That’s actually not the case. Per the linked article…
States that participate in the federal program are required to cover half of the administrative costs, which would cost an estimated $2.2 million in Iowa, the news release says.
Of course, that’s no excuse to turn this program down. Particularly since she also just announced that the state will “end Fiscal Year 2023 with a balance of $1.83 billion in the General Fund, $902 million in reserve funds and $2.74 billion in the Taxpayer Relief Fund.” $2.2 million is a drop in the bucket when it would benefit so many needy children.