Public Policy Update: State Legislature Shifts to Budget & Final Decisions
March 30, 2026 | Public Policy
State Policy Update
The Iowa Legislature has passed the “second funnel,” narrowing the field of bills and shifting focus to a few major priorities. Lawmakers have less than a month remaining in the session’s per diem period, which ends April 21.
- Property Tax Reform: Both the House and Senate have passed property tax reform bills out of committee, and negotiations continue to reach a compromise. The Senate is pushing for a broader approach, while the House has moved closer to Governor Reynolds’ proposals, including a $10 million program to encourage local governments to share services.
- State Budget: Legislators now turn to setting spending targets, with priorities including workforce and economic development. Debate this year is expected to be longer than in recent sessions, with Democrats planning to offer multiple amendments, including on minimum wage changes.
- Eminent Domain: Continued debate on proposals that could affect infrastructure projects and private property rights. On eminent domain, the first bill this session banned the use of eminent domain for carbon capture pipelines. Compromise language is still being discussed, but there has been little new movement since January.
What We’re Advocating For
The Economic Alliance will continue actively engaging lawmakers to advance policies that:
- Support predictable and sustainable property tax frameworks that protect both taxpayers and community services
- Prioritize workforce development and talent pipelines to meet business demand
- Maintain a competitive business climate by limiting unnecessary regulatory burdens
- Ensure responsible, forward-looking budgeting that invests in long-term economic growth
Click here to see the status of the bills we’re watching this session.
Capitol Conversations: Business Leaders Share Real-Time Perspectives
Thank you to everyone who joined us Friday for our last Capitol Conversations of the 2026 legislative session. This Conversation’s format brought together regional business leaders and legislators for a timely, solution-oriented conversation on key issues emerging from the legislative session.
Panelists shared firsthand insights on policies impacting their industries, including regulatory challenges affecting growth, workforce solutions and the growing need of housing in our region. A consistent theme throughout the conversation was the need for balanced, predictable policy that supports business expansion while maintaining strong communities.
Attendees also chimed in with their questions and candid perspectives on how state and federal policy decisions influence day-to-day operations, and where collaboration across sectors and party lines will be critical moving forward. We appreciate the thoughtful dialogue and engagement from both panelists, attendees and legislators. These conversations continue to shape and strengthen our collective voice as we advocate for a competitive, pro-growth business environment.
Thanks to our presenting sponsor, Can Shed!
Federal Policy Update
In Washington, D.C., federal policy discussions continue to shape the economic environment for businesses, particularly in areas like trade, infrastructure, and regulatory policy.
As we look ahead, the Economic Alliance is preparing for our upcoming Federal Advocacy Summit, our annual fly-in to engage directly with Iowa’s congressional delegation and key federal partners.
The Collective Voice DC Fly-in Focus Areas
This year, our efforts will be concentrated on:
- Trade & Global Competitiveness: Supporting policies that expand market access and strengthen supply chains for regional industries
- Infrastructure Investment: Advocating for continued investment in roads, bridges, and critical systems that drive economic growth
- Aviation & Air Service: Elevating the importance of aviation in our region to support business attraction, retention, and regional connectivity
What This Means for Members
The Summit is an opportunity to bring forward real-world business perspectives and ensure that federal decision-makers understand the priorities and challenges facing employers in our region. These conversations help shape policy outcomes and strengthen our region’s Collective Voice at the national level. Contact Barbra Solberg for more information.
NEW EPISODE – Check out “All Politics is Local!“