Another week crossed off the session calendar as lawmakers prepare for the second legislative funnel, which is next Friday. For policy bills to remain eligible after the 20th, they will need to pass one chamber and have made it through full committee in the other. Both chambers began the week with early floor debate, followed by increased subcommittee and committee work, particularly on legislation without a companion, ahead of next Friday’s deadline. Several contentious issues continue to drive conversations around the Capitol, with notable legislation advancing through the chambers and being sent to the Governor for her signature.
Key Activity:
- Health care policy remained a topic of discussion this week as lawmakers considered legislation related to medical conscience protections (HF 571). The bill would allow health care providers and institutions to decline participation in certain medical services if those services conflict with their ethical, moral, or religious beliefs.
- Governor Reynolds signed legislation addressing local civil rights authority (SF 579), which established a uniform statewide standard by limiting the ability of cities and counties to enact civil rights protections beyond those included in the Iowa Civil Rights Act.
- Governor’s emergency powers (HF 2694) was another hot topic. The bill is part of ongoing discussions regarding the balance between executive authority and legislative oversight during statewide emergencies.
- Legislation codifying Iowa’s Medicaid managed care system (SF 2422) passed the full Senate and a House HHS subcommittee despite much opposition.
REC Announces Updated Budget Shortfall Predictions
On March 12th, the Revenue Estimating Conference (REC) updated Iowa’s revenue projections for FY26 and FY27, following economic briefings from the Legislative Services Agency (LSA) and the Department of Management.
LSA Fiscal Division Director Jennifer Acton highlighted continued economic headwinds, including tariffs, a weak agricultural economy, and an uncertain labor market. Iowa’s GDP growth remains slow, and declining disposable personal income is reducing overall economic activity. Additional uncertainty stems from ongoing conflict in the Middle East.
The REC made only minor adjustments to prior estimates. FY26 revenue is now projected at $8.11 billion, slightly below the December estimate of $8.16 billion. FY27 revenue is projected at $8.47 billion, down from $8.50 billion in December.
In May 2025, the legislature passed a $9.42 billion FY26 budget, creating a $1.3 billion shortfall that will require the legislature to dip into reserve funds. If spending remains unchanged, FY27 could require another $1 billion+ from reserves, particularly as Medicaid and education costs rise.
Iowa currently has nearly $7 billion in reserves, including $1.9 billion in the General Fund reserve, $4 billion in the Taxpayer Relief Fund, and nearly $1 billion in the emergency reserve. Covering projected deficits would significantly reduce these balances over the next two fiscal years.
Iowa Cancer Trend
Lawmakers received an update this week from University of Iowa researchers on Iowa’s rising cancer rates during a joint meeting of the House Health and Human Services and Environmental Protection Committees. Iowa currently has the second-highest cancer incidence rate in the nation and is the only state where the rate continues to increase, making the issue a growing focus for lawmakers and public health officials.
Researchers noted that while environmental exposures are often discussed in relation to cancer trends, current data does not yet allow for definitive conclusions about specific causes. The presentation also highlighted that lung cancer remains a major contributor to Iowa’s cancer burden, with smoking continuing to be a significant risk factor. It was also noted that legislation has been proposed this session aimed at reducing smoking rates in Iowa.
Looking Ahead
The Legislature will enter the final funnel period next week, a key deadline when most policy bills must clear a full committee in the opposite chamber to remain eligible for consideration this session. As lawmakers work toward that deadline, legislative activity is expected to shift away from floor debate and exclusively toward committee meetings.
Outside of legislative deadlines, Friday (3/13) also marks the filing deadline for candidates seeking to run in Iowa’s upcoming primary elections, with candidate paperwork due by 5:00 p.m. This milestone will confirm the list of candidates expected to appear on primary ballots later this year.
Following the second funnel, the pace of policy debate typically begins to slow as lawmakers shift their focus toward budget and tax discussions for the remainder of the session. Budget target projections from each chamber are expected in the next few weeks, which will begin to shape negotiations over spending priorities and signal the start of the final stages of session.
To stay up to date on scheduled committees and subcommittees and their virtual access information, follow this link.