Gov. Reynolds Introduces Bill to Modernize Iowa Veterans’ Benefits System

DES MOINES — Gov. Kim Reynolds on Thursday introduced legislation in the Iowa House and Senate aimed at improving how veterans’ benefits are delivered across the state, including changes that would tie county funding to performance and require a single statewide claims system.

Iowa is home to nearly 178,000 veterans, yet only about one-third are receiving the benefits they earned through their service, according to the governor’s office. Iowa currently ranks 44th in the nation for U.S. Department of Veterans Affairs compensation per capita.

“Iowa’s outdated and inefficient system means too many veterans aren’t receiving the full benefits they’ve earned,” Reynolds said. “By moving to a single claim system statewide, providing consistent training for all counties, and establishing performance-based incentives, we can achieve our goal of getting more benefits to more veterans.”

Under current law, each of Iowa’s 99 counties receives $10,000 per year in state funding to support local veteran service officers (VSOs). Reynolds’ proposal would replace that flat funding model with performance-based incentives tied to outcomes.

The bill would award $15,000 to counties ranking in the top third for VA compensation per capita — a 50% increase. Counties in the middle third would be eligible for up to $10,000 if they increase per capita compensation by 5%. Counties in the lowest third would be eligible for up to $5,000 by achieving a 5% increase in per capita compensation.

The proposal also includes new training standards for county VSOs, creating a dedicated team within the Iowa Department of Veterans Affairs to provide enhanced support, including on-site training and technical assistance.

In addition, the bill would require counties to use a single online claims system provided by the state, replacing the mix of systems — including paper claims — currently used across Iowa.

The legislation has been introduced but has not yet received committee action.