The 2025 Iowa Legislative Session officially began on Monday, January 13th, with the swearing-in of legislators for the 91st General Assembly. This session is scheduled for 110 days, with a target adjournment date of May 2nd. 

Snow delays and the Presidential inauguration slowed down progress in the first 10 days, but lawmakers made up for it this week with jam-packed agendas on Wednesday and Thursday. As of January 23rd, legislators have introduced 391 bills. That's an average of 56 bills for each working day. Look for that to accelerate in the coming weeks.

Funnel deadlines this year will fall on March 7th for the First Funnel and April 4th for the Second Funnel. The First Funnel deadline is for bills to be voted out of the originating committee. The Second Funnel deadline is for bills to be voted out of committee in the second chamber. A lot of policy bills die for the year on those deadlines.

Republicans maintained their control of the Iowa Legislature in November’s Election, this time with the largest majority in the House since the chamber expanded to 100 seats back in 1971. The Republican control of the House and Senate sits at 67-33 and 34-15, respectively.  Senate District 35 will be filled by a January 28th special election. It was vacated when Senator Chris Cournoyer of LeClaire was appointed Lt. Governor by Governor Reynolds, filling the vacancy created by former Lt. Governor Adam Gregg’s resignation to take a position in the private sector. 

The Governor’s Speech and Budget

On Tuesday, January 14th, the Second day of the Legislative Session, Governor Kim Reynolds addressed the legislature in her annual Condition of the State address (watch here or read it here). She pointed to Iowa’s achievements, laid out her priorities for the session, and delivered her FY 2026 budget proposal. Her budget represents the first shot across the bow and will be used as a guide as the Legislature constructs Iowa’s FY 2026 budget over the months ahead. You can view the Legislative Services Agency’s analysis of the Governor’s budget HERE. 

The Governor’s FY 2026 budget proposal would spend $9.4335 billion in the fiscal year that starts July 1st. This is an increase of $486.1 million or 5.4 percent over the current budget year. The bulk of the increases go toward either Medicaid ($223.3 M) or education ($102M), as is the case every year. 

We are still assessing the Governor's proposal and will be weighing in with legislators as they begin to piece together their budget bills. Two early concerns that popped up in the initial draft budget includes proposals to eliminate funding the Regents Innovation Fund ($3million) and for Councils of Government ($350,000). Most PDI members are familiar with the work of the COGs; you can learn more about the Regents Innovation Fund HERE.

The budget pie chart below was shared by House Republicans and illustrates where the dollars go in the current (FY 2025) budget year.

IEDA’s Tax Credit Bill Proposal

During the first week of session, the Governor held a handful of small meetings to brief a few selected interest groups about legislation to look for in the coming weeks. PDI lobbyists were invited into the discussion about the Tax Credit Bill Proposal that will be led by IEDA and the Governor’s Office. The legislation itself is still being drafted, but we have a two-page summary that explains the major provisions. The bill proposes to completely overhaul the IEDA’s tax credit programs, including repealing the High Quality Jobs program and replacing it with a Business Incentives for Growth program. The bill would also temporarily raise the $35 million Workforce Housing Tax Credit cap to $43 million in order to address a temporary backup in the pipeline of getting these credits issued. 

Land Redevelopment Trusts

The Land Redevelopment Trust bill (SF 45 & HF 28) is back. Hopefully, this is the year! To recap, this bill would allow cities to create land redevelopment trusts enabling them to address dilapidated, abandoned, blighted and tax-delinquent properties. Each bill was immediately referred to the Ways and Means Committee in the chamber where it was introduced.  

2025-2026 Legislative Guide Available 

Every two years, the Iowa Developmental Disabilities Council has an excellent guide to the Legislature that is now expanded to include Iowa's members of Congress. It outlines the legislative (and Congressional) process, calendars, and committees. It also includes bios on each legislator. It is an excellent primer for anyone that is new to advocacy, or wanting a refresher.