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March 30, 2026 Legislative Update

Legislative Update 2026-2

The Council Bluffs Area Chamber of Commerce continues to monitor legislative activity at the Iowa State Capitol to keep Southwest Iowa businesses informed on policy decisions that may impact economic growth, workforce development, and regional competitiveness.

Members,

Last Week

Both the House and Senate held floor debates on Monday and Tuesday last week. On Wednesday, the Senate held committee meetings to advance Governor appointees for Iowa’s Boards and Commissions. Appointees must receive a two-thirds majority vote in the Senate to be confirmed.

 

On Tuesday, the Senate approved House File 2739 with a 26-19 vote, with 4 Republicans crossing party lines to vote no and 5 members excused (3 Republicans and 2 Democrats). The bill introduces a one-time tax increase on health maintenance organizations and Iowa’s managed care providers, retroactively increasing the tax rate from 0.925% to 3.5% from January 1 through September 30, 2026. This higher tax would generate $123 million and enable the state secure matching federal funds before a provision in the One Big Beautiful Bill Act prevents such increases from taking effect in November. The bill must be signed by the Governor by March 31 to qualify for the federal funding.

 

Community College Bill Yet to Advance

House File 2649 passed the House on March 4 but has not advanced in the Senate amid opposition from Iowa private and public colleges and universities. The bill would authorize select community colleges to offer bachelor’s degrees, under a limited pilot, in high-demand fields such as education, nursing, IT, public safety, and agriculture. Eligibility would be restricted to colleges located at least 50 miles from a four-year institution offering the same program. Supporters argue the proposal would expand affordable, place-based education and strengthen local workforce pipelines in underserved areas, while opponents cite concerns about impacts on four-year institutions.

 

Candidate Filing Deadline and Challenges

Candidates must file nomination petitions with the Secretary of State’s Office

by March 13th to appear on the ballot for state and federal offices. The primary election will be held on June 2, 2026. The full candidate list for state and federal offices can be found here.

 

In the Iowa Senate, only odd numbered districts are up for re-election. All Iowa House Districts are up for re-election. Republicans currently hold a 33-17 majority in the Senate and a 67–33 majority in the House.

 

In the Senate, nine seats are open due to the retirement of six Republicans and three Democrats. Only one Democratic incumbent senator will face a primary opponent in June, while three incumbent Republican senators currently have primary challengers.

 

In the House, seventeen seats are open, with seven Republicans and ten Democrats retiring. One Democratic representative is currently facing a primary challenger, and ten Republican incumbents have primary challengers.

 

Last spring, Governor Reynolds announced she would not seek re-election in 2026. Currently, five Republicans have filed to run for governor and will appear on the June ballot: Congressman Randy Feenstra, former State Representative Brad Sherman, State Representative Eddie Andrews, businessman and farmer Zach Lahn, and former Department of Administrative Services Director Adam Steen. Current State Auditor Rob Sand is the only Democrat who will appear on the ballot. Julie Stauch filed to run for governor as a Democrat but did not gather enough signatures.

 

With Congressman Feenstra’s decision to run for Governor and Senator Joni Ernst’s retirement, Iowa has a U.S. House and a Senate open. Below are the candidates who have filed to run for federal office.

 

Open Seat Incumbent
U.S Senate Ashley Hinson (R) Jim Carlin (R) Zach Wahls (D) Josh Turek (D)
US District 1 Mariannette Miller – Meeks (R) David Pautsch (R) Christina Bohannan (D) Travis Terrell (D)
US District 2 Joe Mitchell (R) Charlie McClintock (R) Lindsey James (D) Clint Twedt-Ball (D) Kathy Dolter (D)
US District 3 Zach Nunn (R) Sarah Trone-Garriott (D) Xavier Carrigan (D)
US District 4 Chris McGowan (R) Ashley WolfTornabane (D) Dave Dawson (D) Stephanie Steiner (D)

 

This Week

Both chambers may consider bills that have been passed by the opposite chamber, appropriation bills, ways and means bills, and bills on the unfinished business calendar. Neither chamber has released budget targets yet and it will likely be another short week with limited debate as leadership continues negotiations on priority items such as eminent domain, property tax, the Governor’s priorities, and the budget.

House Schedule

Senate Schedule

 

Other Bills We’re Watching 

Senate Study Bill 3034/House Study Bill 563, Senate File 2472, and House Study Bill 596 introduce various reforms to Iowa’s Property Tax code.

Senate Study Bill 3186: Transportation budget bill that allocates ~$495 million to fund the Department of Transportation’s operations, maintenance, and limited capital projects, with a slight overall decrease from the prior year.

House File 2466: Increases funding for 84E Apprenticeship Act.

Senate File 2301: IEDA Omnibus bill – creates headquarters expansion tax credit, extends MEGA site incentives, repeals 260E New Jobs Tax Credit program.

House File 2676: Governor’s “Make America Great Healthy Again” Omnibus bill – includes provisions affecting SNAP restrictions, employee nutrition programs, and rural health care access.

House File 2688: Requires data centers to invest in economic development projects to qualify for sales tax credits.

House File 2649: Authorizes Iowa community colleges who meet certain conditions to offer bachelor’s degrees in high demand fields.

 

Take Care,

Chris LaFerla
President & CEO
Council Bluffs Chamber

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