Skip to Content
background texture image
Home » News & Stories » Public Policy Update: Working Together in Washington

Public Policy Update: Working Together in Washington

June 24, 2025 | Public Policy

Federal Policy Update

More than 40 business, nonprofit, education, and government leaders from across the Eastern Iowa Corridor came together in Washington, D.C. to advocate for the federal policies and investments that shape our local future.

Over two packed days, regional leaders met directly with federal policymakers, agency officials, and congressional staff. Together, we brought attention to our region’s most pressing priorities- from infrastructure and tariffs to workforce development, housing and pro-growth tax policy. The coalition focused on a range of federal priorities, including: 

  • Trade Policy: We urged the elimination of disruptive tariffs and advocated for trade policies that expand global market access for Iowa manufacturers, farmers, and entrepreneurs.
  • Tax Policy for Small Business Stability: Advocated for preserving the pass-through income deduction, and reinstating R&D expense deductions to help businesses grow, hire, and invest locally.
  • Federal Research Funding: Emphasized the need for sustained investment in NIH, NSF, and NASA research to power innovation, startups, and life-changing technologies.
  • Eastern Iowa Airport (CID): Requested $10 million for a centralized deicing facility to reduce environmental impact, improve airline operations, and reduce winter delays.
  • Housing Rehabilitation: Backed increased funding for the Community Development Block Grant (CDBG) program to support more housing and called for streamlined regulations to reduce costs and speed up projects.
  • Infrastructure Investment: Promoted support for key Eastern Iowa projects, including the 8th Avenue bridge in Cedar Rapids, Tower Terrace Road completion in Linn County, the Burlington St. Bridge project in Iowa City and Forevergreen Road east in Johnson County. (pictured above)

Beyond Meetings with Iowa Federal Delegation & Staff

  • Leaders from the CR metro cities met directly with the U.S. Department of Transportation to advocate for Tower Terrace Road, a critical east-west connector in Linn County. The meeting underscored the importance of federal partnership in bringing this long-planned project to completion and easing congestion for a rapidly growing part of our metro.
  • The first evening, the group attended the Congressional Baseball Game for Charity, a unique and memorable experience that brought some bipartisan fun to kick off our federal advocacy. It was a great reminder that relationships, like policy, are built over time and across the aisle.
  • On our final evening, the group hosted a Capitol Hill reception with members of Iowa’s congressional delegation and staff, creating space for informal conversation and stronger connections.

Thank You to Our Sponsors & Partners We’re especially grateful to our sponsors and community champions who made this trip possible. Reception presenting sponsor was the Eastern Iowa Airport (CID) and supporting sponsors were Collins Aerospace, Alliant Energy and Transamerica. Baseball game sponsors were Channel Fusion and Fredrikson & Byron, P.A.

State Policy Update

Last Friday, Governor Reynolds completed final bill action ahead of the June 14 deadline, wrapping up the 2025 Iowa Legislative Session. You can view the full list of bills signed and passed here. 

One of the most closely watched items was HF 639, a bipartisan bill designed to limit the use of eminent domain for carbon capture pipelines and establish new regulatory guardrails. The bill passed the House 85-10 in March and moved in the Senate only after 12 Republican senators held up budget votes, insisting HF 639 be brought to the floor. It ultimately passed with support from 13 Republican and 14 Democratic senators. 

Governor Reynolds vetoed the bill, citing concerns that it overreached beyond eminent domain and raised legal red flags for the state. In her veto message, she argued that the bill could undermine Iowa’s energy strategy, economic competitiveness, and reputation. Following the veto, legislative leaders reacted:  

  • House Speaker Pat Grassley (R) called for a special session to override it, saying, “This is a major setback for Iowa landowners and for the House’s multi-year effort to address this issue.”
  • Senate Majority Leader Jack Whitver (R) backed the Governor’s decision, noting that the majority of Senate Republicans did not support the bill in its current form and are unlikely to support an override.

A two-thirds majority in both chambers is required to reconvene for a special session and override a gubernatorial veto. Beyond the veto, Governor Reynolds signed several high-profile bills into law, including: 

  • Unemployment Insurance Reform: Includes a reduction in the unemployment tax rate for employers.
  • Major tax credit reform: Consolidates and caps state economic development incentives at $110 million annually.
  • Pharmacy Benefit Manager (PBM) Reform: Targets transparency and cost control in prescription drug pricing.
  • Medicaid Work Requirements: Establishes new requirements for certain Medicaid recipients.

The Economic Alliance will continue to monitor both federal and state policy developments throughout the summer and keep you informed on issues impacting Eastern Iowa’s business climate and communities.