Bills › 91st General Assembly

SSB 3044Renumbered as SF 2168 · January 29, 2026

Relating to programs and procedures of the department of workforce development and including effective date provisions

Proposed by the Department of Workforce Development · their explanation · all agency proposals

Topics:State government Jobs & workers

Same legislation: HSB 556, SF 2168, HF 2327

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedJanuary 20, 2026
Done: SubcommitteeJanuary 20, 2026
Done: Senate committeeJanuary 29, 2026
Skipped: Passes the SenateContinued as SF 2168
Next: House committee
Next: Passes the House
Next: To the Governor
Next: Signed into law

Became SF 2168 → Its progress continues under the new number. Go to SF 2168 What’s a funnel?

What’s in it

AI summary The Department of Workforce Development would start a program to give personalized help to people looking for new jobs. People participating in this program would be considered to be actively looking for work when applying for unemployment benefits. The bill also allows the department to send official notices through email or online portals instead of using the mail. Finally, it ends the summer youth intern pilot program.¹

Read the official explanation

This bill relates to programs and procedures of the department of workforce development (department). DIVISION I —— REEMPLOYMENT CASE MANAGEMENT PROGRAM. The bill requires the department, as a required part of its administration of unemployment compensation benefits, to operate a reemployment case management program. The program shall provide individualized reemployment services to claimants who are no longer attached to work. The bill specifies the time period for the services. The bill provides that an individual is considered to be earnestly and actively seeking work for purposes of eligibility for benefits if the individual is participating in and compliant with the program. DIVISION II —— UNEMPLOYMENT BENEFITS —— MEANS OF COMMUNICATION. The bill replaces various references to communication by mail with communication in the department’s online portal or by electronic mail. The references relate to determination of eligibility for unemployment benefits and determination of employer contribution rates for such benefits. The bill authorizes the director of the department to establish by rule an alternate method or methods for employers and individuals to provide required information relating to unemployment benefits to the department and for the department to provide required notifications to an employer or an individual in circumstances when it is established that the employer or individual is unable to provide the information to the department by electronic means or is unable to receive notifications from the department by electronic means. DIVISION III —— SUMMER YOUTH INTERN PILOT PROGRAM —— REPEAL. _____ The bill repeals the summer youth intern pilot program. This division takes effect June 30, 2026.

Changed since by amendments H-8344, S-5071, S-5070; see Amendments.

Full bill text · What changed before it passed²

Senate subcommittee

Named January 20, 2026. On January 27, 2026 it recommended amendment and passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

AI summary This bill changes apprenticeship training eligibility, codifies a reemployment program for unemployment claimants, and transfers funds between unemployment accounts. It is estimated to increase expenses for Iowa Workforce Development by approximately $1.0 million in fiscal year 2027 and by $2.0 million in each subsequent fiscal year. Additionally, the bill increases the annual appropriation for apprenticeship training from $3.0 million to $4.5 million beginning in fiscal year 2027 and increases the maximum transfer of certain withholding payments to $9.3 million. On July 1, 2026, the bill is estimated to transfer $149.9 million to the Unemployment Compensation Trust Fund and $16.5 million to the Special Employment Security Contingency Fund.³

Read the fiscal note

Description

Senate File 2168 relates to workforce programs. The Bill has 11 divisions. The following divisions of the Bill have minimal fiscal impacts:

Division I — Iowa Registered Apprenticeship Act
Division II — Iowa Plumber, Mechanical Professional, and Contractor Licensing Act —

Apprenticeships

Division IV — Career Training Physical Expansion Program
Division V — Apprenticeship Training in School Districts
Division VI — High-Demand Jobs and Scholarship Eligibility
Division VII — Career and Technical Secondary Authorizations
Division IX — Summer Youth Intern Pilot Program — Repeal
Division X — Membership of Workforce Development Board

The following divisions of the Bill have a fiscal impact and are described in further detail below:

Division III — Iowa Apprenticeship Act
Division VIII — Reemployment Case Management Program
Division XI — Unemployment Compensation Reserve Fund — Transfer to Unemployment

Trust Fund

Division III — Iowa Apprenticeship Act

Description

Division III of the Bill adds intermediary sponsors as an entity eligible to provide apprenticeship training under Iowa Code chapter 84E. An apprenticeship sponsor whose apprentices receive contact hours from a lead apprenticeship sponsor is not eligible for financial assistance. The Division increases a standing appropriation from the Workforce Development Fund (WDF) Account to the Apprenticeship Training Program Fund from $3.0 million to $4.5 million beginning in FY 2027. The Division also increases the maximum transfer of 260E withholding payments to the WDF Account from $7.8 million to $9.3 million.

