Bills Associated with Loess Hills Alliance

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. 

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.

Allows the DNR director's office to be located at or near the state capitol rather than strictly at the capitol, and transfers various powers and duties relating to state preserves from the DNR to the Natural Resource Commission. It also lowers the minimum age for unsupervised deer hunting with a pistol or revolver from 21 to 18, removes certain supervision and consent requirements, and strikes related penalties. 

Key Points & Impact:

• Permits the director of the Department of Natural Resources to maintain an office at or near the state capitol complex, broadening the previous requirement of 'at' the capitol.

• Transfers all powers and duties concerning state preserves from the DNR to the Natural Resource Commission, including the authority to approve dedications, amend articles, and determine public necessity for alienation.

• Replaces the DNR with the commission as the authority for approving and recording articles of dedication for preserves, and for making findings regarding public necessity and amendments to dedications.

• Changes language throughout the relevant Code sections to reflect the transfer of powers from the 'department' to the 'commission.'

• Lowers the age threshold for needing supervision while deer hunting with a pistol or revolver from '20 years of age or less' to 'under the age of eighteen.'

• Removes the requirement that the supervising person be at least 21 years old and have the consent of a parent, guardian, or spouse for those under the previous threshold; now only requires supervision for those under 18 by a responsible licensed hunter.

• Strikes the requirement that the responsible supervising person convey the pistol or revolver while not in use by the minor, and removes related penalty provisions.

• Removes references to expired Lake Manawa and Waubonsie state park user fee pilot programs.

Signed by Governor on April 9. Takes effect July 1, 2026.

Allows the DNR director's office to be located at or near the state capitol rather than strictly at the capitol, and transfers various powers and duties relating to state preserves from the DNR to the Natural Resource Commission. It also lowers the minimum age for unsupervised deer hunting with a pistol or revolver from 21 to 18, removes certain supervision and consent requirements, and strikes related penalties. 

Key Points & Impact:

• Permits the director of the Department of Natural Resources to maintain an office at or near the state capitol complex, broadening the previous requirement of 'at' the capitol.

• Transfers all powers and duties concerning state preserves from the DNR to the Natural Resource Commission, including the authority to approve dedications, amend articles, and determine public necessity for alienation.

• Replaces the DNR with the commission as the authority for approving and recording articles of dedication for preserves, and for making findings regarding public necessity and amendments to dedications.

• Changes language throughout the relevant Code sections to reflect the transfer of powers from the 'department' to the 'commission.'

• Lowers the age threshold for needing supervision while deer hunting with a pistol or revolver from '20 years of age or less' to 'under the age of eighteen.'

• Removes the requirement that the supervising person be at least 21 years old and have the consent of a parent, guardian, or spouse for those under the previous threshold; now only requires supervision for those under 18 by a responsible licensed hunter.

• Strikes the requirement that the responsible supervising person convey the pistol or revolver while not in use by the minor, and removes related penalty provisions.

• Removes references to expired Lake Manawa and Waubonsie state park user fee pilot programs.

Signed by Governor on April 9. Takes effect July 1, 2026.

Mandates that all counties and cities in Iowa must divest themselves of any mineral rights they own or control, such as rights to coal, gas, oil, and other resources underlying real estate. These rights must be conveyed, without consideration or expense, to the current surface owner of the respective land. All required conveyances must be completed within five years of the bill's effective date.  Effective 6/2/2026.

Key Points & Impacts:

• Defines 'interest in minerals' as a perpetual interest in real estate for ownership of minerals, excluding leases for mineral removal.

• Defines 'minerals' to include coal, gas, oil, hydrocarbons, oil shale, gemstones, ores, and geothermal resources.

• Counties are required to divest and transfer any mineral interests they own to the surface landowners at no cost.

• Cities are similarly required to divest and transfer any mineral interests they own to the surface landowners at no cost.

• Transfers must be completed within five years from the bill's effective date.

• Conveyances must be made without consideration (i.e., for free) and without cost to the surface owner.

• Affects all mineral rights owned or controlled by counties and cities, regardless of how acquired.

• Establishes a clear process and timeline for conveyance of public mineral interests to private landowners.

Allows displaying or reflecting solid blue lights while operating vessels operating on waters under DNR jurisdiction.

Signed by Governor on April 16. 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.