This bill establishes a new limitation on the issuance of bonds for certain projects in Iowa. Specifically, for projects where a proposition to issue bonds is approved at an election held after July 1, 2025, the total amount of bonds that can be issued will be capped at 80 percent of the total project cost. The remaining 20 percent of the project costs must be funded through sources other than bond sales.

The intent of this legislation is to ensure that a significant portion of project funding comes from alternative sources, thereby reducing reliance on bond sales. This change aims to promote fiscal responsibility and encourage diverse funding strategies for public projects.