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.

Grants will be awarded through a competitive scoring process, prioritizing applications from political subdivisions with smaller populations. Eligible buildings must be located in areas with populations under 2,500, and applicants must be from counties among the 88 lowest populated in the state. The authority is tasked with coordinating with political subdivisions to ensure that grant funds align with community development goals and that the post-demolition use of the property is appropriate. The bill also allows the authority to use up to 5% of the fund for administrative purposes and requires an annual report to the general assembly and the governor's office. The program is set to take effect on July 1, 2025, contingent upon the appropriation of funds for that fiscal year.