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HF2457 • 2026

A bill for an act establishing the credential-attainment program within the department of workforce development, making appropriations, and including effective date provisions.

A bill for an act establishing the credential-attainment program within the department of workforce development, making appropriations, and including effective date provisions.

Budget
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
GOSA and RAMIREZ
Last action
2026-02-16
Official status
Introduced, referred to Labor and Workforce. H.J. 292 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act establishing the credential-attainment program within the department of workforce development, making appropriations, and including effective date provisions.

A bill for an act establishing the credential-attainment program within the department of workforce development, making appropriations, and including effective date provisions.

What This Bill Does

  • A bill for an act establishing the credential-attainment program within the department of workforce development, making appropriations, and including effective date provisions.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-02-16 Iowa Legislature

    Introduced, referred to Labor and Workforce. H.J. 292 .

Official Summary Text

A bill for an act establishing the credential-attainment program within the department of workforce development, making appropriations, and including effective date provisions.

Current Bill Text

Read the full stored bill text
House

File

2457

-

Introduced

HOUSE

FILE

2457

BY

GOSA

and

RAMIREZ

A

BILL

FOR

An

Act

establishing

the

credential-attainment

program

1

within

the

department

of

workforce

development,

making

2

appropriations,

and

including

effective

date

provisions.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

TLSB

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(3)

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2457

Section

1.

NEW

SECTION

.

260K.1

Title.

1

This

chapter

shall

be

known

and

may

be

cited

as

the

2

“Credential-attainment

Program

Act”

.

3

Sec.

2.

NEW

SECTION

.

260K.2

Definitions.

4

As

used

in

this

chapter:

5

1.

“Community

college”

means

a

community

college

established

6

under

chapter

260C

or

a

consortium

of

two

or

more

community

7

colleges.

8

2.

“Credential”

means

a

postsecondary

certificate

or

other

9

competency-based

credential

that

is

not

authorized

for

federal

10

student

aid

under

Tit.

IV

of

the

federal

Higher

Education

Act

11

of

1965,

as

amended.

“Credential”

does

not

include

an

associate

12

degree

or

any

degree

beyond

an

associate

degree.

13

3.

“Credential-attainment

program”

means

a

program

14

established

pursuant

to

section

260K.3.

15

4.

“Economic

downturn”

includes

a

layoff

of

existing

16

employees,

reduced

employment

levels,

increased

inventories,

or

17

reduced

sales,

if

specified

in

the

program

agreement

entered

18

into

under

section

260K.3.

19

5.

“Employer”

means

a

business

or

consortium

of

businesses

20

engaged

in

interstate

or

intrastate

commerce

for

the

purpose

21

of

manufacturing,

processing,

or

assembling

products,

22

construction,

conducting

research

and

development,

or

providing

23

services

in

interstate

or

intrastate

commerce,

but

excludes

24

retail

services.

25

6.

“Participant”

means

an

individual

who

is

participating

in

26

a

credential-attainment

program.

27

7.

“Program

costs”

means

all

necessary

and

incidental

costs

28

of

providing

program

services.

29

8.

“Program

job”

means

a

high-wage

job

available

from

an

30

employer

pursuant

to

a

program

agreement

entered

into

under

31

section

260K.3.

32

9.

“Program

job

credit”

means

the

credit

as

provided

in

33

section

260K.4.

34

10.

“Program

job

position”

means

a

job

position

which

is

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planned

or

available

for

an

employee

by

the

employer

pursuant

1

to

a

program

agreement.

2

11.

“Program

services”

includes

but

is

not

limited

to

all

3

of

the

following,

provided

that

they

are

pursuant

to

a

program

4

agreement

entered

into

under

section

260K.3:

5

a.

Program

needs

assessment

and

development.

6

b.

Job

task

analysis.

7

c.

Curriculum

development

and

revision.

8

d.

Instruction.

9

e.

Instructional

materials

and

supplies.

10

f.

Computer

software

and

upgrades.

11

g.

Instructional

support.

12

h.

Administrative

and

student

services.

13

i.

Related

school-to-career

training

programs.

14

j.

Skill

or

career

interest

assessment

services

and

testing.

15

k.

Contracted

services.

16

12.

“School

district”

means

a

school

district

as

described

17

in

chapter

274.

18

Sec.

3.

NEW

SECTION

.

260K.3

Program

agreements.

