This Week in the Iowa Legislature
The 2026 Legislative Session began at a rapid pace, with major policy initiatives being introduced by the Governor and in both chambers in the opening days of session. On the very first day, Senate Republicans introduced a comprehensive, 102-page property tax reform bill, making clear restructuring Iowa’s property tax system will be a central focus this year. At the same time, House Republicans quickly moved legislation to prohibit the use of eminent domain for carbon dioxide pipeline projects through the committee process, reviving one of last session’s most contentious issues.
The week was anchored by Governor Kim Reynolds’ 2026 Condition of the State Address, in which she outlined her budget recommendations and top policy priorities, including property tax relief, cost-of-living and healthcare issues, and government accountability. Lawmakers also listened to the Condition of the Judiciary on Wednesday and the Condition of the Guard Thursday.
Condition of the State
On Tuesday evening, Governor Kim Reynolds delivered her annual Condition of the State address framing 2026 as a year to “finish the work” on affordability and long-term structural government reform, with a particular focus on property taxes and health initiatives. Her administration released a full budget proposal and policy outline in conjunction with the speech.
Property Taxes and Local Government Growth
- The Governor described her framework as providing approximately $3 billion in cumulative property tax relief over multiple years.
- Freeze property tax bills for homeowners aged 65 and older with homes valued at $350,000 or less.
- Local revenue growth cap: Limit annual city and county revenue growth to 2 percent, with adjustments for new construction valuation.
- Statewide transparency tools: Creation of a Department of Management-run Property Tax Dashboard displaying levy rates, taxable value, TIF usage, and year-over-year tax changes for every city, county, and school district.
Health and Nutrition
- School meals: Proposal to remove specified synthetic food dyes and preservatives from K-12 school meals beginning in the 2026–27 school year.
- Public assistance administration: Continued adjustments to SNAP and Summer EBT administration, including alignment of eligibility verification and restrictions on certain taxable items.
- Using $50 million in Federal Rural Transformation grant funds for cancer screening and prevention programs.
Elections
- Remove election requirements for county offices including recorders, auditors, and treasurers and instead have them be positions appointed by the board of supervisors.
- Voter registration verification: Requirement that new registrants formally affirm U.S. citizenship under penalty of perjury, implemented through the Secretary of State and county auditor systems.
Condition of the Judiciary
Chief Justice Susan Christensen emphasized that rising family, juvenile, and mental-health caseloads are placing a significant strain on Iowa’s courts, particularly in rural judicial districts. She urged targeted investment in judicial staffing, magistrate compensation, and court technology to improve workforce retention, manage growing workloads, and ensure timely and reliable access to justice statewide.
Condition of the Guard
Major General Stephen Osborn reported in the 2026 Condition of the Guard that the Iowa National Guard continued to be heavily engaged in both overseas deployments and domestic response missions. He emphasized the importance of sustained investments in readiness, recruitment, retention, and modernization of facilities and equipment. He led lawmakers in a moment of silence honoring the sacrifice of two Iowa National Guardsmen who lost their lives in Syria. Bipartisan leaders expressed their condolences to the families, emphasizing that their service underscores the Guard’s critical role in both national security and the safety of Iowans at home.
Property Tax Proposals: Senate and Governor
In addition to the Governor’s proposal outlined above, Senate Republicans introduced SSB 3001, an over one hundred-page property tax reform proposal.
Senate Republican Proposal
- Homestead credit: Increase to 50 percent of taxable residential value.
- Rollback and assessment reform: Adjust rollback calculations phasing it out over time and phase-in limits on valuation growth.
- Levy and growth limits: Revise local government revenue growth formulas tied to inflation and population change.
- School funding backfill: Restructure state backfill to hold districts harmless, with projected state costs in the hundreds of millions annually at full implementation.
- Tax Increment Financing (TIF): Tighten growth limits, restrict new urban renewal areas, and expand reporting requirements.
- Index fuel taxes to the CPI for automatic annual increases
- Implementation timeline: Phased in over three to five years, with full effect by approximately FY 2030.
Governor’s Budget Recommendations
On Tuesday evening, the Governor unveiled her Fiscal Year 2027 budget plan, proposing a total of $9.67 billion in state spending. This will be a $180 million increase over the FY26 budget estimate. The Governor’s budget draws from the Taxpayer Relief fund by $583.9 million for an ending balance of $2.695 billion, and $880 million in the general fund surplus. Reynolds’ proposal included an increase for K-12 public schools and education savings accounts for private schools of 2 percent. If your program or appropriation was not specifically mentioned, it has been recommended for level funding. For full details on the Governor’s 2027 budget plan, click here.
Looking Ahead
The legislature will not meet on Monday in honor of MLK Day, and upon their return Tuesday it is rumored House Republicans could debate their bill banning eminent domain for carbon capture pipelines on the House floor to send it over to the Senate where similar proposals have stalled for years.
In the meantime, a mountain of subcommittee hearings have already been scheduled starting as early at 10 am on Tuesday, and the committee process will really get underway. We expect hundreds more bills to be introduced next week. To follow along or to find meeting details or virtual meeting links click here and search by chamber and date.