Bills Associated with League of Women Voters of Iowa

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.

Limits civil or criminal liability for damages or injuries allegedly caused by the actual or potential effects on climate from greenhouse gas emissions, specifically those from agricultural or renewable fuel sources. Defendants are protected from liability unless it is proven, by clear and convincing evidence, that they violated a statutory greenhouse gas emission limit or an express permit term. The bill further clarifies that it does not create a new private right of action or judicial remedy based on greenhouse gas emissions' effects on climate.

Key Points & Impacts

• Provides immunity from civil and criminal liability for alleged climate impacts caused by greenhouse gas emissions, unless specific legal violations are proven.

• Covers greenhouse gases originating from agricultural sources (e.g., farm animals, crops) and renewable fuel sources.

• Defines relevant terms including 'agricultural commodity,' 'agricultural source,' 'greenhouse gas,' and 'regulatory authority.'

• Requires plaintiffs to specify the particular greenhouse gas emitted and prove, by clear and convincing evidence, that direct and unavoidable harm resulted from a violation of an enforceable statute or permit.

• District courts must find clear and convincing evidence of statutory or permit violations for liability to attach.

• Immunity applies regardless of the type of legal or equitable relief sought in civil or criminal actions.

• Explicitly states that the chapter does not create new rights to sue or new judicial remedies related to greenhouse gas emissions' climate effects.

• Limits liability only when emissions are within legal limits or permit conditions, making regulatory compliance a key shield against lawsuits.

This bill institutes wide-ranging reforms in Iowa's health, nutrition, and educational laws. It requires physicians and physician assistants in specified specialties to complete continuing education on nutrition and metabolic health. Iowa medical schools must require at least 40 hours of nutrition coursework for graduation, and the state must continuously seek federal approval to restrict SNAP-eligible foods to those allowed as of January 1, 2026, with the option to further restrict unhealthy foods. Ivermectin may now be dispensed over-the-counter by pharmacists without liability. Schools are prohibited from serving or selling foods with certain artificial dyes and additives during the school day, and new, nutrition-focused curriculum requirements are imposed at all K-12 levels, emphasizing animal-based proteins, dairy, vegetables, and fruit. The Department of Education must apply for a waiver to adopt state-specific, locally sourced meal standards, and if granted, establish a joint oversight committee. The bill limits digital device use in early grades, requires physical education daily, mandates participation in at least one extracurricular or co-curricular activity for high school graduation, and adopts the Psychology Interjurisdictional Compact, facilitating telepsychology and temporary practice across state lines.

Key Points & Impacts:

• Mandates at least one hour of continuing education on nutrition and metabolic health every four years for physicians/physician assistants in specified specialties as a license renewal condition.

• Requires Iowa medical and osteopathic students to complete at least 40 hours of nutrition and metabolic health coursework to graduate, starting July 1, 2028.

• Directs the state to seek federal approval to limit SNAP-eligible foods to those permitted as of January 1, 2026, with further authority to exclude additional unhealthy foods based on healthy food standards.

• Allows pharmacists to dispense ivermectin for human use over-the-counter and grants them immunity from liability for doing so.

• Prohibits Iowa schools from serving or selling foods containing specified artificial dyes and additives (e.g., Blue 1, Red 40, potassium bromate) during the school day, with some exceptions; applies to public, charter, and nonpublic schools receiving state funds.

• Requires new nutrition education content at all K-12 levels, emphasizing animal-based proteins, dairy, vegetables, and fruit, and mandates daily physical education and fitness assessments using the presidential test; high school students must participate in at least one extracurricular/cocurricular activity for graduation.

• Directs the Department of Education to seek a federal waiver to set Iowa-specific school meal guidelines prioritizing local food sources and to establish a joint oversight committee if granted; requires ongoing annual reporting and a five-year evaluation if state guidelines are implemented.

• Enacts the Psychology Interjurisdictional Compact, allowing licensed psychologists to provide telepsychology and temporary in-person services across state lines under standardized rules and mutual recognition.

Imposes taxes on vape cartridges, e-liquids for vape devices, and nicotine pouches. Establishes 10% wholesale tax on alternative nicotine products and vapor products and a 10% tax on these products used or stored in the state if the wholesale tax was not paid. Revenues generated are put into the Iowa Cancer Research Fund. This is estimated to bring in $4.1 million next year, ramping up to $8.3 million by 2030. You can read fiscal note at: https://www.legis.iowa.gov/docs/publications/FN/1526768.pdf.

Redefines and separates the procedures for voluntary treatment of adults and minors with substance use disorders or mental illness. It authorizes parents, legal guardians, or custodians to commit a minor for substance use or mental health treatment without requiring judicial approval, unless both the minor and their parent/guardian/custodian object to admission. If a minor is admitted over their objection, the juvenile court must appoint an advocate for the minor. The bill makes conforming changes throughout the Iowa Code, updating terms and procedures, and establishing new sections specifically addressing the admission, discharge, confidentiality, and payment for minor patients.

Key Points & Impacts:

• Separates procedures for adults and minors seeking voluntary treatment for substance use and mental health disorders, introducing new sections specifically for minors (125.33A and 229.2B).

• Allows a parent, legal guardian, or custodian to admit a minor for substance use or mental health treatment without a court order, unless both the minor and the parent/guardian/custodian object.

• Removes the requirement for automatic juvenile court involvement and hearings, except in cases where both the minor and parent/guardian/custodian object to treatment.

• Requires appointment of a juvenile court advocate for minors admitted to treatment over their own objections.

• Clarifies confidentiality requirements: prohibits disclosure of treatment or admission information for minors, with penalties for unauthorized disclosure.

• Updates language throughout statutes to distinguish between 'adults' and 'minors,' and adjusts references to new and amended sections.

• Modifies procedures for discharge, family involvement, and post-discharge support for minors receiving treatment.

• Requires that costs for minor admissions to state mental health institutes be paid by the applicant, with collections credited to the general fund.

Revises the requirements and operations of subacute mental health care facilities, expands insurance coverage mandates, and establishes a bed tracking system for psychiatric institutions. Notable changes include the removal of restrictive service duration limits, streamlined admission and review procedures, strengthened discharge protections, and new oversight and regulatory flexibility to expand access and capacity. The bill also requires health insurers to cover subacute mental health services and institutes penalties for non-compliance. It directs agencies to review and relax regulations impeding facility growth and access, and allows for emergency rulemaking. The act takes effect immediately upon enactment.

Key Points & Impacts:

• Defines 'health carrier' as per state code and requires insurance coverage for subacute mental health services provided by subacute care facilities.

• Removes language that limited subacute mental health care to a 10-day period unless extended by the Department of Health and Human Services, allowing for potentially longer stays as determined by clinical need.

• Mandates that subacute care facilities develop a written treatment care plan within 24 hours of a resident’s admission.

• Prohibits prior authorization for admission to subacute care facilities and for the first 15 days of treatment; managed care organizations may only review medical necessity after the 45th day, and only once per 30-day period thereafter.

• Prohibits managed care organizations from requiring discharge until proper supports are in place to mitigate risk of self-harm or harm to others, as determined by the supervising mental health professional.

• Requires the Department of Health and Human Services to establish an electronic bed tracking system for psychiatric medical institutions for children.

• Directs regulatory agencies to review and eliminate rules that impede establishment, expansion, or access to subacute mental health care facilities; mandates that employee/facility requirements be less stringent than those for state mental health institutes.

• Authorizes emergency rulemaking to implement provisions and stipulates immediate effect upon enactment.

Revises the Iowa Rules of Criminal Procedure regarding commitment hearings following an acquittal based on insanity. Ensures that the absence of recent overt acts of dangerousness cannot be the only determining factor in whether a defendant is a risk to themselves or others, especially if such absence is due to a highly structured environment. Courts must consider a comprehensive list of factors, including original offense, behavioral and psychiatric history, substance use, institutional behavior, environmental influences, and expert assessments. The revised rules must be submitted for legislative review by October 14, 2026.

Key Points & Impact:

• Mandates the Iowa Supreme Court to revise criminal procedure rules for post-insanity acquittal commitment hearings.

• Bars courts from using the absence of recent overt acts of dangerousness as the sole determining factor in risk assessments, especially when the defendant is in a highly structured environment.

• Requires courts to consider the nature and circumstances of the original offense leading to the insanity acquittal.

• Requires evaluation of the defendant's behavioral history, including prior violent or dangerous acts, regardless of recent conduct.

• Includes consideration of psychiatric history, current mental status, and treatment adherence.

• Mandates assessment of substance use disorder history, its relationship to dangerousness, risk of relapse, and engagement in treatment.

• Requires examination of institutional behavior, independent functioning, and adaptability to less structured environments.

• Directs consideration of expert testimony, validated risk assessments, and environmental influences on behavior.

Enacts wide-ranging reforms for state and local government taxation, budgeting, and authority. Key provisions include: strict limitations on local government reserve funds and yearly property tax increases, restrictions on using bonds for general operations, changes to commercial/industrial property tax rollbacks, a new homestead exemption, extended education funding, reforms to urban renewal and tax increment financing (TIF), enhanced assessment transparency and burden of proof, a new local government efficiency grant program, and the launch of a state-sponsored first-time homebuyer savings program. It also modernizes property tax statement reporting, adjusts TIF for data centers, revises bond election dates, expands EMS levies, and constrains school unspent balances. The bill contains multiple appropriations and new administrative responsibilities.

Key Points & Impacts

• Division I – Property Tax & Bond Limitations  Caps unassigned general fund reserves at 35% of budgeted expenditures for local governments (excluding school districts), limits property tax levy revenue growth to 2% annually over existing property (not new construction), and prohibits using bond proceeds to fund general operations.

  Division II – Commercial/Industrial Property Assessment  Ends the state commercial property tax backfill and increases the business property tax exemption from $150,000 to $350,000, retroactive to January 1, 2026.

  Division III – Homestead Exemption  Creates a new residential homestead property tax exemption of 10% of taxable value or $25,000, whichever is less, retroactive to January 1, 2026. Does not apply to school district levies.

  Division IV – SAVE Fund  Extends the Secure an Advanced Vision for Education (SAVE) sales tax fund from 2051 to 2071 and gradually increases the equity transfer percentage from 10% (FY2026) to 30% (FY2034+).

  Division V – Property Parcel Data  Requires county auditors to submit annual parcel-level property data reports to the Department of Management.

  Division VI – Urban Renewal  Reforms TIF districts that don’t currently have an end date by capping revenue capture at 60% after 20 years; expands the ability to use TIF for housing; removes all EMS related levies from all TIFs upon enactment; removes the $5.40 school foundation levy from all TIFs going forward.

  Division VII – Assessment Procedures  Requires assessors to explain valuation increases of 10%+ to property owners, and shifts the burden of proof to the assessor when a property's value increases 10%+ without a change in use or new construction. Prohibits contact with committee members.

  Division VIII – Local Government Efficiency Grants  Creates a $10 million grant fund at Iowa State University to help local governments consolidate services and reduce property tax reliance.

  Division IX – FirstHome Iowa Accounts  Establishes a new tax-advantaged savings trust for first-time homebuyers, administered by the State Treasurer, with contributions up to $5,500/year deductible for Iowa income tax purposes. Phases out the existing first-time homebuyer account program.

  Division X – Abnormal Transaction Valuations  Clarifies that abnormal real estate transactions (foreclosures, related-party sales, sale-leasebacks, etc.) should be excluded or adjusted when determining assessed property values.

  Division XI – Budget Statements  Overhauls the property tax notice mailed to property owners, requiring more detailed information about proposed tax changes and allowing online posting in lieu of mail starting FY2027. League of Cities’ suggested language.

  Division XII – Data Centers  Exempts qualified data centers from having school district foundation property taxes diverted into TIF funds.

  Division XIII – Bond Elections  Restricts political subdivisions from holding bond elections on two consecutive authorized election dates.

  Division XIV – EMS Levy  Doubles the maximum emergency medical services property tax levy from $0.75 to $1.50 per $1,000 assessed value starting FY2027, requiring voter approval to exceed the current cap.

  Division XV – Utility Replacement Tax Task Force  Updates the scope and study period for the utility replacement tax task force through December 31, 2026.

  Division XVI – School District Unspent Balances  Caps school district unspent fund balances at 35% of authorized expenditures and modifies the on-time enrollment funding adjustment process.

Sets up a process for continuing appropriations if the Iowa General Assembly does not pass an annual budget by July 1. In such cases, the Department of Management, with the Legislative Services Agency, will identify and replicate the prior fiscal year's line item, standing limited, and standing unlimited appropriations (including from federal and nonstate funds) for the new fiscal year. Appropriations will be made to the same entities as in the prior year, excluding one-time appropriations. Duplicative standing appropriations for the fiscal year will be supplanted by this process. All associated provisions—such as allocations, nonreversions, and full-time equivalent positions—will also be carried forward. If a budget is subsequently enacted, the continuing appropriation mechanism ceases for that year.

Key Points & Impacts

• Creates a new section mandating automatic continuing appropriations if annual budget bills are not passed and presented by July 1.

• Directs the Department of Management and Legislative Services Agency to determine and replicate the previous year's appropriations (excluding one-time appropriations).

• Continuing appropriations include all line item, standing limited, and standing unlimited appropriations (including federal and nonstate funds).

• Entities receiving prior-year appropriations will receive the same amounts unless otherwise limited by law.

• Any duplicative standing appropriations for the fiscal year are supplanted by this mechanism.

• All powers, duties, limitations, requirements, allocation amounts, nonreversion provisions, and authorized FTE positions associated with appropriations are continued for the new year.

• Excludes one-time and special project appropriations from being automatically continued.

• The process is discontinued for the fiscal year if a new budget is subsequently passed and presented to the governor.

Appropriates funds for FY 2026-2027 to a range of justice-related agencies in Iowa, including the departments of Justice, Corrections, Public Defense, Public Safety, Homeland Security, the Iowa Law Enforcement Academy, the Office of the State Public Defender, the Board of Parole, and associated programs. Funding is allocated from various state funds for salaries, maintenance, and program operations. The bill includes specific allocations for victim services, correctional facilities, drug courts, technology upgrades, electronic monitoring, legal services for the poor, and farm mediation. It also provides conditions for fund use, reporting requirements, and some expenditure flexibility for certain agencies.

Key Points & Impacts

• Appropriates substantial general fund amounts to the Department of Justice, Department of Corrections (including all correctional facilities), Department of Public Safety, Department of Public Defense, Homeland Security, and associated offices for FY 2026-2027.

• Allocates $11,672,266 for the Attorney General's office, $5,166,708 for victim assistance grants (with $150,000 specifically for human trafficking victims), $2,634,601 for legal services for persons in poverty, and $202,060 for DOJ cybersecurity and technology upgrades.

• Authorizes use of the victim compensation fund for up to 24 FTEs, and allows 7 additional FTEs if sufficient federal funding is received, with an annual transfer of at least $150,000 to the victim assistance grant program.

• Funds all state correctional facilities and provides for continued contracts for religious and spiritual leaders, education, and pharmaceuticals; allows reallocation of funds within the Department of Corrections with reporting and notification requirements, but prohibits elimination of programs through reallocation.

• Directs funding and intent for all eight judicial district departments of correctional services, including maintenance of drug courts and alternatives to prison, and restricts use of the public safety assessment tool in pretrial hearings unless authorized by the legislature.

• Funds the Iowa Law Enforcement Academy ($2,919,407), requiring training in domestic abuse and human trafficking, and enables the academy to exchange vehicles with the Department of Public Safety for training use.

• Appropriates $38,627,894 to the State Public Defender's office and $41,226,374 for indigent defense, with federal IV-E funds to remain available for juvenile justice improvements.

• Includes appropriations from non-general fund sources: commerce revolving fund (Office of Consumer Advocate), gaming enforcement revolving fund (Public Safety), 911 emergency communications fund (Homeland Security), and consumer education and litigation fund (Justice for farm mediation and prosecutions).

Allocates funding from the RIIF and TRF for FY 2026-2027 to numerous state departments and agencies for specific infrastructure maintenance, upgrades, technology projects, and community enhancements. It amends Code section 8.57C to change the standing appropriation to the TRF from the general fund to begin in FY 2027, and increases the FY 2026-2027 appropriation from the RIIF to the TRF. The bill also extends or modifies reversion deadlines for particular appropriations from prior years.

Key Points & Impacts

• Appropriates over $100 million from the Rebuild Iowa Infrastructure Fund for FY 2026-2027 to a wide range of departments, including projects for maintenance, facility upgrades, water quality, education, public safety, and economic development.

• Allocates $50 million for Board of Regents' institutions, including $25 million for operating fund deficiencies, $6 million for UNI public policy center, and $7 million for the University of Iowa nursing simulation laboratory.

• Provides $8.2 million to the Department of Agriculture for water quality initiatives and $1 million for nitrogen modeling, with detailed provisions for project implementation and confidentiality.

• Technology Reinvestment Fund appropriations for FY 2026-2027 exceed $35 million, supporting IT upgrades in corrections, education, health and human services, emergency management, management, public safety, and the state treasurer's office.

• Amends Iowa Code section 8.57C to delay the standing general fund appropriation to the Technology Reinvestment Fund until FY 2027 and increases the FY 2026-2027 transfer from RIIF to TRF to nearly $40 million.

• Extends reversion deadlines for unencumbered or unobligated funds from certain prior appropriations, including targeted exceptions for transportation and health and human services projects, ensuring project completion or multi-year spending.

• Authorizes specific grants, including $10 million for community attraction and tourism, $10 million for the destination Iowa fund, $10 million for local government shared-services, and several targeted grants to local non-profits and community organizations.

• Includes effective date provisions for immediate enactment of amendments to prior appropriation reversion deadlines.

Provides appropriations for a wide array of economic development programs and agencies for FY 2026-2027. Major funding is directed towards the economic development authority, Iowa finance authority, department of workforce development, and regents institutions (Iowa State University, University of Iowa, University of Northern Iowa). The bill establishes goals for economic growth, sets restrictions on financial assistance related to workforce citizenship requirements, prohibits certain uses of funds (such as for geothermal snow-melting systems), and includes detailed allocations for tourism, cultural activities, job creation, vocational rehabilitation, and higher education research and innovation. It also contains limitations on some standing appropriations (e.g., arts, tourism), mandates annual reports on financial assistance and program outcomes, and requests audits of certain agencies. Several appropriations are made to specialized programs such as offender reentry, adult education, registered apprenticeships, and support for biosciences and advanced manufacturing. The bill features numerous provisions allowing unspent funds to carry over into the subsequent fiscal year.

