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SF 645

A bill for an act relating to and making appropriations for the economic development of the state, including to the economic development authority, Iowa finance authority, department of workforce development, and the state board of regents and certain regents institutions, and extending the repeal date for the housing renewal pilot program.

2025-2026 Regular Session

SF 645 funds Iowa's economic development (EDA) for FY25-26, adds workforce eligibility for state aid, and extends the Housing Renewal Pilot repeal to 2028.

Explanations of votes.
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Bill Summary · SF 645

Summary — SF 645 (2025): Appropriations for Economic Development; housing pilot repeal extended

Status: Enacted (Governor signed June 11, 2025).
Introduced: April 30, 2025. Amendments: S‑3151 adopted. Final votes — Senate: 34–14; House: 61–30. Explanations of votes filed June 27, 2025.

Purpose and intent

SF 645 provides fiscal year 2025–2026 appropriations and policy direction to support Iowa’s economic development activities. It funds the Economic Development Authority (EDA) and related programs (tourism, World Food Prize, councils of governments), directs uses of funds, places accountability goals on the EDA, adds contractual workforce eligibility requirements for recipients of state financial assistance, funds certain workforce and education activities administered by the Department of Workforce Development (DWD), and extends the repeal date for the Housing Renewal Pilot Program.

Key appropriations and program provisions

  • Economic Development Authority (EDA)
    • General fund appropriation: $12,921,510 for FY 2025–2026; up to 112.50 FTE positions.
    • Authorized uses: salaries/operations, business and community development, small business programs, international trade/export assistance, workforce recruitment, partner state program, tourism operations, community development block grant, and transfers to a fund under Iowa Code §15.313 for strategic infrastructure.
    • Nonreversion: unspent FY26 EDA funds remain available through the end of FY27 (does not revert at year end).
    • Specific allowed uses include grants for local workforce recruitment (targeting former residents and former students), financial assistance to early‑stage firms started by women entrepreneurs, and grants/loans/forgivable loans for advanced research and commercialization in value‑added agriculture, advanced technology, and biotechnology.
    • Prohibition: EDA funds may not be used for programs that install geothermal systems to melt snow/ice from streets or sidewalks.
  • Targeted line items (explicit in enrolled/Amendment S‑3151 text)
    • World Food Prize: $500,000 (in lieu of standing appropriation).
    • Assistance to Councils of Governments: $350,000.
    • Tourism Office: $1,050,000 for advertising, promotion, placement and implementation of the EDA’s tourism strategy.
  • Department of Workforce Development (selected items from bill text)
    • Allows funding for internships in STEM with eligible Iowa employers (per Iowa Code §84A.21).
    • Caps and transfers: up to $150,000 for adult education and literacy program implementation (§84A.19); $1,257,000 in grants to community colleges for adult basic education including ESOL; $210,000 transferred to DHS for international/new Iowan resource services in a county with population over 350,000 (per 2020 census).
  • Employment eligibility and contract conditions
    • Businesses receiving financial assistance via EDA appropriations must ensure new and retained jobs are filled by U.S. citizens or persons authorized to work in the U.S. Vendors must provide periodic assurances of compliance.
    • Assistance is subject to recapture (in whole or part) if a business is found to knowingly employ individuals not legally authorized to work in Iowa.
  • Housing Renewal Pilot Program
    • Repeal date extended: statutory section repealed date changed from July 1, 2025 to July 1, 2028.

Who is affected

  • State agencies receiving appropriations and their employees (EDA, DWD, Iowa Finance Authority, State Board of Regents and certain regents institutions referenced in the bill title).
  • Local governments, councils of governments, community colleges, tourism organizations, and recipients of EDA grants or loans (including small businesses, women‑led startups, and communities conducting workforce recruitment).
  • Employers who receive state financial assistance — subject to workforce eligibility verification and potential recapture.
  • World Food Prize and tourism partners receiving state support.
  • Participants in adult education/ESOL and STEM internship programs.
  • Housing Renewal Pilot Program stakeholders (benefit from extended program life through 2028).

Procedural/timeline notes

  • Amendment S‑3151 replaced the original text and was adopted (May 13, 2025).
  • Passed both chambers May 13, 2025; enrolled May 23; signed by Governor June 11, 2025.
  • The appropriations apply to FY 2025–2026 (July 1, 2025 – June 30, 2026). Unencumbered EDA funds are available through the end of FY 2027 per the bill’s nonreversion provision.

If you want, I can produce a table listing all line‑item amounts in the bill (including regents / Iowa Finance Authority items) — the provided document is partially truncated, so I would pull the remaining line items if you’d like a complete dollar‑by‑dollar breakdown.

Compiled from official sources — confirm details with the bill’s official record.

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