Hunter
03/20/25
A bill that suspend state economic development funding to Iowa’s four most populous counties had its first House hearing Wednesday.
The counties affected would be Polk, Linn, Scott and Johnson, which have received grant funds from the Iowa Economic Development Authority along with tax incentives and loan programs. If the bill is signed into law, it would impose a three-year moratorium on funds to the counties effective July 1st.
The Gazette reports opponents of the bill, including representatives from Professional Developers of Iowa, the Iowa Chamber Alliance and the Iowa Travel Industry Partners, argued the bill could hinder economic growth and regional development. Republican House lawmakers who represent rural communities said the bill aims to address economic disparities by focusing incentives on rural areas they say have been historically underserved.
Republican representative John Wills of Spirit Lake, believes the rural areas are where funding is needed the most; he argued that the most populous counties already have built-in economic development that won’t stop if the funding is suspended.
Department of Commerce and US Census Bureau data indicates roughly a third of Iowans live in the four counties and contribute approximately 42 percent of the value of all goods and services produced in the state.