19

1.

a.

A

community

college

may

enter

into

an

agreement

with

20

an

employer

in

the

community

college’s

merged

area

and

a

school

21

district

in

the

community

college’s

merged

area

to

establish

a

22

credential-attainment

program

pursuant

to

which

the

community

23

college

agrees

to

provide

students

who

are

enrolled

in

the

24

school

district

in

grades

nine

through

twelve

with

access

to

an

25

educational

program

that

is

designed

to

lead

to

a

credential

26

while

the

student

is

enrolled

in

high

school,

and

the

employer

27

agrees

to

fund

part

of

the

program

costs

pursuant

to

section

28

260K.4

and

to

hire

into

a

high-wage

program

job

all

students

29

who

complete

the

educational

program,

attain

the

credential,

30

and

graduate

high

school.

31

b.

The

credential-attainment

program

shall

be

developed

by

32

the

community

college,

employer,

and

school

district,

and,

if

a

33

bargaining

agreement

is

in

place

that

covers

employees

of

the

34

employer,

a

representative

of

the

bargaining

unit.

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2.

A

program

agreement

may

include

reasonable

and

necessary

1

provisions

to

implement

the

credential-attainment

program.

If

2

a

program

agreement

is

entered

into,

the

community

college,

3

employer,

and

school

district

shall

notify

the

department

of

4

revenue

as

soon

as

possible.

The

community

college

shall

5

also

file

a

copy

of

the

program

agreement

with

the

department

6

of

workforce

development

as

required

in

section

260K.5.

The

7

program

agreement

shall

provide

for

program

costs,

including

8

deferred

costs,

which

may

be

paid

from

any

of

the

following

9

sources:

10

a.

Program

job

credits

which

the

employer

receives

based

on

11

the

number

of

program

job

positions

agreed

to

by

the

employer

12

to

be

available

under

the

agreement.

13

b.

Cash

or

in-kind

contributions

by

the

employer

toward

the

14

program

cost.

At

a

minimum,

the

employer

contribution

shall

be

15

twenty

percent

of

the

program

costs.

16

c.

Tuition,

student

fees,

or

special

charges

fixed

by

the

17

community

college

to

defray

program

costs.

18

d.

Guarantee

by

the

employer

of

payments

to

be

received

19

under

paragraphs

“a”

and

“b”

.

20

3.

A

program

agreement

must

do

all

of

the

following:

21

a.

Include

a

provision

that

specifies

the

type

and

amount

of

22

funding

sources

that

will

be

used

to

pay

for

program

costs.

23

b.

Require

program

costs

to

be

adjusted

on

an

annual

basis

24

based

on

the

required

program

services

and

for

a

specific

25

number

of

participant

positions.

26

c.

Describe

program

services

and

schedules

for

27

implementation.

28

d.

Provide

for

a

wage

level

of

no

less

than

two

hundred

29

percent

of

the

federal

poverty

level

for

a

family

of

two

as

30

defined

by

the

most

recently

revised

poverty

income

guidelines

31

as

published

by

the

United

States

department

of

health

and

32

human

services

at

the

time

the

agreement

is

entered

into.

The

33

wage

level

must

be

recertified

for

each

year

provided

in

the

34

agreement

on

the

anniversary

of

the

effective

date

of

the

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agreement.

1

e.

Provide

for

employer

default

procedures.

2

4.

The

term

of

a

program

agreement

shall

not

exceed

five

3

years

from

the

date

of

the

program

agreement.

However,

the

4

program

agreement

may

be

renewed.

5

5.

A

program

agreement

must

allow

an

employer

to

decline

to

6

hire

a

student

who

completes

the

educational

program,

attains

7

the

credential,

and

graduates

high

school,

as

required

by

8

subsection

1,

paragraph

“a”

,

if

the

employer

experiences

an

9

economic

downturn.

10

Sec.

4.

NEW

SECTION

.

260K.4

Program

job

credits

from

11

withholding.

12

In

order

to

develop

and

retain

program

jobs

within

the

13

state,

a

program

agreement

entered

into

under

section

260K.3

14

may

include

a

provision

for

program

job

credits

based

on

15

program

jobs

identified

in

the

program

agreement.

If

a

program

16

agreement

provides

that

part

of

the

program

costs

are

to

be

met

17

by

receipt

of

program

job

credits,

the

method

to

be

used

shall

18

be

as

follows:

19

1.