Key Points & Impacts

• Appropriates $12,903,510 from the general fund to the economic development authority for various business, community, and workforce development programs, with additional specified uses for marketing, program support, and infrastructure financing.

• Restricts financial assistance such that only individuals legally authorized to work in the U.S. may be employed in jobs created or retained through these funds; includes recapture provisions for noncompliance.

• Appropriates $1,050,000 for tourism office operations and $1,601,800 for Iowa arts council activities, with reporting and allocation requirements, and limits on the reversion of unspent funds.

• Limits standing appropriations for the arts and culture enhancement fund ($448,403) and tourism marketing ($1,443,700) for FY 2026-2027.

• Appropriates $873,000 to the Iowa finance authority for home and community-based rent subsidies, with an administrative cost cap and audit review provisions.

• Provides substantial funding from the Iowa skilled worker and job creation fund for business incentives, advanced manufacturing, rural development, and regents institutions’ research and entrepreneurship initiatives.

• Appropriates significant funds to the department of workforce development for field operations, offender reentry, workplace safety, vocational rehabilitation, adult education, and registered apprenticeship programs.

• Requires various annual and program-specific reports to the general assembly, including detailed disclosure of financial assistance awards and program effectiveness metrics.

Allocates appropriations from the general fund, environment first fund, and several special funds to the Iowa Department of Agriculture and Land Stewardship, Department of Natural Resources, Iowa State University, and the University of Iowa. Funds are directed toward a broad array of programs, including agricultural education, animal disease response, conservation initiatives, water quality projects, state parks, forestry management, and university research in agriculture, veterinary medicine, and geological surveys. Specific allocations are detailed, and many appropriations include provisions preventing unspent balances from reverting, allowing funds to be carried over for specified periods.

Key Points & Impacts

• Appropriates $20,377,294 from the General Fund to the Department of Agriculture and Land Stewardship, with $325,000 transferred to Iowa State University's Midwest Grape and Wine Industry Institute.

• Allocates funding for a range of special agricultural programs, including dairy regulation ($189,196), local food/farm program ($125,000), agricultural education ($150,000), foreign animal disease preparedness ($1,050,000), and programs for farmers with disabilities ($230,000).

• Provides $12,816,738 from the General Fund to the Department of Natural Resources for administration, regulation, and program support; additional funding from special funds supports fish/wildlife management, groundwater protection, snowmobile enforcement, and forestry health.

• Directs $4,799,898 to Iowa State University’s Veterinary Diagnostic Laboratory and provides additional appropriations for livestock disease research and private forest management technical support.

• Allocates $128,154 to the University of Iowa for the Center for Agricultural Safety and Health and $200,000 for a groundwater resource assessment project by the Iowa Geological Survey.

• Significant Environment First Fund appropriations support conservation practices, water quality initiatives ($2,375,000 for Water Quality Initiative Fund), state park operations/maintenance, GIS, animal feeding operations regulation, floodplain/dam safety, and air quality monitoring.

• In lieu of the standing appropriation, $12,000,000 is allocated to the Resources Enhancement and Protection (REAP) fund, with up to $1,000,000 available for state park maintenance and refurbishment.

• Provides dedicated funding from the Iowa Animal Disease Prevention Fund to both the Department of Agriculture and Iowa State University for equipment, vaccine development, IT upgrades, and research related to animal disease preparedness and response.

Makes appropriations for a wide range of education-related entities and programs for FY 2026-2027, including general operations, specific education initiatives, and scholarships. It increases the standing appropriation for Iowa tuition grants, establishes new reporting requirements for antibullying programming, and allows the Board of Educational Examiners to retain all licensing fees rather than transferring 25% to the general fund. The bill also modifies or caps appropriations for certain standing programs and clarifies the use of funds in several areas.

Key Points & Impacts

• Increases the annual standing appropriation for Iowa tuition grants from $53,761,210 to $54,567,628 and for for-profit institution grants from $112,914 to $114,608.

• Requires the Department of Education to submit a detailed annual report to the General Assembly on antibullying program data, including incidents, demographic breakdowns, and program expenditures.

• Eliminates the requirement that 25% of Board of Educational Examiners licensing fees be deposited in the state general fund; the board now retains all collected fees for its own use.

• Caps the appropriation for at-risk children’s programs at $10,524,389 for FY 2026-2027, with reductions to be prorated among designated programs.

• Eliminates the appropriation for the work-study program for FY 2026-2027 (set to zero).

• Makes targeted appropriations for a wide array of education programs, including STEM initiatives, career and technical education, mental health services, and workforce development.

• Allocates significant funding from the Iowa Skilled Worker and Job Creation Fund to support workforce training, vertical infrastructure at community colleges, and tuition assistance grants.

• Directs that unspent appropriations in specified programs may carry forward for use in the next fiscal year, rather than reverting to the general fund.

Amends Iowa Code section 70A.24 by eliminating the stipulation that only state employees eligible for leave under the federal Family and Medical Leave Act of 1993 can receive paid parental leave. Instead, all state employees will be provided paid leave for the birth or adoption of a child, as long as the leave is taken within twelve months of the event.

Key Points & Impacts:

• Removes the requirement that state employees must be eligible for leave under the federal FMLA to receive paid parental leave.

• Expands eligibility for paid parental leave to all state employees, regardless of FMLA eligibility.

• Paid leave is available for both the birth and adoption of a child.

• The paid parental leave must be taken within twelve months following the birth or adoption.

Clarifies that actions taken to raise, guide, or instruct a child in a manner consistent with the child's sex—including use of pronouns and titles, seeking mental health services to align the child’s life with their sex, making health decisions based on sex, and declining consent for gender transition procedures—do not constitute child abuse or child endangerment. State agencies cannot deny foster or adoption licensure, nor can courts consider such practices as a negative factor in custody cases. The bill also amends procedures for child protection worker access and clarifies related immunity provisions.

Key Points & Impacts:

• Redefines 'child abuse' to specifically exclude actions taken to raise, guide, or instruct a child in a manner consistent with the child's sex, including refusing gender transition procedures.

• Specifies that 'child endangerment' does not include raising or guiding a child according to their sex as defined in the bill.

• Prevents the Department of Health and Human Services from denying foster care licensure based on an individual's intent to raise a child in accordance with the child's sex.

• Bars adoption rules from precluding individuals who intend to raise a child in a manner consistent with their sex from becoming adoptive parents.

• Prohibits courts from considering, as a negative factor for custody, a parent's intent to raise or instruct a child consistent with their sex.

• Clarifies that child protection workers must have access to children for investigations, and makes related changes to procedures and immunity for facilities and schools.

• Lists specific actions protected, including pronoun use, mental health service decisions, and refusal of gender transition procedures for a child.

• Adds procedural clarifications and updates terminology to ensure consistency with the new legal standards.

Authorizes and defines the process for community-based providers to directly implement and receive funding for state-approved preschool programs for four-year-old children, previously limited to school districts. It establishes new definitions, clarifies eligibility, sets out funding mechanisms, and creates accountability and administrative requirements for direct participation by community-based providers.

Key Points & Impacts:

• Defines 'community-based provider approved to directly participate in the preschool program' and distinguishes them from providers that only partner with school districts.

• Amends program eligibility, allowing community-based providers to apply directly for approval from the Department of Education to run preschool programs for four-year-olds.

• Expands the application and selection process to include community-based providers, not just school districts.

• Specifies that both school districts and approved community-based providers may enroll eligible four-year-olds and receive state preschool foundation aid based on enrollment.

• Establishes that community-based providers can receive state preschool funding directly, with rules for use of funds, administrative costs, and reporting similar to those for school districts.

• Details accountability measures, including required participation in data collection, performance measurement, and professional development for staff of community-based providers.

• Clarifies that both school districts and community-based providers must not use state preschool funds for construction costs, and outlines permissible and impermissible uses for funds.

• Sets payment procedures for community-based providers, requiring monthly installments of preschool foundation aid directly from the state, and conditions for continued participation.

• Eliminates all state-mandated affirmative action planning, reporting, and related administrative positions/responsibilities within state agencies, Board of Regents, and education entities.
• Removes requirements to track or report on minority, gender, or disadvantaged status in state employment and contracting; reporting shifts to focus on Iowa-based businesses only.
• Strikes requirements that state agencies or educational institutions develop or report on affirmative action or minority recruitment/retention standards.
• Repeals or redefines several grant and education programs previously limited to or focused on minorities, removing race-based eligibility and references.
• Removes explicit protections based on citizenship status for applicants for professional licenses (health care, architecture, engineering, real estate, accounting, etc.), though still requires non-discrimination on other bases.
• Removes race/ethnic minority considerations from certificate of need review for health services and other state program eligibility criteria.
• Repeals requirements for minority impact statements in state grant applications and eliminates related reporting and compliance mandates.
• Directs code editors to update Iowa Code accordingly and to transfer certain code sections as a result of these changes.

Prohibits cities and local governments in Iowa from enacting any ordinance or law related to civil rights protections that are broader or include different protected classes than those established under the Iowa Civil Rights Act of 1965. It strikes current language allowing local governments to adopt broader protections and removes related provisions from the law.

Key Points & Impacts:

• Adds language explicitly prohibiting cities and local governments from enacting ordinances or laws that are broader or have different protected categories of unfair or discriminatory practices than state law.

• Strikes the provision that previously allowed local governments to adopt ordinances with broader or different categories of unfair or discriminatory practices.

• Limits the authority of local governments to only those civil rights protections provided by state law, preempting local expansions.

• Potentially nullifies existing local civil rights ordinances that provide protections beyond those recognized at the state level.

• Reduces local government flexibility to address discrimination based on categories not currently recognized in state law.

• Applies to all areas covered by the Iowa Civil Rights Act, including employment, housing, public accommodations, education, and credit practices.

Requests Congress to convene a convention under Article V of the U.S. Constitution. The convention's scope is limited to proposing amendments that (1) limit federal power and jurisdiction, (2) impose fiscal restraints on the federal government, and (3) limit the terms of office for federal officials and members of Congress. The application is continuing until either two-thirds of U.S. states make similar applications or Iowa withdraws its application. The Secretary of State is required to distribute certified copies of the resolution to federal and state officials.

Key Points & Impacts:

• Applies to Congress for an Article V convention with a specific and exclusive scope: limiting federal power, imposing fiscal restraints, and setting term limits for federal officials and Congress.

• Prohibits the convention from proposing amendments on any topic outside the specified scope.

• Establishes the application as a continuing one, remaining in effect until two-thirds of state legislatures apply for a similar convention or Iowa withdraws its application.

• Directs the Secretary of State to transmit certified copies of the resolution to federal officials, all members of Congress, and legislative leaders in all states.

• Cites federal overreach, fiscal irresponsibility, and deviation from constitutional principles as reasons for the resolution.

• Asserts the duty of states to protect liberty for future generations through constitutional amendments.

• Specifies the resolution does not address or authorize amendments outside the stated purposes.

• Does not itself amend the Constitution but initiates a formal process that could lead to constitutional amendments if a convention is convened.

Implements significant changes to Iowa's human trafficking laws. It mandates annual stakeholder meetings and reports to develop legislative proposals, expands the definition of 'commercial sexual exploitation,' requires standardized screening of children for trafficking, and extends civil statute of limitations for survivors. The bill also amends procedures for prosecution and victim handling, clarifies restitution categories, and directs the Department of Health and Human Services to increase restoration facilities for juvenile victims. Some provisions take effect July 1, 2026.

Key Points & Impacts:

• Mandates annual stakeholder meetings on human trafficking with a wide range of participants and requires annual reports to the governor and general assembly through 2030.

• Defines 'commercial sexual exploitation' broadly to include any sexual abuse or exploitation of a child for financial or other value.

• Requires all juvenile complaints to be reviewed with a human trafficking indicator list and allows trauma-informed screening for commercial sexual exploitation.

• Obligates the Department of Health and Human Services to screen all children subject to abuse allegations for commercial sexual exploitation using standardized, evidence-based tools.

• Extends the civil statute of limitations for actions related to sexual abuse or human trafficking of minors to five years after reaching majority, with an additional five years from discovery for latent injuries.

• Expands the definition of 'human trafficking' to include patronizing or soliciting, not just participating in a venture.

• Prohibits arrest, charge, or prosecution for minors engaged in prostitution, mandating referral to protective services instead.

• Directs the Department of Health and Human Services to develop a plan to increase restoration facilities and protective services, including consideration of out-of-state housing for at-risk juvenile trafficking victims.

Repeals and replaces Iowa's current habitual offender statute. It creates new classifications for qualifying offenses (level one and level two), assigns point values to each, and establishes habitual offender status at three or more points. The bill increases the minimum term a habitual offender must serve before being eligible for parole or work release to 20 years, unless the underlying offense carries a higher minimum. Sentencing for habitual offenders is no longer capped at 15 years but is now governed by the new provisions. Conforming amendments are made to sentencing statutes.

Key Points & Impacts

• Repeals and replaces the existing habitual offender statute in Iowa Code 902.8.

• Defines 'level one offenses' (all felonies and certain aggravated misdemeanors) and 'level two offenses' (specific aggravated and serious misdemeanors).

• Establishes a point system: level one offenses are worth 1 point; level two offenses are worth 0.5 points.

• Habitual offender status is reached when convictions total three or more points.

• Requires habitual offenders to serve a minimum of 20 years before eligibility for parole or work release.

• If the current offense requires a longer minimum sentence, that term supersedes the 20-year minimum.

• Removes the previous 15-year maximum confinement for habitual offenders.

• Updates sentencing language to reference the new habitual offender provisions.

Revises the Iowa Rules of Criminal Procedure regarding commitment hearings following an acquittal based on insanity. Ensures that the absence of recent overt acts of dangerousness cannot be the only determining factor in whether a defendant is a risk to themselves or others, especially if such absence is due to a highly structured environment. Courts must consider a comprehensive list of factors, including original offense, behavioral and psychiatric history, substance use, institutional behavior, environmental influences, and expert assessments. The revised rules must be submitted for legislative review by October 14, 2026.

Key Points & Impact:

• Mandates the Iowa Supreme Court to revise criminal procedure rules for post-insanity acquittal commitment hearings.

• Bars courts from using the absence of recent overt acts of dangerousness as the sole determining factor in risk assessments, especially when the defendant is in a highly structured environment.

• Requires courts to consider the nature and circumstances of the original offense leading to the insanity acquittal.

• Requires evaluation of the defendant's behavioral history, including prior violent or dangerous acts, regardless of recent conduct.

• Includes consideration of psychiatric history, current mental status, and treatment adherence.

• Mandates assessment of substance use disorder history, its relationship to dangerousness, risk of relapse, and engagement in treatment.

• Requires examination of institutional behavior, independent functioning, and adaptability to less structured environments.

• Directs consideration of expert testimony, validated risk assessments, and environmental influences on behavior.

Establishes a process for victims of human trafficking to petition the court for expungement of their criminal history records for offenses committed or reported while they were victims. The bill details eligibility, required documentation, evidentiary standards, confidentiality provisions, and exceptions for specific serious offenses. It also provides that knowingly filing a false petition is a felony and specifies that expunged records are generally exempt from public access but accessible to specified agencies under certain conditions.

Key Points & Impacts:

• Allows victims of human trafficking to petition for expungement of criminal records related to offenses committed as a result of their victimization, regardless of the disposition of the arrest or charge.

• Petitions must include a sworn statement and, if available, official documentation of victim status; knowingly providing false information is a Class 'D' felony.

• No filing or service fees may be charged to petitioners; petitions can be filed at any time after victimization or after accessing victim services.

• Submission of official documentation creates a presumption the offense was due to victim status (preponderance of evidence standard); without documentation, the court must find clear and convincing evidence.

• Expungement orders must be certified and distributed to relevant law enforcement and government agencies, including the FBI.

• Expunged records become confidential and exempt from public access, but may be disclosed to specified agencies for law enforcement or firearm eligibility purposes.

• Victims granted expungement may lawfully deny or fail to acknowledge the expunged arrest or conviction, except when applying to criminal justice agencies or as a defendant in criminal prosecution.

• Certain serious offenses, such as homicide, sexual abuse, kidnapping, arson, and others, are excluded from eligibility for expungement under this bill.

Increases annual fee for individuals required to register as a sex offender from $25 to $50.

Makes changes to Iowa law on victim protections, including: strengthening confidentiality and immunity for victim counselors, expanding and extending protective orders for victims of sexual and certain violent offenses, shortening timelines for sex offender registration and notification, expanding rights and information available to sexual assault victims, updating procedures for mental competency evaluations and civil commitments, revising restitution payment priorities, and updating training and definitions for victim services personnel. The bill also clarifies and broadens the definition of secondary victims and modifies requirements for sexual assault examiner qualifications.

Key Points & Impacts:

• Expands the definition of confidential communications for victim counselors and limits compelled disclosure to specific circumstances (written waiver, court order, imminent risk).

• Provides immunity from liability for victim counselors and centers acting in good faith when disclosing records as permitted by law.

• Allows lifetime protective orders for victims of certain sexual and violent offenses, and enables orders to remain in effect for the duration of the court's jurisdiction, with relaxed requirements for victim appearance at hearings.

• Reduces from five to three business days the time sex offenders have to register, update information, or notify law enforcement of changes in residence, employment, or student status, including new requirements for reporting vehicles and employment details.

• Requires law enforcement to store sexual assault evidence kits for at least 20 years (or the lifetime of a minor victim) and mandates written victim notification at least 60 days prior to disposal, with the right to request further preservation.

• Enhances sexual assault victims' rights, including rights to not be prevented from examination, to extended kit preservation, to be informed of kit status/results, and to receive written notice before kit disposal.

• Revises mental competency procedures: allows parties to request independent psychiatric evaluations, sets new timelines for hearings, and clarifies court findings and procedures for civil commitment in forcible felony cases.

• Reclassifies crime victim compensation program reimbursements as category 'A' restitution (ordered regardless of ability to pay), and updates restitution payment priority and definitions.

Allows schools to employ chaplains or use volunteer chaplains to provide support, services, and programs for students.

