ARC 0630D

ARC 0630D

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Notice of Intended Action

Proposing rulemaking related to career training physical expansion program fund
and providing an opportunity for public comment

    The Workforce Development Department hereby proposes to adopt new Chapter 70, “Career Training Physical Expansion Program,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is proposed under the authority provided in Iowa Code chapter 17A.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code chapter 17A.

Purpose and Summary

    The purpose of this proposed rulemaking is to establish rules to administer the Career Training Physical Expansion Program Fund created in Iowa Code section 84J.3 as enacted by 2026 Iowa Acts, Senate File 2168.

Regulatory Analysis

    A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on August 19, 2026. A public hearing was held on the following date(s):

     ?   September 8, 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.

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 20, 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.  Adopt the following new 871—Chapter 70:

CHAPTER 70

CAREER TRAINING PHYSICAL EXPANSION PROGRAM

871—70.1(84J) Purpose. The purpose of the career training physical expansion program is to provide financial assistance for construction of new facilities and procurement of equipment that will expand the capacity of community colleges and unionized and nonunionized private sector apprenticeship programs to provide education and training for workers in high-demand fields in this state.

871—70.2(84J) Definitions.

    “Applicant” means an Iowa community college or unionized or nonunionized private sector apprenticeship program applying for assistance under the program.

    “Apprenticeship” means a structured training program that combines supervised paid on-the-job training with classroom instruction.

    “Community college” means the same as defined in Iowa Code section 260C.2.

    “Construction of new facilities” means the process of assembling, erecting, or modifying a physical structure for the purpose of expanding capacity to provide education and training for workers in high-demand fields in this state. Major maintenance of an existing facility does not qualify.

    “Department” means the department of workforce development.

    “Department’s website” means the information and related content found at www.workforce.iowa.gov and may include integrated content at affiliate sites.

    “Eligible entity” means a community college or unionized or nonunionized private sector apprenticeship program meeting the requirements of rule 871—70.3(84J).

    “Equipment” means specialized hardware, software, or other tangible, nonexpendable property that has a per unit acquisition cost of $5,000 or more and an anticipated useful life of more than one year and is intended to increase training capacity.

    “Expand capacity” means to increase the maximum number of slots available in a training or education program for workers in high-demand fields in this state.

    “Fund” means the career training physical expansion program fund created in Iowa Code section 84J.3 as enacted by 2026 Iowa Acts, Senate File 2168.

    “High-demand field” means the same as the definitions of “high-demand occupation,” “high-skill occupation,” and “high-wage occupation” created in Iowa Code section 256.125 as amended by 2026 Iowa Acts, House File 2610.

    “Internet-based education or training” means the same as the definition of “delivered primarily over the internet” in rule 281—15.1(256).

    “Nonduplicative training” means that a project funded via this program will avoid recreating current training programs but will modernize the structure and delivery of a training program, education program, or both that will directly result in an increase in the number of workers in high-demand fields in this state.

    “Private sector apprenticeship program” means a paid apprenticeship program offered by, or in partnership with, a private company in Iowa.

    “Procurement” means the same as defined in rule 11—117.2(8A).

    “Program” means the career training physical expansion program established in this chapter.

871—70.3(84J) Program eligibility. To be eligible for financial assistance under the program, an applicant must propose the construction of a new training facility, construction to expand an existing training facility in accordance with the definition of “construction of new facilities” in rule 871—70.2(84J), or the procurement of equipment that will expand the capacity to educate and train workers in high-demand fields in Iowa.

    70.3(1) Employer demand. Applicants must provide evidence of employer demand for the skills and abilities to be taught via the training and education or apprenticeship program for which an applicant applies.

    70.3(2) Expand capacity. The project must directly result in an increase in the number of workers in high-demand fields in this state.

    70.3(3) Internet-based education or training. Projects to increase internet-based education or training are ineligible for financial assistance under this program.

    70.3(4) Priority given for nonduplicative training. Priority will be given to projects that meet the definition of “nonduplicative training” in rule 871—70.2(84J).

871—70.4(84J) Application submission and review process.

    70.4(1) The department will develop a standardized application process and make information on applying available on the department’s website. To apply for assistance under the program, an applicant shall submit an application to the department in the manner prescribed by the department. The department will identify specific types of investments for which it intends to provide financial assistance on the application form or forms.

    70.4(2) Applications will be accepted and processed by department staff on a continuing basis, or the department may establish application periods as announced on the department’s website. If received on a continuing basis, applications will be reviewed in the order received by the department.

    70.4(3) The department may refuse to accept incomplete applications or may refuse to accept applications because of insufficient funds.

    70.4(4) The department will determine the financial assistance award if it determines that financial assistance should be awarded. The department has final decision-making authority on requests for financial assistance for the program. The department will take final action on all applications for financial assistance except those rejected pursuant to subrule 70.4(3). The department may approve an award, decline to award, or choose to reopen the application window.

    70.4(5) An applicant may submit one application per funding cycle for the duration of the program.

    70.4(6) Applicants will be notified in writing of an award of financial assistance, including any conditions and terms of the award, or of a denial of an award of financial assistance.

871—70.5(84J) Application scoring criteria. When applications for financial assistance under the program are reviewed by department staff, the following criteria will be considered and the application scored as described.

    70.5(1) The extent to which the applicant’s investment demonstrates employer demand in this state for the training and education to be provided.

    70.5(2) The extent to which the investment expands the physical capacity of the community college or apprenticeship program.

    70.5(3) The extent to which the investment increases the number of workers in high-demand fields in this state. Priority points will be awarded for greater increased capacity.

    70.5(4) The extent to which the applicant demonstrates regional need for increased capacity of trained individuals in the high-demand jobs.

    70.5(5) Whether and the extent to which the applicant has previously received financial assistance from the program.

    70.5(6) For awards under subsequent funding rounds, whether and the extent to which the applicant demonstrates increased training and education completions under previous projects.

    70.5(7) The sufficiency of the proposed investment’s financing structure, the feasibility of the sources of funds, and the appropriateness of the proposed uses of the funds.

871—70.6(84J) Contract administration.

    70.6(1) The department will prepare a contract for each award approved by the department. The contract will reflect the terms of the award and may include other terms and conditions reasonably necessary for implementation of the program pursuant to this chapter.

    70.6(2) Any substantive change to a proposed investment shall require an amendment to the contract. Amendments shall be requested in writing. No amendment shall be valid until approved by the department.

871—70.7(84J) Disbursement of funds.

    70.7(1) The department will disburse funds for an investment only after a complete application has been received, an award has been approved by the department, a contract has been executed between the applicant and the department, and all applicable conditions for disbursement have been met, including the submission of documentation pertaining to the eligible expenditures. Disbursement of funds under the contract will be on a reimbursement basis for expenses incurred by the applicant after the date of application and as provided under the contract. Expenditures for labor performed by an applicant’s employees are not eligible for reimbursement.

    70.7(2) Administrative cost. The department will retain 2.0 percent of each appropriation for administration of this program.

871—70.8(84J) Reporting. An applicant receiving assistance under the program shall submit any information reasonably requested by the department in sufficient detail to permit the department to prepare any reports required by the department, the general assembly, or the governor’s office.

These rules are intended to implement Iowa Code chapter 17A and chapter 84J as enacted by 2026 Iowa Acts, Senate File 2168.