The proposed bill establishes a temporary Independent Fiscal Restructuring Authority to oversee institutions of higher education governed by the state board of regents in Iowa, operating from July 1, 2027, to July 1, 2032. This authority is tasked with implementing zero-based budgeting, requiring institutions to justify every expenditure, and enforcing significant reductions in administrative and managerial positions. It will evaluate academic programs based on specific metrics related to workforce alignment and fiscal integrity, with the power to eliminate or restructure programs based on performance scores. The bill emphasizes legislative supremacy, ensuring that the authority's powers are derived from the General Assembly and can be revised or revoked by it.

Additionally, the bill introduces provisions for compliance audits, the appropriation of savings for tuition reduction, and the establishment of a tuition withholding fund to ensure institutions comply with authority directives. It mandates annual compliance certifications from institutional leaders and outlines penalties for obstructing the authority's functions. The authority will also have subpoena power to access necessary information and is required to consult with accrediting bodies to maintain compliance with accreditation standards. Overall, the bill aims to enhance accountability, transparency, and fiscal responsibility within higher education institutions while protecting taxpayer interests and ensuring effective use of public resources.