To the People of House District 95

This session Speaker Grassley formed a new committee in the Iowa House – the Higher Education Committee, and appointed me as Chair of the committee. The committee was tasked with taking a comprehensive look at Iowa’s higher education system. Our higher education system is facing critical issues from out-of-control costs for students to a lack of intellectual diversity on campus. This week, we passed a number of bills through the House to refocus our institutions of higher education on providing quality education, lowering costs for students, and replacing identity politics with intellectual diversity.

• House File 269: Freedom from Indoctrination Act – Ensures that no student is forced to take courses promoting ideological activism, such as critical race theory or diversity, equity, and inclusion as a condition of obtaining a degree, and protecting the academic freedom of faculty from mandatory infusions of DEI-related course content.
• House File 401: Core Curriculum Act – Establishes undergraduate general education requirements across Iowa’s regent universities, requiring specific credit hours in English, Mathematics, natural sciences, social sciences, humanities, Western heritage, and American heritage. Also, the bill mandates that core curriculum courses do not distort historical events or promote identity politics.
• House File 295: Accreditation Autonomy Act – Allows the universities or the attorney general to sue an accreditor if an accreditor forces a university to violate state law to maintain their accreditation status.
• House File 437: Center for Intellectual Freedom Act – Establishes a Center for Intellectual Freedom at the University of Iowa to conduct teaching and research in the historical ideas, traditions, and texts that have shaped the American constitutional order and society. The center is charged with offering a course in American History and Civil Government that will be available to all three regent universities and increasing the intellectual diversity of the university’s academic community and fostering civic engagement among university students and faculty.
• House File 440: College Affordability Act – Contains several provisions to control the cost of college for students.
  • Requires tuition rates for each academic year to be set on or before April 30th of each year, ensuring that as students enroll for college each spring, they know the tuition price they will be paying that fall.
  • Directs each regent university to offer at least one Work-Study program where a student earns their degree while working part-time and getting their tuition paid by the employer.
  • Directs each regent university to offer at least one three-year bachelor’s degree.
  • Directs the Board of Regents to conduct a feasibility study on establishing a tuition guarantee, where a freshman who begins college cannot be charged a higher tuition rate than they started with in their freshman year.
• House File 856: Replacing DEI with MEI (Merit, Excellence, and Intelligence) – Roots out DEI from community colleges and private institutions accepting taxpayer funding through the Iowa Tuition Grant.

Taxpayer investment should be met with taxpayer return – the state has a vested interest in ensuring state dollars are being used to address workforce shortages rather than enforce ideological agendas. I’m proud of the work my committee has done this session, and I look forward to building on that work during the next session of the 91st General Assembly.

Last week the three-member Revenue Estimating Conference met for its spring meeting to go over Iowa’s economic activity and to forecast state revenue. The panel is required to adjust its forecasts for Fiscal Year 2025 (the current budget year) and Fiscal Year 2026 (the next budget, which will be developed in the upcoming weeks). The panel is also required to put forward an initial forecast for Fiscal Year 2027. The panel also revises the gaming tax and interest forecasts for FY 2025 & FY 2026.

As is its custom, the REC began the meeting with a discussion of current economic conditions. The national economy was judged to be stronger than expected, and Iowa’s economy was described as resilient and strong by Conference members. Iowa’s employment figures (unemployment rate of 3.2% and a work participation rate of 66.4%) continue to outperform the national figures even with the declines in the ag manufacturing sector. There are headwinds slowing down the state’s economic growth with continued inflationary pressures, a slow decline in interest rates, and potential and actual tariffs being implemented. Overall, the panel concluded that Iowa is in a relatively good position.

After its review of the economic conditions, the REC moved to the current year revenue forecast. Unlike some past meetings, there was little daylight between the forecasts of the Legislative Services Agency and the Department of Management. There was agreement that General Fund revenue for Fiscal Year 2025 is expected to be $9.1346 billion. This is a slight reduction of $19 million from the panel’s December forecast.

