A bill for an act relating to state government and finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers, authorizing expenditure of unappropriated moneys in special funds, providing for properly related matters including crystalline polymorph psilocybin and medical residency and fellowship positions, making corrections, and including effective date and retroactive applicability provisions.

SSB 1241 addresses state government finances and appropriations, primarily for the fiscal year 2025-2026. It modifies funding for education by limiting the appropriation for nonpublic school pupil transportation and setting instructional support state aid to zero. The bill also reallocates over $21 million from the Iowa Economic Emergency Fund for school foundation aid and reduces overall funding for school districts and area education agencies by $25 million. Furthermore, it allows certain state employee salary adjustments to be funded from unappropriated special funds. The bill also includes several corrective provisions to existing state laws.