Program

job

credits

shall

be

based

upon

the

program

job

20

positions

identified

and

agreed

to

in

the

program

agreement.

21

2.

Eligibility

for

program

job

credits

shall

be

based

on

22

certification

of

program

job

positions

and

program

job

wages

by

23

the

employer

at

the

time

established

in

the

program

agreement.

24

An

amount

up

to

ten

percent

of

the

gross

program

job

wage,

as

25

certified

by

the

employer

in

the

program

agreement,

shall

be

26

credited

from

the

total

payment

made

by

an

employer

pursuant

to

27

section

422.16.

The

employer

shall

receive

a

credit

against

28

all

withholding

taxes

due

by

the

employer

regardless

of

whether

29

the

withholding

from

the

employer

of

current

program

job

wages

30

is

less

than

ten

percent.

The

employer

shall

remit

the

amount

31

of

the

credit

quarterly

in

the

same

manner

as

withholding

32

payments

are

reported

to

the

department

of

revenue,

to

the

33

community

college

to

be

allocated

to

and

when

collected

paid

34

into

a

special

fund

of

the

community

college

to

pay,

in

part,

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the

program

costs.

The

community

college

shall

remit

to

the

1

treasurer

of

state

for

deposit

in

the

general

fund

of

the

state

2

any

moneys

received

by

the

community

college

from

the

employer

3

after

the

program

costs

have

been

paid.

4

3.

The

employer

shall

certify

to

the

department

of

revenue

5

that

the

program

job

credit

is

in

accordance

with

the

program

6

agreement

and

shall

provide

other

information

the

department

7

of

revenue

may

require.

8

4.

A

community

college

shall

certify

to

the

department

9

of

revenue

that

the

amount

of

the

program

job

credit

is

in

10

accordance

with

the

program

agreement

and

shall

provide

other

11

information

the

department

of

revenue

may

require.

12

5.

Employees

from

an

employer

participating

in

a

program

13

agreement

shall

receive

full

credit

for

the

amount

withheld

as

14

provided

in

section

422.16.

15

Sec.

5.

NEW

SECTION

.

260K.5

Maximum

statewide

16

credential-attainment

program

job

credit.

17

1.

a.

The

total

amount

of

credential-attainment

program

18

job

credits

from

all

employers

which

shall

be

allocated

for

19

all

credential-attainment

programs

in

the

state

in

any

one

20

fiscal

year

shall

not

exceed

five

million

four

hundred

thousand

21

dollars.

22

b.

A

community

college

shall

file

a

copy

of

each

program

23

agreement

with

the

department

of

workforce

development.

The

24

department

of

workforce

development

shall

maintain

an

annual

25

record

of

the

proposed

credential-attainment

program

job

26

credits

under

each

program

agreement

for

each

fiscal

year.

27

c.

Upon

receiving

a

copy

of

a

program

agreement,

the

28

department

of

workforce

development

shall

allocate

any

29

available

amount

of

credential-attainment

program

job

credits

30

to

the

community

college

according

to

the

program

agreement

31

sufficient

for

the

fiscal

year

and

for

the

term

of

the

program

32

agreement.

When

the

total

available

credential-attainment

33

program

job

credits

are

allocated

for

a

fiscal

year,

the

34

department

of

workforce

development

shall

notify

all

community

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colleges

that

the

maximum

amount

has

been

allocated

and

that

1

further

credential-attainment

program

job

credits

will

not

be

2

available

for

the

remainder

of

the

fiscal

year.

3

d.

Once

credential-attainment

program

job

credits

have

been

4

allocated

to

a

community

college,

the

full

allocation

shall

be

5

received

by

the

community

college

throughout

the

fiscal

year

6

and

for

the

term

of

the

program

agreement

even

if

the

statewide

7

credential-attainment

program

job

credit

maximum

amount

is

8

subsequently

allocated

and

used.

9

2.

a.

The

department

of

workforce

development

shall

10

administer

the

statewide

allocations

of

credential-attainment

11

program

job

credits

to

credential-attainment

programs.

12

b.

The

department

of

workforce

development

shall

divide

13

equally

among

the

community

colleges

thirty

percent

of

the

14

credential-attainment

program

job

credits

available

for

each

15

fiscal

year

for

allocation

to

each

community

college

to

be

used

16

to

provide

funding

for

approved

credential-attainment

programs.

