The bill establishes new regulations regarding the application for and acceptance of high-impact federal grants by state agencies in Iowa. A high-impact federal grant is defined as any federal financial assistance exceeding five million dollars in a fiscal year, requiring state matching funds, or necessitating the enactment of state legislation. Under the new provisions, state departments or establishments must obtain prior approval from the general assembly or the legislative council (if the assembly is not in session) before applying for or accepting such grants. Additionally, they are required to submit a federal grant request report to the legislative services agency (LSA) detailing the grant's duration, amount, conditions, and a withdrawal plan in case of funding changes.

Furthermore, the bill mandates that any department or establishment receiving a federal guidance document must submit a copy of it to the LSA within ten business days, along with a guidance impact statement that outlines the operational and fiscal implications of complying with the guidance. The LSA is tasked with posting these federal grant request reports and maintaining a publicly accessible database of all federal guidance documents on the general assembly's internet site, ensuring transparency and accountability in the management of federal grants.