Establishing the national guard service professional qualification scholarship program

Description

House File 117 creates a new scholarship for members of the Iowa National Guard within the College Student Aid Commission (CSAC) and establishes eligibility criteria. The Program provides scholarships to members of the Iowa National Guard who are participating in an educational program leading to a credential that is approved by the Adjutant General and offered by Iowa community colleges, Iowa Regents universities, and Iowa private colleges and universities.

The Bill requires the Adjutant General to publish and maintain a list of approved educational programs. “Credential” is defined in the Bill as a postsecondary certificate or other competency-based credential that is not authorized for federal student aid, but does not include an associate degree or any degree beyond an associate degree.

The Bill authorizes the Adjutant General to expend funds appropriated to this Scholarship Program and restricts the individual scholarship awards from exceeding the total cost charged by the institution attended by the awardee. The Adjutant General is required to certify the eligibility of applicants and awards paid to CSAC, and all amounts due to the educational institution will be paid directly by the CSAC to that institution. The Bill authorizes the Adjutant General to expend unencumbered and unobligated funds at the close of the fiscal year from the National Guard Service Scholarship Program for the Scholarship Program established in the Bill.

The Bill requires the CSAC to adopt administrative rules for the new Program.

Background

The National Guard Service Scholarship Program was created in 1944 under Iowa Code section 256.210. The statutory maximum is established annually by the Iowa Adjutant General. The maximum amount for the 2023-2024 academic year was approximately $8,800, or the tuition charged to the recipient, whichever was lower. The following are criteria for this Program:

• Must be an Iowa resident and a member of the Iowa Army or Air National Guard for each term that benefits are received.
• Must satisfactorily complete required Guard training and maintain satisfactory performance of required Guard duty.
• Must be pursuing a certificate or undergraduate degree at an eligible Iowa college or university and maintain satisfactory academic progress.
• Must complete the Free Application for Federal Student Aid (FAFSA) and apply for all nonrepayable State and federal financial aid for which the National Guard member is eligible.
• Must apply to the Adjutant General of Iowa, on forms prescribed by the Adjutant General, who shall determine eligibility and whose decision is final.

Assumptions

• The Department of Education estimates initial system one-time programming costs totaling $116,000 in FY 2026, and ongoing system maintenance costs of $11,000 per year thereafter.
• The Department of Education estimates annual administrative costs of $25,000, increasing by 2.0% each year thereafter.
• The cost of degree programs is unknown.
• The number of potential applicants for this Program is unknown.

Fiscal Impact

The number and cost of new scholarships issued under HF 117 is unknown. The creation of a new Scholarship Program is estimated to require expenses totaling $152,000 in FY 2026 to the CSAC. This includes $116,000 for one-time programming costs, $11,000 in ongoing system maintenance costs, and annual staff administration costs of $25,000. Figure 1 — Estimated Costs of House File 117

Sources

• Department of Education
• Iowa National Guard