This Week in the Iowa Legislature
Legislators made modest progress this week as the 100th day of session is now behind us. While this date was the target for adjournment and when legislators lose their per diem pay and no longer have support staff, several major issues—including property tax reform and eminent domain—remain unresolved, keeping lawmakers, and your lobbyists, working toward sine die. Although still unsettled, property tax discussions continued and Conference Committees were assigned for SF 2218 and HF 2200 after the House and Senate were unable to reach agreements on final language.
There were a few notable fireworks in the Senate this week as Democrats successfully blocked the confirmation of two gubernatorial appointees. Larry Johnson, who previously served as Director of the Department of Inspections, Appeals, and Licensing, was not confirmed as Director of the Iowa Department of Health and Human Services after lawmakers raised concerns regarding accountability and transparency within the department. Likewise, Todd Abrahamson, nominated to the Iowa Board of Education, was not confirmed following debate over his involvement in prior education policy decisions, including the highly controversial Area Education Agency (AEA) legislation. These outcomes were made possible by the special election in Senate District 1, where Democrat Catelin Drey’s victory ended the Republican supermajority in the Senate. Because gubernatorial appointees require approval by a two-thirds majority of the Senate, the shift in chamber dynamics proved impactful.
Property Tax Negotiations Continue
On Tuesday, the House Ways and Means Committee advanced an amended version of the Senate’s property tax proposal out of committee, with full Republican support and one Democrat vote. The strike-after amendment replaces the Senate-passed language and introduces a 2% “hard cap” on revenue growth, differing from the Senate’s 2% “soft cap” approach that allows for adjustments based on inflation. House Ways and Means Chair Nordman stated the House changes are not intended to be the final version, emphasizing that conversations with the Senate and Governor remain ongoing as lawmakers work toward a compromise.
On Wednesday, the House passed its property tax reform proposal with bipartisan support on a 64–23 vote. The House version, now reflected in SF 2472, includes key differences in funding allocations and revenue structures intended to reduce property tax burdens, while excluding several provisions included in the Senate plan, such as indexing the state gas tax to inflation and changes to property assessments for apartments and commercial properties. The bill now returns to the Senate for further consideration as negotiations continue between the chambers. Following House passage, Senate Majority Leader Mike Klimesh and Ways and Means Chair Dan Dawson issued a statement emphasizing the need for a comprehensive overhaul of Iowa’s property tax system while signaling they remain open to continued compromise discussions.
Updated Budget Targets
There was a significant breakthrough late Thursday afternoon as House and Senate leaders announced they had reached a joint budget target agreement, though the chambers still remain approximately $3 million apart in their individual spending plans. The legislature is now finalizing a final state budget of about $9.6 billion. Compared to earlier targets, the Senate increased its budget by roughly $20 million meeting the House in the middle.
We have been told budget chairs will be working through the next several days to resolve the remaining differences so budget bills can begin moving through both chambers early next week. This tells us that major budget decisions are largely being finalized behind closed doors and will likely be settled once the final agreements are released as amendments next week.
| Bill Number | Department | Status | House Target | Senate
Target |
Governor Target |
| HF 2768/ | Admin & Reg | Passed House Sub/in Senate | $73.3M |
$73.3M |
$73.1M |
| HF 2771/ | Ag & Natural Resources | Passed House Sub/Passed Senate Committee | $47.2M |
$47.5M |
$46.9M |
| HF 2772/ | Economic Development | Passed House Sub/Passed Senate Committee | $39.3M |
$39.9M |
$38.4M |
| HF 2783/ | Education | Passed House Sub/Passed Senate Committee | $1.406B |
$1.042B |
$1.047B |
| HF 2782/ | Health & Human Services | Passed House Sub/Passed Senate Committee | $2.561B |
$2.560B |
$2.55B |
| HF 2770/ | Justice Systems | Passed House Sub/Passed Senate Committee | $714.3M |
$716M |
$714.2M |
| HF 2769/ | Judicial Branch | Passed House Sub/Passed Senate Committee | $222.8M |
$222M |
$221.8M |
| SF 2484 | Rebuild Iowa Infrastructure Fund (RIIF) | Passed Senate Committee/in Senate | $196.3M | ||
| SF 2478 | Transportation | In Senate | $495.3M | ||
| Standings |
Looking Ahead
As the legislature continues to wind down, the same expectations remain, with ongoing negotiations focused on the key unresolved issues that will ultimately lead to adjournment.
We will continue to keep you updated as developments unfold—or stall—over the next week. Pressure is mounting as the June 2 primary approaches and several lawmakers face challengers. Legislative per diem payments expired earlier this week, meaning members must now cover their own expenses while in Des Moines, adding further urgency to reach adjournment. Combined with limited staff support and rising temperatures outside (farmers are eager to get their crops in the ground), momentum is building to bring the session to a close. At the same time, major policy issues, including property tax reform and eminent domain, remain unresolved as both chambers continue working toward compromise proposals.
As the week closed, rumors intensified around a possible push for final adjournment during the first weekend of May. With leadership announcing a budget target resolution late Thursday, the first major domino has fallen, and momentum is beginning to shift. This agreement provides the framework needed to move remaining budget negotiations and outstanding policy issues toward conclusion, creating a clearer path to adjournment in the coming days.