Members,

Last Week

The Senate moved several budget bills out of the Appropriations Committee after releasing its overall budget target of $9.623 billion. The Senate also advanced the Governor’s proposed budgets, but during committee said the bills would be amended later to reflect the Senate’s proposed budget.

The House held subcommittee meetings on the Governor’s proposed administration and regulation, economic development, and agriculture and natural resources budgets last week.

On Thursday, Governor Reynolds signed several enrolled bills into law including:

• SF 2214: A bill for an act relating to the installation of transmission lines on highway rights-of-way.
• HF 2514: A bill for an act making children of child care workers in Iowa eligible for the state Child Care Assistance Program
• SF 2418: A bill for an act relating to drainage districts and levees, including district parcel records, and including effective date provisions.

Governor Reynolds signed the following bills earlier this legislative session:

• HF 2739: A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the Department of Health and Human Services, and including effective date, contingent effective date, and retroactive applicability provisions.
• SF 579: A bill for an act relating to local laws implementing the Iowa Civil Rights Act of 1965, local civil rights commissions, and local civil rights agencies, and including effective date provisions.

The full list of bills signed into law in the 91^st General Assembly can be found here.

 

Property Taxes

On Wednesday, the Senate brought Senate File 2472 to the floor for consideration. SF 2472 is the most recent iteration of the Senate’s proposed property tax reform legislation. The bill passed the Senate 41-4 after a brief debate. The bill’s floor manager, Ways and Means Chair Senator Dawson of Council Bluffs, said in his opening comments that the bill did not reflect a final agreement among the Senate, House, and Governor but instead represented a “good-faith effort into finding that compromise within this General Assembly.”

Senator Dawson shared, “The greatest tool to building wealth for the middle class is through home ownership," Dawson said. "And the family home should have the best tax environment here in this state. A corporation should not have the same tax rate as a family's home. That's what this bill's about.”

The amended proposal would set new property tax rollbacks for residential with an additional exemption for primary residential homesteads, provides phased-in exemptions for homeowners 65 and older and reestablishes a multi-residential property tax class at 80%. The bill also caps local government revenue growth tied to the CPI and indexes the gas tax to inflation. It further includes Governor Reynolds’ proposal to create tax-deductible savings accounts for first-time homebuyers and changes to tax increment financing (TIF) by capping all future TIF districts at 20 years, restricting new debt on existing perpetual TIF districts, and removing the $5.40 levy on new TIF districts, with the option for local school boards to opt in. Last week, Governor Reynolds reiterated that she expects property tax reform to pass before the legislative session ends, “We’re putting in the effort that Iowans deserve, and I have every reason to believe that we’ll ultimately have a bill that will get through both chambers and to my desk and will work for Iowans.”

The House amended House File 2745 in the Ways and Means Committee last month to better align the Governor’s and the House’s original proposals. The bill advanced out of committee on March 23^rd.

 

Other Bills of Interest

Senate File 2096: Eliminates the 30-hour training requirement for foster care parent licensure and replaces it with completion of training offered or approved by the Iowa Department of Health and Human Services. The bill passed both chambers and was signed by the Governor on Tuesday.

“By adopting this modernized training framework, we’re reducing obstacles for prospective foster parents, and creating more stable, supportive homes for children,” said Governor Reynolds. “The alignment with ACF’s “A Home for Every Child” initiative further reinforces the state’s commitment to national best practices and to ensuring every child has an opportunity to thrive in a safe and loving environment.”

House File 2676: Governor’s “Make America Healthy Again” proposal. The Senate amended the bill sent over by the House, removing most of the education divisions added by the House, requiring the state to request an annual SNAP waiver to limit use to “healthy” foods, and allowing the over-the-counter sale of Ivermectin. The Senate passed the amended bill 30-15 and sent it back to the House on Wednesday.

House File 2748: The Iowa Farm Act, introduced by Iowa Ag Secretary Mike Naig, provides targeted tax relief and regulatory clarity. It enhances Iowa’s biosecurity and foreign animal disease preparedness, modernizes state operations, and improves efficiency to better serve farmers, agribusinesses, and rural communities. The bill passed the House 81-8 on Wednesday.

Senate File 2480: Establishes a tax on alternative nicotine and vape products and deposits the revenues into the health care trust. The bill appropriates $3 million from the health care trust to the state board of regents for pediatric cancer research. The bill passed the Senate Appropriations Committee on Wednesday in a party-line vote, with Democrats on the committee stating they support the bill but would like to see the tax rate increased.

 

This Week

Both chambers will hold limited debate while leadership continues negotiations on key issues, including eminent domain, property taxes, the Governor’s priorities, and the budget. April 21^stis the final day for legislators to receive per diem payments for the 2026 session.

House Schedule

Senate Schedule

 

Take Care,

Chris LaFerla
President & CEO
Council Bluffs Chamber