Creates a nonrefundable individual income tax credit for recent graduates of Iowa Board of Regents institutions who paid nonresident tuition and are now Iowa residents employed as healthcare professionals, teachers, licensed veterinarians, or professional engineers. The credit equals the difference between nonresident and resident tuition rates for the years attended. Excess credit can be carried forward up to five years but cannot benefit those who become nonresidents. The Board of Regents is required to publish tuition data for transparency. The bill applies retroactively to tax years beginning on or after January 1, 2026.

Key Points & Impacts:

• Establishes a nonresident tuition tax credit for individuals who graduated from an Iowa Board of Regents institution within the past three years and are now employed in Iowa as a healthcare professional, teacher, licensed veterinarian, or professional engineer.

• The tax credit amount is 100% of the difference between nonresident and resident tuition paid by the graduate for each year of attendance.

• Credit is nonrefundable, but unused amounts may be carried forward for up to five years or until exhausted, whichever comes first.

• If the taxpayer becomes a nonresident, remaining credit cannot be applied to future tax liability.

• Married taxpayers filing separately must allocate the credit proportionally to earned income.

• Board of Regents must publish a decade's worth of tuition data for both resident and nonresident students at each institution.

• Applies retroactively to tax years beginning on or after January 1, 2026.

• Targets high-need professions (healthcare, teaching, veterinary, engineering) to encourage retention of graduates in Iowa.

Establishes a Seal of Civics Excellence program to honor students graduating from high school who have shown proficiency in civics. The Iowa Department of Education will set requirements for earning the seal, such as knowledge of American government and civic engagement. Participation by schools is voluntary, and the department may charge a nominal fee to cover costs.

Key Points & Impact:

• Adds a new Seal of Civics Excellence program to Iowa law, administered by the Department of Education.

• Recognizes students graduating from high school who demonstrate proficiency in civics, including knowledge of American government and participation in civic/community activities.

• Department of Education will set the minimum requirements for students to earn the seal.

• The seal may be represented as a sticker for transcripts or a certificate, and must be affixed to the diploma and noted on the transcript of qualifying students.

• Participation in the seal program is voluntary for school districts and accredited nonpublic schools.

• Schools must notify the department of qualifying students, and the department will provide the appropriate number of seals or endorsements.

• Department may charge a nominal fee to cover printing and mailing costs for the seal.

• The bill amends existing statute by replacing references from 'subsection' to 'paragraph' to accommodate the addition of the new civics seal paragraph.

Imposes a new annual tax on the endowment values exceeding $500 million for public and private colleges and universities. The tax rate is set at the highest corporate income tax rate (currently 7.1%). Revenues from public institutions go to the Iowa workforce grant incentive fund, while revenues from private institutions are deposited in a new account to supplement tuition grants for students in high-wage and high-demand job majors. The bill also caps gift processing fees at 5% and endowment management fees at 1% for institutions governed by the board of regents. New administrative rules and appropriations mechanisms are established to implement these changes.

Key Points & Impacts:

• Imposes an annual endowment tax on Iowa colleges/universities with endowments exceeding $500 million, at the highest corporate income tax rate.

• Defines 'endowment' and 'endowment value' for purposes of the tax, including assets held by related organizations.

• Tax revenues from public institutions (board of regents) are appropriated to the Iowa workforce grant incentive fund.

• Tax revenues from private institutions are appropriated to a new 'high-wage and high-demand jobs' account within the Iowa tuition grants fund.

• Funds in the new account are used to supplement tuition grants for students in majors leading to high-wage, high-demand jobs, as identified by state workforce authorities.

• Caps fees for processing gifts to institutions at 5% of gross proceeds, and annual endowment management fees at 1% of endowment value for board of regents institutions.

• Requires new administrative rules for the approval and awarding of supplemental tuition grants after January 1, 2028.

  • Establishes appropriations mechanisms to ensure funds do not revert to the state general fund and are available for future tuition grants.

Requires expanded instruction in civics and United States government for students in grades 7-12. It mandates at least one-half semester of civics and U.S. government instruction in both grades 7 and 8, and increases the high school graduation requirement from a half-unit to a full unit of civics and U.S. government, specifying content that must be covered. These requirements are extended to charter and innovation zone schools. The changes take effect for school years beginning on or after July 1, 2028.

Key Points & Impacts:

• Adds explicit requirement for instruction in both civics and United States government for grades 7 and 8, mandating at least one-half semester (or equivalent) in each grade.

• Expands the requirement for high school social studies to include one full unit (increased from one-half unit) of civics and United States government instruction.

• Specifies that the civics and U.S. government unit must include: (a) voting procedures, and (b) a study and assessment of the U.S. Constitution and Bill of Rights.

• Extends new curriculum requirements to charter schools and innovation zone schools, not just public and accredited nonpublic schools.

• Amends compliance language in Iowa Code to ensure these schools are subject to the same social studies standards as school districts.

• Clarifies that instruction in voting procedures must cover statutes, voter registration, paper ballots, voting systems, and absentee ballots.

• Establishes an effective date for these changes: applicable to school years starting on or after July 1, 2028.

• Removes and replaces references to 'one-half unit' with 'one unit' of civics and U.S. government in high school graduation requirements.

Prohibits schools from discriminating against students for engaging in religious, political, or ideological speech and expression on equal terms with other students. It requires the Iowa Department of Education to distribute federal guidance and develop professional training and a model policy on protected expression. Schools must notify employees of these rights, offer related professional development, and certify annual compliance. The bill allows students or their clubs to seek civil remedies and imposes a minimum $5,000 penalty for violations, and waives sovereign immunity for such cases. Exceptions are made for unprotected speech and disruptive conduct.

Key Points & Impact:

• Prohibits discrimination or penalties against students for religious, political, or ideological speech and expression, provided it is on equal footing with other students' rights.

• Mandates the Department of Education to annually distribute federal guidance on constitutionally protected prayer and religious expression to all relevant school officials and staff, both electronically and by mail.

• Requires publication of federal guidance on the Department's website and development/distribution of a professional development training program on protected expression.

• Directs the Department to develop a model policy for schools to comply with federal religious expression standards and requires schools to adopt and annually certify such a policy.

• Explicitly extends protected speech and expression provisions to charter and innovation zone schools, requiring compliance as with school districts.

• Allows students or student clubs to bring civil actions for violations, including declaratory and injunctive relief, damages, attorneys fees, and a mandatory minimum $5,000 penalty payable to the prevailing party.

• Waives sovereign immunity for school districts in these matters and allows federal court jurisdiction; sets a two-year statute of limitations for claims, with tolling for ongoing violations.

• Specifies that schools may still prohibit speech not protected by the First Amendment, unwelcome speech that denies educational opportunities, and conduct that disrupts school operations or others' expressive activities.

Requires undergraduate students at Iowa regents institutions complete introductory survey courses in American history and American government as part of general education or core curriculum requirements (with specified exceptions). The bill also establishes requirements for university centers to designate qualifying courses, institutes an annual review and reporting process, and requires the creation of an ongoing lecture and debate series to promote civil discourse. It additionally strikes an existing requirement for the University of Iowa's center for intellectual freedom to offer a specific course.

Key Points & Impacts:

• Requires all undergraduate students at regents institutions (beginning enrollment on or after July 1, 2028) to complete introductory survey courses in American history and American government as part of general education or core curricula.

• Each required course must be comprehensive and carry at least three semester hours of credit.

• Courses may satisfy social sciences or humanities general education/core requirements, as designated by the institution.

• Transfer students must receive equivalent credit for substantially similar previous coursework in these subjects.

• The requirement does not apply to students in degree programs of three years or less.

• University centers (at University of Iowa, Iowa State, and University of Northern Iowa) must annually designate courses that fulfill these requirements.

• Eliminates the current statutory requirement that the University of Iowa’s center for intellectual freedom offer at least one three-credit course in American history and civil government.

• Mandates each center to establish a lecture and debate series promoting civil dialogue, and requires annual reports on achievements and development challenges from specified university centers.

Prohibits any courses or requirements containing DEI or CRT-related content from being included in undergraduate general education and core curricula at regents institutions. The board must review all existing requirements and ensure removal of such content or courses by December 31, 2026.

Key Points & Impact:

• Defines 'diversity, equity, inclusion, and critical race theory-related content' in detail, including topics such as systemic racism, whiteness, intersectionality, and more.

• Prohibits undergraduate general education requirements or core curricula from including courses or requirements with DEI or CRT-related content at regents institutions.

• Mandates the Board of Regents to establish and implement these prohibitions as formal policy.

• Requires a comprehensive review of all undergraduate general education and core curricula to identify and remove DEI/CRT-related content or requirements.

• Sets a deadline of December 31, 2026, for policy implementation and curriculum review and revision.

• Specifies that the restriction applies to course descriptions, objectives, outcomes, exams, assignments, or any requirements involving DEI/CRT content.

• Aims to prevent teaching or promoting concepts such as systemic or institutional racism, implicit bias, gender identity, social justice, and related topics in general education.

• Applies only to general education and core curriculum, not to all courses offered at institutions.

Expands the definition of children eligible for Iowa's statewide preschool program to include not only four-year-olds but also five-year-olds who turn five between March 15 and September 15 of the calendar year in which the school year begins. Provides that eligible five-year-olds may enroll and be counted for state preschool funding (unless already counted in a prior year), and clarifies conditions for compulsory attendance. The bill also ensures that preschool funding cannot be duplicated for the same child and updates references throughout related code sections. Takes effect for school budget years beginning on or after July 1, 2027.

Key Points & Impact:

• Expands eligibility for the statewide preschool program to include five-year-old children who reach age five between March 15 and September 15, not just four-year-olds.

• Replaces references to 'four-year-old children' in the law with 'young children,' defined as both four-year-olds and eligible five-year-olds.

• Allows eligible five-year-olds to enroll and be counted for state preschool funding, provided they have not already been counted in a previous year.

• Specifies that if a child has been previously counted for state funding in the preschool program, the child cannot be counted again.

• Updates compulsory attendance laws: enrolled four- and eligible five-year-olds in the preschool program are considered of compulsory attendance age, unless withdrawn in writing by a parent or guardian.

• Clarifies that preschool funding cannot be duplicated for children already counted in other state or federally funded preschool programs.

• Updates code language throughout to reflect expanded eligibility and consistent terminology.

• The law applies to school budget years beginning on or after July 1, 2027.

Repeals the Board of Regents’ minority and women educators enhancement program, which aimed to recruit minority and women educators to faculty positions at regents institutions and included policy requirements to support faculty who are principal caregivers. It also removes annual reporting requirements related to this program and repeals all associated statutory provisions.

Key Points & Impacts:

• Repeals the Board of Regents’ minority and women educators enhancement program, ending initiatives to recruit minority and women faculty at regents institutions.

• Eliminates requirements for the Board of Regents to develop and implement tenure, promotion, and hiring policies recognizing the needs of faculty who are principal caregivers.

• Strikes the requirement for the Board of Regents to submit an annual report to the General Assembly on the program's progress and implementation.

• Amends reporting language to remove references to educators and specific programs in the annual reports to the General Assembly.

• Repeals Iowa Code sections 262.81 and 262.82, which establish and govern the minority and women educators enhancement program.

• Reduces the scope of reports to the legislature by removing distinct reporting on minority and women educator initiatives.

Makes significant changes to Iowa's educational requirements. It introduces new mandatory social studies assessments in grades 8 and 10, removes requirements for multicultural, gender-fair, and global perspectives in the curriculum, and eliminates mandates around adverse childhood experiences, equity coordinator standards, and detailed personal finance curriculum. New health and mathematics curriculum standards are adopted, with expanded options for coursework in agriculture and related fields. The bill also mandates more specific compliance actions for school districts found in violation of federal and state laws and clarifies funding for state mandates through existing school aid.

Key Points & Impacts

• Adds mandatory social studies assessments for grades 8 and 10 during the last quarter of the school year.

• Removes requirement for curriculum to be multicultural, gender-fair, and to incorporate global perspectives at all grade levels.

• Eliminates the requirement for schools to adopt protocols for identifying adverse childhood experiences and strategies to mitigate toxic stress.

• Strikes requirement for the Department of Education to develop/distribute standards for equity coordinators for school districts.

• Revises health curriculum for grades 1-8 and 9-12 to specifically require instruction on physical fitness and nutrition, and redefines what may/must be included.

• Expands allowable mathematics coursework in grades 9-12 to include agriculture, applied sciences, technology, engineering, and manufacturing.

• Removes detailed subject requirements for personal finance literacy courses and expands applicability to charter and innovation zone schools.

• Strengthens state enforcement when districts are noncompliant with certain federal/state laws by requiring—not just permitting—state action; clarifies that state mandates are to be funded out of existing school foundation aid.

Expands funding and operational flexibility for charter and nonpublic schools, establishes state-backed financing options for school facilities, modifies preschool partnership requirements, changes education savings account (ESA) application/payment rules, adjusts the school calendar start date, limits state authority over nonpublic and community-based providers, and requires a review of teacher training/licensure requirements. It contains direct appropriations and creates tax-exempt financing instruments.

Key Points & Impacts

• Adds the teacher salary supplement to the funding calculation for charter schools (effective beginning July 1, 2026).

• Includes charter school employees in the Iowa Public Employees' Retirement System (IPERS) and designates charter schools as IPERS employers.

• Allows students enrolled in charter schools to participate in public school extracurricular athletics under specified conditions, with fee equity and code of conduct requirements.

• Designates charter school governing boards as local education agencies (LEAs) for federal funding purposes.

• Creates new state-administered revolving loan funds and authorizes tax-exempt bond financing for charter/nonpublic school facilities; appropriates moneys to these programs and exempts related bonds from state taxes retroactively to January 1, 2026.

• Requires school districts to enter into 28E agreements with community-based preschool providers upon request and prohibits limitations on the number of participating students; limits state regulatory authority over such providers.

• Allows mid-year ESA applications (Dec 1-20) for a partial payment (50% of the regular per-pupil amount), with corresponding changes to payment schedules.

• Moves the earliest school calendar start date from August 23 to the Monday before the last Monday in August, and establishes a task force to review teacher training/licensure renewal requirements.

Revises the definition of 'qualified education expenses' in Iowa law by eliminating language referencing Public Law 115-97 and instead relies on the general definition provided by the Internal Revenue Code of 1986, as amended. This change streamlines the definition and avoids unnecessary specificity, ensuring that the state law remains aligned with current federal law regarding eligible uses of education savings plans.

Key Points & Impacts:

• Removes an explicit reference to 'as amended by Pub. L. No. 115-97' from the definition of qualified education expenses.

• Continues to define 'qualified education expenses' by reference to Section 529(e)(3) of the Internal Revenue Code.

• Maintains inclusion of elementary and secondary school tuition expenses, subject to federal limitations.

• Retains inclusion of apprenticeship program expenses as qualified education expenses, provided the program is registered and certified with the U.S. Secretary of Labor.

• Allows payment of principal or interest on qualified education loans for a beneficiary or their sibling, within federal limitations.

• Ensures Iowa law's definition of qualified education expenses stays current with federal tax law changes by avoiding outdated references.

• Simplifies statutory language, reducing the need for future legislative updates if federal law changes.

Increases school funding by 2% for school year 2026-2027. It revises how property tax replacement payments are calculated for school districts starting in FY2027, updates the regular program state cost per pupil formula for FY2027, and provides that for FY2027, school district budget adjustments will be funded with state foundation aid instead of local property taxes. Additionally, it introduces an 'adjusted enrollment' count, allowing districts to use the higher of actual or adjusted enrollment figures for budgeting, starting with determinations made after July 1, 2026. Signed by Governor on Feb. 26, 2026.

Key Points & Impacts:

• Sets the state percent of growth for school funding at 2% for FY2027 (beginning July 1, 2026).  

• Sets the categorical state percent of growth at 2% for FY2027, impacting categorical funding supplements.

• Revises property tax replacement payment calculations for FY2027 and beyond, using updated cost per pupil figures.

• Limits transportation equity aid to school districts to $1 million for FY2027. 

• Adds $7 million to cover the ongoing cost of increased compensation for education support personnel ("paraeducators") for FY2027. 

• For FY 2027, school district budget adjustments (under section 257.14) will be funded by state foundation aid rather than property taxes.

• Changes enrollment calculations.

Authorizes and defines the process for community-based providers to directly implement and receive funding for state-approved preschool programs for four-year-old children, previously limited to school districts. It establishes new definitions, clarifies eligibility, sets out funding mechanisms, and creates accountability and administrative requirements for direct participation by community-based providers.

Key Points & Impacts:

• Defines 'community-based provider approved to directly participate in the preschool program' and distinguishes them from providers that only partner with school districts.

• Amends program eligibility, allowing community-based providers to apply directly for approval from the Department of Education to run preschool programs for four-year-olds.

• Expands the application and selection process to include community-based providers, not just school districts.

• Specifies that both school districts and approved community-based providers may enroll eligible four-year-olds and receive state preschool foundation aid based on enrollment.

• Establishes that community-based providers can receive state preschool funding directly, with rules for use of funds, administrative costs, and reporting similar to those for school districts.

• Details accountability measures, including required participation in data collection, performance measurement, and professional development for staff of community-based providers.

• Clarifies that both school districts and community-based providers must not use state preschool funds for construction costs, and outlines permissible and impermissible uses for funds.

• Sets payment procedures for community-based providers, requiring monthly installments of preschool foundation aid directly from the state, and conditions for continued participation.

Requires annual reporting related to antisemitism for all Iowa public school districts, community colleges, and regents institutions. Each institution must report incidents and complaints of antisemitism, as well as the outcomes of related investigations, to designated state boards by September 1 each year. The State Board of Regents is also required to annually review institutional policies concerning antisemitism and include its findings in its report. The State Board of Education must compile these reports and submit a comprehensive report to the General Assembly and Governor by October 1 each year.

Key Points & Impacts:

• Creates a new annual reporting requirement for incidents and complaints of antisemitism in all public school districts, community colleges, and regents institutions.

• Public school districts, community colleges, and regents institutions must report by September 1 each year to designated state boards.

• Reports must include findings and outcomes of any investigations into antisemitism incidents or complaints.

• Defines 'antisemitism' according to the existing definition in section 216F.1 of Iowa Code.

• The State Board of Regents must conduct an annual review of its institutions' policies regarding antisemitic actions and speech and include this in its report.

