Public Policy Update: Member Input Requested for 2026 Public Policy Priorities
July 11, 2025 | Public Policy
WE WANT TO HEAR FROM YOU!
Help us develop our 2026 public policy priorities by taking this short survey. Our advocacy priorities are based on input from leaders in business, education, non-profit, government and economic development groups throughout the region. The survey will close July 31. The survey allows our members, stakeholders, and partners to provide input in an easy way. Please take a few minutes to participate! We take your input to develop policy priorities and reveal them at the Annual Regional Legislative Launch on December 10th. Be on the lookout for more details!
State Policy Update
Legislation passed earlier this year will update employer tax rates for 2026 as IWD continues rolling out the law through next year. The new law drops unemployment insurance taxes by 40-60% for Iowa employers. The reform modernizes the system, aligns Iowa with similar states, and delivers long-overdue tax relief. Read more about other new laws in Iowa here.
Federal Policy Update
Policy Priorities included in Federal Tax & Spending Bill
Last week, President Trump signed his signature tax and spending package into law. While the legislation isn’t without challenges, several Economic Alliance priorities were included:
- The Freedom to Invest in Tomorrow’s Workforce Act will expand 529 savings accounts eligibility for costs related to exam fees, prep courses, and required materials for certifications across fields like health care, information technology, skilled trades, and more.
- The extension and enhancement of the Qualified Business Income (QBI) deduction will allow certain small business owners (like sole proprietors, partnerships, and S corporations) to deduct up to 20% of their qualified business income from their taxable income.
- The full expensing of domestic R&D expenditures will allow businesses to immediately deduct the full cost of eligible R&D activities in the year they’re incurred, rather than spreading the deduction over several years, making it more affordable for small businesses to innovate.
Uncertainty Remains as Tariff Deadline Extended Again
The Trump administration has extended its proposed broad-based tariff implementation deadline to August 1. If enacted, the plan could include a 10% tariff on all imports, with higher rates on select goods like copper, pharmaceuticals, and semiconductors.
These proposed tariffs could significantly impact Eastern Iowa’s agri-business and manufacturing sectors, which rely heavily on global trade. Even before any tariffs take effect, uncertainty is already disrupting supply chains and increasing costs. The Economic Alliance continues to recognize that sweeping tariff changes create instability. We are collecting impact data, sharing member stories with our federal delegation, communicating with the Canadian Consul General’s office and partnering with the U.S. Chamber to advocate for trade policies that protect Iowa businesses. Have a story to share? Contact Public Policy Strategist Barbra Solberg.
The Economic Alliance advocates for economic growth policies on the local, state and federal levels. We collaborate with the business community and other stakeholders and partners to develop our yearly policy agendas, to create a consistent voice for the region.
We are a non-partisan organization that does not endorse or donate to political candidates. We support First Amendment rights for all people and encourage elected officials, candidates and citizens to be civil in discussions and debates on policy issues and political opinions. We are committed to leading by example.
Questions about public policy? Feel free to contact Public Policy Strategist, Barbra Solberg at bsolberg@cedarrapids.org.