17

If

any

portion

of

the

allocation

to

a

community

college

under

18

this

paragraph

has

not

been

committed

by

April

1

of

the

fiscal

19

year

for

which

the

allocation

is

made,

the

uncommitted

portion

20

is

available

for

use

by

other

community

colleges.

21

c.

Once

a

community

college

has

committed

its

allocation

for

22

any

fiscal

year

under

this

subsection,

the

community

college

23

may

receive

additional

credential-attainment

program

job

credit

24

allocations

from

those

credential-attainment

program

job

25

credits

authorized

and

still

available

for

that

fiscal

year.

26

Sec.

6.

NEW

SECTION

.

260K.6

Customer

tracking

system.

27

All

participants

in

the

credential-attainment

program

shall

28

be

included

in

the

customer

tracking

system

implemented

by

the

29

department

of

workforce

development

pursuant

to

section

84A.5

30

following

program

completion.

31

Sec.

7.

NEW

SECTION

.

260K.7

Fund

established

——

allocation

32

of

moneys.

33

1.

A

credential-attainment

program

fund

is

established

34

in

the

state

treasury

under

the

control

of

the

department

of

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workforce

development.

Moneys

in

the

credential-attainment

1

program

fund

are

appropriated

to

the

department

of

2

workforce

development

for

purposes

of

funding

the

cost

of

3

credential-attainment

program

capital

projects

for

vertical

4

infrastructure

as

defined

in

section

8.57,

subsection

3,

5

paragraph

“c”

.

6

2.

If

moneys

are

appropriated

by

the

general

assembly

7

to

the

department

of

workforce

development

for

deposit

in

8

the

credential-attainment

program

fund,

such

moneys

shall

be

9

allocated

equally

to

each

community

college.

10

Sec.

8.

NEW

SECTION

.

260K.8

Administration

and

reporting.

11

1.

The

department

of

workforce

development

shall

adopt

12

rules

pursuant

to

chapter

17A

to

administer

this

chapter.

13

2.

The

department

of

workforce

development

shall

submit

14

an

annual

report

to

the

general

assembly

on

or

before

15

March

15

each

year

that

contains

information

related

to

the

16

credential-attainment

program.

17

Sec.

9.

EFFECTIVE

DATE.

This

Act

takes

effect

July

1,

2027.

18

EXPLANATION

19

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

20

the

explanation’s

substance

by

the

members

of

the

general

assembly.

21

This

bill

establishes

the

credential-attainment

program

22

within

the

department

of

workforce

development.

23

The

bill

authorizes

a

community

college

to

enter

into

an

24

agreement

with

an

employer

and

a

school

district

to

establish

a

25

credential-attainment

program

pursuant

to

which

the

community

26

college

agrees

to

provide

students

who

are

enrolled

in

the

27

school

district

in

grades

9

through

12

with

access

to

an

28

educational

program

that

is

designed

to

lead

to

a

credential

29

while

the

student

is

enrolled

in

high

school,

and

the

employer

30

agrees

to

fund

part

of

the

program

costs

and

to

hire

into

a

31

high-wage

program

job

all

students

who

complete

the

educational

32

program,

attain

the

credential,

and

graduate

high

school.

The

33

bill

provides

that

the

credential-attainment

program

is

to

34

be

developed

by

the

community

college,

employer,

and

school

35

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district,

and,

if

a

bargaining

agreement

is

in

place

that

1

covers

employees

of

the

employer,

a

representative

of

the

2

bargaining

unit.

3

The

bill

requires

the

community

college,

employer,

and

4

school

district

to

notify

the

department

of

revenue

if

a

5

program

agreement

is

entered

into,

and

the

community

college

is

6

also

required

to

file

a

copy

of

the

program

agreement

with

the

7

department

of

workforce

development.

8

The

bill

establishes

that

the

program

agreement

is

required

9

to

provide

for

program

costs,

and

authorizes

sources

from

which

10

program

costs

may

be

paid,

which

include

program

job

credits.

11

The

bill

establishes

other

requirements

related

to

the

program

12

agreement,

including

that

the

program

agreement

must

include

a

13

provision

that

specifies

the

type

and

amount

of

funding

sources

14

that

will

be

used

to

pay

for

program

costs;

require

program

15

costs

to

be

adjusted

on

an

annual

basis;

describe

program

16

services

and

schedules

for

implementation;

provide

for

a

17

specified

wage

level;

and

provide

employer

default

procedures.

