A bill for an act prohibiting private institutions of higher education that participate in the Iowa tuition grant program from establishing diversity, equity, and inclusion offices.(See HF 2488.)

House Study Bill 537 (HSB537) was a legislative proposal in Iowa that aimed to prohibit private colleges and universities participating in the Iowa Tuition Grant program from establishing offices dedicated to diversity, equity, and inclusion (DEI). The bill was introduced on January 13, 2026, and was later renumbered as House File 2488 (HF2488). The key provision of the bill was to make the establishment of DEI offices a disqualifying factor for private institutions seeking to participate in the state-funded tuition grant program. The bill passed the Iowa House on February 24, 2026, with a vote of 57 yeas to 34 nays, but was indefinitely postponed by a Senate subcommittee on March 16, 2026, effectively halting its progress.

Supporters of HSB537 argued that the bill would ensure that state funds are not used to support DEI initiatives, which they believe can be divisive and may not align with the values of all taxpayers. They contended that the focus of educational institutions should be on academic excellence and that DEI offices can sometimes promote ideological agendas. Proponents also suggested that the bill would encourage institutions to allocate resources more directly toward educational outcomes rather than administrative functions.

Opponents of HSB537 expressed concern that prohibiting DEI offices would undermine efforts to create inclusive and supportive environments for all students, particularly those from underrepresented backgrounds. They argued that DEI initiatives are essential for addressing systemic inequalities and fostering a campus culture that values diversity. Critics also warned that the bill could deter prospective students and faculty who prioritize inclusivity, potentially harming the reputation and competitiveness of Iowa's private colleges and universities.