Property Tax Reform Takes Center Stage

It was another busy and consequential week at the Capitol, with hundreds of bills filed and more than 100 subcommittees held. Property tax reform dominated discussions as House policymakers considered competing proposals.

On Thursday, the House Ways and Means Committee held back-to-back subcommittee hearings on the House property tax bill (HSB 596) and Governor Reynolds’ proposal (HSB 563).

In testimony, business groups expressed broad support for reform efforts while emphasizing a critical principle: any successful reform must not shift the property tax burden between property classes. Commercial and industrial taxpayers should not bear a greater share of property tax revenues once final action is taken.

Key Legislative Activity

SJR 11 – Constitutional Amendment: Two-Thirds Majority for State Tax Increases

The House Ways and Means committee has assigned SJR11 to subcommittee. The proposed constitutional amendment would require a two-thirds majority vote in both chambers of the Iowa Legislature to increase state taxes. If passed by the Legislature in two consecutive General Assemblies, the measure would be placed on the ballot for Iowa voters to decide.

HSB 556 – Re-employment Case Management Program

The Senate Workforce Committee passed legislation codifying Iowa Workforce Development’s (IWD) re-employment case management program (RCMP) into statute. The bill would also transition all unemployment claims from paper to electronic systems.

Created in early 2022, the RCMP connects unemployed Iowans with case workers within the first two weeks of filing, helping individuals return to work more quickly. A companion bill has passed the House Labor and Workforce Subcommittee.

SSB 3004 – Online Career Exposure Platform for Iowa Students

Senate Workforce Committee Chair Adrian Dickey (R-Sigourney) introduced legislation directing Iowa Workforce Development to develop and host an online platform connecting students with careers in key local industries, such as manufacturing.

SSB 3010 – Prohibition of Geoengineering Activities

A Senate Technology Committee subcommittee advanced a bill prohibiting cloud seeding and other weather engineering activities, making such actions a Class D felony. We are monitoring the legislation to ensure it does not inadvertently implicate employers or create opportunities for frivolous lawsuits against industry.

Liquid Carbon Pipeline Debate Continues

Senate and House committees continued work on competing bills addressing eminent domain for liquid carbon pipelines. The Senate Commerce Committee amended the House bill to reflect language from SF 2067, with the vote splitting along party lines.

The Senate bill takes a more nuanced approach, allowing pipeline companies more flexibility in the permitting process to avoid eminent domain. A subcommittee advanced SF 2067 on Thursday, sending it to the full Senate Commerce Committee.

Political Updates

2nd Congressional District

President Donald Trump endorsed Joe Mitchell for the Republican nomination on January 27. Mitchell, a former state representative from Clear Lake, served in the Trump administration at the Federal Housing Finance Agency.

State Representative Shannon Lundgren ended her congressional campaign and will seek re-election to the Iowa House. State Senator Charlie McClintock remains in the race. The likely general election matchup: Mitchell vs. Democratic State Representative Lindsay James in this lean-Republican district.

3rd Congressional District

Former Iowa House Minority Leader Jennifer Konfrst suspended her campaign and endorsed State Senator Sarah Trone Garriott. The November general election is now set between GOP Congressman Zach Nunn and Democrat Trone Garriott in one of Iowa’s most competitive races.

State Auditor Race

Taylor Wettach ended his 1st Congressional District campaign to run for State Auditor as the only Democrat in the race. He will face either Lieutenant Governor Chris Cournoyer or an Iowa County Supervisor in November.

Economic News

Labor Force Participation Rate Rises

Iowa Workforce Development reported the state’s labor force participation rate reached 67.6% at year-end 2025, up 0.7% from the previous year. Iowa added 32,400 workers compared to last year, while the seasonally adjusted unemployment rate remained at 3.5% for December.

Looking Ahead

The first funnel deadline is February 20—the first major hurdle for most legislation. By that date, policy bills must pass out of a full committee in one chamber to remain alive.

President Trump visited Iowa on Tuesday, temporarily slowing Capitol activity as many legislators attended his speech in Clive. He focused on the economy, lower inflation, and voiced support for year-round E-15 sales.