Members,

 

Last Week

The legislature did not convene on Monday because most elected officials were back in their districts attending the caucuses. Although it was a short week at the Capitol, both the House and Senate held numerous committee and subcommittee meetings ahead of the first funnel deadline on February 19^th.

In 2025, Governor Reynolds approved a $1 million appropriation for a study of Iowa’s cancer rates, to be conducted by the University of Iowa College of Public Health and the Iowa Department of Health and Human Services. During a press conference on Thursday, Governor Reynolds shared the initial findings report. The project will map cancer rates, examine prostate cancer screening across the state, review programs in other states, and research ways to strengthen cancer prevention.

The interim findings report can be found here.

During the press conference, Governor Reynolds announced she would introduce a bill this year to encourage behaviors that reduce cancer risks, including:

• Increase the cigarette tax from $1.36 to the national average of $2.01
• Tax vape products at 15% of retail costs
• Tax consumable hemp products at 15% of retail costs
• Increase the tobacco tax by 10% in rate per wholesale cost

"The good news is that each of us can change our behaviors to reduce our risk," Reynolds said. "Still, I understand why so many Iowans want to find that one cause of cancer. When someone you love gets sick, it's natural to want to put all of your energy and resources into one thing that might stop it from happening again.

"And I wish the answer was that simple as well, but know that the research will continue to look at all of the evidence, including environmental factors, and will act accordingly based on what the research finds."

 

Education

This week, several education bills advanced, including the Senate’s Supplemental State Aid proposal. Senate Study Bill 3100, proposed by the Senate Education Committee Chair, includes a 1.75% increase to SSA for the 2026-2027 school year. The increase is below the 2% proposed by Governor Reynolds and the Iowa State Education Association’s request for 5%.

SSB 3100 advanced out of the subcommittee on Tuesday and was approved by the full Education Committee on Wednesday. Democrats opposed the proposal, arguing the increase wasn’t enough to keep pace with inflation for school districts. Senator Lynn Evans, Chair of the Senate Education Committee, said he was moving the bill as early as possible to begin budget negotiations with the House and Governor before the February 12 deadline. The Legislature is required to pass a school funding package within 30 days of the Governor’s proposed budget being released; there is no penalty if the funding package is not passed.

“Having sat in that seat myself, I wanted to know as early as possible, so we’re trying to get that out and get these negotiations started so people can start. They’re actually in the process of building budgets now, but they can do a better job of building those budgets with some firm numbers,” Senator Evans said. “So this is a start. This is not a finish.”

 

Governor’s Proposed Budget

Following the Condition of the State address in January, Governor Reynolds announced her Fiscal Year 2027 budget proposal. The Governor recommended a 1.9% increase to the state General Fund, bringing total spending to $9.671 billion. During the December Revenue Estimating Conference meeting, the committee reported that the state is expected to bring in roughly $8.499 billion in FY27, and the Governor’s proposed budget includes carryover and surplus funds to account for the difference.

The Revenue Estimating Conference will reconvene in March to provide the final FY27 estimate. The legislature must use the lowest estimate when passing the budget.

 

Other Bills of Interest

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.

House Study Bill 629/Senate Study Bill 3092: Establishes a community solar program in Iowa that allows customers to participate. The bill passed out of subcommittee in both the House and Senate with support from alternative energy providers and opposition from Iowa’s utility companies.

House Study Bill 582: Provides that upon receipt of a public record request, the custodian shall provide notice of the request, provide an approximate response time, and inform the requester of any delay in response. The bill advanced out of subcommittee and committee unanimously.

House File 781: Eliminates the exception under the Smokefree Air Act that allows smoking on the casino floors. The bill passed out of subcommittee on Tuesday.

House File 2074: Allows a city to create an entertainment district, allowing for the possession or consumption of alcohol in certain public spaces. The bill passed out of the House State Government Committee with unanimous support, recommending an amendment.

 

This Week

The legislature will hold subcommittee and committee meetings in advance of the first funnel deadline on February 20^th.

House Schedule

Senate Schedule

 

Upcoming Chamber Legislative Events

• Council Bluffs Legislative Coffee: Saturday, February 14, 9:00-10:30 a.m., Wilson Middle School
• Legislative Reception in Des Moines, Wednesday, February 18, 5:00-7:00 p.m., Iowa Taproom. Click here to reserve a seat on the Chamber chartered bus.

 

Take Care,

Chris LaFerla

President & CEO
Council Bluffs Chamber