Kim Reynolds taps federal dollars to fill Iowa Veterans Trust Fund shortfall

Gov. Kim Reynolds is using federal money to clear a backlog of grants requested by Iowa veterans in need of financial assistance.

Reynolds said Tuesday that she'll use $440,000 from the American Rescue Plan to fill the Iowa Veterans Trust Fund, which helps veterans and their families with costs related to dental care, education and emergency needs such as vehicle and housing repairs.

The new money will go toward grants that the Iowa Commission of Veterans Affairs approved between March 3, 2021, and Nov. 3, 2022. The program was suspended after running out of money last fall.

“We owe Iowa’s veterans a debt of gratitude and we must ensure that the services we offer them are available when needed," Reynolds said in a statement.

The Iowa Veterans Trust Fund is funded by the Iowa Lottery Authority up to $500,000 annually. Iowa lawmakers are considering ideas to increase the amount of money available in the fund after it was depleted last fall by increased demand.

House File 142 would allow the Commission of Veterans Affairs to draw $800,000 from the trust fund annually. That bill has cleared the House Veterans Affairs Committee and is eligible for floor debate.

A Democratic bill, Senate File 82, would immediately put another $500,000 in the trust fund and increase the fund's annual allocation to $1 million, beginning July 1.

Sen. Bill Dotzler, D-Waterloo, the bill's sponsor, thanked Reynolds for putting more money into the trust fund but said the solution is only temporary.

"Senate Democrats have a plan to shore up the trust fund’s finances long-term, and we look forward to working with the governor and Republican lawmakers to get it done," Dotzler said in a statement. "We should never turn away an Iowa veteran in need."

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.