• The State Board of Education is responsible for compiling all submissions and providing a comprehensive report to the General Assembly and Governor by October 1 each year.

• Establishes new subsections or sections in Iowa Code for these requirements (sections 256.7, 260C.14, 262.93A, and 279.89).

Consolidates and updates the legal framework for charter schools by eliminating provisions for innovation zone schools, transferring and reorganizing relevant code sections, and introducing significant operational, funding, and service changes for charter schools. Key reforms include expanding funding provisions, mandating area education agency services for charter schools, altering how and when charter schools open, and clarifying access to extracurricular activities and driver education for charter school students. The bill also lengthens contract terms for legacy charter schools, adds performance framework requirements, and establishes modernized procedures for charter school operations and oversight.

Key Points & Impacts:

• Eliminates all statutory language authorizing 'innovation zone schools,' effectively prohibiting their future establishment and removing related operational, funding, and reporting provisions.

• Transfers, consolidates, and reorganizes existing charter school (chapter 256E) and legacy charter school (former chapter 256F) statutes into a single chapter with two subchapters, clarifying governance and applicability.

• Lengthens the term of legacy charter school contracts from four to five years and requires incorporation of a performance framework akin to new charter school contracts; applies to renewals after the bill's effective date.

• Expands charter school funding by adding the 'teacher salary supplement state cost per pupil' to the funds charter schools receive, effective for school budget years beginning after July 1, 2026.

• Mandates that Area Education Agencies (AEAs) provide educational and media services to students enrolled in charter schools and outlines a mechanism for AEA funding by deducting from district state aid accordingly.

• Requires public school districts to allow charter school students to participate in extracurricular interscholastic athletic contests under specific conditions, and clarifies responsibility for associated student fees.

• Mandates both public school districts and charter schools to offer or make available driver education courses to eligible charter school students, with cost responsibilities specified.

• Modifies charter school contract commencement: contracts now generally open two school years after execution (with an early opening option if the state board deems preparation adequate), and requires detailed start-up monitoring in the contract.

Expands funding for charter schools, includes charter school employees in the Iowa Public Employees’ Retirement System (IPERS), and designates charter school boards as local education agencies for federal funding. It creates state-backed bond and revolving loan programs for charter and nonpublic school facilities through the Iowa Finance Authority. Community-based providers gain new rights in preschool program delivery, with reduced state oversight. Education savings accounts (ESAs) are made available for semester-only attendance at partial funding levels. The school start date is moved to the Monday before the last Monday in August. Nonpublic schools gain increased autonomy under independent accrediting agencies. A task force will review and recommend changes to teacher training and licensure renewal schedules. The bill contains multiple appropriations and tax exemptions for bonds issued under the new facility programs.

Key Points & Impacts:

• Adds the teacher salary supplement state cost per pupil to the funding formula for charter schools starting FY 2026-27.

• Extends IPERS eligibility to charter school employees and classifies charter schools as eligible employers for retirement benefits.

• Allows charter and nonpublic schools to access state-administered bonds and revolving loan funds for school facility construction and improvement, with related appropriations and tax exemptions for such bonds.

• Mandates school districts to enter into 28E agreements with community-based providers for the state preschool program upon request and limits state regulatory authority over such providers.

• Permits semester-based applications for Education Savings Accounts (ESAs) at 50% of the annual per-pupil state cost, with corresponding changes to application timelines and fund disbursement procedures.

• Moves the earliest allowable school start date to the Monday immediately preceding the last Monday in August, instead of August 23.

• Clarifies that independent accreditation provisions for nonpublic schools do not allow the state to impose additional academic or regulatory requirements beyond those necessary to implement educational standards.

• Directs the Department of Education to convene a task force to review required teacher training and licensure renewal requirements and report recommendations by December 31, 2026.

Makes appropriations for a wide range of education-related entities and programs for FY 2026-2027, including general operations, specific education initiatives, and scholarships. It increases the standing appropriation for Iowa tuition grants, establishes new reporting requirements for antibullying programming, and allows the Board of Educational Examiners to retain all licensing fees rather than transferring 25% to the general fund. The bill also modifies or caps appropriations for certain standing programs and clarifies the use of funds in several areas.

Key Points & Impacts

• Increases the annual standing appropriation for Iowa tuition grants from $53,761,210 to $54,567,628 and for for-profit institution grants from $112,914 to $114,608.

• Requires the Department of Education to submit a detailed annual report to the General Assembly on antibullying program data, including incidents, demographic breakdowns, and program expenditures.

• Eliminates the requirement that 25% of Board of Educational Examiners licensing fees be deposited in the state general fund; the board now retains all collected fees for its own use.

• Caps the appropriation for at-risk children’s programs at $10,524,389 for FY 2026-2027, with reductions to be prorated among designated programs.

• Eliminates the appropriation for the work-study program for FY 2026-2027 (set to zero).

• Makes targeted appropriations for a wide array of education programs, including STEM initiatives, career and technical education, mental health services, and workforce development.

• Allocates significant funding from the Iowa Skilled Worker and Job Creation Fund to support workforce training, vertical infrastructure at community colleges, and tuition assistance grants.

• Directs that unspent appropriations in specified programs may carry forward for use in the next fiscal year, rather than reverting to the general fund.

Creates the EDGE Program to incentivize headquarters expansion and high-wage job creation, establishes a new training fund for business incentives, repeals the New Jobs Tax Credit, modifies the Major Economic Growth Attraction Program's definitions and deadlines, and mandates regular statewide electric load forecasting and transmission planning. It also creates mechanisms for state agencies to collect and use utility data and funding for energy planning, and restricts certain job training credits to agreements before a specified deadline.

Key Points & Impacts:

• Establishes the EDGE Program to provide refundable qualifying wage tax credits for eligible businesses creating or retaining high-wage corporate jobs at Iowa headquarters, with specific eligibility, compliance, and clawback provisions.

• Creates a Business Incentives for Growth Program Training Fund, funded by up to 1.5% of eligible business payroll withholdings, to reimburse project-specific training expenses; prohibits double-dipping for the same training purpose.

• Repeals the New Jobs Tax Credit (Code section 422.11A), with immediate effect upon enactment, but preserves rights for credits issued or awarded before the effective date, including carryforward claims.

• Amends the Major Economic Growth Attraction Program by updating the definition of 'foreign adversary' and extending the sunset date for authorizing incentives or exemptions from January 1, 2027, to January 1, 2030.

• Requires the Economic Development Authority to commission Iowa State University to produce biennial public reports on statewide and regional electricity load forecasting and transmission expansion plans, with input from consumers and the electric industry.

• Empowers the utilities commission to compel all electric utilities to share information with Iowa State University for energy planning, and allows these reports to serve as evidence in commission proceedings.

• Creates the Electric Transmission System Expansion Planning and Analysis and Load Forecasting Fund, funded by mandatory utility remittances, and appropriates it for the state's energy planning reports.

• Limits the new jobs credit from withholding under the Iowa Industrial New Jobs Training Program to agreements entered into on or before June 30, 2026, with corresponding adjustments to eligible project cost funding mechanisms.

Limits civil or criminal liability for damages or injuries allegedly caused by the actual or potential effects on climate from greenhouse gas emissions, specifically those from agricultural or renewable fuel sources. Defendants are protected from liability unless it is proven, by clear and convincing evidence, that they violated a statutory greenhouse gas emission limit or an express permit term. The bill further clarifies that it does not create a new private right of action or judicial remedy based on greenhouse gas emissions' effects on climate.

Key Points & Impacts

• Provides immunity from civil and criminal liability for alleged climate impacts caused by greenhouse gas emissions, unless specific legal violations are proven.

• Covers greenhouse gases originating from agricultural sources (e.g., farm animals, crops) and renewable fuel sources.

• Defines relevant terms including 'agricultural commodity,' 'agricultural source,' 'greenhouse gas,' and 'regulatory authority.'

• Requires plaintiffs to specify the particular greenhouse gas emitted and prove, by clear and convincing evidence, that direct and unavoidable harm resulted from a violation of an enforceable statute or permit.

• District courts must find clear and convincing evidence of statutory or permit violations for liability to attach.

• Immunity applies regardless of the type of legal or equitable relief sought in civil or criminal actions.

• Explicitly states that the chapter does not create new rights to sue or new judicial remedies related to greenhouse gas emissions' climate effects.

• Limits liability only when emissions are within legal limits or permit conditions, making regulatory compliance a key shield against lawsuits.

Creates a pilot program to increase groundwater monitoring across Iowa by retrofitting up to 100 existing wells owned by private entities with certified monitoring equipment. The Department of Natural Resources (DNR), in consultation with the Iowa Geological Survey, will administer the program, which is funded by a $100,000 appropriation for FY 2026-2027. The program aims to provide more comprehensive statewide groundwater data, improve water management, and protect public health. Participation is voluntary, and installations must meet strict safety and quality standards. All collected data will be integrated into the state's monitoring network, and a report on the pilot's results is required by December 31, 2028. The program is repealed July 1, 2029, and takes effect immediately upon enactment.

Key Points & Impacts:

• Appropriates $100,000 from the general fund for FY 2026-2027 to establish and administer a groundwater monitoring pilot program.

• Pilot program will retrofit up to 100 existing wells (owned by businesses or private entities) with certified monitoring equipment; participation is voluntary with owner consent.

• Unspent funds do not revert at the end of FY 2026-2027 and remain available through FY 2028-2029.

• Installations must use sanitary well caps, be performed by licensed professionals, and meet national safety standards for potable wells.

• Monitoring equipment must at minimum measure static water level and temperature, with preference for submersible pressure transducers; telemetry may use various cost-effective technologies.

• All monitoring data will be securely transmitted to the Iowa Geological Survey and integrated into the existing network; well owners have access to their own data.

• All costs for installation and equipment are covered by the program within the appropriated amount.

• A report to the legislature is required by December 31, 2028, detailing wells retrofitted, data quality, costs, and recommendations for statewide expansion.

Appropriates funds and establishes new programs to improve water quality. It funds a water quality monitoring network at the Iowa Flood Center, expands the water quality initiative, creates an agricultural best management practices (BMP) income tax credit, establishes an Iowa Clean Water Farm program with a property tax credit, and creates a water quality practices loan and grant program. The bill provides detailed mechanisms for certification, funding, and administration of these initiatives, with the goal of reducing nutrient loads and protecting Iowa's water resources. The tax credits and property tax credits are targeted at landowners implementing approved water quality practices, and substantial appropriations are made for fiscal years 2026–2027 and beyond.

Key Points & Impacts

• Appropriates $600,000 from the general fund to support a water quality monitoring network at the Iowa Flood Center for FY 2026-2027.

• Appropriates $7,125,000 from the environment first fund and $24,600,000 from the rebuild Iowa infrastructure fund for the water quality initiative to the Department of Agriculture and Land Stewardship for FY 2026-2027.

• Establishes an Agricultural Best Management Practices Tax Credit: 50% of unreimbursed costs for eligible water quality practices, up to $150,000 over 10 years, refundable, applicable to tax years 2027+.

• Creates the Iowa Clean Water Farm Program and a property tax credit of $5 per certified acre for land placed in the program, effective for assessment years 2027+; the program is funded by general fund appropriations.

• Requires comprehensive review, certification, and ongoing verification for property and income tax credit eligibility, focusing on nutrient load reduction.

• Establishes a Water Quality Practices Loans and Grants Program (subject to funding) offering no-interest loans and grants to individuals, local governments, and financial institutions for water quality infrastructure projects.

• Allows appropriated funds to be used for demonstration projects, cost-share programs, education/outreach, and urban water conservation, with a 10% cap on administrative costs.

• Mandates rulemaking by relevant departments and includes confidentiality provisions for sensitive landowner information.

Changes requirements for distributing the state employee salary report. Instead of distributing it for free upon request to legislative caucuses, the legislative services agency, the chief clerk of the house, and the secretary of the senate, the Department of Administrative Services must make the report available on its website. Copies will only be provided upon request, and a fee may be charged, not to exceed the cost of providing the copy. The bill also clarifies that these requests must be in electronic format, and all proceeds from report sales go to the printing revolving fund.

Key Points & Impact:

• Removes the requirement to distribute the report for free to legislative caucuses, the legislative services agency, the chief clerk of the house, and the secretary of the senate.

• Requires the Department of Administrative Services to make the state employee salary report available on an internet site it maintains.

• Allows individuals to request electronic copies of the report for a fee not exceeding the cost of providing it.

• Clarifies that only upon request will electronic copies be provided, rather than proactive distribution.

• Specifies that funds from report sales are deposited in the printing revolving fund.

• Updates language regarding report distribution to reflect current technology and practices.

Revises Iowa's open meetings law to require that public notice of governmental body meetings be provided in three specific ways: advising news media who have requested notice, posting in a prominent and conspicuous place designated annually by the governmental body, and posting on any official internet site or online presence maintained by the body. It also requires amended agendas to be clearly marked and re-noticed. These changes aim to increase transparency and ensure the public is adequately informed about government meetings.

Key Points & Impacts:

• Adds a requirement for governmental bodies to designate a prominent, conspicuous place annually for posting meeting notices, with visibility at all times.

• Mandates posting of public meeting notices on any official website or internet presence maintained and updated by the governmental body, if applicable.

• Retains the requirement to advise news media who have filed a request for notice, but now as a specified step in the notice process.

• Eliminates ambiguous language about posting notices in 'easily accessible' places or at the building where the meeting is held, replacing it with the annual designation requirement.

• Requires that if a tentative agenda is amended within the established timeframe, the agenda must be marked 'AMENDED,' amended provisions identified, and a new notice provided following the updated requirements.

• Clarifies that the new notice requirements apply to electronic meetings, public appointments and employment notices under veterans preference, and whole grade sharing agreements.

• Strengthens transparency and public accessibility by specifying online and physical notice locations.

• Standardizes the process for providing meeting notices and amended agendas across governmental bodies.

Amends Iowa Code section 70A.24 by eliminating the stipulation that only state employees eligible for leave under the federal Family and Medical Leave Act of 1993 can receive paid parental leave. Instead, all state employees will be provided paid leave for the birth or adoption of a child, as long as the leave is taken within twelve months of the event.

Key Points & Impacts:

• Removes the requirement that state employees must be eligible for leave under the federal FMLA to receive paid parental leave.

• Expands eligibility for paid parental leave to all state employees, regardless of FMLA eligibility.

• Paid leave is available for both the birth and adoption of a child.

• The paid parental leave must be taken within twelve months following the birth or adoption.

Establishes new requirements for 'major rules' adopted by executive branch agencies, mandating that such rules must be ratified by the General Assembly via joint resolution before they become effective. It prescribes expanded content for regulatory analyses and notice procedures, and provides the legislative services agency with a formal review role for major rules. The bill further requires ratification for amendments to Iowa's Clean Air Act state implementation plan before federal submission. Additionally, it shortens terms of service for specified board appointments from six years to four years for those appointed on or after July 1, 2026.

Key Points & Impacts:

• Defines 'major rule' as one that meets certain expenditure thresholds, causes significant adverse effects, or amends the Clean Air Act state implementation plan.

• Requires that major rules adopted by agencies cannot take effect until ratified by the General Assembly and approved by the Governor, with temporary approval possible by the legislative council when necessary.

• Mandates enhanced notice and regulatory analysis requirements for all rules, including detailed cost-benefit comparisons, sources, assumptions, and uncertainties.

• Empowers the legislative services agency to conduct independent regulatory analyses of major rules and, upon request, other rules, with required publication and reporting.

• Requires the administrative rules review committee to review major rule notices before adoption.

• Allows judicial review of whether a rule is a major rule, the completion of required procedures, and the rule's effective date, without ratification extinguishing legal claims.

• Prohibits submission of proposed amendments to the state implementation plan under the Clean Air Act for federal approval until ratified by the legislature and governor.

• Reduces terms of service for specified executive branch board appointments from six to four years for appointments made on or after July 1, 2026.

Creates new procedures for state agencies seeking to apply for or accept high-impact federal grants. Agencies must obtain prior approval from the General Assembly (or the legislative council when not in session) before applying for or accepting such grants, defined as grants exceeding $5 million, requiring state matching funds, or requiring new state legislation. Agencies must submit a detailed federal grant request report to the Legislative Services Agency (LSA) before applying or accepting, and the LSA must publish these reports online. Agencies must also promptly submit federal guidance documents and impact statements to the LSA, which will maintain a public database of these documents.

Key Points & Impacts

• Prohibits state agencies from applying for or accepting high-impact federal grants without prior legislative approval.

• Defines 'high-impact federal grant' as those exceeding $5 million in a fiscal year, requiring state match, or requiring new state legislation.

• Requires submission of a federal grant request report to the Legislative Services Agency (LSA) before application or acceptance, detailing grant amount, requirements, and a withdrawal plan.

• Mandates that the LSA publish federal grant request reports on the General Assembly’s website for public access.

• Mandates agencies to submit copies of federal guidance documents related to grants to the LSA within 10 business days of receipt.

• Requires agencies to submit a guidance impact statement summarizing operational and fiscal impacts of federal guidance.

• The LSA must maintain a publicly accessible database of all received federal guidance documents.

• Applies to all state executive departments and agencies, but excludes the courts and the General Assembly.

Prohibits the following provisions in state contracts for goods and services: 1) requiring the state assume a contractor's debt; 2) imposing vendor terms not known at the time of signing or terms that can be changed unilaterally by the vendor; 3) not allowing the Attorney General to defend the state agency; 4) allowing someone other than the Attorney General to consent to a settlement on behalf of the state; 5) requiring the laws of another state or nation to govern the contract; 6) terms requiring blanket confidentiality of contract's terms; 7) making all payment terms, cost proposals and other pricing information confidential; 8) requiring a court venue outside of state courts or federal courts in Iowa; 9) requiring the state to pay for attorney fees and court costs for contract disputes; 10) imposing binding arbitration or other extrajudicial dispute resolution process; 11) waiving state's right to jury trial; 12) requiring state agency to pay late payment charge, higher than typical interest rates, or cancellation charges; 13) obligating the state to pay a tax; 14) requiring prior notification as condition of automatic renewal of software licenses; 15)  obligating the state to assume risk of loss before receipt of goods/services; 16) requiring the state to pay for commercial insurance; 17) requiring the state grant full or partial intellectual property rights to the vendor; 18) shortening the time allowed under Iowa law for the state can pursue a legal claim; and 19) adding documents to a bid that seeks to change the state's contract or impose new contract terms.  Gives state departments the ability to waive these prohibitions if the good/service is otherwise impossible to procure.  Applicable to all contracts entered into or renewed after the effective date of the bill (July 1, 2025).

