. This is a decrease of $18.2 million and is funded through gas taxes. Effective 7/1/2026. For details go to:https://www.legis.iowa.gov/docs/publications/NOBA/1605159.pdf.  

Allocates $193.6 million from the Rebuild Iowa Infrastructure Fund (RIIF) and Technology Reinvestment Fund for fiscal year 2027, which begins on July 1, 2026. Money in these funds comes from taxes on gambling.  New funding for: On With Life to build a wing at their Polk City location to accommodate young adults aging out of ChildServe ($4 million); strategic infrastructure program ($10 million); hosting national junior olympics ($250,000); sports entertainment venue in Newton ($7 million); railway tracks overpass and underpass fund ($5 million/year for five years); interactive museum exhibit at the Hoover Presidential Library ($1 million); and Iowa HHS' new eligibility determination system ($10 million), data integration into the new system ($1,633,361), and costs associated with implementing new Medicaid work requirements and other requirements of the One Big Beautiful Bill/HR 1 ($3,473,690). Ongoing funding (no change) for: water quality ($8.2 million); water quality/nitrogen modeling ($1 million); community attractions and tourism/CAT grants ($10 million); Destination Iowa Fund ($10 million); lake restoration projects ($9.6 million); state park infrastructure ($5 million); low head dams ($1.5 million); recreational trails ($2.5 million); railroad revolving fund ($2 million); derelict building fund ($1 million); and general aviation airports ($1 million). Increases funding for: regional sports authorities by $250,000 ($1 million) and commercial service airports by $600,000 ($2.5 million). Other Changes: Eliminates $1.2 million appropriation for public transit infrastructure and replaces it with a one-time $1.6 million appropriation to be used as partial federal match for approved grants (total of $3 million was needed). Prohibits Iowa HHS from entering into technology purchase agreements that cost more than $5 million or committed the state to multi-year obligations in its IT systems (the current system being funded by this bill, in response to the One Big Beautiful Bill changes, is exempt from this requirement).  Iowa HHS, Legislative Services Agency, and Department of Management are to set up an Information Technology Modernization Study Committee before 8/1/2026 to review Iowa HHS' technology systems, data architecture, and modernization strategy. The committee is also to include six ex-officio members of the Senate and House and allows others in private sector firms, academic experts, and subject matter experts to participate. The committee will identify redundancies and interoperability gaps, assess HHS' ability to integrate data across programs and databases, evaluate options for developing/purchasing an integrated architecture system; and consider existing vendors supporting current systems. Requires prioritizing long-term solutions that integrate systems, detect eligibility errors, improper payments, and fraudulent activities while deducting duplication (report due 1/1/2027).  Establishes the Railway Overpass & Underpass Fund to provide cities/counties with grants to construct overpasses and underpasses. Allows awardees of the Iowa Major Events & Tourism Fund to also receive regional sports authority funds. Effective 7/1/2026. More details can be found at:https://www.legis.iowa.gov/docs/publications/NOBA/1605200.pdf.  LINE ITEM VETO: The Governor vetoed the $5 million limit on HHS information technology contract obligations without legislative approval. You can read the Governor's veto message here.

The Act mandates use of federal e-verify and SAVE systems for employment and professional licensure eligibility verification across multiple sectors, including education, public employment, and professional licensing. It establishes criminal and civil penalties for knowingly providing or accepting false social security numbers, prohibits issuance or renewal of professional licenses to individuals unlawfully present in the U.S., and adds strict requirements for voter registration and citizenship verification. Additionally, it imposes stricter pretrial detention standards for unauthorized aliens and those charged with forcible felonies. The law provides severability and contingent implementation clauses in case parts are found invalid or federal verification systems become inaccessible.

Key Points & Impacts

• Requires the Board of Educational Examiners to verify legal authorization to work in the U.S. for all initial and renewing applicants, as well as periodic verification for those not subject to renewal.

• Prohibits employers from hiring or continuing to employ individuals known to have provided false social security numbers; imposes civil penalties and mandatory compliance training for repeat violations.

• Defines and criminalizes the act of providing or accepting a false social security number for employment purposes.

