The University of Iowa is an economic and cultural powerhouse for the region and state, supporting one of every 19 jobs in Iowa and adding about $8 billion in value annually to the state’s economy, according to a 2023 study commissioned by the Iowa Board of Regents.
That economic impact equals about 4% of the state’s $210 billion gross domestic product, according to the study by international consulting firm Lightcast.
As the legislative session continues, we urge legislators to remember the university’s economic impact and avoid legislation that would negatively affect its economic importance or its educational reputation — both of which are inextricably tied together.
As the state’s largest employer, the university produces far more revenue for Iowa than it receives. More than $261 million in taxpayer dollars went to the university last year, fueling higher lifetime earnings and increased business output for students totaling nearly $800 million while lowering demand for government-funded services in Iowa by more than $122 million.
The result: Taxpayers see a return of about $3.50 for every dollar invested in the university, according to the study.
According to a UI newsletter, external funding totaled $705.6 million in fiscal year 2025. This funding includes $533.7 million to support research, scholarship and creative activities. The federal government remained the strongest supporter of the institution at $300 million, or 43% of external funding.
One area that is often underappreciated is the long-term impact of entrepreneurial support programs and classes through the John Pappajohn Entrepreneurial Center, the UI’s Small Business Development Center and related spinoff companies from intellectual property developed at the university.
“The strong growth in our spinoff companies, which continue to hire more employees, by itself led to an increased impact of $20 million,” said Jon Darsee, the university’s chief innovation officer.
Eliminating unused majors, focusing on skills and majors needed for future jobs and implementing performance-based funding is one thing. Taxing endowments, adding competition with four-year degrees from community colleges and exerting more political control over the Iowa Board of Regents and how presidents are selected is another.
NewBo’s promising aerospace grant
The Eastern Iowa Airport is leading an important effort to create a regional aerospace cluster by leveraging the region’s aerospace heritage with the airport’s nearly 1,000 acres of developable land.
Success will require help from educational institutions, other industries and the entrepreneurial and small business community. That’s why the New Bohemian Innovation Collaborative’s $250,000 grant is welcome news.
The Cedar Rapids-based nonprofit received the funding to help connect small businesses with growth opportunities in the state’s aerospace industry. The organization aims to guide entrepreneurs from research to market while building stronger business support ecosystems and establishing Iowa as a hub for aviation technology innovation, development and testing.
JPMorgan Chase awarded the grant as part of a $1 million philanthropic investment in Iowa small businesses, coinciding with the opening of a new branch in Ames. We look forward to how this grant will help spark more aerospace commercial activities in the region.