The panel then turned to Fiscal Year 2026.  Again, the difference between LSA and DOM was very small. They settled on a revised forecast of $8.5079 billion for the next budget year. This is a reduction of $217.8 million from the December projection. Overall, revenue would be down 6.9% from Fiscal Year 2025. This is expected with the full implementation of income tax cuts passed recently.

As required by Iowa Code, the Revenue Estimating Conference also puts out an initial forecast for Fiscal Year 2027. Here there was a little larger difference between LSA and DOM, but that is to be expected since they are projecting revenue 28 months out. In the end, the panel agreed on a number that is in the middle of these two forecasts with FY 2027 revenue projected to be $8.9624 billion. This would be revenue growth of 5.2% over their forecast for Fiscal Year 2026.

The final portion of the meeting was a look at gaming tax revenue and the interest earned on the state’s reserve funds. The panel maintained their FY 25 and FY 26 projections for gaming tax while slightly lowering the FY 25 interest forecast. In the end, revenue available in the Rebuild Iowa Infrastructure Fund to be budgeted will be $4.5 million lower than was projected in December. This reduction is offset by the first two payments for license on the new casino in Cedar Rapids.

This week the Iowa Senate passed Senate File 491 which amends existing laws to prohibit the operation of remotely piloted aircraft over farm properties, specifically within a secured area of 400 feet surrounding farm animals, equipment, or structures. The bill redefines terms such as ‘farmstead’ and ‘farm commodity’ to clarify the scope of the legislation. It also outlines the conditions under which a person may petition for injunctive relief against unauthorized RPA use. The penalties for violations are categorized as misdemeanors, with enhanced penalties for repeat offenders. The bill aims to protect the privacy and security of farming operations from intrusive surveillance.

Key aspects of the bill are as follows:

• Prohibits the use of remotely piloted aircraft over farm properties, specifically within a secured area of 400 feet surrounding farm animals, equipment, or structures.
• Redefines ‘farmstead’ to include at least 40 contiguous acres used for farming, owned or leased by a farmer, generating a minimum of $15,000 from farm commodity sales in the previous year.
• Establishes penalties for violations categorized as misdemeanors, with enhanced penalties for repeat offenders.
• Allows owners or lessees of farm properties to petition for injunctive relief against unauthorized RPA use.
• Clarifies definitions of ‘farm animal’, ‘farm commodity’, ‘farm equipment’, and ‘farm structure’ to ensure comprehensive coverage under the law.

With the passage of first funnel, the legislature has been busy passing bills off the House floor, including many bills from the House Commerce Committee addressing health insurance, critical infrastructure, and ensuring mortgage information is not sold to financial institutions. The below bills have passed the House floor and now are to be considered by the Senate or the Governor.

HF 879 – Infrastructure Sabotage – This bill adds cable services and information services to the definition of critical infrastructure under the sabotage law. A person who intentionally causes interruption of a fundamental service through critical infrastructure commits a class B felony.

HF 857 – Trigger Leads – This bill prohibits financial institutions from using an unfair or deceptive practice when using prescreened mortgage trigger lead information from another financial institution.

HF 875 – Credentialing Timeline – This bill provides a timeline for an insurer to respond to a provider seeking to be credentialed in-network and to provide a reason for denial.

SF 470 – Dental Insurance – This bill makes the following changes to dental insurance:

• Prohibits a dental carrier from denying a claim submitted for an approved for by prior authorization, with certain exemptions.
• Requires dental carriers to disclose to dental providers whether the covered person’s dental care services plan is state regulated.
• Sets up an appeal process when an overpayment is made to a dental provider by a dental insurer, makes notice requirements regarding overpayments, and allows for withholding on a future claim if certain information is provided.

HF 303 – Prior Authorization – This bill sets up timelines for response from health insurers on prior authorizations, requires insurers to review health care services that require prior auth, requires a prior auth exemption program with each health insurer and a report submitted to the Insurance Division on the effectiveness of their program.
 
