This bill establishes a vacant school building demolition grant program and fund, which will be managed by the economic development authority. The fund will consist of appropriated moneys and other lawful funds, and it is specifically designated for the demolition of vacant school buildings owned or proposed to be acquired by political subdivisions that became vacant before January 1, 2021. The bill stipulates that interest or earnings on the fund will remain within it and will not revert at the end of the fiscal year, although funds may be transferred to the rebuild Iowa infrastructure fund if no qualifying applications are received for three consecutive years.

The authority will administer the grant program using a competitive scoring process, prioritizing applications from political subdivisions with smaller populations. Grants will only be awarded for buildings located in areas with populations under 2,500, and the authority must work with applicants to ensure that the use of grant funds aligns with local development goals. While political subdivisions are not required to sell the property post-demolition, any proceeds from a sale must be returned to the grant fund after deducting demolition costs. The authority is also tasked with submitting an annual report to the general assembly and the governor's office detailing the program's outcomes and suggesting potential changes. The bill is set to take effect on July 1, 2025, contingent upon the appropriation of funds for the grant program.