DES MOINES – Iowa House and Senate Republicans announced Thursday, May 8, that they have reached a budget agreement for Fiscal Year 2026, setting total state spending at $9.425 billion. The plan marks a $478.1 million increase over the current fiscal year’s budget of $8.947 billion, reflecting a 5.34 percent rise.
The agreement also outlines several key priorities funded through the state’s Sports Wagering Fund, including:
-
$14 million for paraeducator pay
-
$5 million for the Special Education Division of the Iowa Department of Education
-
$8 million for the Public Safety Equipment Fund
-
$1.5 million for the Length of Service Award Program (LOSAP)
“Iowa Republicans agree on the importance of passing another fiscally responsible budget,” said House Appropriations Committee Chairman Gary Mohr. “Though we’re all the same party, it’s not uncommon that we have disagreements to work through as we craft the state’s budget.”
Mohr highlighted wins secured during negotiations, such as increased pay for paraprofessionals and additional funding for community colleges and nursing homes. He expressed confidence in the ongoing work of budget subcommittee chairs as they finalize details with Senate counterparts.
The Iowa House is expected to begin advancing appropriations bills through committee starting today.