HF 318 – Breast Imaging Cost Sharing – This bill requires insurers to provide the same cost-sharing requirements for supplemental breast examinations and diagnostic breast examinations as they do for mammograms.

HF 330 – Autism Coverage – This bill strikes age and benefit limits from the autism coverage requirements of health plans in Iowa.

HF 640 – Self-Storage – This bill allows self-storage facilities to limit access if the occupant is using the space for residential purposes and allows for written agreements to be deemed accepted if not returned. This bill also allows for notice to remove personal property and for remaining property to be subject to lien.

Last week, the Iowa Economic Development Authority announced that grant awards totaling more than $3.7 million have been awarded to the communities of Chelsea, Duncombe, Fort Madison, Lawler, McGregor, Mediapolis, Wellman, and Yale to assist water and sewer infrastructure projects through the Community Development Block Grant (CDBG) program.

The CDBG program is federally funded through the U.S. Department of Housing and Urban Development. IEDA is responsible for administering the CDBG funds in the non-metropolitan areas of the state. CDBG funds enable communities to make needed improvements to water and sewer systems, improve housing conditions for low-income homeowners, provide facilities for disabled and at-risk individuals, and make transformative downtown improvements.

IEDA received 19 applications totaling $8,631,050 in funding requests. Grants are awarded based upon the benefit to low- and moderate-income persons, financial need, project impact, and readiness and commitment of local resources to the project.

IEDA started with $11.8 million to allocate for CDBG water and sewer grants in 2025. Applications are currently being accepted through May 1 for a second round, while a third round is expected to open later this year, with a tentative deadline of August 1st.

House Republicans approved the Governor’s bill to restrict the student use of cell phones during instructional hours in school. Before the 2025-26 school year, school districts must adopt policies that restrict the use of these devices during classroom time, while also providing methods for parental communication during emergencies.

The policies must include:

•  Information on educational devices available for student use.
• Communication methods for parents to reach students during school hours and emergencies.
• Protocols for securely storing devices.
• Disciplinary measures for policy violations.
• A process for parents to petition for device access based on health needs.
• Provisions for students with individualized education programs (IEPs) or 504 plans to maintain access to devices.

Two school districts have quite public about the success they’ve seen with the own cell phone politices.

Des Moines Public School District has been piloting cell phone restrictions at specific schools, most prominently at Hoover High School, during the 2024-2025 school year. The district is considering a broader, district-wide policy based on these early experiences. Some of their reported outcomes include:

• Improved Engagement and Mental Health: At Hoover High School, where cell phones and AirPods are banned during class time as part of a “Mental Health Movement,” teachers have observed significant changes. Erin Bosley, an English language learning instructor with 12 years at Hoover, described the shift as a “complete 180” and a “game-changer.” She noted students are more attentive and engaged without the distraction of technology.
• Academic Gains: Chemistry teacher Catheryn Moore reported unprecedented academic success, stating, “I have not had this many A’s and B’s at this point in the year, ever,” attributing it to the phone-free environment. This suggests a boost in student focus and performance.
• Peer Relationship Building: The policy aims to foster a stronger sense of community, with teachers like Bosley observing students interacting more with each other, replacing phone use with face-to-face connections.
• District-Wide Consideration: Superintendent Dr. Ian Roberts has expressed optimism about expanding the policy, viewing it as a mental health initiative rather than just a ban. He cited Hoover’s pilot as showing “positive results” in engagement and classroom effectiveness, with a potential rollout district-wide by January 2025 or the fall semester of 2025, depending on further evaluation.

