ARC 0563D

ARC 0563D

HUMAN SERVICES DEPARTMENT[441]

Notice of Intended Action

Proposing rulemaking related to funding for local services
and providing an opportunity for public comment

    The Department of Health and Human Services hereby proposes to rescind Chapter 153, “Funding for Local Services,” Iowa Administrative Code, and to adopt a new Chapter 153 with the same title.

Legal Authority for Rulemaking

    This rulemaking is proposed under the authority provided in Iowa Code sections 218.4 and 234.6.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code section 234.6.

Purpose and Summary

    This proposed chapter was reviewed as a part of the Red Tape Review process laid out by Executive Order 10. As a result of the Red Tape Review for this chapter, restrictive terms were removed, duplicative information was streamlined, and language was changed to be in line with modern procedures and practices. This proposed chapter sets forth the requirements for reporting required for receipt of federal Social Services Block Grant (SSBG) funds and service availability and allocation methodology related to those funds.

Regulatory Analysis

    A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on August 5, 2026. A public hearing was held on the following date(s):

     ?   August 25, 2026

Fiscal Impact

     This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 441—Chapter 2504.

Public Comment

     Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on October 6, 2026. Comments should be directed to:

Public Hearing

     Public hearings at which persons may present their views orally or in writing will be held as follows:

    Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

     Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

    The following rulemaking action is proposed:

    ITEM 1.  Rescind 441—Chapter 153 and adopt the following new chapter in lieu thereof:

CHAPTER 153

FUNDING FOR LOCAL SERVICES

441—153.1(234) Development of pre-expenditure report and intended use plan.

    153.1(1) The department will develop the social services block grant pre-expenditure report and intended use plan on an annual basis. The report and plan will be developed in accordance with 45 CFR Part 96, Subpart G, as amended to August 1, 2026. The report and plan will describe the services to be funded, the areas in which services are available, and the amount of funding available. The plan will also indicate the source of the funding.

    153.1(2) The department will issue a proposed pre-expenditure report and intended use plan before publication of the final report and plan. The proposed report and plan will be available for public review and comment.

    153.1(3) The department will announce the time and scope of public review each year. The announcement will indicate where the proposed report and plan can be viewed. 

    153.1(4) The department will accept comments about the pre-expenditure report and intended use plan during the specified public review and comment period.

    153.1(5) The department will consider public comments when developing the final pre-expenditure report and intended use plan.

    153.1(6) A copy of the final pre-expenditure report and intended use plan will be available on the department’s website.

441—153.2(234) Amendment to pre-expenditure report and intended use plan.

    153.2(1) The pre-expenditure report and intended use plan may be amended throughout the year. The department may file an amendment changing the type, scope or duration of a service. Decisions to change a direct service or state-purchased service will be made by the department. Prior to filing an amendment, the department will evaluate available funds and the effect any change will have on clients.

    153.2(2) An amendment in the pre-expenditure report and intended use plan will be posted on the department’s website at least 30 days prior to the effective date of the change. However, in the event funding for the service has been exhausted, an amendment will be posted immediately notifying the public that the service will no longer be available.

    a.  The department will, whenever possible, give advance notice of a service termination made necessary because funds have been exhausted.

    b.  When a service is added or extended, an amendment may be posted immediately, and a 30-day posting period is not required.

    153.2(3) Individuals or groups may submit written comments to the department.

    153.2(4) Nothing in this rule will supersede the requirement for notifying clients of adverse action as provided in rule 441—130.5(234).

441—153.3(234) Service availability.

    153.3(1) A client seeking services shall apply for services from the department.

    a.  The department will determine eligibility according to rule 441—130.3(234).

    b.  The department will develop a case plan to monitor the client’s progress toward achieving goals as identified in rule 441—130.7(234).

    153.3(2) A client shall receive a service for which the client is eligible, subject to the provisions of 441—Chapter 130, when the service is listed in the geographic area in which the client resides.

    153.3(3) When federal law prohibits the use of federal funds for the social services block grant, state funds shall be used to pay for services to persons the department has defined as eligible.

441—153.4(234) Allocation of block grant funds.

    153.4(1) The department will follow a cost allocation plan for determining the appropriate administrative costs to be funded with block grant moneys.

    153.4(2) Funding for services will be allocated in accordance with the annual budgeting process. The department’s annual budget is available for review on the department’s website. Costs may be shifted in and between service areas to ensure continued statewide availability of services.

441—153.5(234) Expenditure of supplemental funds. When supplemental funds are issued through the social services block grant as emergency disaster relief, the department will administer the funds in compliance with the terms of the federal award.

These rules are intended to implement Iowa Code section 234.6.