A bill for an act creating the foundation property tax reduction fund, and making appropriations and related transfers to the fund.

This bill creates a new "foundation property tax reduction fund" in Iowa's state treasury, funded by redirecting interest earnings from several existing state funds (including the Iowa economic emergency fund, cash reserve fund, and taxpayer relief fund) starting in 2026. The fund's primary purpose is to lower property tax levies for school districts by making direct payments to them, effectively reducing the amount homeowners and businesses would pay in property taxes. School districts and property taxpayers - particularly those with agricultural land eligible for existing tax credits - will directly benefit as the fund supplants funds that would otherwise be collected through the standard property tax system. The fund operates separately from the general state fund and is specifically designed to lower the foundation property tax levy rate under existing school finance rules.