Ottumwa Community School District implemented a strict district-wide cell phone ban starting August 23, 2024, for its 5,000 students across K-12. Phones must be stored in lockers from the start of the school day until dismissal, covering classrooms, hallways, and lunch periods—one of the most restrictive policies in central Iowa. Some of the reported outcomes include:

• Academic Improvement: After one semester, the district reported a 12% increase in A’s and B’s and a 60% decrease in failing grades for students in grades 8-12 compared to the previous year’s first semester. Director of Instruction and Learning Maria Lantz called the drop in failing grades “giant,” exceeding expectations based on teacher and student anecdotes about better focus.
• Behavioral Benefits: There’s been a dip in behavioral referrals, attributed to less social media-fueled conflict. Gateway High School Principal Aaron Ruff noted smoother Mondays—typically fraught with weekend social media fallout—saying, “I see a lot better relationships from students to students.”
• Mental Health Gains: Superintendent Mike McGrory highlighted a “significant positive impact” on students’ mental health, engagement, and peer connections. Senior Madison at Gateway High reported her attention “skyrocketed,” shifting from phone fixation to healthier coping mechanisms, especially beneficial at an alternative school with high-anxiety students.
• Smooth Implementation: Despite initial skepticism (e.g., Ruff thought “this isn’t going to go well”), the transition was “amazingly smooth,” with students adapting and staff noting less resistance than anticipated.
• Statewide Influence: Ottumwa’s success was spotlighted in Governor Kim Reynolds’ 2025 Condition of the State address, with McGrory invited to attend. Other districts have reached out to learn from Ottumwa’s approach.

Data from both districts suggest cell phone limits can meaningfully benefit students.

Both districts have reduced distractions, improved mental health, and enhanced learning proving the sometimes the old ways are the best ways.

House Republicans Prioritize Math Improvements

Math is a key life skill and it’s important to each student’s future. Whether that future includes a four-year degree, community college, or skills training, mathematics will always be a critical component of Iowan’s everyday lives. Recent data has indicated that our students are falling behind, and Iowa Republicans are invested in reversing that trend. On Tuesday, the House Republicans passed a bill to enhance mathematics education in Iowa.

HF 784, modeled after the Governor’s early literacy bill passed last year and already showing promising results among students, creates a comprehensive state mathematics plan by prescribing several steps to identify and support students in need of support. First, the proposal develops new resources for families to support mathematics learning at home. Second, the proposal requires school districts to assess K-6 mathematics proficiency more frequently to sooner identify students falling behind in the critical developing stages of mathematics. If a student is identified as persistently at risk, teachers and guardians will work together to create a personalized mathematics plan, which could include small group or individual instruction. Lastly, the bill calls for the Department of Education to allocate resources, including professional development, to school districts most in need of mathematics support.

House Democrats pushed to delay the implementation of this bill and argued that students falling behind in mathematics is not an urgent issue worth addressing. House Republicans strongly dismiss the notion that allowing our students to fall behind in important subjects, like mathematics or literacy, for any amount of time is acceptable. The Governor has indicated that improving early childhood mathematics is a top priority for her, and the Department of Education is ready to deploy resources to improve students’ mathematics instruction as early as this fall. Ultimately, the bill received bipartisan support in the House and now moves into the Senate where it’s ready to be brought to the floor for a final vote to be sent to the Governor’s desk.

House Republicans Crack Down on Student Abuse by School Employees

House Republicans approved House File 389 this week which creates faster investigations, better protections for students and harsher outcomes for abusers.

The bill creates a new cooperative system between the Department of Education and the Department of Health and Human Services to investigate potential cases of student abuse by a school employee. Under the bill, DHHS has 20 days to complete their investigation. Student abuse is defined as any nonaccidental physical injury or the commission of a sexual offense on school grounds during school time, or on or at school-related activities by a school employee.  A school employee can be a school district employee, vendor or volunteer.

A district shall terminate an employee if an investigation finds the employee committed student abuse.

This week the Iowa House passed House File 860 by a bipartisan 84-12 vote. HF 860 prevents government entities from enacting or maintaining regulations that restrict the possession, operation, or sale of fuel-powered equipment based solely on the equipment’s fuel source. This legislation ensures that individuals and businesses can freely use and trade fuel-powered equipment without interference from local or state regulations that target specific fuel type equipment. Key aspects of the bill are as follows:

• Prohibits government entities from regulating fuel-powered equipment based solely on its fuel source.
• Defines ‘fuel source’ to include various fuels and energy storage methods.
• Declares any conflicting regulations void and unenforceable.
• Applies to both state and local government entities, including counties and cities.
• Aims to protect the rights of individuals and businesses regarding fuel-powered equipment.