Sets up a process for continuing appropriations if the Iowa General Assembly does not pass an annual budget by July 1. In such cases, the Department of Management, with the Legislative Services Agency, will identify and replicate the prior fiscal year's line item, standing limited, and standing unlimited appropriations (including from federal and nonstate funds) for the new fiscal year. Appropriations will be made to the same entities as in the prior year, excluding one-time appropriations. Duplicative standing appropriations for the fiscal year will be supplanted by this process. All associated provisions—such as allocations, nonreversions, and full-time equivalent positions—will also be carried forward. If a budget is subsequently enacted, the continuing appropriation mechanism ceases for that year.

Key Points & Impacts

• Creates a new section mandating automatic continuing appropriations if annual budget bills are not passed and presented by July 1.

• Directs the Department of Management and Legislative Services Agency to determine and replicate the previous year's appropriations (excluding one-time appropriations).

• Continuing appropriations include all line item, standing limited, and standing unlimited appropriations (including federal and nonstate funds).

• Entities receiving prior-year appropriations will receive the same amounts unless otherwise limited by law.

• Any duplicative standing appropriations for the fiscal year are supplanted by this mechanism.

• All powers, duties, limitations, requirements, allocation amounts, nonreversion provisions, and authorized FTE positions associated with appropriations are continued for the new year.

• Excludes one-time and special project appropriations from being automatically continued.

• The process is discontinued for the fiscal year if a new budget is subsequently passed and presented to the governor.

Gives health care providers and institutions the right not to participate in or pay for a health care service that violates the provider's or institution's conscience. Provides whistleblower protections for those taking action relating to a suspected violation.

Creates a nonrefundable individual income tax credit for recent graduates of Iowa Board of Regents institutions who paid nonresident tuition and are now Iowa residents employed as healthcare professionals, teachers, licensed veterinarians, or professional engineers. The credit equals the difference between nonresident and resident tuition rates for the years attended. Excess credit can be carried forward up to five years but cannot benefit those who become nonresidents. The Board of Regents is required to publish tuition data for transparency. The bill applies retroactively to tax years beginning on or after January 1, 2026.

Key Points & Impacts:

• Establishes a nonresident tuition tax credit for individuals who graduated from an Iowa Board of Regents institution within the past three years and are now employed in Iowa as a healthcare professional, teacher, licensed veterinarian, or professional engineer.

• The tax credit amount is 100% of the difference between nonresident and resident tuition paid by the graduate for each year of attendance.

• Credit is nonrefundable, but unused amounts may be carried forward for up to five years or until exhausted, whichever comes first.

• If the taxpayer becomes a nonresident, remaining credit cannot be applied to future tax liability.

• Married taxpayers filing separately must allocate the credit proportionally to earned income.

• Board of Regents must publish a decade's worth of tuition data for both resident and nonresident students at each institution.

• Applies retroactively to tax years beginning on or after January 1, 2026.

• Targets high-need professions (healthcare, teaching, veterinary, engineering) to encourage retention of graduates in Iowa.

Establishes that pregnant minors in Iowa can legally consent to receiving certain medical care—specifically prenatal, intrapartum, and postnatal care—if their parent, guardian, or legal custodian is not reasonably available. Health care providers are still required to obtain informed consent from the minor for such procedures.

Key Points & Impacts:

• Creates a new section (135.196) in Iowa law regarding minor consent for pregnancy care.

• Allows pregnant minors to consent to prenatal, intrapartum, and postnatal care if a parent, guardian, or custodian is not reasonably available.

• Applies to care provided by physicians, physician designees, advanced registered nurse practitioners, physician assistants, registered nurses, licensed practical nurses, and emergency medical care providers.

• Does not remove the requirement for health care providers to obtain informed consent from the pregnant minor.

• Clarifies legal authority for minors in situations where parental figures cannot be reached.

• Aims to ensure timely access to essential pregnancy-related medical care for minors.

This bill institutes wide-ranging reforms in Iowa's health, nutrition, and educational laws. It requires physicians and physician assistants in specified specialties to complete continuing education on nutrition and metabolic health. Iowa medical schools must require at least 40 hours of nutrition coursework for graduation, and the state must continuously seek federal approval to restrict SNAP-eligible foods to those allowed as of January 1, 2026, with the option to further restrict unhealthy foods. Ivermectin may now be dispensed over-the-counter by pharmacists without liability. Schools are prohibited from serving or selling foods with certain artificial dyes and additives during the school day, and new, nutrition-focused curriculum requirements are imposed at all K-12 levels, emphasizing animal-based proteins, dairy, vegetables, and fruit. The Department of Education must apply for a waiver to adopt state-specific, locally sourced meal standards, and if granted, establish a joint oversight committee. The bill limits digital device use in early grades, requires physical education daily, mandates participation in at least one extracurricular or co-curricular activity for high school graduation, and adopts the Psychology Interjurisdictional Compact, facilitating telepsychology and temporary practice across state lines.

Key Points & Impacts:

• Mandates at least one hour of continuing education on nutrition and metabolic health every four years for physicians/physician assistants in specified specialties as a license renewal condition.

• Requires Iowa medical and osteopathic students to complete at least 40 hours of nutrition and metabolic health coursework to graduate, starting July 1, 2028.

• Directs the state to seek federal approval to limit SNAP-eligible foods to those permitted as of January 1, 2026, with further authority to exclude additional unhealthy foods based on healthy food standards.

• Allows pharmacists to dispense ivermectin for human use over-the-counter and grants them immunity from liability for doing so.

• Prohibits Iowa schools from serving or selling foods containing specified artificial dyes and additives (e.g., Blue 1, Red 40, potassium bromate) during the school day, with some exceptions; applies to public, charter, and nonpublic schools receiving state funds.

• Requires new nutrition education content at all K-12 levels, emphasizing animal-based proteins, dairy, vegetables, and fruit, and mandates daily physical education and fitness assessments using the presidential test; high school students must participate in at least one extracurricular/cocurricular activity for graduation.

• Directs the Department of Education to seek a federal waiver to set Iowa-specific school meal guidelines prioritizing local food sources and to establish a joint oversight committee if granted; requires ongoing annual reporting and a five-year evaluation if state guidelines are implemented.

• Enacts the Psychology Interjurisdictional Compact, allowing licensed psychologists to provide telepsychology and temporary in-person services across state lines under standardized rules and mutual recognition.

Eliminates the current premium tax on HMOs and establishes a new health care-related tax on taxable funds of HMOs, with revised rates and definitions. It removes HMOs from the list of entities subject to the insurance premium tax, and creates a new Code chapter governing their taxation. The bill also enables a substantial one-time transfer from the taxpayer relief fund to the general fund, in response to federal tax law changes, and adjusts the calculation of the state general fund expenditure limitation accordingly. Additionally, it provides a supplemental appropriation to the Department of Health and Human Services for the medical assistance program and modifies rules regarding credits for assessments paid by insurers and HMOs. Appropriations and tax changes are contingent upon federal approval, with some provisions applying retroactively to January 1, 2026.

Key Points & Impacts

• Eliminates the premium tax on HMOs under Code section 432.1 and instead imposes a new health care-related tax under newly created Code chapter 432B.

• Defines 'taxable funds' for HMOs as payments received for health care services and payments made to providers and certain insurers, with specific federal exclusions.

• Sets the health care-related tax rates for HMOs: 3.5% for Jan 1–Sep 30, 2026; 0.95% for Oct 1–Dec 31, 2026; and 0.95% for subsequent years.

• Establishes new tax payment and prepayment schedules for HMOs, including special deadlines for the first year, and provides for credits and cash refunds under certain conditions.

• Repeals Section 432.1B and removes HMOs from the premium tax structure, moving them to the new tax regime.

• Allows insurers and HMOs to offset certain assessments against either premium or health care-related tax liabilities, and clarifies treatment for entities ceasing business.

• Authorizes a $296.2 million transfer from the taxpayer relief fund to the general fund in response to federal tax changes, and adjusts the state expenditure limitation to include this amount.

• Appropriates $70.3 million from the general fund to the Department of Health and Human Services for medical assistance reimbursements, with funds remaining available for an additional fiscal year if unspent.

Creates the Iowa rural health transformation fund, which will be managed by the Department of Health and Human Services and will consist of monies from the federal rural health transformation program. The fund is to be used for purposes authorized by the Centers for Medicare and Medicaid Services under federal law. The department must report quarterly to the legislature on fund expenditures by city and transmit federal program reports. The bill is repealed October 1, 2032.

Key Points & Impacts:

• Establishes the Iowa rural health transformation fund in the state treasury, separate from the general fund.

• Funds consist of monies received from the federal rural health transformation program (One Big Beautiful Bill Act, Pub. L. No. 119-211).

• Money in the fund is appropriated to the Department of Health and Human Services for uses permitted by federal law and CMS guidance.

• Interest and earnings on the fund remain in the fund; funds do not revert to the general fund.

• Quarterly reporting to the legislature is required, detailing expenditures and locations by city.

• All federal financial and performance reports must be shared with the general assembly.

• The fund and its provisions are repealed on October 1, 2032.

• Includes appropriations for the Department of Health and Human Services from the fund.

Requires state agencies and regents institutions to use the federal E-Verify system to confirm employment eligibility for new hires. It creates a SAVE program clearinghouse within the Department of Inspections, Appeals, and Licensing to verify citizenship/immigration status for professional licensing, mandating denial or revocation for individuals unlawfully present in the U.S. The bill disqualifies unauthorized aliens from voter registration and requires a new oath on voter registration forms. It also extends the statute of limitations for election misconduct in the first degree. For pretrial detention, the bill establishes rebuttable presumptions against bail for those charged with forcible felonies and for unauthorized aliens charged with indictable offenses.

Key Points & Impacts:

• Mandates use of E-Verify by state agencies and regents institutions to confirm employment eligibility for all new hires.

• Establishes a SAVE program clearinghouse to verify citizenship and immigration status for all professional license applicants, requiring denial/revocation if lawful presence cannot be verified.

• Licensing boards must use the SAVE clearinghouse and cannot issue or renew professional licenses for individuals not lawfully present in the U.S.; appeals go to the department director.

• Adds 'unauthorized alien' as a defined term for voting and licensure disqualifications; unauthorized aliens are disqualified from voter registration and voting.

• Requires new voter registration oath affirming U.S. citizenship, with penalties for false statements including potential deportation and criminal liability.

• Extends the statute of limitations for prosecution of election misconduct in the first degree from three to five years.

• Creates a rebuttable presumption against bail for persons charged with forcible felonies; such persons may be detained without bail unless they can rebut the presumption.

• Creates a presumption against bail for unauthorized aliens charged with indictable offenses, requiring them to demonstrate that conditions of release will ensure court appearance.

Revises Iowa's open meetings law to require that public notice of governmental body meetings be provided in three specific ways: advising news media who have requested notice, posting in a prominent and conspicuous place designated annually by the governmental body, and posting on any official internet site or online presence maintained by the body. It also requires amended agendas to be clearly marked and re-noticed. These changes aim to increase transparency and ensure the public is adequately informed about government meetings.

Key Points & Impacts:

• Adds a requirement for governmental bodies to designate a prominent, conspicuous place annually for posting meeting notices, with visibility at all times.

• Mandates posting of public meeting notices on any official website or internet presence maintained and updated by the governmental body, if applicable.

• Retains the requirement to advise news media who have filed a request for notice, but now as a specified step in the notice process.

• Eliminates ambiguous language about posting notices in 'easily accessible' places or at the building where the meeting is held, replacing it with the annual designation requirement.

• Requires that if a tentative agenda is amended within the established timeframe, the agenda must be marked 'AMENDED,' amended provisions identified, and a new notice provided following the updated requirements.

• Clarifies that the new notice requirements apply to electronic meetings, public appointments and employment notices under veterans preference, and whole grade sharing agreements.

• Strengthens transparency and public accessibility by specifying online and physical notice locations.

• Standardizes the process for providing meeting notices and amended agendas across governmental bodies.

Expands the purposes for which township trustees may use reserve account funds generated from the fire protection levy. Previously, the funds could only be used for purchasing or replacing supplies and equipment required for fire protection and emergency services. Under the bill, these funds can also be used for constructing a fire station. The maximum amount that can be credited annually to the reserve account remains unchanged at thirty cents per $1,000 of assessed property value.

Key Points & Impacts

• Authorizes township trustees to use reserve account funds for constructing a fire station.

• Previously, reserved funds could only be used for purchasing or replacing supplies and equipment.

• No changes to the maximum levy amount that can be credited to the reserve account (still $0.30 per $1,000 assessed value).

• Interest earned on reserve account moneys continues to be credited to the reserve account.

• Does not alter existing levy rates or overall funding limits for fire protection and emergency services.

Eliminates the Iowa smart planning principles by repealing Chapter 18B of the Iowa Code and striking all statutory references requiring their consideration in local and regional planning, zoning, and development regulations. It removes mandates for cities, counties, and commissions to consider smart planning principles in their comprehensive plans and zoning regulations. Corresponding subsections and requirements in relevant statutes are also struck.

Key Points & Impacts:

• Strikes language requiring cities or counties to apply smart planning principles to be eligible for certain local infrastructure grant applications.

• Removes the requirement that regional/metropolitan development plans consider smart planning principles.

• Eliminates the mandate that airport hazard zoning regulations be developed with consideration of smart planning principles.

• Repeals subsection 3 in both Section 335.5 (county comprehensive plan) and Section 414.3 (city comprehensive plan), which previously mandated consideration of smart planning principles.

• Fully repeals Chapter 18B of the Iowa Code, which established the Iowa smart planning principles and related guidelines.

• Removes the statutory basis for cities and counties to include additional objective or program information in local land development regulations based on smart planning principles.

• Ends all state-level requirements for local governments to incorporate smart planning in their planning, zoning, and development processes.

Establishes strict caps on annual local government property tax revenue growth (excluding new construction and debt service), introduces a new property tax exemption for residential property, increases public notice and transparency requirements for property tax changes, assigns new responsibilities to councils of governments for local service consolidation, and implements more rigorous voter approval requirements for local government and school district bonding. The bill also makes a series of conforming amendments to ensure all relevant statutes reflect these changes.

Key Points & Impacts

Division I – Property Tax & Bond Limitations  Caps unassigned general fund reserves at 35% of budgeted expenditures for local governments (excluding school districts), limits property tax levy revenue growth to 2% annually over existing property (not new construction), and prohibits using bond proceeds to fund general operations.

Division II – Commercial/Industrial Property Assessment  Ends the state commercial property tax backfill and increases the business property tax exemption from $150,000 to $350,000, retroactive to January 1, 2026.

Division III – Homestead Exemption  Creates a new residential homestead property tax exemption of 10% of taxable value or $25,000, whichever is less, retroactive to January 1, 2026. Does not apply to school district levies.

Division IV – SAVE Fund  Extends the Secure an Advanced Vision for Education (SAVE) sales tax fund from 2051 to 2071 and gradually increases the equity transfer percentage from 10% (FY2026) to 30% (FY2034+).

Division V – Property Parcel Data  Requires county auditors to submit annual parcel-level property data reports to the Department of Management.

Division VI – Urban Renewal  Reforms TIF districts that don’t currently have an end date by capping revenue capture at 60% after 20 years; expands the ability to use TIF for housing; removes all EMS related levies from all TIFs upon enactment; removes the $5.40 school foundation levy from all TIFs going forward.

Division VII – Assessment Procedures  Requires assessors to explain valuation increases of 10%+ to property owners, and shifts the burden of proof to the assessor when a property's value increases 10%+ without a change in use or new construction. Prohibits contact with committee members.

Division VIII – Local Government Efficiency Grants  Creates a $10 million grant fund at Iowa State University to help local governments consolidate services and reduce property tax reliance.

Division IX – FirstHome Iowa Accounts  Establishes a new tax-advantaged savings trust for first-time homebuyers, administered by the State Treasurer, with contributions up to $5,500/year deductible for Iowa income tax purposes. Phases out the existing first-time homebuyer account program.

Division X – Abnormal Transaction Valuations  Clarifies that abnormal real estate transactions (foreclosures, related-party sales, sale-leasebacks, etc.) should be excluded or adjusted when determining assessed property values.

Division XI – Budget Statements  Overhauls the property tax notice mailed to property owners, requiring more detailed information about proposed tax changes and allowing online posting in lieu of mail starting FY2027. League of Cities’ suggested language.

Division XII – Data Centers  Exempts qualified data centers from having school district foundation property taxes diverted into TIF funds.

Division XIII – Bond Elections  Restricts political subdivisions from holding bond elections on two consecutive authorized election dates.

Division XIV – EMS Levy  Doubles the maximum emergency medical services property tax levy from $0.75 to $1.50 per $1,000 assessed value starting FY2027, requiring voter approval to exceed the current cap.

Division XV – Utility Replacement Tax Task Force  Updates the scope and study period for the utility replacement tax task force through December 31, 2026.

Division XVI – School District Unspent Balances  Caps school district unspent fund balances at 35% of authorized expenditures and modifies the on-time enrollment funding adjustment process.

Overhauls Iowa's property tax and local government finance framework. Key changes include capping local government reserve funds, imposing new limits on property tax levy increases (excluding schools), and prohibiting local governments from using bonds for general operations. The property assessment cycle moves from biennial to triennial, with new requirements for transparency in large valuation increases and changes in the burden of proof for assessment appeals. The homestead property tax credit is replaced by a direct exemption and a restructured property tax growth credit for seniors and certain disabled individuals. Urban renewal and revitalization authorities are sharply curtailed for new projects, with new duration limits and allowable uses. The bill also establishes a Local Government Shared-Services Grant Fund, creates a FirstHome Iowa savings trust program for first-time homebuyers, and changes several county officers (auditor, treasurer, recorder) from elected to appointed positions. The legislation includes appropriations for rent reimbursement for the elderly/disabled, and mandates studies and technical updates to ensure implementation.

