Capitol Notebook: Iowa begins distribution of $78.6M in federal funding for rural health care

DES MOINES — Gov. Kim Reynolds and the Iowa Department of Health and Human Services announced last week that $78.6 million in federal funds aimed at supporting rural health care in the state will go toward equipment procurement and installation and bolstering health care workforce recruitment.

This is the first batch of funds in a five-year program.

The awards announced Friday are part of the Iowa Health Hometowns Project, which was launched after the creation of the Medicare & Medicaid Services’ Rural Health Transformation Program, an initiative created by the One Big Beautiful Bill Act signed into law in July. The program’s $50 billion in funding across the country is meant to help states offset the legislation’s reductions to Medicaid.

Iowa was awarded $209 million for the next fiscal year and is the first in the nation to award funding for its project initiatives, according to a news release from Reynolds’ office.

“These investments represent a major step forward in ensuring that rural Iowans have access to high-quality health care services and providers,” Reynolds said in a statement Friday. “Through Iowa’s Rural Health Transformation Program, Healthy Hometowns, we are building stronger, healthier communities across the state.”

The first grants will be awarded to Iowa’s Hometown Connections initiative, which is focused on “building partnerships to restructure health care delivery options for rural communities,” according to Reynolds’ office.

Of the funds, roughly $66 million will go toward medical equipment procurement and installation for 36 rural health care facilities in Iowa, including for minor alterations and renovations, to introduce new services not currently available in rural regions of the state.

Equipment funded by the award includes MRI systems, CT scanners, digital X-ray systems, a digital mammography unit and robotic surgical systems.

Another $12.6 million will fund provider recruitment efforts for 107 rural health care organizations, allowing them to offer competitive incentives such as recruitment bonuses, relocation assistance and other measures to make these positions more attractive and sustainable as the state faces a physician shortage.

The award will fund recruitment for physicians, advanced practice providers, physician assistants, registered nurses and providers who specialize in radiology and mental health.

Future rounds of funding from the program will go toward increasing access to cancer screening and treatment through forming cancer-specific regional hubs and expanding Centers of Excellence, as well as to developing “Health Hubs” with investments in telehealth, medical equipment and care for uninsured Iowans.

The full list of award recipients and more about the program can be found on the Iowa HHS website.

Iowa AG Bird announces grant program aimed at fighting opioid crisis

Iowa organizations can start applying for funding from a new grant program funded by opioid settlements to help communities across the state respond to the opioid crisis, the Iowa Attorney General’s Office announced Monday.

Since 2021, Iowa has been a part of multiple national lawsuits against 10 pharmaceutical companies that include opioid manufacturers, distributors and pharmacists. From these lawsuits, Iowa will receive roughly $365 million from the 2021 through 2040 state budget years, including portions to the state and local governments, as well as additional restitution, according to the Iowa Attorney General’s Office and the state’s Legislative Services Agency.

Iowa’s funds from the settlements are split 50-50 between the state and local governments, and the state’s portion is placed in a separate fund.

A law passed in 2025 dedicated 75 percent of state settlement funds to Iowa Health and Human Services and 25 percent to the Iowa Attorney General’s Office, which will start distributing roughly $20 million of its share by June 30, 2030.

“The opioid epidemic is one of the greatest problems plaguing our society today,” Iowa Attorney General Brenna Bird said in a statement. “Between 2020 to 2024, over a thousand Iowans died from an opioid overdose and countless families have been impacted by addiction.”

The AG's office will begin accepting applications for the funds starting in late February. Applications will be reviewed on a rolling basis and projects of all sizes and scopes are encouraged to apply.

More information on the program and application materials can be found online.

Notifications of the application site launch can be revived by emailing opioid.funding@ag.iowa.gov.

Some Iowa National Guard members deployed to the Middle East begin to return to the U.S.

This weekend, some of roughly 250 Iowa National Guard members deployed in the Middle East began their return to the U.S.

Soldiers assigned to the 2nd Brigade Combat Team, 34th Infantry Division, started arriving in the country this weekend following their deployment in support of Operation Inherent Resolve aimed at significantly reducing the capabilities of ISIS in Iraq and Syria, according to the Iowa National Guard.

This announcement follows Iowa Gov. Reynolds’ trip to the region in January, focused on visiting Iowa soldiers and airmen to recognize their service, roughly a month after two Iowa National Guard soldiers were killed in action during an attack in Syria.

Iowa National Guard members will return home in phases determined by numerous factors, including the completion of assigned missions, transportation ability and whether they need to “continue essential responsibilities” including partner support and base security, according to the Iowa National Guard.

Welcome home ceremonies in Des Moines and Sioux City are being coordinated and will take place within the next two weeks.

Reynolds orders flags at half-staff in honor of Judge Robert Pratt

Gov. Kim Reynolds ordered all flags in the state to be flown at half-staff Tuesday to honor former Iowa federal judge Robert W. Pratt, who died Jan. 28 at the age of 78.

Pratt served in the U.S. Southern District of Iowa from 1997 to 2023

Flags will be at half-staff on Iowa Capitol and on flag displays in the Capitol Complex from sunrise to sunset Tuesday. They also will be half-staff on all public buildings, grounds and facilities across Iowa. Individuals, businesses, schools and other political subdivisions are encouraged to fly the flag at half-staff.