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91st General Assembly · Funnel one-pager · Monday, November 9, 2026

HSB 642: Relating to indirect costs charged to state-funded grants, and including applicability provisions

Became HF 2304 · Its progress continues under the new number.

What it does

This bill provides that indirect costs, as defined in the bill, charged to a state-funded grant awarded or amended on or after July 1, 2026, must not exceed percent of the total grant amount and prohibits a department or establishment from approving a budget or reimbursement request that would exceed that limit unless expressly authorized by law. A grantee is prohibited from reclassifying an indirect cost as a direct cost and from charging an indirect cost on top of a direct cost that includes an allocable share of indirect costs.

Sponsors

Not listed

Cost

No fiscal note

House subcommittee · named January 29, 2026

  • Rep. Shannon Lundgren (R) · shannon.lundgren@legis.iowa.gov
  • Rep. Larry McBurney (D) · larry.mcburney@legis.iowa.gov
  • Rep. Matt W. Windschitl (R) · matt.windschitl@legis.iowa.gov

Lobbying · 0 for, 19 against

Against: Coalition for Family and Children's Services in Iowa; Easterseals Iowa; Ellipsis; Four Oaks; Free Clinics of Iowa; Iowa Alliance of YMCA's; Iowa Association of Community Providers; Iowa Behavioral Health Association (IBHA); Iowa Coalition Against Domestic Violence; Iowa Community Action Association; Iowa Homeless Coalition; Iowa Housing Partnership; and 7 more

In plain words

  1. January 29, 2026Filed in the House and sent to the State Government committee
  2. January 29, 2026House subcommittee named: Lundgren, McBurney and Windschitl
  3. February 4, 2026Subcommittee recommended passing it
  4. February 4, 2026Approved by the House committee
  5. February 4, 2026Committee vote: 14–9
  6. February 6, 2026Approved by the House committee, and given a new number: HF 2304

From public records at legis.iowa.gov, compiled by Funnel (iowafunnel.com), an independent, nonpartisan site. Current as of Monday, November 9, 2026. https://iowafunnel.com/bills/91/HSB642