Key Points & Impact:

• Establishes a 10% cap on unassigned reserve funds in local government general funds (excluding schools) starting July 1, 2027; excess reserves must be remedied before budgets are certified.

• Limits annual property tax levy growth for local governments (excluding schools) to 2% plus new valuation growth, with adjustments for voter-approved levies; noncompliant budgets are subject to state intervention and forced reduction.

• Prohibits the use of bonds or property tax-funded debt to pay for general operations of local governments after July 1, 2026.

• Converts the homestead property tax credit to an exemption of $4,850 in taxable value, eliminates the state reimbursement to local governments, and restructures the elderly/disabled credit as a 'property tax growth credit' with new eligibility and calculation rules.

• Moves the property reassessment and equalization cycle to every 3 years (from every 2), and requires detailed justification for assessment increases of 15% or more, shifting the burden of proof to the assessor in certain appeals.

• Restricts new urban renewal projects (TIF) to only specific infrastructure and land disposition activities, limits the duration of new tax increment ordinances to 20 years, and prohibits expansion or new debt for existing TIF areas after enactment.

• Creates a Local Government Shared-Services Grant Fund to incentivize consolidation and service sharing among local governments, and establishes the FirstHome Iowa savings trust for first-time homebuyers with state tax benefits.

• Changes the county auditor, treasurer, and recorder from elected to appointed officials, with current office holders finishing their terms before the new system takes effect.

Abolishes townships as a form of local government in Iowa, transferring all township powers, funds, property, and responsibilities to counties. It reassigns key township duties—such as fence viewing, cemetery stewardship, and fire/emergency medical services—to the county board of supervisors or other county bodies. The bill amends or repeals numerous Code sections to remove references to townships and to clarify the new roles of counties. Counties are given authority to levy new taxes for cemetery and emergency services, and must assume all former township obligations. The terms of all township officials terminate on July 1, 2027. The bill takes effect on July 1, 2027, with certain provisions (notably regarding cemeteries and fire protection) effective June 30, 2027.

Key Points & Impact:

• Abolishes townships statewide as units of local government and eliminates township offices and trustees.

• Transfers all township duties, powers, funds, property, obligations, and indebtedness to the respective county government.

• Reassigns fence viewer duties and the animal board of health responsibilities from township trustees to county-appointed fence viewers and the county board of supervisors.

• Requires counties to assume management and maintenance of all cemeteries previously under township control, with authority to levy a dedicated cemetery tax and create a cemetery fund.

• Mandates counties to provide fire protection and emergency medical services to unincorporated areas not already served, via creation of emergency response districts or other mechanisms.

• Amends or repeals hundreds of Code sections, removing references to townships in tax, bond, property, governmental, and election provisions, and replaces them with county references as appropriate.

• All elected township officials' terms terminate on July 1, 2027; counties must also assume pending township hearings, litigation, or obligations.

• Provides for the transition of assets, liabilities, and services from townships to counties, with detailed procedures and timelines.

Makes two major sets of changes: (1) County and city departments, offices, or subunits are prohibited from adopting, implementing, or enforcing internal policies or rules unless those are first submitted to and approved by the board of supervisors or city council, and enacted by ordinance. Ordinances must be accompanied by a cost analysis accessible to the public. (2) The bill replaces most requirements for legal/public notices to be published in newspapers with requirements to post such notices to a new statewide public notice internet site and the official websites of the relevant governmental entities. Local governments may still use newspaper publication if determined locally. The bill amends dozens of statutes to reflect these changes in notice procedures and provides for proof and compensation mechanisms for online postings.

Key Points & Impacts

• County and city subunits cannot adopt or enforce internal policies/rules unless approved by their governing body by ordinance, with a required cost analysis for each ordinance.

• Cost analyses for ordinances must show taxpayer, business, and economic impacts and be posted online by the relevant government.

• All statutory public/legal notice publication requirements for governmental entities are moved from newspapers to a new statewide public notice internet site and the entity's official website, unless local ordinance opts for newspaper publication.

• Proof of public notice is established by an electronic certificate of posting on the statewide internet site, which serves as legal evidence.

• Compensation for online legal notice publication will be set annually by the department of administrative services, based on actual maintenance costs, not traditional newspaper rates.

• Local governments retain the right to opt for newspaper publication via ordinance if deemed in constituents’ best interest.

• If a governmental entity lacks a website, notices may be posted on the county website or statewide site as appropriate.

• Amends a very large number of Iowa Code sections, standardizing public notice language and removing requirements for print publication except as locally directed.

Requires public entities—including state, counties, cities, school districts, and qualifying agencies—to post all statutorily required public notices on an online portal managed by the Secretary of State, rather than in newspapers. A $5 fee per posting is collected and deposited into a new Public Notice Administration Fund (capped at $350,000) to fund the portal's administration. Conforming amendments are made throughout Iowa Code to replace newspaper publication requirements with digital posting. Certain exceptions and transition rules apply, and disputes about notice publication will be resolved by the Iowa Public Information Board. Physical posting at entity offices is still required. The act is effective July 1, 2026.

Key Points & Impacts

• Creates an online public notice portal managed by the Secretary of State, requiring exclusive use for statutorily required public notices by most Iowa public entities.

• Imposes a $5 fee per notice to be paid by the posting entity; fees are appropriated to a new Public Notice Administration Fund, capped at $350,000, with excess to the general fund.

• Defines scope: applies to state, county, city, school district, and joint/public agencies, with exceptions for the Governor's office, General Assembly, and certain compact/constitutional/administrative notices.

• Requires online notices to be searchable by county, city, school district, and type (e.g., meetings, elections, rulemaking, abandoned property, projects).

• Mandates retention of notices on the portal for at least five years after required availability, and requires physical posting in a public location at the entity's main office/building.

• Allows a transition period (six months) for posting either as per 2026 Iowa Code or on the new portal; this provision sunsets July 1, 2027.

• Provides for dispute resolution by the Iowa Public Information Board, including cost and attorney fee awards to prevailing parties.

• Amends numerous code sections statewide to replace newspaper publication requirements with digital posting consistent with the new law.

Eliminates the current premium tax on HMOs and establishes a new health care-related tax on taxable funds of HMOs, with revised rates and definitions. It removes HMOs from the list of entities subject to the insurance premium tax, and creates a new Code chapter governing their taxation. The bill also enables a substantial one-time transfer from the taxpayer relief fund to the general fund, in response to federal tax law changes, and adjusts the calculation of the state general fund expenditure limitation accordingly. Additionally, it provides a supplemental appropriation to the Department of Health and Human Services for the medical assistance program and modifies rules regarding credits for assessments paid by insurers and HMOs. Appropriations and tax changes are contingent upon federal approval, with some provisions applying retroactively to January 1, 2026.

Key Points & Impacts

• Eliminates the premium tax on HMOs under Code section 432.1 and instead imposes a new health care-related tax under newly created Code chapter 432B.

• Defines 'taxable funds' for HMOs as payments received for health care services and payments made to providers and certain insurers, with specific federal exclusions.

• Sets the health care-related tax rates for HMOs: 3.5% for Jan 1–Sep 30, 2026; 0.95% for Oct 1–Dec 31, 2026; and 0.95% for subsequent years.

• Establishes new tax payment and prepayment schedules for HMOs, including special deadlines for the first year, and provides for credits and cash refunds under certain conditions.

• Repeals Section 432.1B and removes HMOs from the premium tax structure, moving them to the new tax regime.

• Allows insurers and HMOs to offset certain assessments against either premium or health care-related tax liabilities, and clarifies treatment for entities ceasing business.

• Authorizes a $296.2 million transfer from the taxpayer relief fund to the general fund in response to federal tax changes, and adjusts the state expenditure limitation to include this amount.

• Appropriates $70.3 million from the general fund to the Department of Health and Human Services for medical assistance reimbursements, with funds remaining available for an additional fiscal year if unspent.

Creates the Iowa rural health transformation fund, which will be managed by the Department of Health and Human Services and will consist of monies from the federal rural health transformation program. The fund is to be used for purposes authorized by the Centers for Medicare and Medicaid Services under federal law. The department must report quarterly to the legislature on fund expenditures by city and transmit federal program reports. The bill is repealed October 1, 2032.

Key Points & Impacts:

• Establishes the Iowa rural health transformation fund in the state treasury, separate from the general fund.

• Funds consist of monies received from the federal rural health transformation program (One Big Beautiful Bill Act, Pub. L. No. 119-211).

• Money in the fund is appropriated to the Department of Health and Human Services for uses permitted by federal law and CMS guidance.

• Interest and earnings on the fund remain in the fund; funds do not revert to the general fund.

• Quarterly reporting to the legislature is required, detailing expenditures and locations by city.

• All federal financial and performance reports must be shared with the general assembly.

• The fund and its provisions are repealed on October 1, 2032.

• Includes appropriations for the Department of Health and Human Services from the fund.

Applies open records law to any instrumentality of a county, city or township. 

Replaces the term "pregnant person" with "pregnant female" throughout multiple statutory sections dealing with the termination of pregnancy, feticide, and related offenses. No substantive changes are made to the criminal offenses or penalties themselves; the changes are strictly to the terminology used to refer to the pregnant individual in the law.

Key Points & Impact:

• Replaces the term 'pregnant person' with 'pregnant female' in all references within the affected statutes.

• Amends Section 707.7 (Feticide) and Section 707.8 (Nonconsensual termination of pregnancy and related offenses) to use 'pregnant female'.

• Adjusts language in provisions concerning obtaining consent, knowledge, and voluntary consent of the pregnant individual to specify 'female'.

• Clarifies that exceptions for medical procedures and acts or omissions by the pregnant individual now refer to 'pregnant female'.

• Updates Section 708.2(4), related to assault against a pregnant individual, to refer to 'pregnant female'.

• No changes to the criminal definitions, penalties, or exceptions—this is strictly a terminology update.

• Ensures consistency in gendered language across statutes concerning pregnancy.

• Does not impact the application or scope of the offenses—only the phrasing is changed.

Expands the list of individuals who may request redaction of their names from electronic public documents displayed by county assessors and recorders. Specifically, it adds United States senators, representatives to Congress, statewide elected officials, and members of the general assembly to those eligible for redaction. Requires the Secretary of State to submit recommendations by November 1, 2026, on protecting the residential information of election candidates while ensuring residency verification.

Key Points & Impact:

• Expands eligibility for name redaction from public electronic documents to include U.S. senators, representatives to Congress, statewide elected officials, and members of the general assembly.

• Maintains current eligibility for peace officers, civilian law enforcement employees, judicial officers, and prosecutors.

• Mandates county assessors and recorders to comply with redaction requests from these additional officials.

• Strikes an existing subparagraph (details not provided in the text).

• Directs the Secretary of State to develop and submit recommendations to the legislature by November 1, 2026, regarding privacy protections for candidates' personal residence information.

• Recommendations must balance candidate privacy with the need to verify residency for election requirements.

• Aims to enhance privacy and security for elected officials and candidates in public records.

• No changes to current appropriations or funding mechanisms identified.

Enhances protections for judicial officers and certain legal professionals by expanding the list of professions eligible for professional permits to carry weapons, clarifying permit procedures, and standardizing permit validity. It creates new criminal offenses for threatening or maliciously disclosing personal information about judicial officers or their family, and redefines harassment to include true threats against public officials. The bill also authorizes the supreme court to impose additional permit requirements for judicial officers.

Key Points & Impacts

• Adds judicial officers, attorney general, deputy attorney general, and assistant attorney general to those eligible for professional permits to carry weapons under Iowa law.

• Permits issued to these individuals authorize them to go armed anywhere in the state at all times, including on school grounds, during employment.

• Permits for these professionals remain valid through the period of employment and must be surrendered upon termination of employment.

• Judicial officers, when carrying weapons inside a courtroom, must do so in a concealed manner (except for peace/correctional officers).

• Supreme court is granted authority to require additional training or requirements for judicial officers holding a permit.

• Creates a new class 'C' felony offense for threatening a judicial officer or their immediate family member with intent to harm, intimidate, prevent duties, or retaliate.

• Establishes a serious misdemeanor for maliciously sharing personal information (address, phone, physical location) of a judicial officer or immediate family with harmful intent.

• Expands the definition of harassment to include communicating a true threat to a public official, if the official becomes aware within one year.

Requires that individuals applying for any class A, B, or C commercial driver’s license (CDL) must complete an approved human trafficking prevention training as part of their instructional course. Providers of commercial motor vehicle instruction must include at least thirty minutes of such training, conducted in English. The Department of Transportation, in cooperation with the Department of Education and State Board of Education, is tasked with approving, updating, and publicly providing the training materials at least every three years, and may collaborate with specialized organizations. The department is also authorized to adopt rules to implement the new requirements.

Key Points & Impacts

• Applicants for class A, B, or C CDL must certify completion of approved human trafficking prevention training.

• Training must be included as part of the required course for obtaining a commercial driver’s license.

• Instructional providers must deliver at least thirty minutes of the approved training in English.

• The Department of Transportation, Department of Education, and State Board of Education must jointly approve and periodically update training materials.

• Training materials must address recognition, prevention, and reporting of human trafficking and be made publicly available.

• State agencies may collaborate with organizations specializing in human trafficking prevention for commercial drivers.

• The Department of Transportation is authorized to adopt administrative rules for implementation.

• Training material updates are required at least every three years to reflect changes and trends in human trafficking.

Makes several substantive changes to Iowa's weapons laws. It allows lawful possession of dangerous weapons in locked, privately owned vehicles in publicly accessible parking lots, except National Guard facilities. It prohibits rules against firearms in vehicles transporting foster children. Regents universities and community colleges cannot ban weapons in locked, personal vehicles on their grounds, though certain exceptions apply. The bill modifies language around enhanced penalties for offenses involving firearms in or near schools and public parks, removing the term 'weapons free zone' but retaining the substantive area. It also authorizes valid permit holders to carry concealed pistols or revolvers in school district driveways and parking lots, with immunity for schools from related claims.

Key Points & Impacts

• Permits lawful carrying, transportation, or possession of dangerous weapons in locked, privately owned vehicles in publicly accessible, nonsecure parking lots operated by the state or local governments, provided the weapon is out of sight. Excludes National Guard facilities.

• Prohibits the Department of Health and Human Services from banning lawful firearms (loaded or unloaded) in vehicles used to transport foster children.

• Bars regents universities and community colleges from enforcing policies that prohibit lawful possession of dangerous weapons in locked, personal vehicles on campus grounds, with immunity from related claims. Exceptions are provided for law enforcement, written authorization, and culinary use of knives.

• Removes the defined term 'weapons free zone' from law, but maintains enhanced penalties for offenses involving firearms or offensive weapons within 1,000 feet of schools or on public park property, excluding designated hunting areas.

• Clarifies that the enhanced penalty section does not apply to portions of public parks designated as hunting areas.

• Allows individuals with a valid permit to carry to possess concealed pistols or revolvers in school district driveways and parking lots. Provides immunity for schools from related damages claims.

• Provides that governing boards of educational institutions must comply with new state requirements regarding weapons in vehicles and may not enact more restrictive rules.

• The bill contains no explicit appropriations or funding provisions.

Amends Iowa Code to specifically prohibit the sale or offer for sale of "trigger crank" devices, replacing prior broader language that restricted the sale of any manual or power-driven trigger-activating device that increases a firearm's rate of fire. The bill defines "trigger crank" as any device attached to a firearm that repeatedly activates the trigger using a lever or circular motion, but excludes weapons originally designed to fire using a crank or lever. Violation remains an aggravated misdemeanor.

Key Points & Impact:

• Narrows the prohibition from all trigger-activating devices that increase rate of fire to only those defined as 'trigger cranks'.

• Defines 'trigger crank' as a device that repeatedly activates a firearm's trigger through a lever or circular motion.

• Excludes weapons initially designed and manufactured to fire via a crank or lever from the definition.

• Removes previous language banning all manual or power-driven trigger-activating devices that increase rate of fire when attached to a firearm.

• Maintains the aggravated misdemeanor penalty for violations (up to two years in prison and a fine of $855 to $8,540).

• Does not affect possession or use—only sale or offer for sale of 'trigger crank' devices.

Requires use of the federal Systematic Alien Verification for Entitlements (SAVE) system to verify immigration/citizenship for all public assistance applicants. It sets the SNAP income threshold at 160% FPL, mandates inclusion of all household members’ income/resources (even ineligible members), and restricts SNAP eligibility to citizens, nationals, and certain lawfully present aliens. For Medicaid and the Iowa Health and Wellness Plan, the bill shortens retroactive eligibility (pending federal approval) and establishes new annual reporting requirements. It also mandates cost neutrality analysis for all Medicaid waivers or amendments expanding coverage, requiring legislative approval if not cost neutral. Effective immediately upon enactment, with some provisions contingent on federal waiver approval.

Key Points & Impacts

• Mandates verification of immigration/citizenship status for public assistance applicants using the SAVE online service.

• Sets SNAP gross income threshold at 160% of the federal poverty level and requires counting all household members’ income/resources, including those ineligible for SNAP.

• Restricts SNAP eligibility to U.S. citizens, nationals, certain lawful permanent residents, Cuban/Haitian entrants, and certain compact residents; others are ineligible.

• Requires notification to USDA if immigration/citizenship status of any SNAP household member cannot be verified.

• All Medicaid benefits must be delivered via managed care, except for those exempt as of July 1, 2026.

• Shortens Medicaid retroactive eligibility to two months (from three), and Iowa Health and Wellness Plan retroactive eligibility to one month (from three), contingent on federal approval.

• Establishes annual reporting by HHS on retroactive eligibility impacts and fiscal effects, with reports made publicly available.

• Mandates cost neutrality analysis for all Medicaid waivers/plan amendments expanding coverage; non-cost-neutral proposals require legislative approval.

Establishes a new Early Childhood and Family Services (ECFS) system under the Department of Health and Human Services (HHS), creating a centralized system for prevention and intervention services for children and families. It consolidates and repeals the Early Childhood Iowa initiative and the child abuse prevention program, creating the ECFS system fund to receive appropriations and redirected funds. The bill sets up advisory councils, prescribes data management requirements, and mandates the creation of district and state plans. It transitions responsibilities and funds from existing early childhood programs to the new system by July 1, 2027. The bill also creates a new eligibility pathway for state child care assistance for the child care workforce, and redefines district boundaries for health and human services program delivery. Numerous conforming and repealing changes to the Code are made to effectuate this consolidation and restructuring.

