The following is a legislative update from Republican State Rep. Shannon Latham, representing portions of Franklin, Hamilton, Story and Wright counties in Iowa House District 55:
Week 16: Economic Development Budget Passes
Week 16 marks the second week of legislative overtime. Although per diem pay ended and our clerks were dismissed on April 21, we cannot adjourn for the final time this legislative session until the budget bills pass.
A final agreement was reached last week with the Iowa Senate on the overall state budget target, so work continued this week on the specific details within each budget bill.
This week the Iowa House of Representatives passed the Economic Development Budget, which is often referred to as the “Eco Devo” budget. Then on Wednesday the Senate passed House File 2772, so this bill is on its way to the governor’s office for her signature.
As the chair of this House Economic Development Budget Subcommittee, I worked with my colleagues to fund programs designed to attract businesses, strengthen our workforce, as well as support tourism, small businesses, and housing.
A major focus of this year’s budget is workforce development. Key investments include:
- $2.35 million for the Manufacturing 4.0 program, helping businesses adopt advanced technologies like robotics, cybersecurity, and automation.
- $11.7 million for the Business Incentives for Growth Program, including support for Main Street infrastructure projects.
- $16 million for Skilled Worker Job Creation Funds through Iowa’s Regent universities, with a strong emphasis on rural economic growth and entrepreneurship.
- $6.9 million for Iowa Workforce Development to support job seekers, employers, students, and communities.
- $387,158 for the Offender Reentry Program, which connects individuals leaving prison with employment opportunities before release.
Several targeted initiatives within this funding aim to address workforce shortages:
- $1 million for UNI’s Neighboring States Initiative to attract out-of-state students by offering in-state tuition. Nearly half of these students remain in Iowa after graduation, helping grow our workforce.
- $600,000 to expand nursing programs, addressing one of Iowa’s most critical workforce shortages. This investment will increase enrollment, expand faculty, and provide advanced training tools to prepare more nurses for the field.
- Additional funding supports bioscience innovation at the University of Iowa and Iowa State University.
The budget also includes important support for Iowans with disabilities:
- $6.2 million for Vocational Rehabilitation Services, which helps individuals with disabilities find employment and live independently. Each state dollar draws down significant federal matching funds.
- $138,506 for the Entrepreneurs with Disabilities Program, supporting small business development.
Affordable housing is another major priority in this year’s budget. Investments include:
- $873,000 for the Home and Community-Based Services Rent Subsidy Program, helping individuals with disabilities live independently while reducing reliance on costly institutional care.
- $550,000 to make the Housing Renewal Program permanent. This program redevelops blighted properties into affordable housing, often at a lower cost than new construction.
The Housing Renewal Program has already demonstrated success. In communities like Mason City, partnerships have transformed neglected, crime-prone properties into safe, attractive homes. By increasing homeownership and revitalizing neighborhoods, this program not only improves quality of life but also strengthens public safety and local economies.
As I’m writing this, work continues on the budget bills. It’s very likely that my final 2026 legislative update will be distributed on May 8. In the meantime, you can tune into live audio from the Iowa House and the Iowa Senate floor at https://www.legis.iowa.gov. This website also shows the bills on the daily debate calendar.
It was my honor to floor manage the Economic Development budget this week at the Capitol. In my role as chair of the House Economic Development Budget Subcommittee, I collaborated with fellow legislators to invest in programs that attract businesses, build a strong workforce, and support tourism, small businesses, and housing across Iowa. Proud to be part of work that helps our communities grow and thrive.
