Iowa lawmakers are back at the Capitol as the new legislative session gets underway, and Representative Taylor Collins of House District 95 has put out his first week’s wrap up report. Here are some of the highlights:
State Budget and Taxes
Governor Kim Reynolds has released a proposed $9.67 billion state budget for fiscal year 2027, a 1.9 percent increase over the current year. The largest spending increases go to K-12 education and Medicaid. Schools would see a 2 percent increase in state aid, raising per-pupil funding to $8,148, plus state support to offset declining enrollment.
The Governor is also proposing property tax relief, including:
- A 2 percent cap on revenue growth for local governments
- Freezing property tax bills for seniors 65 and older
- Expanded tax-advantaged savings accounts for first-time homebuyers
- Limits on the use of Tax Increment Financing districts
Education
Nearly 99 percent of Iowa’s full-time teaching positions are filled for the 2025-26 school year—well above the national average. Iowa’s teacher vacancy rate is 1.12 percent, compared to about 3 percent nationally.
The state has invested $96 million in teacher pay raises and expanded alternative pathways into the teaching profession.
Iowa is the first state in the nation to receive federal approval for a new plan allowing education dollars to be redirected from administrative compliance to classroom instruction, potentially saving nearly $8 million over four years.
Agriculture
Iowa’s Secretary of Agriculture has introduced the proposed “Farm Bill Act,” aimed at expanding agritourism, supporting beginning farmers, and reducing taxes on farm operations. The bill would provide tax relief for family farms, eliminate certain grain taxes, and strengthen protections during livestock disease outbreaks.
Public Safety and Courts
The Governor’s budget includes additional funding for corrections and public safety, including money for prison infrastructure improvements.
Iowa’s Chief Justice is asking lawmakers for more funding to address pay inequities in the judicial branch and to reconsider how magistrates are distributed statewide.
Public Health and Workforce
Iowa’s unemployment rate fell to 3.5 percent in November, below the national rate.
The state added 9,000 jobs over the past year, with growth in health care, construction, and wholesale trade.
Drugs and Regulation
A bill advancing in the Iowa House would classify kratom as a Schedule I controlled substance, effectively banning its sale and possession in the state. Supporters cite addiction and overdose risks; opponents argue for regulation instead of a ban.
Health Care Achievements
The University of Iowa’s neonatal intensive care unit continues to set national records, including saving the most premature baby ever recorded, highlighting Iowa’s leadership in neonatal care.
Representative Collins’ report from the Capitol is comprehensive. To read it in its entirety, please click here.