The House Health and Human Services Committee is always working on ways to expand health care workforce in all of Iowa, and this session the committee advanced nine bills to help health care providers and train, recruit and retain providers in all parts of Iowa. These bills are described below and now are to be considered by the House Floor and the Senate Committee.

HF 310 – Assaults on Health Care Providers – This bill expands the health care provider definition under the code chapter that provides enhanced penalties for assaulting a person engaged in certain occupations.

HF 516 – University of Iowa Health Care Training – This bill requires the University of Iowa medical school and dental school to have at least 80% of their students be residents of Iowa. This bill also requires an annual report by UI regarding the same schools and UIHC medical residencies demographic information.

The bill also codifies requirements that were placed into session law in 2019 in House File 532. Additionally, it adds fellowships to the requirement that UIHC prioritize Iowans:

• Requires medical residencies at the University of Iowa Hospitals and Clinic to give priority to applicants that have an Iowa connection (resident of Iowa, went to undergrad in Iowa, or medical school in Iowa).
• Requires primary care residencies (family medicine, OB, psych, and internal medicine) at UIHC to provide the opportunity to participate in a rural rotation to expose those medical residents to rural areas of Iowa.

The bill also requires the University of Iowa Hospital and Clinics to offer an interview for the medical residencies of some of the most-needed specialties in Iowa to those with an Iowa connection, with annual reporting requirements to the legislature.

HF 386 – 3-year Medical School Study – This bill requires the University of Iowa and Des Moines University to study the feasibility of transitioning their medical schools to 3-year programs.

HF 754 – Governor Health Care Bill – This bill comes from the Governor to do the following:

• Requires DHHS to request federal approval for a health care hub-and-spoke partnership funding model to establish regional collaboration between health care providers in rural areas.
• Consolidates five health care loan repayment programs into one called the Health Care Workforce and Community Support Grant Program within DHHS that will award loan forgiveness or bonuses based on high-need health care professions in shortage areas. Provides for transition of funds to continue to support those with existing awards.
• Repeals existing residency and fellowship programs, with transition provisions, and converts those programs to the Medicaid graduate medical education efforts.
• Eliminates the Health Facilities Council and replaces it with DHHS as the decision maker regarding certificate of need
• Requires DHHS to bid out the Iowa Health Information Network.

HF 300 – Physician Assistant Compact – This bill adds Iowa to the interstate license for Physician Assistants Compact. 14 states currently have enacted this compact (Including Nebraska, Minnesota and Wisconsin). The compact is effective and is now in the implementation process which will take 18 to 24 months.

HF 471 – Concussion providers – This bill adds specialized psychologists to the list of healthcare providers that determine concussion protocols for schools.

HF 941 – GEMT – The bill requires DHHS to employ dedicated staff for the sole purpose of expanding the GEMT program. This program assists EMS providers with additional funding.

HF 313 – Commitment Hearing Testimony – This bill allows for physician assistants and advanced registered nurse practitioners to testify at committal hearings if they witnessed the examination, reviewed the report, and the professional that examined the individual is unable to attend the hearing.

HF 305 – County Medical Examiners – This bill allows licensed advanced registered nurse practitioners and physician assistants to serve as county medical examiners.

This week the Iowa Workforce Development issued a press release touting that Iowa’s labor force participation has increased to 67.0% In January, up from the 66.4% first announced for December, after growth and an annual revision of labor statistics added 31,000 people to the official estimate of Iowa’s workforce. Even after the revision, January’s Labor Force Participation increased slightly from the revised December rate of 66.9%. Meanwhile, Iowa’s unemployment rate in January held steady with the revised December rate of 3.3%, while the U.S. unemployment rate decreased to 4.0%. The total number of unemployed Iowans increased to 56,500, up 200 from revised December data. Meanwhile, the number of working Iowans rose by 2,700 to 1,664,100. The largest increases in the labor force came among women aged 45-54 and women 20-24.

