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Iowa Senate Bill 493 bans political subdivisions from using tax funds for lobbyists and associated organizations

Original title: A bill for an act prohibiting political subdivisions from using certain moneys to hire lobbyists or pay instrumentalities, and providing penalties.(Formerly SSB 1042 .)

Last action · February 23, 2026: Placed on calendar.

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Iowa political subdivisions are prohibited from using tax revenue to employ lobbyists or pay instrumentalities like the Iowa League of Cities that employ lobbyists. Individuals who knowingly violate this restriction are guilty of a , punishable by up to one year in jail and fines between $430 and $2,560. The measure explicitly excludes insurance and employee benefits groups from the definition of instrumentalities.

Why it matters

Local governments and affiliated associations face potential criminal penalties and administrative sanctions if they allocate tax collections toward lobbying activities or membership dues for organizations that lobby state officials.

Background
  • SF 493 originates from Senate Study Bill 1042 introduced through the Senate Committee on Local Government during the 91st General Assembly session. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

political subdivisions

Political subdivisions are barred from using tax revenues to fund lobbyists or affiliated organizations that lobby.

Directly affected

instrumentalities

Organizations like the Iowa League of Cities face restrictions on receiving tax-derived payments from political subdivisions if they employ lobbyists.

Key Facts

  • Political subdivisions are prohibited from using tax revenue to employ or compensate a lobbyist.
  • Tax funds cannot be used to pay an instrumentality that employs or compensates a lobbyist.
  • An instrumentality is defined as an entity serving a governmental purpose, operating on behalf of political subdivisions, owned by them, and supervised by their members.
  • Instrumentalities specifically include the Iowa League of Cities, the Iowa State Association of Counties and its affiliates, and the Iowa School Board Association.
Show all 8 facts
  • Insurance group entities and employee benefits group entities are explicitly excluded from the definition of an instrumentality.
  • A person who knowingly and intentionally violates the restriction is guilty of a serious misdemeanor.
  • Violations may result in a reprimand, suspension, dismissal from position, or other sanctions.
  • A serious misdemeanor carries confinement for no more than one year and a fine of at least $430 and not more than $2,560.

Frequently Asked Questions

Can local governments use tax money to pay dues to the Iowa League of Cities?
The bill includes the Iowa League of Cities as an that employs lobbyists, prohibiting political subdivisions from using tax revenue to pay such entities.
What are the penalties for violating the lobbying restriction?
A person who knowingly and intentionally violates the provision is guilty of a , which is punishable by up to one year of confinement and a fine ranging from $430 to $2,560, alongside potential position suspension or dismissal.
Are employee benefits groups affected by this ban?
No, the bill explicitly states that an does not include a state, county, or city insurance group entity or an employee benefits group entity.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently on floor. The next step in the legislative lifecycle is Passed.

Procedural history

17 actions
  1. Feb 23, 2026Iowa Legislature
    Placed on calendar.
  2. Feb 23, 2026Senate
    Committee report, approving bill. S.J. 368 .
  3. Feb 18, 2026Iowa Legislature
    Subcommittee recommends passage.
  4. Feb 18, 2026Senate
    Subcommittee reassigned: Sires, Knox, and Westrich. S.J. 313 .
  5. Feb 17, 2026Iowa Legislature
    Subcommittee Meeting: 02/18/2026 12:00PM Room 217 Conference Room.
  6. Jan 13, 2026Senate
    Subcommittee: Sires, Knox, and Webster. S.J. 66 .
Show 11 earlier actions
  1. Jan 13, 2026Iowa Legislature
    * * * * * END OF 2025 ACTIONS * * * * *
  2. Jun 16, 2025SenateCommittee
    Referred to Local Government. S.J. 1057 .
  3. Mar 20, 2025Iowa Legislature
    Fiscal note .
  4. Mar 4, 2025Senate
    Committee report, approving bill. S.J. 406 .
  5. Mar 4, 2025SenateIntroduced
    Introduced, placed on calendar. S.J. 401 .
  6. Mar 3, 2025Iowa Legislature
    Committee report approving bill, renumbered as SF 493 .
  7. Jan 29, 2025Iowa Legislature
    Subcommittee recommends amendment and passage.
  8. Jan 27, 2025Iowa Legislature
    Subcommittee Meeting: 01/29/2025 9:30AM Room 217 Conference Room.
  9. Jan 27, 2025Iowa Legislature
    Subcommittee reassigned: Sires, Knox, and Webster.
  10. Jan 27, 2025Iowa Legislature
    Subcommittee: Webster, Knox, and Sires.
  11. Jan 23, 2025Iowa LegislatureIntroduced
    Introduced, referred to Local Government.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Prohibition of Tax-Funded Lobbying for Local Associations

The bill creates a direct statutory prohibition preventing local tax dollars from supporting major municipal representative bodies like the Iowa League of Cities if they engage in lobbying.

Connected Entities

Iowa State Association of Counties, Iowa School Board Association, Iowa League of Cities
OrganizationIowa State Association of Counties“Listed as an instrumentality subject to the prohibition”Map →
OrganizationIowa School Board Association“Listed as an instrumentality subject to the prohibition”Map →
OrganizationIowa League of Cities“Listed as an instrumentality subject to the prohibition”Map →

Sources

Open source document

www.legis.iowa.gov

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy80
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz50
    Current news / social attention level

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