Iowa's 4 Largest Counties Face Economic Development Funding Ban

A proposed bill in Iowa aims to impose a three-year moratorium on state economic development funding for the state's four most populous counties—Polk, Linn, Scott, and Johnson—beginning July 1, 2025. Proponents, including Republican Representatives Derek Wulf and John Wills, argue that the measure is necessary to shift focus and resources toward rural areas, which they believe have been historically underserved in economic development. However, business groups and local governments oppose the bill, warning it could harm economic growth and neglect the significant contributions of these counties, which account for about 42% of Iowa's GDP. Critics, including the Iowa Chamber Alliance, emphasize that many development projects rely on the infrastructure and workforce present in larger counties. Opponents also contend that removing funding could deter potential investments in Iowa as a whole. The bill has passed a subcommittee and is set for consideration by the full House Ways and Means Committee.