On June 6, 2025, the Governor of Iowa officially enacted SF 615, which introduces new work requirements for individuals participating in Medicaid and public assistance programs. This legislation also establishes both an Information Technology Fund and a Public Assistance Modernization Fund and revises the Medicaid program for employed individuals with disabilities to facilitate its rollout.
Exemptions from these work requirements are designated for individuals under the age of 19 or over the age of 64, those who have been certified as disabled by the U.S. Social Security Administration, caregivers of children under six years old, participants in substance abuse treatment programs, and individuals experiencing high-risk pregnancies as recognized by the Iowa Department of Health and Human Services (HHS). The legislation emphasizes that able-bodied adults who have the capacity to work are expected to meet these requirements, redirecting Medicaid resources toward those with true needs.
Currently, the Supplemental Nutrition Assistance Program (SNAP) mandates a minimum of 80 hours of work per month for eligible participants to sustain their benefits. Any unspent resources from the Public Assistance Modernization Fund will be redirected to the Information Technology Fund by June 30, 2025. Furthermore, adjustments to the Medicaid for Employed People with Disabilities Program will see an increase in the asset limit for married couples from $13,000 to $24,000. Should federal approval for these work requirements be revoked, the state intends to pursue an alternative plan that remains compliant.
The Iowa Senate approved this measure with a vote of 33-15 on March 25, 2025, followed by the House’s approval at 61-35 on March 26, 2025, with voting largely split along party lines. Provisions included in the legislation outline a phased implementation plan, directing Iowa HHS to apply for a federal waiver to enact the proposed Medicaid work requirements. This initiative aims to strike a balance between fiscal responsibility and assistance for vulnerable populations, although its effectiveness hinges on securing federal approval and maintaining adherence to regulatory standards.
