Public Policy Update: Special Election Voter Guide HD78
April 25, 2025 | Public Policy
Voter Resource Guide 2025 – Special Election HD78
A special election has been called for House District 78 SE Cedar Rapids, in order to fill the vacant seat of Sami Scheetz. It’s your opportunity to be heard, hold elected officials accountable, and to have a say in policies affecting the future of our community. Election Day is 4/29 from 7AM to 8PM, but voters in HD78 can vote early until Saturday, April 26 at 4:30 PM. Voting takes place at the Linn County Election Office: 823 3rd St SW, Cedar Rapids. For more information on the election and the candidates, please read our voter guide below.
State Policy Update
Legislators continued policy work in committees and in floor debates. Several bills were sent to the Governor for her signature including a comprehensive disaster relief bill aimed at supporting Iowans affected by the severe tornadoes and floods of 2024 and enhancing the state’s preparedness for future natural disasters.
Legislators also continue advancing a proposed constitutional amendment that would require a two-thirds majority vote in both legislative chambers to increase the state’s corporate or individual income taxes or establish new income-based taxes. For a constitutional amendment to be enacted in Iowa, it must be passed by two consecutive General Assemblies and then approved by a majority of voters in a general election.The Legislature passed the proposal last session, and if they do so again this session, the amendment will be placed on the ballot for the November 2026 general election.
With the scheduled end of the session nearing, and legislative per diems ending on May 2, budget work is expected to ramp up next week. The Economic Alliance continues to closely monitor legislation related to our 2025 priorities, including the following:
Incentivize Business Growth
- Legislation to overhaul Iowa’s property tax proposes immediate elimination of the current “rollback” system, which limits taxable property value growth to 3% annually. In its place, a “revenue-restricted” model would be implemented, allowing taxation on the full assessed property value but capping annual revenue increases for local governments at 2%, with exceptions for new construction. It also shifts K-12 school funding from property taxes to state funding. Status: Awaits action in Ways & Means subcommittees of both chambers. Legislators have indicated they will take their time moving forward to ensure input continues to be received.
- The Iowa Economic Development Authority’s (IEDA) tax credit reform bill had subcommittee meetings in both chambers this week. The bill calls for significant restructuring of tax credit incentives by consolidating and/or eliminating some existing incentive programs and creating new programs. Also includes an increase for Workforce Housing Tax Credits. Status: Passed House and Senate Ways & Means subcommittees in both chambers. Legislators continue taking input as the bill moves forward.
- A bill to further reform Iowa’s unemployment insurance program continues to make its way through the legislature. A priority of the Governor, the proposal would lower the maximum benefit tax rate to 5.4%, the lowest allowed by federal law, and cut the taxable wage base by half. It also reduces the number of tax tables. Status: Awaits Action in Ways & Means Committees of both chambers. Fiscal Note.
Invest in Talent Development
- The Governor’s Health Care System Reform bill aims to recruit and retain medical providers by creating a “hub-and-spoke” partnership funding model to enhance Iowa’s rural health system. Additionally, a health care professional incentive program is created to provide financial awards to eligible health care professionals working in underserved areas. Status: Passed House 95-1 on 3/26. Awaits action in Senate Appropriations Committee.
- The Improving Workforce Development Initiates bill aims to enhance the efficiency and effectiveness of workforce development initiatives in Iowa to create a more skilled workforce. Status: Signed into law on 3/28. Fiscal Note.
- The Iowa New Resident and Graduate Tax Credit Act introduces two tax credits: one for new residents who have recently taken full-time employment in Iowa and another for recent graduates from Iowa-based educational institutions. Each credit allows eligible individuals to reduce their income tax liability by 100% for up to four consecutive tax years. Status: Awaits Action in House Ways & Means Committee.
- The Career Education Enhancement Act aims to connect students with local career opportunities and enhance their readiness for the workforce. It mandates the Iowa Department of Education to create a list of industry-recognized credentials for high school students, which will be aligned with career and technical education service areas. Additionally, the bill modifies the curriculum for grades five through eight to include career planning and pathways. Status: Passed House 61-28 on 3/10; Passed the Senate 45-0 on 4/15; Awaits Governor’s signature.
Remove Barriers to Expand our Workforce
- The Governor’s child care proposal continues to move forward. The proposal would launch a $16 million program to provide three-year grants of up to $100,000 to preschool providers and child care providers to provide wraparound transportation services for working parents. Status: Passed the Senate 33-14 on 4/23. Awaits House floor vote. Fiscal Note.
Enhance Community Attraction & Livability Efforts
- The Tourism & Major Events bill was introduced again this session. It would establish a new Major Events funds to give financial assistance to groups for major tourism events that have a measurable economic impact. Status: Passed a Senate Appropriations subcommittee on 4/23; Awaits action in House.
- A housing bill to remove the current $7 million annual cap on the amount of Real Estate Transfer Tax funds that can be transferred to the Housing Trust Fund allowing for more attainable housing development. Status: Awaits Action in both Chamber’s Ways & Means Committee.
The Midwest Interstate Passenger Rail Compact continues to see bipartisan support to promote passenger rail travel in midwestern states, including Iowa. Status: Passed House 95-1 on 3/12; Awaits Action in the Senate.
Federal Policy Update
Tariffs are a hot topic and especially relevant in our region’s agri-business and manufacturing economy that relies so heavily on global imports and exports. The Economic Alliance recognizes the Trump Administration’s shifting policies may be causing uncertainty for businesses across all sizes and industries. Beyond the actual impact of tariffs already in effect, speculation and questions about what will happen next have disrupted supply chains, driven up prices, and created market uncertainty, all of which potentially impact the broader economy.
The Economic Alliance is actively addressing the issue. So far, we have:
- Collected tariff impact data from individual businesses.
- Advocated for companies by responding to specific concerns.
- Connected affected business leaders to share best practices.
- Shared stories about local business impacts with our federal delegation.
- Partnered with the U.S. Chamber of Commerce to amplify member stories in national advocacy.
We will continue advocating against indiscriminate broad-based tariffs and supporting policies that drive economic growth and protect Iowa businesses. To share your tariff story, contact our Public Policy Strategist, Barbra Solberg.