Bill Summary – FastDemocracy

Fiscal Note
                                       Fiscal Services Division
HF 2144 – Army Reserve Scholarship Program (LSB5564HV)
Staff Contact: Michael Peters (515.281.6934) michael.peters@legis.iowa.gov
Fiscal Note Version – New
Description
House File 2144 establishes the United States Army Reserve Service Scholarship Program
within the College Student Aid Commission to provide scholarships to certain members of the
reserve forces of the United States Army.
Background
Other loan services and forgiveness programs are currently available to these service members.
These services and programs include but are not limited to:
• USAR Tuition Assistance — The USAR provides tuition assistance to fund the studies of
   soldiers pursuing education on personal time that is not required to be related to their
   reservist duties. The USAR will pay up to $250 per semester hour, or $4,500 per year.
• Montgomery G.I. Bill — If the reservist commits to a six-year service obligation, the reservist
   would be eligible for the educational assistance under the G.I. Bill. This program provides
   up to $13,000 over 36 months to cover the cost of tuition, fees, and expenses for college,
   technical, or vocational courses as well as job training and distance learning. The program
   pays up to $356 per month for 36 months for full-time students. This benefit can expand if
   the reservist qualifies for the “Kicker,” which can provide up to an additional $12,600 in
   benefits, or $350 per month for 36 months.
• Reserve Education Assistance Program (REAP) — If activated under Title 10, a reservist
   may qualify for REAP which can cover up to $40,000 in education benefits. The total benefit
   is calculated according to the amount of time of active duty and requires a minimum of 90
   consecutive days of active duty. REAP can be applied to various college and vocational
   training programs.
• Guaranteed Reserve Forces Duty (GRFD) Scholarship — This scholarship is available to
   participants in the Army Reserve Officer Training Corps (ROTC) program. Scholarships are
   available based on the participant’s incoming status, which includes the categories of
   upcoming college enrollment, current college student, or enlisted soldier and is bestowed
   based on academic achievement and character. Scholarships are issued between two and
   four years in length and can be applied to tuition, room and board, or books and fees. A
   GRFD-contracted scholarship cadet can earn up to $12,000 per year in tuition and room and
   board expenses, $1,200 a year in book stipends, a $420 ROTC monthly stipend, and
   additional increases for select scholarships.
• Army Student Loan Repayment Program — This Program is eligible to any Army reservists
   who enlist for six years or more. Reservists can receive up to $50,000 for selected
   specialties to repay college loans.
Assumptions
• The Program will be modeled after the existing Iowa National Guard Benefits Program. Cost
   projections are based on a similar administrative function with higher startup costs in the first
   year.
• One-time system costs are estimated to be $79,000 which includes vendor and staffing to
   build-out, test, and implement the new scholarship system.
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•    Ongoing administrative expenses will increase 3.0% year over year.
•    Iowa College Aid will rely upon the USAR Command to certify the eligibility of applicants
     under this Program.
•    Approved applicants must be both an Iowa resident and a member of a U.S. Army Reserve
     (USAR) unit while receiving scholarship award payments and must adhere to additional
     requirements.
•    Scholarship awards are not to exceed the residential tuition rate established by the State
     Board of Regents. If the amount appropriated to this Program is insufficient to cover all
     eligible applicants, the Commission would determine the distribution of the scholarships.
•    Unspent funds at the close of the fiscal year would not revert and are to be available for
     expenditure the following fiscal year.
Fiscal Impact
House File 2144 is estimated to have an initial cost of $114,000 in FY 2025. Starting in
FY 2026, ongoing administrative and support expenses are estimated to be approximately
$35,000 to maintain the Program. Administrative staffing costs are expected to increase by
3.0% each year.
                       Figure 1 — Army Reserve Scholarship Program Costs
                                                  FY 2025      FY 2026       FY 2027      FY 2028       FY 2029
    One-time System Cost                            79,420            0             0            0             0
    System Support/Maintenance                      10,500       10,500        10,500       10,500        10,500
    Administrative Staff                            23,645       24,354        25,085       25,838        26,613
                                        Total    $ 113,565     $ 34,854      $ 35,585     $ 36,338      $ 37,113
    Source: College Student Aid Commission
Sources
United States Army Reserve
College Student Aid Commission
                                                                               /s/ Jennifer Acton
                                                                                March 14, 2024
Doc ID 1445423
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
                                                 www.legis.iowa.gov
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