State agencies fund economic development and housing renewal work

The economic development authority may use designated state funds for business support, tourism, arts, research, infrastructure, and related programs. The funding covers the economic development authority, businesses receiving assistance, tourism and arts activities, and research or commercialization projects. Businesses receiving assistance must employ people legally authorized to work in the United States and may face repayment of assistance for knowingly employing unauthorized workers. The authority must submit an annual report on financial assistance awarded during the prior fiscal year. Funds for geothermal systems that melt snow or ice from streets or sidewalks may not be used. The listed appropriations apply from July 1, 2026, through June 30, 2027; some unused funds remain available through the following fiscal year.

The workforce department, community colleges, and state universities may use designated funds for job training, adult education, apprenticeships, reentry services, research, technology, and business support. The provisions cover workforce offices, people seeking job skills, people leaving correctional facilities, people with disabilities, English-language learners, community colleges, and the three state universities. The workforce department must work with corrections staff on employment resources for people in correctional facilities. Some university technology and research funds require matching money or private contributions. Entities receiving certain funds must testify about how they spent the money if requested by the legislative appropriations subcommittee. The listed appropriations apply from July 1, 2026, through June 30, 2027; some unused funds remain available through the following fiscal year.

The Iowa Finance Authority must provide housing renewal funds to a nonprofit Iowa affiliate, which awards assistance to eligible participants. Eligible participants are cities, counties, local-government groups, and qualifying nonprofit organizations; projects may acquire, repair, resell, demolish, or redevelop housing units and blighted structures. Twenty-five percent of program funds must support participants in the 88 least populated counties. An award may not exceed $100,000 per ownership unit, and the authority may use no more than 5 percent of the fund for administration and oversight. Completed units must be sold to buyers whose household income is no more than 120 percent of area median income and who use the unit as their primary residence. A resale restriction must prevent sales to buyers above that income limit for five calendar years after the first qualifying sale. The program receives $550,000 for the fiscal year beginning July 1, 2026; participants generally have 36 months after signing a contract to finish projects, and no activity for 12 months can require repayment unless extra time is allowed for good cause.