The Iowa Department of Government Efficiency (DOGE) task force comprised primarily of business leaders has released a list of 45 recommendations that Gov. Kim Reynolds says will help to guide her policy proposals heading into the 2026 legislative session. One of them would make major reforms to the 260E/260F industrial job training programs currently administered by the state’s community colleges, and leaders with the Iowa Valley Community College District (IVCCD) are concerned that it could have negative long-term consequences.

IVCCD Vice President of Business and Community Solutions Jacque Goodman and Business Outreach Coordinator Neysa Hartzler explained the details the two programs — 260E is tailored to new and expanding businesses looking to create jobs, and 260F is focused on upskilling current employees. For the 260E program, the college issues bonds on behalf of the company, and for 260F program, the college receives an annual allocation before Hartzler and fellow Business Outreach Coordinator Val Ruff work with companies to develop training plans.

The DOGE report, according to reporting in the Iowa Capital Dispatch, proposes sunsetting the 260E program and establishing a $30 million “employer-directed workforce training fund within Iowa Workforce Development.”

“Of course, (employers) would have reporting requirements, and these are all things that we would normally take care of on our end. So our biggest concern is rural Iowa because these block grants, as they’re calling them, would be administered by IWD out of Des Moines,” Goodman said. “$30 million across the state is not going to go very far, and then, you add on top of that, a lot of our employers are small to midsize. They don’t have the staff to take on this role.”

Hartzler said IVCCD receives about $203,000 annually for the 260F program, which allows them to provide $20,000 to $25,000 each to companies that need it, and there are currently 13 companies with a 260E project in place totaling $7,635,252.40.

“It’s rural America. I can’t say that enough. It’s rural Iowa that’s gonna be hurt the most,” Goodman said.

Additionally, Hartzler noted that the community college staff completes about 80 percent of the paperwork for the companies covering training and reimbursement, and business owners have told her that they won’t have the resources or the manpower to fund the training if they are eliminated or reduced.

“IWD does not realize what goes into administering this,” she said.

Goodman worried that the changes would hamper the college’s ability to provide training for high-demand industrial jobs, and Hartzler cited examples of area businesses utilizing both programs, including Ritchie Industries in Conrad.

“It’s hard to find talent, so companies are having to promote from within. So that’s what a lot of them are doing. They send them back to school,” Goodman said. “Whether it’s industrial maintenance, machine trades or tool and die, these are the skill sets that manufacturers need.”

Because 260E dates back to the 1980s and 260F back to the 1990s, Goodman isn’t opposed to the idea of “modernizing” the programs, but her objective would be to make more employers eligible and expand beyond traditional manufacturing to address shortages in fields like health care.

“We’re open to making some changes, but why eliminate a program that’s been rock solid since the ’80s?” she asked.

Stacey Zeman, the human resources manager at Ritchie, praised the “fantastic” working relationship she enjoys with the IVCCD team and relished the ability to provide hands-on training for employees and expand their skill sets. After “testing the waters” the first year the company received the grant, she said she went “whole hog” in the second year to work with employees on supply chain and production management programs as well as sharing guidance on mental health, tariffs and other topics relevant to the longstanding business known for manufacturing livestock watering units.

“It runs the gamut on all levels of our team here at Ritchie, and I do think that without that additional funding we were awarded through the 260F program, there would not be as many options for people to go outside the fence, take in-person classes, go to conferences and network and learn things from other people that are in the same role as you but different industries. I don’t think we’d have near the opportunities to bring things to the floor employees and give them opportunities like that,” Zeman said. “We cover the gamut, and with any business right now, you look at the first thing to go, I think some of the extensive, not required, not onboarding type of trainings are some of the first things to be let go, and that has been a huge advantage of me working with Iowa Valley is because of those opportunities… We do have to declare skin in the game, so to speak, and match funds, but the amount of funds that we’re awarded through that program by far exceeds dreams and gives us the opportunity to provide a lot more than we would otherwise. And I think, if there’s a chance that DOGE, and all of the amazing people that are trying their best to figure out how to get us out of the financial mess that we’ve been in, regardless of what political party you’re in, I don’t think there’s a quick fix, but I think cutting everybody off cold turkey or even limiting it to the point where essentially you are cutting them off because it’s a nominal amount that they could be talking about with today’s costs of things, probably wouldn’t be able to help run or give much training, honestly. I’m just afraid that I will have to cut back or even not have as many opportunities and truly focus on just one area.”

She described the program as a win-win for both the colleges, the employers they partner with and the employees who benefit from upskilling opportunities. Over 52 Ritchie employees have utilized the program in the last two years, according to Zeman.

“It’s great for the smaller businesses who don’t have that larger budget or are not a corporate conglomeration,” Zeman said.

Sen. Kara Warme (R-Ames), who represents Marshall County in the Iowa Senate, said she met with Marshalltown Community College (MCC) representatives recently to discuss the programs, and she said that in general, she has been highly supportive of community colleges and the training they provide.

“I think the way in which we do that, I’m open to looking at, but I think there’s a lot of strong feelings. The companies that are using the community colleges today, we want to make sure that they can continue to do that. That would be my hope. If the paperwork changes, if the basic process looks different, that might make sense to modernize things and we want to take a look at that, but if companies want to partner with the community colleges, and that’s working well, it would be my hope that they’d continue to be able to do that,” she said.

Warme explained that one of the issues raised by the DOGE committee is the bonding process for the funds, which is typically reserved for buildings and road projects.

“It sounds like Iowa is unique in using bonding for training programs. In fact, my understanding from talking to Iowa Workforce Development is no other state uses bonding for training programs, and so that is unique and it adds some additional administrative cost and legal cost that takes some of the money away from training and instead it sort of goes to this mechanism of bonding,” she said. “And so that, I think, is what the DOGE committee probably noticed that stood out, and it also raises a lot of paperwork and red tape for the businesses. The Marshalltown businesses that talked to me were happy that MCC is helping them do all that paperwork. That’s part of the role they’re playing… I don’t know if that’s how it happens everywhere, but it sounds like in the DOGE comments from businesses, there were concerns that it’s pretty complicated. There’s confusion and a lot to go through because of that bonding process.”

Fast facts

In the last year within the IVCCD area,

• 1,246 local workers received training last year through 260 programs

• Employers saw more than $7.9 million in combined financial impact

• 29 companies partnered with IVCCD on 260E/260F projects in FY25, including longtime employer partners like Ritchie Industries, Alliant Energy, Hawkins Electric, Manatt’s, Lennox, and many more.

Statewide since 1983,

• 260E has supported $300 million in training for 40,000 new hires. It is funded through withholding taxes from new jobs, 260E does not rely on annual state appropriations.

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Contact Robert Maharry at 641-753-6611 ext. 255 or

rmaharry@timesrepublican.com.