An official of the Iowa Department of Administrative Services says federal money could have been used to pay money to former state employees to keep quiet about settlement agreements.
Lon Anderson, Chief Deputy Director of the DAS, appeared before the Government Oversight Committee to answer questions about the Legislature's deepening investigation into the agreements.
Democrats allege money may have been misappropriated to pay laid off workers for silence.
Anderson says in some cases money would have come from fees other government agencies pay DAS for services and it's impossible to know where that money came from.
Sen. Matt McCoy says if federal money was used it could jeopardize Iowa's ability to seek federal money or the keep money it has already been given.