DL in Iowa?

is it true that people with DACA cannot get a DL or ID in Iowa??

No, Iowa has reversed that decision, as has Michigan. Currently only 3 states deny licenses to DACA beneficiaries: Arizona, Nebraska, and Mississippi.

Work permit + Social Security Card +2 proofs of address (like a bill or bank statement and a stamped envelope with your address, you can effectively send one to yourself) should be enough.

Sticky listing all ID/DL requirements per state:
http://dreamact.info/forum/showthread.php?t=28472

Checklist by Iowa's DMV:
http://www.iowadot.gov/mvd/realid/success.html