Seasonally Adjusted Nonfarm Employment
Iowa establishments added 1,400 jobs in January, raising total nonfarm employment to 1,594,200. This increase is the third consecutive for the state, with gains stemming from private education (+100) and health care (+600) industries. Government (a sector that includes federal, state, and local political subdivisions, as well as schools, universities, and public hospitals) grew largely because state universities retained more jobs than seasonally expected. Meanwhile, private industries shed 1,500 jobs between December and January and are now down 2,500 jobs annually.

Health care and social assistance added 600 jobs to lead all other sectors. This sector has gained jobs in four consecutive months and continues to trend up, at all-time highs for employment within this sector. Other gains were small and included leisure and hospitality and other services. Conversely, construction shed the most jobs in January (-800). This decline erases a gain of similar magnitude in December. Professional and business services are also down relative to December (-600). Half of those jobs shed were related to the management of companies and enterprises. Manufacturing lost 300 jobs in January. Most of these losses were within durable goods factories. Total nonfarm employment is up 4,200 jobs over the last 12 months. Private service industries have gained 7,400 jobs thanks to hiring in education and health care (+4,700) and trade and transportation (+3,100). Annual losses were led by manufacturing (-7,100). Most of these losses were within durable goods production (-4,800). Construction is down 2,700 jobs since last year, and professional and business services has shed 2,300 jobs.

This week the Iowa House advanced two bills to provide freedom to local governments to serve their communities and Iowans. House File 894 provides county recorders the ability to release the lien on a snowmobile, all-terrain vehicle, or water vessel from any county with proof that the lien has been released by the lienholder. This allows Iowans to go to the county recorder that is most convenient for them instead of the county recorder where the lien was recorded.

Additionally, House File 895 passed the Iowa House and if enacted removes the population cap on counties required to establish a regional transit district. Currently a county may create an agreement with cities or two or more contiguous counties (28E agreement) to establish and administer a regional transit district. Currently, only counties with a population of 175,000 may enter into these agreements. Currently only Polk and Linn Counties meet that threshold.

This bill provides an additional tool to counties and cities to establish regional transit districts if they choose. Both these bills are great examples of House Republicans continued work to find ways to give our local communities more flexibility to serve their communities and reevaluate ways to modernize how we govern at the state, county, and local level.

The second funnel is quickly approaching. In order for a bill to make it through the second funnel, it must pass committee in the other chamber (the one it did not start in). Here are some of the bills the House has sent to the Senate for consideration.

HF 173 / HF 41 – Penalties for Loss of Control
House File 173 adds Code section 321.288, which requires drivers to control their vehicles and reduce speed in certain situations, to the list of traffic violations that can incur additional penalties if they result in serious injury or death. If a driver is convicted of violating this section and it causes serious injury, they may face a fine of $500 or a license suspension of up to 90 days. If the violation results in death, the penalties increase to a $1,000 fine or a license suspension of up to 180 days.

HF 181 / HSB 29 – THC Open Container
House File 181 prohibits drivers and passengers from possessing open containers of beverages containing tetrahydrocannabinol (THC) in the passenger area of motor vehicles. The bill aligns with existing laws that restrict open containers of alcoholic beverages. Violating this law is classified as a simple misdemeanor, punishable by a scheduled fine of $260.

HF 178 / HF 45 – Excessive Speeding
HF 178 increases the fines for speeding violations that exceed 20 miles per hour over the speed limit. Currently, the fine for such violations is $135, plus an additional $5 for each mile over the limit. The bill would raise the base fine to $285, while still adding $5 for each additional mile per hour over the 20-mile threshold

HF 180 /  HSB22 – Grooming
Individuals convicted of grooming will be required to register as tier I sex offenders for a period of 10 years.

