Public Policy Update: Tariffs Guide for Small Business
February 27, 2026 | Public Policy
State Policy Update
The Iowa Legislature is now past the first funnel deadline, marking a key transition in the session. Surviving policy bills are advancing, amendments are being introduced, and budget and tax negotiations are beginning to take shape. This is a critical window when business input can still influence outcomes.
Property Tax Reform
Property tax reform remains a top priority for legislative leadership this session. Multiple proposals including HSB563/SSB3034 (Governor’s proposal), SSB3301 (Senate proposal), and HSB596 (House proposal) would restructure levy limits, adjust rollback calculations, and modify how property tax relief is delivered. This is a complex issue with significant implications for local governments, economic development tools, and business investment decisions. As the legislative process continues to take shape, we will work to ensure reforms strengthen Iowa’s competitiveness without weakening the infrastructure that supports economic growth.
Workforce & Apprenticeships
Workforce remains one of the most pressing challenges facing employers across our region. The Iowa Skilled Workforce Act has advanced through subcommittee and committee and proposes updates to apprenticeship and workforce training programs. The goal is to expand training capacity, increase recruitment, and reduce barriers to employer participation. We will continue advocating expanding Iowa’s talent pipeline to support business growth.
Workforce Housing & Development Incentives
Workforce housing availability continues to be one of the top barriers to economic growth in our region. Two proposals this session aim to address housing shortages:
- HF2390 would allow the Iowa Economic Development Authority to issue Workforce Housing Tax Incentives upon project completion once requirements are met, providing greater clarity and predictability for developers.
- HF2659 would establish an Affordable Housing Task Force to examine state and local regulatory barriers contributing to housing shortages and increased costs.
We will continue push policies that address regulatory barriers that delay projects and increase construction costs, and support policies that expand supply across income levels to attract and retain talent.
Take a look at our more comprehensive bill tracker.
Federal Policy Update
Last week, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, effectively nullifying those global tariffs, which ranged from 10–50%.
Other tariff authorities, including Section 301 and Section 232, remain in place. However, shortly after the ruling, the administration moved to reinstate certain tariffs using different legal mechanisms. While described as temporary, this creates continued uncertainty for businesses as additional investigations move forward over the next 150 days.
A major outstanding question is the approximately $130 billion collected under the now-nullified tariffs. We join our partners at the U.S. Chamber in urging the administration to make any refund process straightforward and efficient for impacted businesses.
The U.S. Chamber has published guidance to help small businesses determine whether they paid IEEPA-based tariffs and how to prepare for a potential refund process. We will continue monitoring developments and keeping members informed as federal trade policy evolves.