18

The

term

of

a

program

agreement

cannot

exceed

five

years;

19

provided,

however,

that

a

program

agreement

may

be

renewed.

A

20

program

agreement

must

allow

an

employer

to

decline

to

hire

a

21

student

if

the

employer

experiences

an

economic

downturn.

22

The

bill

establishes

the

method

that

is

required

to

be

used

23

if

a

program

agreement

provides

that

part

of

the

program

costs

24

are

to

be

met

by

receipt

of

program

job

credits.

Pursuant

25

to

that

method,

program

job

credits

are

to

be

based

on

the

26

program

job

positions

identified

in

the

program

agreement.

27

Eligibility

for

program

job

credits

is

based

on

certification

28

of

program

job

positions

and

program

job

wages

by

the

employer.

29

An

amount

up

to

10

percent

of

the

gross

program

job

wage

is

30

credited

from

the

total

payment

made

by

an

employer

pursuant

31

to

Code

section

422.16

(withholding

of

income

tax

at

source

32

——

penalties

——

interest

——

declaration

of

estimated

tax

——

33

bond).

The

employer

receives

a

credit

against

all

withholding

34

taxes

due

by

the

employer

regardless

of

whether

the

withholding

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from

the

employer

of

current

program

job

wages

is

less

than

10

1

percent.

The

employer

is

required

to

remit

the

amount

of

the

2

credit

quarterly

in

the

same

manner

as

withholding

payments

are

3

reported

to

the

department

of

revenue

to

the

community

college

4

to

be

allocated

to,

and

when

collected,

paid

into

a

special

5

fund

of

the

community

college

to

pay,

the

program

costs.

The

6

employer

is

required

to

certify

to

the

department

of

revenue

7

that

the

program

job

credit

is

in

accordance

with

the

program

8

agreement,

and

the

community

college

is

required

to

certify

to

9

the

department

of

revenue

that

the

amount

of

the

program

job

10

credit

is

in

accordance

with

the

program

agreement.

Employees

11

from

an

employer

participating

in

a

program

agreement

receive

12

full

credit

for

the

amount

withheld

as

provided

in

Code

section

13

422.16.

14

The

total

amount

of

credential-attainment

program

job

15

credits

from

all

employers

which

shall

be

allocated

for

16

all

credential-attainment

programs

in

the

state

in

any

one

17

fiscal

year

cannot

exceed

$5.4

million.

The

bill

requires

18

the

department

of

workforce

development

to

maintain

an

annual

19

record

of

the

proposed

credential-attainment

program

job

20

credits

under

each

program

agreement

for

each

fiscal

year.

21

The

bill

requires

the

department

of

workforce

development

to

22

administer

the

statewide

allocation

of

credential-attainment

23

program

job

credits

and

establishes

a

process

related

to

how

24

the

department

of

workforce

development

allocates

available

25

credential-attainment

program

job

credits.

26

The

bill

requires

all

participants

in

the

27

credential-attainment

program

to

be

included

in

the

customer

28

tracking

system

implemented

by

the

department

of

workforce

29

development

following

program

completion.

30

The

bill

establishes

a

credential-attainment

program

fund

31

in

the

state

treasury

under

the

control

of

the

department

of

32

workforce

development.

The

moneys

in

the

fund

are

appropriated

33

to

the

department

of

workforce

development

for

purposes

of

34

funding

the

cost

of

credential-attainment

program

capital

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projects

for

vertical

infrastructure.

The

bill

provides

that

1

if

the

general

assembly

appropriates

moneys

for

this

purpose,

2

such

moneys

are

required

to

be

allocated

equally

to

each

3

community

college.

4

The

bill

requires

the

department

of

workforce

development

to

5

adopt

rules

to

administer

the

credential-attainment

program

and

6

to

submit

annual

reports

to

the

general

assembly

relating

to

7

the

credential-attainment

program.

8

The

bill

defines

“community

college”,

“credential”,

9

“credential-attainment

program”,

“economic

downturn”,

10

“employer”,

“participant”,

“program

costs”,

“program

job”,

11

“program

job

credit”,

“program

job

position”,

“program

12

services”,

and

“school

district”.

13

The

bill

takes

effect

July

1,

2027.

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