February 23, 2026 Legislative Update
Members,
Last Week
The first funnel deadline was February 20th; bills that did not pass out of a policy committee in the chamber where the bill was originally introduced are no longer eligible for consideration. Bills in either the Ways and Means or Appropriations Committees are exempt from this deadline.
So far this session, over 2,500 pieces of legislation have been introduced (a greater number than typical sessions). The Senate has held 330 subcommittee meetings, and the House has held 444. In 2025, a total of 519 subcommittees were held in the Senate and 675 in the House.
On Thursday, the House held floor debate on Senate File 2201, which sets the state supplemental aid (SSA) for FY27. SSA is the annual per-pupil funding increase for K-12 public school districts, and an important decision in the budgeting process. The Senate passed the bill on February 10th with a 1.75% increase to SSA. The House amended the bill to increase it to 2%, aligned with Governor Reynolds’ proposal.
Governor’s “Make America Healthy Again” Proposal
Last week, Governor Reynolds introduced House Study Bill 694 and its companion Senate Study Bill 3130. The bills direct the state to maintain Iowa’s current waivers for the Supplemental Nutrition Assistance Program and the Summer EBT Program, allow over-the-counter sales of ivermectin, prohibit certain food dyes in school breakfast and lunch programs, and raise taxes on cigarettes, loose tobacco products, cigars, vapor products, and consumable hemp.
The House Health and Services Committee advanced the bill, recommending an amendment to remove the final division that would raise the cigarette tax.
In the Senate, SSB 3130 did not receive a subcommittee and died in the first funnel. However, the Senate Health and Human Services Committee Chair introduced the same provisions in two separate bills. Senate Study Bill 3139 contained all the nontax provisions and passed out of the Health and Human Services Committee on Tuesday. The second, Senate Study Bill 3145, which included the cigarette tax increase language from the Governor’s proposal advanced out of subcommittee but failed to pass the full Senate Health and Human Services Committee on Thursday.
Business Incentives for Growth Program
On Friday, Governor Reynolds and the Iowa Economic Development Authority announced the approval of the first Business Incentives for Growth (BIG) Program awards. The BIG Program was created in 2025 and provides qualifying businesses with assistance to offset the costs of locating, expanding, or modernizing facilities in Iowa in the manufacturing, bioscience, insurance and finance, or technology industries.
“BIG further demonstrates Iowa’s commitment to pro-growth policies that help businesses thrive,” said Governor Kim Reynolds. “This new program encourages companies in key industries to locate, expand, or modernize facilities in Iowa, strengthening our competitive edge and creating opportunities for Iowans. It also builds on the state’s strong economic momentum. Since 2024, Iowa has attracted more than $20 billion in new capital investment, and our economic indicators are on the rise—state GDP is up 5%, net earnings grew 7.3%, and personal income increased 3.7%. These results show that Iowa’s partnership approach works and will continue to make Iowa the best place to invest, innovate, and grow.”
Five awards were approved to assist in creating 536 jobs and $268.2 million in new capital investments.
Awards:
- Arconic Corp to construct new casting complex in Bettendorf ($6.55 million in tax credits)
- Vermeer Corp. to build a new production facility in Bondurant ($5.1 million in tax credits)
- CCB Packaging to add automated production line in Hiawatha ($343,497 in tax credits)
- Sewer Equipment Company of America to establish fabrication operations in Vinton ($84,375 in tax credits)
- Revolution Concrete Mixers to launch manufacturing operations in Waverly ($660,000 in tax credits)
More information about the BIG Program awards can be found here.
Other Bills of Interest
Senate Study Bill 3173 / House Study Bill 744: Makes changes to the Statewide Urban Design and Specifications Board, requiring both public and private entities to sit on the board. The bill also requires a city that approves a plan that does not comply with SUDAS standards to bear any increased costs derived from the differing plan. The bill survived the first funnel by passing out of both the House and Senate Transportation Committees.
Senate Study Bill 3075 / House Study Bill 633: Makes changes to the rules governing the investment of public funds in Iowa to ensure the majority of investments stay in the state, allows up to 25% of a city, school, or county’s public funds be invested in a joint investment trust, and adds regulations. The bill passed out of subcommittee in both the House and Senate with support from Iowa’s financial institutions and business groups and opposition from city, county, and school associations. Both bills survived the first funnel by passing out of the State Government Committees.
House File 2312: Establishes an affordable housing task force to study state and local regulations that contribute to the cost of affordable housing. Membership of the taskforce will include representatives from state agencies, housing developers, local government officials, and members of the general assembly. The bill survived the first funnel and passed out of the Economic Growth and Technology Committee.
House Study Bill 619: Creates the Iowa Rural Health Transformation Fund under the Department of Health and Human Services, to receive funds from the Federal Rural Health Transportation Program and use in accordance with the program requirements set in the One Big Beautiful Bill Act. The bill survived the first funnel and passed out of the House Health and Human Services Committee on Tuesday.
This Week
Both chambers will begin holding floor debate on eligible policy bills. A subcommittee on the Senate’s property tax reform bill is scheduled for Wednesday afternoon.
Take Care,
Chris LaFerla
President & CEO
Council Bluffs Chamber