
Public Policy Update: 2025 Legislative Session Begins
January 17, 2025 | Public Policy
State Policy Update
In her annual Condition of the State address earlier this week, Governor Reynolds highlighted previous state achievements and looked ahead to her priorities for 2025. Highlights from her speech that connect with our 2025 public policy goals include:
Goal: Invest in Talent Development
- Increase student math proficiencies by identifying those who need extra help and strengthen math instruction with additional teacher preparation training.
- To address the need for more medical professionals in Iowa, the Governor proposes doubling the state’s investment in loan repayment programs to $10 million and opening it to anyone who commits to practice in rural Iowa for five years, even if they’re trained elsewhere. Additionally, she’s calling for new federal funding to create more medical residency slots and more funding for the state’s Healthcare Credentialling grant to allow employers to train and educate individuals in medical support professions.
Goal: Incentivize Business Growth
- While calling for further review of government efficiency on both the state and local levels, she acknowledged that “meaningful property tax reform” means we also need to be “lean at the local level.”
- Reducing by half the unemployment insurance payments employers make, resulting in nearly $1 billion in savings for all sizes of businesses.
Goal: Remove Barriers to Expand our Workforce
- Creating a statewide pilot program called Community Solutions Funds to accept donations from businesses, philanthropists, and non-profits aimed at enhancing childcare workforce wages and expanding capacity.
- The establishment of an Early Childhood “Continuum of Care” program that will provide three-year grants for preschool programs and childcare providers that come together to integrate their services to mitigate middle-of-the-day transportation issues for working families.
Goal: Embrace Solutions Utilizing Technology & Natural Resources
- The creation of an Energy Task Force will make recommendations to help the state capitalize on all energy sources, including nuclear energy. The task force will also look at permitting and workforce challenges. She will also work with legislators on an “all-of-the-above” energy bill, modernize the state’s energy infrastructure revolving loan program, and work on the federal level to ensure Iowa can use federal financing for energy and water infrastructure projects.
The day before the Governor’s speech, on the opening day of the new legislative session, leaders gave remarks on their priorities for the session. Republican leaders focused on property tax reform and education, and Democrats focused their remarks on childcare, housing, and healthcare. The Economic Alliance encourages the Governor and legislators to work together with urgency on common ground issues and innovative solutions important to the business community and all Iowans.