Iowa Gov. Kim Reynolds signed a bill into law Thursday that puts new limits on public assistance programs that help low-income Iowans access food and health care.
It will deny food assistance, known as SNAP, to households that have more than $15,000 in assets, excluding a home, one car of any value, and a second car worth up to $10,000. It will require Iowans who get health insurance through Medicaid to cooperate with child support recovery.
The new law also requires the state to have a real-time eligibility verification system for all public assistance programs, which may be done through a contract with a private company.
The nonpartisan Legislative Services Agency estimates 8,000 Medicaid recipients and 2,800 SNAP recipients will have their benefits canceled each year starting in 2025 “due to discrepancies.”
Reynolds did not provide a comment Thursday on why she signed the bill.
It passed the legislature in April with only Republican support, and some Republicans joined all Democrats in voting against it.
Lawmakers who support the new law said it will ensure public assistance programs remain sustainable and only support those who truly need the help.
Anti-hungeradvocates urged Reynolds to veto the bill, saying it would deny food to Iowans at time when food insecurity is rising and food bank use is breaking records. Democrats and other opponents of the legislation said it would trap people in a cycle of poverty by taking food assistance away from them if they try to save up to buy a house or to pay for college.
The law puts the current income limit for getting SNAP benefits into state law, which is 160% of the federal poverty level, or $48,000 per year for a family of four.
The new law takes effect July 1.
It is expected to cost the state$1.6 million in the first year of implementation and $5.9 million in the second year, with much higher costs to the federal government. That costs are related to hiring more than 200 new state worker, IT upgrades, and contracting with a private company.
Starting in 2026, the law is expected to save the state $8.2 million per year and save the federal government $42 million.
