Iowa Legislature bans funding for "guaranteed income" programs

Guaranteed income programs like one started in the Des Moines metro last year could face major funding hurdles under legislation awaiting the governor's signature.

Why it matters: There's disagreement about whether the programs are unnecessary tax dollar handouts or paths out of poverty for some families, Iowa Public Radio reports .

Catch up fast: UpLift — The Central Iowa Basic Income Pilot is a $2.5 million program led by The Harkin Institute, featuring public and private funding, that launched early last year.

• The program provides a $500 monthly stipend to 110 low-income families in Polk, Dallas and Warren counties over two years, with no conditions on how the money is spent.

Driving the news: House File 2319 prohibits Iowa's local governments from making payments to guaranteed income programs that do not have work requirements starting Jan. 1, 2025.

• The bill was sent to Gov. Kim Reynolds last week, giving her about a month to sign or veto the measure.

The intrigue: Basic income programs exist in other states, but UpLift is the first to include urban, suburban and rural areas in a single pilot model.

• Researchers are comparing participants' health and well-being those of families who do not receive the stipends.
• Anecdotally, participants are so far indicating that the money is largely being spent to meet basic needs like food and housing, Nalo Johnson, CEO of Mid-Iowa Health Foundation, a partner in the pilot, tells Axios.

Follow the money: Local governments allocated some of the money for the program using federal pandemic allocations, including $500K from DSM, $250K from Polk County, $100K from Urbandale and $15K from Windsor Heights.

• Seven other groups , including the Principal Foundation and United Way of Central Iowa, contributed the rest.

The big picture: Republican lawmakers in Texas, South Dakota, Arizona and Wisconsin have also banned or attempted to ban the programs.

• Meanwhile, politicians in several blue states including Washington and Minnesota are pushing to expand them, Stateline reports .

Behind the scenes: Iowans for Tax Relief Foundation issued a statement just before the start of this year's legislative session warning the programs are a "wealth redistribution tactic" that could exacerbate labor shortages.

• The bill was introduced a few months later with lobbyists from multiple conservative-leaning groups like Americans for Prosperity registering support.
• More than 20 groups registered in opposition of the bill, however.

What they're saying: Studies like UpLift could help governments evaluate how to improve people's lives, Sen. Sarah Trone Garriott, D-West Des Moines, told IPR.

• But some Republicans, including Sen. Brad Zaun, Urbandale, argued the programs are a form of socialism.

What's next: UpLift will continue under its full 24-month plan.

• That's because of multiple non-government funding sources, Johnson says.

What we're watching: UpLift's final analysis will be published in summer 2026.