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Welcome to Iowa's Economic Recovery 
Frequently Asked QuestionsHow will the American Recovery and Reinvestment Act impact Iowa’s economy? How will federal funds come into Iowa? How are the federal economic recovery funds distributed? How much money will be available for Iowa’s general fund? Is there a schedule of when funds will be available? What are the timelines for funds to be spent in Iowa? What is a shovel-ready project? How is the State of Iowa preparing to use the federal economic recovery funds? How long will Iowa have to spend its economic recovery funds? Where can I find the full text of The American Recovery and Reinvestment Act of 2009? How can I see how recovery money is being spent in Iowa?
How will the American Recovery and Reinvestment Act impact Iowa’s economy?With more than $2.5 billion expected in federal recovery funds, Iowa will see a positive impact on our economy. In fact, the White House has estimated that more than 37,000 jobs will be retained or created in Iowa. The federal recovery resources will Iowa invest in critical areas, such as:
How will federal funds come into Iowa?Iowa is expected to receive more than $2.5 billion in direct aid from the federal economic recovery program, and much more in everything from competitive grants to tax cuts. Funds from the federal economic recovery program will come to Iowa through a number of different programs. Some funds will be provided to the State and then awarded to public, private or non-profit organizations. Other funds will go directly to local governments, schools, and for profit and non-profit entities. State officials are continually analyzing the bill and monitoring federal regulations to ensure that Iowa takes full advantage of all the available funding opportunities. How are the federal economic recovery funds distributed?Federal agencies will allocate these funds in five primary ways: Formula: Funding is allocated by an established federal formula to States and localities. Examples include:
Competition: Funding is allocated through competitive solicitations. In the coming weeks, state agencies will distribute requests for proposals and convene panels to evaluate applications received or state agencies may submit a grant proposal directly to a federal agency. As the name suggests, competitive funding programs go through a competitive selection process, therefore, no competitive proposal estimates are guaranteed until selected. Examples of agencies and programs that have or will hold such competitions include:
Demand: Funding responds directly to demand from eligible individuals. The dollar amount Iowa receives will vary according to the number of people who qualify and receive the funding. Current estimates project out the total Iowa expects to receive. These numbers may change as actual funds are distributed. Demand programs include:
One-Time Automatic Disbursement: The Recovery act includes some one time benefits, such as payments of $250 to Social Security, Veterans and Supplemental Security Income beneficiaries. Agency Plan: Many programs in the Act allocate funding according to public operating and spending plans. These programs include:
How much money will be available for Iowa’s general fund?Of the estimated $2.5 billion in funding coming to Iowa under the ARRA, much of it must be used for specific programs and purposes. Less than half falls into three categories of funds – Medicaid, State Stabilization for Education, and State Stabilization for General Funds – that will benefit Iowa’s general fund budget over the next 2-3 years. The most recent estimates of areas in which federal funds can be used in the state’s general fund over the next few years are:
Is there a schedule of when funds will be available?Time is a critical factor to the impact and benefit of the federal economic recovery. And in Iowa, Governor Culver and his Administration has moved quickly in order to put this program to work for Iowa. Within days of ARRA becoming law, the Governor appointed a working group representing two dozen agencies to make plans for the best use of these funds, and the State began making use of the funds in ways ranging from helping workers looking for new jobs to awarding bids on transportation projects throughout the state. This calendar, provided by the Council of State Governments, provides details on key dates and deadlines on ARRA funds. What are the timelines for funds to be spent in Iowa?This will vary significantly depending upon the program. Congress intended the funds to be spent quickly to maximize their economic impact. The federal agencies administering the funds are establishing deadlines and clarifying program criteria. This information will be posted on this website as it becomes available. What is a shovel-ready project?The economic recovery plan includes millions of dollars to build and repair America's roads, bridges, sewer systems, power grids and communications infrastructure. Priority for funding will be given to "shovel ready" projects - those that have the requisite approvals and permits in place - so that federal funds can be spent as quickly as possible, putting Iowa citizens to work and injecting dollars in to the economy of Iowa. How is the State of Iowa preparing to use the federal economic recovery funds?Governor Culver has appointed a working group, representing two dozen state agencies, to provide advice and development plans on how Iowa can make the best use of these one-time funds. The working group does a number of functions to make sure this happens, including:
This working group consists of representatives of the following offices:
In addition, the working group has formed several issue-specific small groups to focus on key topics, such as:
How long will Iowa have to spend its economic recovery funds?Different stimulus programs have different timelines for spending. According to the Congressional Budget Office, 75% of all the economic recovery funds will be spent in the next 2 years, although some programs will require spending timelines that are significantly shorter. Where can I find the full text of The American Recovery and Reinvestment Act of 2009?The text of the law can be found here. How can I see how recovery money is being spent in Iowa?As Recovery Act funding moves forward, this web site will provide details on how federal recovery money is being spent in the State. The State is developing a resource by which Recovery Act funding can be monitored by Iowans.
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