• Mandates use of the federal e-verify system for employment eligibility verification by the legislature, state agencies, cities, counties, school districts, nonpublic schools, charter schools, and certain higher education institutions; results must be reported to federal immigration authorities if a lack of legal status is found.

• Establishes a SAVE program clearinghouse for professional licensing boards to verify the citizenship and immigration status of license applicants, and prohibits issuance or renewal of licenses to those unlawfully present.

• Requires voter registration forms to include a new oath affirming U.S. citizenship, mandates monthly/annual systematic verification of voter citizenship, and establishes procedures for deregistration of unconfirmed registrants.

• Imposes a rebuttable presumption against bail for unauthorized aliens charged with indictable offenses and for all defendants charged with forcible felonies, with specific appeal and challenge procedures.

• Contains detailed severability and suspension clauses to address federal court rulings or loss of access to verification systems, ensuring continued effect of unaffected provisions.

Signed by Governor June 2, 2026. Takes effect July 1, 2026.

The Act mandates use of federal e-verify and SAVE systems for employment and professional licensure eligibility verification across multiple sectors, including education, public employment, and professional licensing. It establishes criminal and civil penalties for knowingly providing or accepting false social security numbers, prohibits issuance or renewal of professional licenses to individuals unlawfully present in the U.S., and adds strict requirements for voter registration and citizenship verification. Additionally, it imposes stricter pretrial detention standards for unauthorized aliens and those charged with forcible felonies. The law provides severability and contingent implementation clauses in case parts are found invalid or federal verification systems become inaccessible.

Key Points & Impacts

• Requires the Board of Educational Examiners to verify legal authorization to work in the U.S. for all initial and renewing applicants, as well as periodic verification for those not subject to renewal.

• Prohibits employers from hiring or continuing to employ individuals known to have provided false social security numbers; imposes civil penalties and mandatory compliance training for repeat violations.

• Defines and criminalizes the act of providing or accepting a false social security number for employment purposes.

• Mandates use of the federal e-verify system for employment eligibility verification by the legislature, state agencies, cities, counties, school districts, nonpublic schools, charter schools, and certain higher education institutions; results must be reported to federal immigration authorities if a lack of legal status is found.

• Establishes a SAVE program clearinghouse for professional licensing boards to verify the citizenship and immigration status of license applicants, and prohibits issuance or renewal of licenses to those unlawfully present.

• Requires voter registration forms to include a new oath affirming U.S. citizenship, mandates monthly/annual systematic verification of voter citizenship, and establishes procedures for deregistration of unconfirmed registrants.

• Imposes a rebuttable presumption against bail for unauthorized aliens charged with indictable offenses and for all defendants charged with forcible felonies, with specific appeal and challenge procedures.

• Contains detailed severability and suspension clauses to address federal court rulings or loss of access to verification systems, ensuring continued effect of unaffected provisions.

Signed by Governor June 2, 2026. Takes effect July 1, 2026.

Sets budget for the Iowa Department of Transportation at $495.3 million for fiscal year 2027, which begins on July 1, 2026. This is a decrease of $18.2 million and is funded through gas taxes. Effective 7/1/2026. For details go to:https://www.legis.iowa.gov/docs/publications/NOBA/1605159.pdf.  

Amends Iowa law regarding the display of the U.S. and Iowa state flags on public buildings. It defines 'public building,' clarifies duties for providing and displaying flags, requires compliance with gubernatorial half-staff proclamations, and establishes a process for reporting and enforcing compliance. Effective 7/1/2026.

Key Points & Impacts:

• Defines 'public building' as any vertical improvement used for public purposes by the state or its subdivisions.

• Clarifies that the board of public officers must provide a suitable state flag and that custodians must raise both the U.S. and Iowa state flags on favorable secular days.

• Requires custodians and boards to lower flags to half-staff when directed by a governor's proclamation.

• Allows any person to report violations of the half-staff requirement to the attorney general.

• Authorizes the attorney general to take legal action, including injunctive relief, to enforce compliance with half-staff proclamations.

• Replaces ambiguous duty language with clear mandates for flag display and compliance.

