House Study Bill 764 would require greater legislative oversight of federal funds so Iowa fully understands the costs, conditions, and long-term obligations before accepting them. Concerns about the effort being “time consuming” highlight the core problem—too often, key details aren’t known when funding decisions are made. Lawmakers are open to refining the bill to make it workable, but its centr...
The Iowa House is considering a proposal that would require legislative approval before state agencies pursue or accept major federal grants, ensuring that elected lawmakers, not just administrators, have a say in decisions that can commit taxpayers to long-term obligations. The bill mirrors key components of ITR Foundation’s Fiscal Independence Act by combining legislative oversight with greater ...
Iowa’s reliance on federal funds flowing through our state—which cumulatively exceed the $9.4 billion state General Fund—reveals a growing imbalance that puts Iowa at risk. With Congress considering ways to rein in federal deficits by cutting spending on programs like Medicaid or food assistance (SNAP), Iowa’s General Fund might be forced to make up the difference. This would give Iowa taxpayers s...
Local governments in Iowa have grown increasingly reliant on federal funding. Since 2009, cities across the state have received an average of $416 million annually from federal sources. In fiscal year 2025 alone, Iowa cities took in $545 million in federal dollars—forming a significant share of their total revenue. At first glance, this might seem like a win for local taxpayers. After all, federal...
Subheading 30-Second Summary: Iowa’s reliance on federal funds significantly impacts the state’s fiscal flexibility, often imposing restrictions and obligations that limit its ability to implement independent tax and budget policies. To address this challenge, Iowa must adopt two key legislative changes: creating a federal funds inventory and requiring agency guidance disclosure&nbs...
Senator Kamala Harris (D-CA) wants Uncle Sam to spend $315 billion on teacher salaries. This is dangerous for states, school districts, and is not the role of the federal government. Senator Kamala Harris (D-CA), who is also a current Democrat presidential candidate, recently proposed a new federal program that would spend $315 billion over 10 years to increase teacher […]
Federal funds aren’t “free”—they come with strings attached, can drive higher state spending, and are increasingly unstable given Washington’s fiscal position and growing national debt. Earlier in the session, HSB 764 proposed a stronger approach with upfront reporting, full transparency, and legislative approval of major federal funds, ensuring lawmakers could evaluate commitments before they wer...
Fitch Ratings warns that Washington’s growing debt and spending reductions are pushing more fiscal responsibilities—like SNAP and Medicaid costs—onto state governments, exposing them to greater financial risk. Iowa remains fiscally strong thanks to conservative budgeting, but with 34% of its revenue tied to federal funds, changes from the “One Big Beautiful Bill” and future federal austerity could...
As part of his effort to reduce federal spending, President Donald Trump directed his administration to scrutinize budgets and cut unnecessary programs. Secretary of State Marco Rubio recommended eliminating $1 million in grant funding for the University of Iowa’s International Writing Program (IWP), which had received federal support for more than 58 years. The IWP is described “the oldest and l...
The “One Big, Beautiful Bill” and proposed DOGE spending cuts have sparked widespread concern among state and local leaders who fear the loss of federal funds, particularly for programs like Medicaid and SNAP. This reaction exposes the extent to which state and local governments have become reliant on federal dollars—despite the Constitution’s original design for a limited national government and ...
Iowa has made great strides in tax reform, but now that the income tax rate has been right-sized, the era of massive budget surpluses is likely over. Future tax cuts will require a disciplined approach to budgeting. One key strategy is reclaiming federalism by reducing Iowa’s reliance on federal funds, which often come with costly mandates and allow for little state control or input. This approach...
It’s about restoring accountability and empowering state governments to innovate and address challenges unique to their populations. States have proven their ability to implement effective reforms when given the freedom to do so. The case for state-level governance over federal intervention is clear: states are more attuned to the unique needs of their citizens and can manage resources more effect...
By shining a light on the obligations tied to federal funds, Iowa can take steps to reduce dependency on federal dollars, creating more room for tax cuts and future-proofing the state’s finances. Iowa’s recent history of tax reform has been marked by four rounds of significant income tax cuts with an ongoing interest among lawmakers and taxpayers in further reductions, […]
State and local governments have enjoyed hundreds of billions of dollars in interest cost savings by refinancing their debt, but that all changed in 2018, costing taxpayers billions. Iowa’s state and local governments have almost $21 billion in outstanding debt obligations, with two-thirds of that total borne by local property taxpayers. The combined debt of Iowa’s cities, counties, and schools [&...
The State of Iowa and local governments would be wise to reduce their dependence on federal funding. The U.S. House of Representatives returned to Washington, D.C. after its summer recess and went right to work. A looming federal budget battle may result in a government shutdown, and both chambers of Congress only have a few more working days scheduled before the September […]
This article was published in National Review. On the current path, it seems inevitable that the federal government won’t live up to its obligations to the states. State policy-makers need to find ways to push back against Washington, D.C. The late constitutional scholar James McClellan described federalism as a principle that the American Founders had woven “into the constitutional fabric” of [&h...
Given the Center for Disease Control’s (CDC’s) recent easing of its COVID-19 guidelines, the national public health emergency appears near its end. The technical end of this emergency declaration will signify that the pandemic is officially over. And while that development will be cause for celebration, it will also trigger a major event for state governments and citizens enrolled in Medicaid.
By Sarah Curry, DBA The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to local municipalities across the country through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but through hard work and fortitude, governments survived the pandemic with little lasting fiscal damage. Now […]
By Sarah Curry, DBA The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to municipalities across the country through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but our governments survived the pandemic with little lasting fiscal damage. Now Iowa’s cities and counties face […]
By Sarah Curry, DBA The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to municipalities across the country through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but our governments survived the pandemic with little lasting fiscal damage. Now Iowa’s cities and counties face […]
By Sarah Curry, DBA The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to local municipalities across the country through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but through hard work and fortitude, governments survived the pandemic with little lasting fiscal damage. Now […]
By Sarah Curry, DBA The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to local municipalities across the country through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but through hard work and fortitude, governments survived the pandemic with little lasting fiscal damage. Now […]
By Sarah Curry, DBA The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to municipalities across the country through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but our governments survived the pandemic with little lasting fiscal damage. Now Iowa’s cities and counties face […]
By Sarah Curry, DBA The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to municipalities through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but our governments survived the pandemic with little lasting fiscal damage. Now Iowa’s cities and counties face the task of […]
The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to municipalities through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but our governments survived the pandemic with little lasting fiscal damage. Now cities and counties face the task of spending ARPA funds while complying […]