Key Points & Impacts:

• Establishes the Early Childhood and Family Services (ECFS) system under the Department of Health and Human Services, with associated districts and advisory councils to oversee and guide service delivery.

• Creates the ECFS system fund, appropriates state moneys to it, and redirects funds from repealed programs (including Early Childhood Iowa and the child abuse prevention fund) to support ECFS system operations.

• Repeals the Early Childhood Iowa initiative (chapter 256I) and the child abuse prevention program and fund, transferring all remaining assets and responsibilities to the ECFS system.

• Mandates the development of state and district ECFS plans, with stakeholder involvement and public comment, to coordinate primary prevention, early intervention, and ongoing family/community resources.

• Sets a transition period through June 30, 2027, during which all contracts, funds, debts, and obligations of the repealed programs are to be transferred or resolved, and prohibits new contracts with terms extending beyond the transition period.

• Directs HHS to establish new health and human services districts for statewide program delivery, initially aligned with current behavioral health districts and subject to future review and modification.

• Expands eligibility for state child care assistance to child care workforce members who meet specified criteria (including minimum work hours and direct child care duties), regardless of income, and requires rulemaking for copayments and program administration.

• Contains appropriations for the ECFS fund and ensures non-reversion of unexpended funds; includes emergency rulemaking authority and immediate or contingent effective dates for various provisions.

This bill institutes wide-ranging reforms in Iowa's health, nutrition, and educational laws. It requires physicians and physician assistants in specified specialties to complete continuing education on nutrition and metabolic health. Iowa medical schools must require at least 40 hours of nutrition coursework for graduation, and the state must continuously seek federal approval to restrict SNAP-eligible foods to those allowed as of January 1, 2026, with the option to further restrict unhealthy foods. Ivermectin may now be dispensed over-the-counter by pharmacists without liability. Schools are prohibited from serving or selling foods with certain artificial dyes and additives during the school day, and new, nutrition-focused curriculum requirements are imposed at all K-12 levels, emphasizing animal-based proteins, dairy, vegetables, and fruit. The Department of Education must apply for a waiver to adopt state-specific, locally sourced meal standards, and if granted, establish a joint oversight committee. The bill limits digital device use in early grades, requires physical education daily, mandates participation in at least one extracurricular or co-curricular activity for high school graduation, and adopts the Psychology Interjurisdictional Compact, facilitating telepsychology and temporary practice across state lines.

Key Points & Impacts:

• Mandates at least one hour of continuing education on nutrition and metabolic health every four years for physicians/physician assistants in specified specialties as a license renewal condition.

• Requires Iowa medical and osteopathic students to complete at least 40 hours of nutrition and metabolic health coursework to graduate, starting July 1, 2028.

• Directs the state to seek federal approval to limit SNAP-eligible foods to those permitted as of January 1, 2026, with further authority to exclude additional unhealthy foods based on healthy food standards.

• Allows pharmacists to dispense ivermectin for human use over-the-counter and grants them immunity from liability for doing so.

• Prohibits Iowa schools from serving or selling foods containing specified artificial dyes and additives (e.g., Blue 1, Red 40, potassium bromate) during the school day, with some exceptions; applies to public, charter, and nonpublic schools receiving state funds.

• Requires new nutrition education content at all K-12 levels, emphasizing animal-based proteins, dairy, vegetables, and fruit, and mandates daily physical education and fitness assessments using the presidential test; high school students must participate in at least one extracurricular/cocurricular activity for graduation.

• Directs the Department of Education to seek a federal waiver to set Iowa-specific school meal guidelines prioritizing local food sources and to establish a joint oversight committee if granted; requires ongoing annual reporting and a five-year evaluation if state guidelines are implemented.

• Enacts the Psychology Interjurisdictional Compact, allowing licensed psychologists to provide telepsychology and temporary in-person services across state lines under standardized rules and mutual recognition.

Eliminates city health departments (Dubuque is the only one).  Mandates a county public health board contract with each county hospital in their county for sharing resources, facilities, and administrative costs in the delivery of public health services. Allows the county to request a waiver from this requirement if it can show all of the following: 1) the county has access to alternative means of providing the services, and  2) the alternative means is more cost-effective than contracting with a county hospital. Effective 1/1/2027.

Redefines 'abortion' to exclude miscarriages where not all products of conception are expelled, mandates in-person physician examinations and coercion screening before abortions, and establishes new consent and information disclosure requirements for chemical abortions. It restricts the dispensing of abortion-inducing drugs to authorized persons in healthcare settings and creates comprehensive reporting obligations for complications arising from such drugs. The bill introduces a private cause of action against unauthorized dispensing, sets statutory damages, and provides for disciplinary action against noncompliant licensees. Additionally, it expands termination of pregnancy reporting requirements to include new data points on the use of mifepristone and misoprostol.

Key Points & Impacts:

• Redefines 'abortion' to exclude spontaneous terminations (miscarriages) where not all products of conception are expelled.

• Requires physicians to conduct in-person exams and screen for coercion or abuse before performing abortions, with referral obligations if abuse/coercion is detected.

• Mandates that physicians obtain specific written informed consent and advise patients about chemical abortion risks, reversal options, and emergency procedures before dispensing abortion-inducing drugs.

• Restricts dispensing of abortion-inducing drugs (mifepristone, misoprostol, etc.) to authorized personnel in healthcare settings, except in medical emergencies.

• Requires hospitals and attending physicians to report detailed, anonymized data on complications from abortion-inducing drugs within 30 days, with annual public reporting by the health department.

• Creates a private right of action with strict liability and statutory damages ($50,000), plus court costs and attorney fees, for unauthorized dispensing of abortion-inducing drugs; protects patient anonymity in such actions.

• Expands pregnancy termination reports to require information on whether mifepristone or misoprostol were ingested before or during spontaneous terminations (miscarriages).

• Noncompliant licensees are subject to disciplinary action by their professional boards.

Creates an individual tax credit for purchasing firearm safety devices. Applies to devices purchase after the effective date, and applies to the 2025 tax year.

Creates a nonrefundable individual income tax credit for recent graduates of Iowa Board of Regents institutions who paid nonresident tuition and are now Iowa residents employed as healthcare professionals, teachers, licensed veterinarians, or professional engineers. The credit equals the difference between nonresident and resident tuition rates for the years attended. Excess credit can be carried forward up to five years but cannot benefit those who become nonresidents. The Board of Regents is required to publish tuition data for transparency. The bill applies retroactively to tax years beginning on or after January 1, 2026.

Key Points & Impacts:

• Establishes a nonresident tuition tax credit for individuals who graduated from an Iowa Board of Regents institution within the past three years and are now employed in Iowa as a healthcare professional, teacher, licensed veterinarian, or professional engineer.

• The tax credit amount is 100% of the difference between nonresident and resident tuition paid by the graduate for each year of attendance.

• Credit is nonrefundable, but unused amounts may be carried forward for up to five years or until exhausted, whichever comes first.

• If the taxpayer becomes a nonresident, remaining credit cannot be applied to future tax liability.

• Married taxpayers filing separately must allocate the credit proportionally to earned income.

• Board of Regents must publish a decade's worth of tuition data for both resident and nonresident students at each institution.

• Applies retroactively to tax years beginning on or after January 1, 2026.

• Targets high-need professions (healthcare, teaching, veterinary, engineering) to encourage retention of graduates in Iowa.

Imposes a new annual tax on the endowment values exceeding $500 million for public and private colleges and universities. The tax rate is set at the highest corporate income tax rate (currently 7.1%). Revenues from public institutions go to the Iowa workforce grant incentive fund, while revenues from private institutions are deposited in a new account to supplement tuition grants for students in high-wage and high-demand job majors. The bill also caps gift processing fees at 5% and endowment management fees at 1% for institutions governed by the board of regents. New administrative rules and appropriations mechanisms are established to implement these changes.

Key Points & Impacts:

• Imposes an annual endowment tax on Iowa colleges/universities with endowments exceeding $500 million, at the highest corporate income tax rate.

• Defines 'endowment' and 'endowment value' for purposes of the tax, including assets held by related organizations.

• Tax revenues from public institutions (board of regents) are appropriated to the Iowa workforce grant incentive fund.

• Tax revenues from private institutions are appropriated to a new 'high-wage and high-demand jobs' account within the Iowa tuition grants fund.

• Funds in the new account are used to supplement tuition grants for students in majors leading to high-wage, high-demand jobs, as identified by state workforce authorities.

• Caps fees for processing gifts to institutions at 5% of gross proceeds, and annual endowment management fees at 1% of endowment value for board of regents institutions.

• Requires new administrative rules for the approval and awarding of supplemental tuition grants after January 1, 2028.

  • Establishes appropriations mechanisms to ensure funds do not revert to the state general fund and are available for future tuition grants.

Eliminates the current premium tax on HMOs and establishes a new health care-related tax on taxable funds of HMOs, with revised rates and definitions. It removes HMOs from the list of entities subject to the insurance premium tax, and creates a new Code chapter governing their taxation. The bill also enables a substantial one-time transfer from the taxpayer relief fund to the general fund, in response to federal tax law changes, and adjusts the calculation of the state general fund expenditure limitation accordingly. Additionally, it provides a supplemental appropriation to the Department of Health and Human Services for the medical assistance program and modifies rules regarding credits for assessments paid by insurers and HMOs. Appropriations and tax changes are contingent upon federal approval, with some provisions applying retroactively to January 1, 2026.

Key Points & Impacts

• Eliminates the premium tax on HMOs under Code section 432.1 and instead imposes a new health care-related tax under newly created Code chapter 432B.

• Defines 'taxable funds' for HMOs as payments received for health care services and payments made to providers and certain insurers, with specific federal exclusions.

• Sets the health care-related tax rates for HMOs: 3.5% for Jan 1–Sep 30, 2026; 0.95% for Oct 1–Dec 31, 2026; and 0.95% for subsequent years.

• Establishes new tax payment and prepayment schedules for HMOs, including special deadlines for the first year, and provides for credits and cash refunds under certain conditions.

• Repeals Section 432.1B and removes HMOs from the premium tax structure, moving them to the new tax regime.

• Allows insurers and HMOs to offset certain assessments against either premium or health care-related tax liabilities, and clarifies treatment for entities ceasing business.

• Authorizes a $296.2 million transfer from the taxpayer relief fund to the general fund in response to federal tax changes, and adjusts the state expenditure limitation to include this amount.

• Appropriates $70.3 million from the general fund to the Department of Health and Human Services for medical assistance reimbursements, with funds remaining available for an additional fiscal year if unspent.

Establishes strict caps on annual local government property tax revenue growth (excluding new construction and debt service), introduces a new property tax exemption for residential property, increases public notice and transparency requirements for property tax changes, assigns new responsibilities to councils of governments for local service consolidation, and implements more rigorous voter approval requirements for local government and school district bonding. The bill also makes a series of conforming amendments to ensure all relevant statutes reflect these changes.

Key Points & Impacts

Division I – Property Tax & Bond Limitations  Caps unassigned general fund reserves at 35% of budgeted expenditures for local governments (excluding school districts), limits property tax levy revenue growth to 2% annually over existing property (not new construction), and prohibits using bond proceeds to fund general operations.

Division II – Commercial/Industrial Property Assessment  Ends the state commercial property tax backfill and increases the business property tax exemption from $150,000 to $350,000, retroactive to January 1, 2026.

Division III – Homestead Exemption  Creates a new residential homestead property tax exemption of 10% of taxable value or $25,000, whichever is less, retroactive to January 1, 2026. Does not apply to school district levies.

Division IV – SAVE Fund  Extends the Secure an Advanced Vision for Education (SAVE) sales tax fund from 2051 to 2071 and gradually increases the equity transfer percentage from 10% (FY2026) to 30% (FY2034+).

Division V – Property Parcel Data  Requires county auditors to submit annual parcel-level property data reports to the Department of Management.

Division VI – Urban Renewal  Reforms TIF districts that don’t currently have an end date by capping revenue capture at 60% after 20 years; expands the ability to use TIF for housing; removes all EMS related levies from all TIFs upon enactment; removes the $5.40 school foundation levy from all TIFs going forward.

Division VII – Assessment Procedures  Requires assessors to explain valuation increases of 10%+ to property owners, and shifts the burden of proof to the assessor when a property's value increases 10%+ without a change in use or new construction. Prohibits contact with committee members.

Division VIII – Local Government Efficiency Grants  Creates a $10 million grant fund at Iowa State University to help local governments consolidate services and reduce property tax reliance.

Division IX – FirstHome Iowa Accounts  Establishes a new tax-advantaged savings trust for first-time homebuyers, administered by the State Treasurer, with contributions up to $5,500/year deductible for Iowa income tax purposes. Phases out the existing first-time homebuyer account program.

Division X – Abnormal Transaction Valuations  Clarifies that abnormal real estate transactions (foreclosures, related-party sales, sale-leasebacks, etc.) should be excluded or adjusted when determining assessed property values.

Division XI – Budget Statements  Overhauls the property tax notice mailed to property owners, requiring more detailed information about proposed tax changes and allowing online posting in lieu of mail starting FY2027. League of Cities’ suggested language.

Division XII – Data Centers  Exempts qualified data centers from having school district foundation property taxes diverted into TIF funds.

Division XIII – Bond Elections  Restricts political subdivisions from holding bond elections on two consecutive authorized election dates.

Division XIV – EMS Levy  Doubles the maximum emergency medical services property tax levy from $0.75 to $1.50 per $1,000 assessed value starting FY2027, requiring voter approval to exceed the current cap.

Division XV – Utility Replacement Tax Task Force  Updates the scope and study period for the utility replacement tax task force through December 31, 2026.

Division XVI – School District Unspent Balances  Caps school district unspent fund balances at 35% of authorized expenditures and modifies the on-time enrollment funding adjustment process.

Enacts wide-ranging reforms for state and local government taxation, budgeting, and authority. Key provisions include: strict limitations on local government reserve funds and yearly property tax increases, restrictions on using bonds for general operations, changes to commercial/industrial property tax rollbacks, a new homestead exemption, extended education funding, reforms to urban renewal and tax increment financing (TIF), enhanced assessment transparency and burden of proof, a new local government efficiency grant program, and the launch of a state-sponsored first-time homebuyer savings program. It also modernizes property tax statement reporting, adjusts TIF for data centers, revises bond election dates, expands EMS levies, and constrains school unspent balances. The bill contains multiple appropriations and new administrative responsibilities.

Key Points & Impacts

• Division I – Property Tax & Bond Limitations  Caps unassigned general fund reserves at 35% of budgeted expenditures for local governments (excluding school districts), limits property tax levy revenue growth to 2% annually over existing property (not new construction), and prohibits using bond proceeds to fund general operations.

  Division II – Commercial/Industrial Property Assessment  Ends the state commercial property tax backfill and increases the business property tax exemption from $150,000 to $350,000, retroactive to January 1, 2026.

  Division III – Homestead Exemption  Creates a new residential homestead property tax exemption of 10% of taxable value or $25,000, whichever is less, retroactive to January 1, 2026. Does not apply to school district levies.

  Division IV – SAVE Fund  Extends the Secure an Advanced Vision for Education (SAVE) sales tax fund from 2051 to 2071 and gradually increases the equity transfer percentage from 10% (FY2026) to 30% (FY2034+).

  Division V – Property Parcel Data  Requires county auditors to submit annual parcel-level property data reports to the Department of Management.

  Division VI – Urban Renewal  Reforms TIF districts that don’t currently have an end date by capping revenue capture at 60% after 20 years; expands the ability to use TIF for housing; removes all EMS related levies from all TIFs upon enactment; removes the $5.40 school foundation levy from all TIFs going forward.

  Division VII – Assessment Procedures  Requires assessors to explain valuation increases of 10%+ to property owners, and shifts the burden of proof to the assessor when a property's value increases 10%+ without a change in use or new construction. Prohibits contact with committee members.

  Division VIII – Local Government Efficiency Grants  Creates a $10 million grant fund at Iowa State University to help local governments consolidate services and reduce property tax reliance.

  Division IX – FirstHome Iowa Accounts  Establishes a new tax-advantaged savings trust for first-time homebuyers, administered by the State Treasurer, with contributions up to $5,500/year deductible for Iowa income tax purposes. Phases out the existing first-time homebuyer account program.

  Division X – Abnormal Transaction Valuations  Clarifies that abnormal real estate transactions (foreclosures, related-party sales, sale-leasebacks, etc.) should be excluded or adjusted when determining assessed property values.

  Division XI – Budget Statements  Overhauls the property tax notice mailed to property owners, requiring more detailed information about proposed tax changes and allowing online posting in lieu of mail starting FY2027. League of Cities’ suggested language.

  Division XII – Data Centers  Exempts qualified data centers from having school district foundation property taxes diverted into TIF funds.

  Division XIII – Bond Elections  Restricts political subdivisions from holding bond elections on two consecutive authorized election dates.

  Division XIV – EMS Levy  Doubles the maximum emergency medical services property tax levy from $0.75 to $1.50 per $1,000 assessed value starting FY2027, requiring voter approval to exceed the current cap.

  Division XV – Utility Replacement Tax Task Force  Updates the scope and study period for the utility replacement tax task force through December 31, 2026.

  Division XVI – School District Unspent Balances  Caps school district unspent fund balances at 35% of authorized expenditures and modifies the on-time enrollment funding adjustment process.

Overhauls Iowa's property tax and local government finance framework. Key changes include capping local government reserve funds, imposing new limits on property tax levy increases (excluding schools), and prohibiting local governments from using bonds for general operations. The property assessment cycle moves from biennial to triennial, with new requirements for transparency in large valuation increases and changes in the burden of proof for assessment appeals. The homestead property tax credit is replaced by a direct exemption and a restructured property tax growth credit for seniors and certain disabled individuals. Urban renewal and revitalization authorities are sharply curtailed for new projects, with new duration limits and allowable uses. The bill also establishes a Local Government Shared-Services Grant Fund, creates a FirstHome Iowa savings trust program for first-time homebuyers, and changes several county officers (auditor, treasurer, recorder) from elected to appointed positions. The legislation includes appropriations for rent reimbursement for the elderly/disabled, and mandates studies and technical updates to ensure implementation.