Background

Under the 260E Program, a participating business partners with a community college, which sells bonds to finance the cost of training for new employee positions. The business diverts 1.5% of gross payroll from the State withholding taxes generated by the new positions to the community college to retire the bonds.

After the training obligation of a business under the 260E Program has been paid off, an amount equal to the withholding payments is credited to the WDF Account for 10 years, up to a maximum of $7.8 million annually. Moneys in the WDF Account are appropriated to Iowa Workforce Development (IWD) to be used for apprenticeship training and job training.

Assumptions

Participation in the 260E Program will not change during the projection period.

Fiscal Impact

Division III of the Bill increases the annual standing appropriation from the WDF Account to the Apprenticeship Training Program Fund from $3.0 million to $4.5 million. The Division also increases the maximum transfer from the 260E withholding payments to the WDF Account from $7.8 million to $9.3 million.

Division VIII — Reemployment Case Management Program

Description

Division VIII of the Bill codifies the Reemployment Case Management (RCM) Program and requires an individual to participate in the RCM Program in order to receive unemployment insurance benefits. The RCM Program provides individualized reemployment services to unemployment insurance claimants who are no longer attached to work. The Division requires IWD to adopt administrative rules regarding participation in the RCM Program.

Background

The RCM Program was created in January 2022 and has been operated using federal COVID-19 funds that must be expended by December 31, 2026. In FY 2025, approximately 19.0 full-time equivalent (FTE) positions were used to operate the RCM Program.

Assumptions

Federal funds will be used to operate the RCM Program through December 31, 2026. State funding will not be used for the RCM Program during the first half of FY 2027.
A funding source for operations beyond December 31, 2026, is not identified in the Bill.
Use of the unemployment insurance system and the RCM Program will not change during the projection period.
The RCM Program created in the Bill will be significantly similar to the RCM Program currently operated by IWD.
The existing 19.0 FTE positions will continue to be used to operate the RCM Program beyond FY 2025.

Fiscal Impact

Division VIII of the Bill is estimated to increase expenses to IWD by approximately $1.0 million in FY 2027 and by $2.0 million in each subsequent fiscal year.

Division XI — Unemployment Compensation Reserve Fund — Transfer to

Unemployment Trust Fund

Description

Division XI of the Bill amends 2024 Iowa Acts, chapter 1162 (Work-Based Learning Act), by transferring any remaining unencumbered or unobligated moneys in the Unemployment Compensation Reserve Fund (Reserve Fund) to the Unemployment Compensation Trust Fund (Trust Fund) on July 1, 2026. Interest earned on moneys in the Reserve Fund will be transferred to the Special Employment Security Contingency Fund on July 1, 2026.

Background

The balance of the Reserve Fund is $166.4 million as of March 6, 2026. 2024 Iowa Acts, chapter 1162, originally transferred moneys in the Reserve Fund to the following destinations:

$30.0 million to the Workforce Opportunity Fund.
Any interest earned to the Special Employment Security Contingency Fund.
Any remaining unencumbered or unobligated moneys to the Trust Fund.

Assumptions

The balance of the Reserve Fund will not change between March 6, 2026, and July 1, 2026.
The Reserve Fund balance is unencumbered or unobligated.
The total interest earned that will be transferred includes interest earned in prior fiscal years.

Fiscal Impact

Division XI of the Bill is estimated to transfer $149.9 million to the Trust Fund and $16.5 million to the Special Employment Security Contingency Fund from the Reserve Fund on July 1, 2026.