Capitol Notebook: Iowa’s unemployment rate dipped in September

Iowa’s unemployment rate decreased by 0.1 percentage point to 3.7 percent in September, according to new data that was delayed by last month’s federal government shutdown, according to the state.

Iowa’s 3.7 percent unemployment rate in September was lower than the national rate of 4.4 percent but higher than the 3.3 percent rate in Iowa in September of 2024.

While Iowa had a higher unemployment rate and 8,400 more unemployed Iowans this September compared to 2024, the state also had 24,600 more people working and a higher labor force participation rate in September of 2025 compared to the year prior.

Iowa Workforce Development is working with the federal government to get job numbers for October and November, according to a press release from the state agency. Those numbers are expected in January, the agency said.

State accepting proposals to build out rural health care plan

Iowa health officials are now accepting submissions for a suite of rural health projects under the state’s “Healthy Hometowns” proposal tied to a $50 billion federal initiative aimed at shoring up strained rural hospitals and strengthening local health systems.

The Iowa Department of Health and Human Services on Wednesday released multiple requests for proposals seeking applicants to build out key components of the plan, which is tied to Iowa’s request for up to $1 billion over five years through the Centers for Medicare and Medicaid Services’ Rural Health Transformation Program. Applications are due Jan. 5.

The request for proposals cover a broad range of projects, including establishing regional Centers of Excellence in areas such as maternal health, behavioral health, specialty care and chronic disease management; providing technical assistance to rural hospitals and clinics building hub-and-spoke care models; supporting cancer-focused care coordination and sustainability; advancing co-located, community-based service models; expanding cancer prevention and screening and radon mitigation; and funding medical equipment upgrades and workforce recruitment incentives for rural providers.

Centers of Excellence will function as regional hubs that specialize in targeted areas of medicine and collaborate with surrounding health care providers, public health agencies and community-based organizations (spokes) to improve access to care in rural communities where such services are limited.

The federal funding is designed to help rural hospitals navigate the financial pressures caused by federal Medicaid reductions by modernizing care delivery, expanding preventive and specialty services, and improving care coordination across regions.

Iowa’s congressional delegation has urged CMS to approve the state’s application, calling the program a critical investment in rural health care.

CMS is expected to announce state awards by Dec. 31.

Gazette-Lee Des Moines Bureau