Key Points & Impact:

• Establishes a 10% cap on unassigned reserve funds in local government general funds (excluding schools) starting July 1, 2027; excess reserves must be remedied before budgets are certified.

• Limits annual property tax levy growth for local governments (excluding schools) to 2% plus new valuation growth, with adjustments for voter-approved levies; noncompliant budgets are subject to state intervention and forced reduction.

• Prohibits the use of bonds or property tax-funded debt to pay for general operations of local governments after July 1, 2026.

• Converts the homestead property tax credit to an exemption of $4,850 in taxable value, eliminates the state reimbursement to local governments, and restructures the elderly/disabled credit as a 'property tax growth credit' with new eligibility and calculation rules.

• Moves the property reassessment and equalization cycle to every 3 years (from every 2), and requires detailed justification for assessment increases of 15% or more, shifting the burden of proof to the assessor in certain appeals.

• Restricts new urban renewal projects (TIF) to only specific infrastructure and land disposition activities, limits the duration of new tax increment ordinances to 20 years, and prohibits expansion or new debt for existing TIF areas after enactment.

• Creates a Local Government Shared-Services Grant Fund to incentivize consolidation and service sharing among local governments, and establishes the FirstHome Iowa savings trust for first-time homebuyers with state tax benefits.

• Changes the county auditor, treasurer, and recorder from elected to appointed officials, with current office holders finishing their terms before the new system takes effect.

Creates the EDGE Program to incentivize headquarters expansion and high-wage job creation, establishes a new training fund for business incentives, repeals the New Jobs Tax Credit, modifies the Major Economic Growth Attraction Program's definitions and deadlines, and mandates regular statewide electric load forecasting and transmission planning. It also creates mechanisms for state agencies to collect and use utility data and funding for energy planning, and restricts certain job training credits to agreements before a specified deadline.

Key Points & Impacts:

• Establishes the EDGE Program to provide refundable qualifying wage tax credits for eligible businesses creating or retaining high-wage corporate jobs at Iowa headquarters, with specific eligibility, compliance, and clawback provisions.

• Creates a Business Incentives for Growth Program Training Fund, funded by up to 1.5% of eligible business payroll withholdings, to reimburse project-specific training expenses; prohibits double-dipping for the same training purpose.

• Repeals the New Jobs Tax Credit (Code section 422.11A), with immediate effect upon enactment, but preserves rights for credits issued or awarded before the effective date, including carryforward claims.

• Amends the Major Economic Growth Attraction Program by updating the definition of 'foreign adversary' and extending the sunset date for authorizing incentives or exemptions from January 1, 2027, to January 1, 2030.

• Requires the Economic Development Authority to commission Iowa State University to produce biennial public reports on statewide and regional electricity load forecasting and transmission expansion plans, with input from consumers and the electric industry.

• Empowers the utilities commission to compel all electric utilities to share information with Iowa State University for energy planning, and allows these reports to serve as evidence in commission proceedings.

• Creates the Electric Transmission System Expansion Planning and Analysis and Load Forecasting Fund, funded by mandatory utility remittances, and appropriates it for the state's energy planning reports.

• Limits the new jobs credit from withholding under the Iowa Industrial New Jobs Training Program to agreements entered into on or before June 30, 2026, with corresponding adjustments to eligible project cost funding mechanisms.

Excludes school district foundation property taxes imposed under § 257.3 from automatic division and redirection into municipal special funds for urban renewal projects (tax increment financing). Instead, these taxes must be fully levied, collected, and retained by the school district. However, it authorizes school districts to voluntarily transfer all or part of these funds to the municipality for urban renewal projects via a board resolution. These voluntary payments do not affect state foundation aid or other funding calculations. The changes apply to property taxes due and payable in fiscal years beginning on or after July 1, 2027.

Key Points & Impacts

• Excludes school district foundation property taxes from automatic diversion to municipal urban renewal funds under tax increment financing (TIF).

• Requires foundation property taxes under § 257.3 to be collected and paid directly to school districts, not municipalities, by default.

• Authorizes school boards to voluntarily approve, via resolution, payments from the general fund to the municipality for urban renewal purposes, covering all or part of the foundation property tax.

• Voluntary payments must be formally approved and filed with the county auditor; they are not mandatory.

• Such payments are still considered foundation property taxes for state aid and funding formula purposes; no adjustment in state aid or other amounts will result from these payments.

• Applies to property taxes due and payable in fiscal years starting on or after July 1, 2027.

• Provides a mechanism for school districts to support urban renewal projects if they choose, but removes any compulsion.

• Clarifies that the changes do not affect other levies or taxes (e.g., physical plant and equipment levy, instructional support, bond payments).

Prohibits the expenditure or use of school district foundation property taxes, collected under section 257.3 and allocated via tax increment financing, for urban renewal projects approved on or after January 1, 2025, that involve the planning, construction, or operation of stadiums or arenas primarily intended for professional sports teams. The bill is effective immediately upon enactment.

Key Points & Impacts

• Adds a new restriction preventing school district foundation property taxes from being used for urban renewal projects involving stadiums or arenas for professional sports teams.

• Applies only to projects approved on or after January 1, 2025.

• Targets projects including planning, construction, or operation of such sports facilities.

• Property taxes affected are those levied under section 257.3 and deposited into the special fund via tax increment financing (TIF).

• Does not retroactively affect projects approved before January 1, 2025.

• Seeks to limit the diversion of school district tax revenue to professional sports-related infrastructure.

• Immediate effective date upon enactment.

Enacts extensive reforms to Iowa’s property tax system, local government financial authority, and state and local tax laws. Major changes include new property tax levy limitations for counties, cities, schools, and other local entities; a phased-in increase to 100% state aid for schools and a reduction in the school foundation property tax; new formulas for assessment of residential and multiresidential property, with rollback percentages gradually eliminated; conversion of the homestead credit to a capped exemption; increases to veterans’ and elderly property tax exemptions; repeal of the mobile/manufactured home tax; new annual adjustment mechanisms for vehicle and fuel taxes; and changes to local option sales tax, government budgeting, and TIF rules. The bill also adds restrictions on the use of property tax-backed debt for general operations and establishes studies for future property tax rate and school assessment changes. Key Points & Impacts: Imposes stricter annual growth caps on county, city, and certain special district property tax levies, tying maximum increases to inflation and assessed value growth, and introduces new levy formulas for FY2027+; overhauls school funding by raising the state’s regular program foundation base per pupil to 100% by FY2028 and lowers the foundation property tax levy rate, with phased reductions for reorganized districts; establishes a new phased-in schedule (2026–2037) to increase the assessment percentages for residential and multiresidential property from 72.5% to 100%, and severs the agricultural-residential rollback link; converts the homestead credit (except for disabled veterans) to a capped value exemption, with exemption amounts and caps increasing annually until 2036, and adds a significant exemption for unencumbered homesteads for seniors.
Increases veterans’ property tax exemption from $4,000 to $7,000 (phased in), expands eligibility for disabled veteran/survivor credits, and modifies military service tax exemption schedules; repeals the mobile/manufactured home square foot tax, making such homes in parks/communities fully exempt from property tax; implements annual CPI-indexed adjustments to electric vehicle registration fees and motor fuel taxes, with legislative override and three-year adjustment pause mechanisms; and limits future use of property tax-backed borrowing for local government general operations, and directs interim studies to recommend new statutory levy caps and a path to full residential/multiresidential assessment.

• Phases out the homestead credit (except for disabled veterans) and replaces it with a substantial, phased-in homestead exemption, reaching 50% of taxable value (up to $350,000) for assessments after 2036, with enhanced exemptions for elderly and unencumbered homesteads.

• Raises the state foundation funding for schools to 100% of regular and special education costs from FY 2028 onward, dramatically reducing required local property tax levies for schools (foundation levy drops to $4.48662 per $1,000; reorganized districts have lower phased-in rates).

• Reestablishes a multiresidential property class (starting in 2027) and phases both residential and multiresidential properties back up to 100% assessment (rollback) over a decade, eliminating the ag-residential assessment limitation tie and most commercial/industrial rollbacks.

• Imposes strict new growth caps and calculation formulas on county, city, school, hospital, EMS, transit, assessor, and most other rate-limited levies, using formulas tied to prior-year actual tax dollars, new valuation, and a “budget adjustment factor” based on CPI.

• Reduces maximum levy rates for school PPEL, bond, and management levies, and for regional transit districts; prohibits use of debt for general operations after July 2026, and requires legislative review of future levy caps and property tax system design.

• Grants local governments the option to post annual property tax/budget notices online (rather than mailing individually) starting with FY 2028 budgets; modifies requirements for local option sales tax revenue statements to protect road funding allocations.

• Annually adjusts electric vehicle registration fees and most motor fuel taxes for CPI increases (capped at 3% annually), with appropriations and reporting procedures; applies new CPI adjustment formula to electric vehicle charging excise taxes.

• Protects foundation property tax revenue for schools from TIF division on qualified data centers beginning with FY 2028 taxes; modernizes the utility replacement tax task force scope; and amends administrative procedures for property transfer and taxpayer notification.

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.

Makes changes to Iowa law on victim protections, including: strengthening confidentiality and immunity for victim counselors, expanding and extending protective orders for victims of sexual and certain violent offenses, shortening timelines for sex offender registration and notification, expanding rights and information available to sexual assault victims, updating procedures for mental competency evaluations and civil commitments, revising restitution payment priorities, and updating training and definitions for victim services personnel. The bill also clarifies and broadens the definition of secondary victims and modifies requirements for sexual assault examiner qualifications.

Key Points & Impacts:

• Expands the definition of confidential communications for victim counselors and limits compelled disclosure to specific circumstances (written waiver, court order, imminent risk).

• Provides immunity from liability for victim counselors and centers acting in good faith when disclosing records as permitted by law.

• Allows lifetime protective orders for victims of certain sexual and violent offenses, and enables orders to remain in effect for the duration of the court's jurisdiction, with relaxed requirements for victim appearance at hearings.

• Reduces from five to three business days the time sex offenders have to register, update information, or notify law enforcement of changes in residence, employment, or student status, including new requirements for reporting vehicles and employment details.

• Requires law enforcement to store sexual assault evidence kits for at least 20 years (or the lifetime of a minor victim) and mandates written victim notification at least 60 days prior to disposal, with the right to request further preservation.

• Enhances sexual assault victims' rights, including rights to not be prevented from examination, to extended kit preservation, to be informed of kit status/results, and to receive written notice before kit disposal.

• Revises mental competency procedures: allows parties to request independent psychiatric evaluations, sets new timelines for hearings, and clarifies court findings and procedures for civil commitment in forcible felony cases.

• Reclassifies crime victim compensation program reimbursements as category 'A' restitution (ordered regardless of ability to pay), and updates restitution payment priority and definitions.

Makes changes related to campaign reporting and related requirements. Prohibits candidates from maintaining a political committee, extends filing deadlines, expands the definition of "published materials," and prohibits the chair and vice chair of the ethics and campaign disclosure board from being members of the same party.

Raises the threshold for passing school district bond proposals by requiring at least 80% voter approval, compared to the previous 60%. If a bond proposal fails, a four-year waiting period is imposed before another proposal can be submitted. Additionally, before calling a bond election, school districts must allocate at least 50% of the total project cost into designated funds. These changes are aimed at tightening the fiscal and procedural standards for school bond issuances.

Key Points & Impacts:

• Increases the required voter approval for school district bond issuances from 60% to 80%.

• Imposes a four-year moratorium on resubmitting failed school district bond proposals to voters.

• Requires school districts to designate and deposit at least 50% of the total project cost in one or more district funds before calling a bond election.

• Specifies that the deposited funds must be used solely for the intended project unless the bond proposition fails or is abandoned.

• Maintains the existing 60% approval requirement for bond issuances by counties, cities, townships, and other non-school district entities.

• Clarifies that bond elections must be held on the dates specified in state statute.

• Updates related code references to align with the new requirements for school district bonds.

• Adjusts statutory language to reflect the new 80% threshold and procedural requirements.

The bill makes comprehensive changes to Iowa's election laws and the duties of various county officers. It amends definitions, notification requirements for election investigations, procedures for voter registration cancellation, recount processes for public measures, absentee ballot tracking, and deadlines for candidate filings. It centralizes several election processes under the county commissioner of elections, tightens election security, updates handling of absentee ballots and recounts, alters identification procedures at polling places, and revises several county financial and record-keeping responsibilities. The bill also repeals certain code sections and sets effective dates for some provisions.

Key Points & Impacts

• Defines 'election day' to include all days of in-person voting, expanding the scope of election-related laws.

• Requires immediate state commissioner notification for any investigation into elections or election officials, and governor notification if the state commissioner is investigated.

• Allows cancellation of voter registration if marked incomplete, pending, or unconfirmed for 90 days without registrant response or correction.

• Substantially changes recount boards for public measures, consolidating recount responsibilities under the county commissioner and staff, and modifies recount petition thresholds for public measures requiring a 60% affirmative vote.

• Centralizes local and school election filings, objections, and contest processes with the county commissioner of elections instead of city clerks or school board secretaries, standardizing deadlines and procedures.

• Removes the ability for voters to establish identity by attestation from another voter (i.e., eliminates subsections 4 and 5 of Section 49.78), tightening voter ID requirements.

• Requires absentee ballot tracking to include notification options (email, text, etc.) for status changes and expands postal barcode requirements for absentee ballots, with effective date for tracking July 1, 2027.

• Shifts several county financial duties and reporting from county auditors to county treasurers and modifies reporting and notification requirements for school fund apportionments and waste/trespass recoveries.

Prohibits foreign nationals from contributing to or otherwise influencing ballot issue campaigns, either directly or indirectly. Political committees must now obtain affirmations from donors that they are not foreign nationals and have not accepted significant foreign funds in the preceding four years. Treasurers must affirm compliance with these rules in campaign filings. The bill also introduces strong privacy protections for donors to tax-exempt organizations during investigations, limiting disclosure and collection of donor identities unless directly related to violations. Violations incur substantial civil and criminal penalties.

Key Points & Impacts:

• Defines 'directly or indirectly' and 'foreign national' for campaign finance law, expanding the scope of prohibited foreign involvement.

• Requires political committees advocating on ballot issues to obtain affirmations from donors that they are not foreign nationals and have not received over $100,000 from foreign nationals in the last four years.

• Mandates that political committee treasurers include affirmations in reports stating no receipt of prohibited foreign funds or donations from prohibited sources.

• Prohibits foreign nationals from making independent expenditures or influencing ballot issue campaigns, directly or indirectly.

• Strikes the previous, narrower definition of 'foreign national' from existing law and replaces it with a broader, more detailed definition.

• Requires independent expenditure statements regarding ballot issues to affirm that no foreign funds over $100,000 have been or will be accepted during the relevant period.

• Establishes strict privacy protections for donors to tax-exempt organizations during campaign finance investigations, with disclosure only allowed in cases of proven violation.

• Imposes civil penalties (minimum $10,000 or triple the unlawful amount) and makes willful violations a serious misdemeanor, including potential jail time and fines.

Prohibits the use of school property as a satellite absentee voting if the election is school-related. Directs the removal of all published material about a public measure be removed from a voting location (currenlty only related to candidates).

Creates a nonrefundable individual income tax credit for recent graduates of Iowa Board of Regents institutions who paid nonresident tuition and are now Iowa residents employed as healthcare professionals, teachers, licensed veterinarians, or professional engineers. The credit equals the difference between nonresident and resident tuition rates for the years attended. Excess credit can be carried forward up to five years but cannot benefit those who become nonresidents. The Board of Regents is required to publish tuition data for transparency. The bill applies retroactively to tax years beginning on or after January 1, 2026.

Key Points & Impacts:

• Establishes a nonresident tuition tax credit for individuals who graduated from an Iowa Board of Regents institution within the past three years and are now employed in Iowa as a healthcare professional, teacher, licensed veterinarian, or professional engineer.

• The tax credit amount is 100% of the difference between nonresident and resident tuition paid by the graduate for each year of attendance.

• Credit is nonrefundable, but unused amounts may be carried forward for up to five years or until exhausted, whichever comes first.

• If the taxpayer becomes a nonresident, remaining credit cannot be applied to future tax liability.

• Married taxpayers filing separately must allocate the credit proportionally to earned income.

• Board of Regents must publish a decade's worth of tuition data for both resident and nonresident students at each institution.

• Applies retroactively to tax years beginning on or after January 1, 2026.

• Targets high-need professions (healthcare, teaching, veterinary, engineering) to encourage retention of graduates in Iowa.

Creates the EDGE Program to incentivize headquarters expansion and high-wage job creation, establishes a new training fund for business incentives, repeals the New Jobs Tax Credit, modifies the Major Economic Growth Attraction Program's definitions and deadlines, and mandates regular statewide electric load forecasting and transmission planning. It also creates mechanisms for state agencies to collect and use utility data and funding for energy planning, and restricts certain job training credits to agreements before a specified deadline.

Key Points & Impacts:

• Establishes the EDGE Program to provide refundable qualifying wage tax credits for eligible businesses creating or retaining high-wage corporate jobs at Iowa headquarters, with specific eligibility, compliance, and clawback provisions.

• Creates a Business Incentives for Growth Program Training Fund, funded by up to 1.5% of eligible business payroll withholdings, to reimburse project-specific training expenses; prohibits double-dipping for the same training purpose.

• Repeals the New Jobs Tax Credit (Code section 422.11A), with immediate effect upon enactment, but preserves rights for credits issued or awarded before the effective date, including carryforward claims.

• Amends the Major Economic Growth Attraction Program by updating the definition of 'foreign adversary' and extending the sunset date for authorizing incentives or exemptions from January 1, 2027, to January 1, 2030.

• Requires the Economic Development Authority to commission Iowa State University to produce biennial public reports on statewide and regional electricity load forecasting and transmission expansion plans, with input from consumers and the electric industry.

• Empowers the utilities commission to compel all electric utilities to share information with Iowa State University for energy planning, and allows these reports to serve as evidence in commission proceedings.

• Creates the Electric Transmission System Expansion Planning and Analysis and Load Forecasting Fund, funded by mandatory utility remittances, and appropriates it for the state's energy planning reports.

• Limits the new jobs credit from withholding under the Iowa Industrial New Jobs Training Program to agreements entered into on or before June 30, 2026, with corresponding adjustments to eligible project cost funding mechanisms.