The Act mandates use of federal e-verify and SAVE systems for employment and professional licensure eligibility verification across multiple sectors, including education, public employment, and professional licensing. It establishes criminal and civil penalties for knowingly providing or accepting false social security numbers, prohibits issuance or renewal of professional licenses to individuals unlawfully present in the U.S., and adds strict requirements for voter registration and citizenship verification. Additionally, it imposes stricter pretrial detention standards for unauthorized aliens and those charged with forcible felonies. The law provides severability and contingent implementation clauses in case parts are found invalid or federal verification systems become inaccessible.

Key Points & Impacts

• Requires the Board of Educational Examiners to verify legal authorization to work in the U.S. for all initial and renewing applicants, as well as periodic verification for those not subject to renewal.

• Prohibits employers from hiring or continuing to employ individuals known to have provided false social security numbers; imposes civil penalties and mandatory compliance training for repeat violations.

• Defines and criminalizes the act of providing or accepting a false social security number for employment purposes.

• Mandates use of the federal e-verify system for employment eligibility verification by the legislature, state agencies, cities, counties, school districts, nonpublic schools, charter schools, and certain higher education institutions; results must be reported to federal immigration authorities if a lack of legal status is found.

• Establishes a SAVE program clearinghouse for professional licensing boards to verify the citizenship and immigration status of license applicants, and prohibits issuance or renewal of licenses to those unlawfully present.

• Requires voter registration forms to include a new oath affirming U.S. citizenship, mandates monthly/annual systematic verification of voter citizenship, and establishes procedures for deregistration of unconfirmed registrants.

• Imposes a rebuttable presumption against bail for unauthorized aliens charged with indictable offenses and for all defendants charged with forcible felonies, with specific appeal and challenge procedures.

• Contains detailed severability and suspension clauses to address federal court rulings or loss of access to verification systems, ensuring continued effect of unaffected provisions.

Signed by Governor June 2, 2026. Takes effect July 1, 2026.

SF 2472 – Property Tax Reform  (Final version)

Limit on Annual Revenue Increases

• 2% hard cap on all general levies (includes EMS, Agricultural property, Public Transit)
• 3% hard cap on DART
• 4% hard cap on county hospitals
• New construction is realized as it comes online

No limitation on the following:

• Debt Service Levies
• School funding
• City Special revenue levies (insurance, employee benefits, etc.)
• Most County supplemental levies (insurance, employee benefits, etc.)
• Community college variable levies (insurance, unemployment, etc.)

Extends the previous law of the land, HF 718, by 2 years.

_________

Residential Property Tax Relief

Converts homestead credit to an exemption (currently equal to $4,850 exemption)

• Phases state funding out over 3 years.
• Year 1 Exemption of 10% with a minimum of $5500 and maximum of $20,000
• Maximum rises with CPI

Current military and senior exemptions stay in place

Homestead credit currently costs the State $175M/year. Funds from the conversion of homestead credit to exemption go toward buying the $5.40 uniform levy down to $4.90 over 3 years.

Multi-residential rollback (currently equal to residential) is increased by 3% in Year 2, and 6% in Year 3.

_____

Transparency and Data

• Shifts the burden of proof to the assessor if a property value increases by more than 10 percent over 2 years.
• Requires parcel level reporting
• New taxpayer statement – ISAC and League of Cities tasked with working on this with Department of Management
• Allows online posting of tax notices

______

Bonding/Debt

• Restricts the use of debt service funds for operating expenses
• Caps local government reserves at 35%
• Creates new restricted fund account for funds that are budgeted for specific infrastructure uses

_______

Tax Increment Financing

$5.40 Uniform levy

• Pulls the $5.40 levy out of the increment for new TIF projects
• Holds existing debt for cities harmless
• Allows the school district to opt that levy in to a project with no state backfill
• Phases the $5.40 levy down to $4.90 over 3 years

Perpetual TIFS

• Limits increment usage to 60% after 20 years – No new debt allowed above the 60% threshold
• Pulls the $5.40 out of increment after 20 years
• Holds existing debt harmless

Eliminates the Low-Moderate Income restrictions from TIF usage for housing

Final bill DID NOT contain a restriction on the use of TIF revenues for staff and salaries

_____

Creates First Iowa Home Accounts

Raises the EMS levy cap to $1.50 (from $.75) with a vote

Signed by Governor 5/18/2026. Effective dates: 05/18/2026, 07/01/2026, 01/01/2027. Applicability dates: 01/01/2026, 07/01/2026, 01/01/2027, 07/01/2027, 07/01/2028.