HF 523 / HF 108 – Emergency Protective Orders
House File 523 allows peace officers to file a petition for a 72-hour emergency protective order on behalf of individuals who claim to be in immediate danger of domestic abuse, provided that the individual requests the officer to submit the petition.

This week the Iowa House advanced a bill to provide more options for Iowans to enter the cosmetology and barbering field. House File 711 was passed with bipartisan support and empowers licensed cosmetology and barber establishments to establish a training program with the licensing board to hire unlicensed individuals to perform services under the direct supervision of licensed professionals.

Any owners of a licensed establishment interested in creating a training program must register with the Board of Barbering and Cosmetology Arts and Sciences and undergo inspections of the establishment as the board deems necessary before beginning the program. Once registered with the board, an establishment with a training program may employee a person following the completion of 2 hours of education on barbering and cosmetology sanitation and health standards. Participants in the training program may provide the services of shampooing, cutting, coloring, and styling hair under the supervision of a licensed individual. Consumers in the establishment must receive written notice that the employee is not licensed and is participating in the training program before they may receive any service. The licensed establishment is liable for any violations of law or potential damages that would occur by the unlicensed individual. If the board believes that an establishment with a training program is endangering human health they shall order the establishment to immediately cease participation and conduct formal proceedings to determine the issues and issue corrective measures.

Currently, if an Iowan wants to become licensed via a cosmetology school, they are required to complete 1,500 hours and spend, on average, nearly $20,000. HF 711 provides a pathway to licensure for these participants. Individuals who record a documented 2,000 supervised hours in a training program will be eligible to apply and take the examination for licensure. HF 711 is a powerful tool for Iowans who want to enter the field of cosmetology and barbering by allowing flexible hours to achieve training. Additionally, being hired by establishments allows individuals to receive compensation while learning the craft. Eliminating both the time and financial barriers for Iowans who want to enter this field is a crucial step in providing economic freedom.

Legislators in Illinois are considering a dramatic change in the way they fund road construction as gas tax revenue drops in the Land of Lincoln.

A bill has been introduced in the Illinois House to implement a pilot program assessing drivers based on the mileage they travel instead of by being taxed on each gallon of fuel. The proposal puts data collection devices in cars and also allows for people to self-report their travel miles.

The new system is being promoted as a way to help recover tax funds that are not coming into the state due to improving gas mileage in cars and others purchasing alternative fueled vehicles. The plan is built off of similar programs in Oregon and Utah.

Analysts say there may be one big flaw in the Illinois bill – public trust. Proposing that drivers would agree to put a device in their car that would track their movements may not be extremely popular with vehicle owners.
If the pilot program is adopted by the Illinois Legislature this year, implementation would be several years away.

House File 961 passed the House Ways and Means Committee last week unanimously. The bill is now eligible for debate on the House floor.

Under current law, generally speaking – a taxpayer does not have to pay tax on retirement income. To be eligible for the retirement income exclusion, a person must be disabled, at least 55 years of age, or be the surviving spouse of an individual or be a survivor having an insurable interest in an individual who would have qualified for the retirement income exclusion.

House File 961 excludes nonqualified deferred compensation plan income up to $500,000 from net income for purposes of the individual income tax under similar circumstances as the retirement income exclusion. This is a type of “retirement income” that was not really contemplated in the initial legislation.

A nonqualified deferred compensation plan is deferred compensation with no federal legal deferral limit that is subject to tax later and is usually made available to select employees. A qualified deferred compensation plan is subject to compensation deferral limits like 401(k) plans. House File 961 applies retroactively to January 1, 2025 for tax years beginning on or after that date.

Des Moines County:

• Greater Burlington Partnership Forum: Friday, March 21st from 8 – 9AM at the Greater Burlington Partnership in the Winegard Board Room.

As always, you can can shoot me an email with any questions or concerns at taylor.collins@legis.iowa.gov or you can call the Capitol Switchboard and leave me a message at (515) 281-7340.
Sincerely,

Rep. Taylor Collins