Requires commercial drivers demonstrate sufficient English language proficiency to receive or renew a CDL or CLP. The Department of Transportation must administer a computer-based English proficiency exam, and commercial motor carriers are prohibited from employing drivers who do not meet the standard. Civil penalties are imposed on carriers and drivers for violations, and criminal penalties apply to non-proficient drivers operating commercial vehicles. The bill also outlines procedures for handling vehicles and cargo when violations occur, and protects compliance with federal law.

Key Points & Impacts:

• Adds a new requirement that applicants for commercial driver’s licenses or learner’s permits must pass an English language proficiency exam administered by the Department of Transportation.

• Prohibits issuance or renewal of a CDL or CLP unless the applicant demonstrates sufficient English proficiency as defined under federal regulations (49 C.F.R §391.11(b)(2)).

• Allows applicants to retake the English proficiency exam, subject to availability.

• Prohibits commercial motor carriers from employing or contracting with commercial drivers who lack sufficient English proficiency; civil penalties of $3,000, $5,000, and $10,000 apply for first, second, and subsequent violations, respectively.

• Prohibits non-proficient individuals from operating commercial motor vehicles; violations result in a $1,000 civil penalty and a serious misdemeanor charge.

• Establishes procedures for the removal and transfer of vehicles and cargo when a violation is detected, and limits liability for related damages to the state, local authorities, and cargo owners.

• Requires payment of civil penalties before a carrier can reclaim a vehicle and mandates notification of cargo owners if the carrier fails to comply within 12 hours.

• Directs the Department of Transportation to waive provisions if compliance would jeopardize federal funds or violate federal law.

Signed by Governor May 2, 2026, Takes effect July 1, 2026.

Sets budget for the Iowa Department of Transportation at $495.3 million for fiscal year 2027, which begins on July 1, 2026. This is a decrease of $18.2 million and is funded through gas taxes. Effective 7/1/2026. For details go to:https://www.legis.iowa.gov/docs/publications/NOBA/1605159.pdf.  

The Act mandates use of federal e-verify and SAVE systems for employment and professional licensure eligibility verification across multiple sectors, including education, public employment, and professional licensing. It establishes criminal and civil penalties for knowingly providing or accepting false social security numbers, prohibits issuance or renewal of professional licenses to individuals unlawfully present in the U.S., and adds strict requirements for voter registration and citizenship verification. Additionally, it imposes stricter pretrial detention standards for unauthorized aliens and those charged with forcible felonies. The law provides severability and contingent implementation clauses in case parts are found invalid or federal verification systems become inaccessible.

Key Points & Impacts

• Requires the Board of Educational Examiners to verify legal authorization to work in the U.S. for all initial and renewing applicants, as well as periodic verification for those not subject to renewal.

• Prohibits employers from hiring or continuing to employ individuals known to have provided false social security numbers; imposes civil penalties and mandatory compliance training for repeat violations.

• Defines and criminalizes the act of providing or accepting a false social security number for employment purposes.

• Mandates use of the federal e-verify system for employment eligibility verification by the legislature, state agencies, cities, counties, school districts, nonpublic schools, charter schools, and certain higher education institutions; results must be reported to federal immigration authorities if a lack of legal status is found.

• Establishes a SAVE program clearinghouse for professional licensing boards to verify the citizenship and immigration status of license applicants, and prohibits issuance or renewal of licenses to those unlawfully present.

• Requires voter registration forms to include a new oath affirming U.S. citizenship, mandates monthly/annual systematic verification of voter citizenship, and establishes procedures for deregistration of unconfirmed registrants.

• Imposes a rebuttable presumption against bail for unauthorized aliens charged with indictable offenses and for all defendants charged with forcible felonies, with specific appeal and challenge procedures.

• Contains detailed severability and suspension clauses to address federal court rulings or loss of access to verification systems, ensuring continued effect of unaffected provisions.

Signed by Governor June 2, 2026. Takes effect July 1, 2026.