Iowans will see new state laws take effect this week, on Tuesday, July 1st.
New laws include banning drivers from holding cell phones; prohibiting diversity, equity and inclusion programs; and remove gender identity protections from the Iowa Civil Rights Act.
July 1st is the beginning of the state’s fiscal year.
Some laws, such as Governor Kim Reynold’s restriction on cell phones during K-12 classes, technically take effect July 1 but will effectively begin when the new school year starts.
Here are a handful of laws going into effect this week:
Gender identity protections will be removed from the Iowa Civil Rights Act
The Iowa Civil Rights Act will no longer protect Iowans from discrimination based on their gender identity beginning July 1, making Iowa the first state in the country to take away civil rights from a group it previously protected in law. Lawmakers added protection from discrimination based on gender identity in 2007. Those protections end July 1.
(It removes gender identity as a protected class in the Iowa Civil Rights Act, which protects Iowans against discrimination in housing, employment, education and more.
The civil rights act, first enacted in 1965, bans discrimination based on race, creed, color, sex, sexual orientation, national origin, religion and disability.)
Holding a cell phone while driving will become illegal
Iowa joins 30 other states in banning the use of cell phones or electronic devices while driving, except in hands-free or voice-activated mode.
Although the new law takes effect July 1, law enforcement will only issue warnings for violations until Jan. 1, 2026.
Starting in 2026, violating the law will be punishable by a fine of $100, up from $45. Someone who causes a serious injury will be subject to a $500 fine and and possible suspension of their driver’s license, while someone who causes a death will receive a $1,000 fine.
The law contains exceptions, including for public safety officials, health care workers responding to an emergency, utility workers, public transit workers and “a person operating an implement of husbandry” such as farm equipment for livestock.
State, city and school DEI programs will be banned
State agencies, local governments, public universities, community colleges and school districts face sweeping new restrictions on diversity, equity and inclusion efforts or DEI
A new law bans state and local government entities from spending any money on diversity, equity and inclusion offices or employees dedicated to DEI, beginning July 1.
Republicans have made it a priority to eliminate diversity, equity and inclusion programs, saying they discriminate against certain groups. Democrats say DEI programs provide necessary supports for students and employees that allow them to succeed and feel welcome.
State employees will get paid parental leave for the first time
State government employees will, for the first time, receive paid time off when they have a child under.
The law will now guarantee state workers four weeks of paid maternity leave and one week of paid paternity leave after the birth of a child. It also gives four weeks of paid leave to state employees who adopt a child.
Previously, state workers received no dedicated paid time off for the birth of a child — a policy that increasingly put Iowa at odds with other states.
18-year-olds can buy handguns as purchasing age drops from 21
Iowans can own and carry handguns as soon as they turn 18. The new law drops the down from the previous age of 21. Iowa law already allows those who are 18 years old or older to purchase long guns, such as a shotgun or rifle.
Medicaid will no longer cover gender-affirming surgeries or hormone therapies
Gender-affirming surgeries and hormone therapies for transgender Iowans will no longer be covered by Iowa’s Medicaid program under new restrictions taking effect.
Republicans included language in the state’s health and human services budget banning Medicaid from paying for surgeries and hormone therapies.
Medicaid will still cover mental health counseling to treat gender dysphoria.
(From 2015 through 2024, the state and federal government spent more than $3.3 million on gender-affirming medical care for transgender Iowans through Medicaid and the Children’s Health Insurance Program.)
Local governments can’t ban shooting off fireworks on July 3rd, 4th of July, or New Year’s Eve
Pharmacy benefit managers will face new regulations
Pharmacy benefit managers (PBMs) will face stricter regulations under a new law intended to help financially struggling pharmacies.
The law includes requiring PBMs to reimburse pharmacies at the national average drug acquisition cost and establishing a baseline dispensing fee of $10.68 for every drug a pharmacy provides.
The law also says pharmacy benefit managers cannot prohibit or limit someone from selecting a certain pharmacy or pharmacist if that pharmacy is covered by their health insurance. And it prevents PBMs from charging different copayment amounts or providing smaller reimbursement rates at one pharmacy or another.
A $1.2 billion unemployment tax cut for businesses will kick in
Starting July 1, businesses will begin to see the benefits of a tax cut on the money they pay into Iowa’s unemployment trust fund.
The law cuts in half the amount of wages on which businesses pay unemployment taxes, lowers the current maximum unemployment tax rate from 7% to 5.4% and reduces the number of tax tables.
In all, the measure is expected to reduce taxes for businesses by nearly $1.2 billion over five years.
Election officials will gain new tools to verify voters’ citizenship
Election workers and the Iowa Secretary of State’s Office will have new ways of verifying voters’ citizenship status to avoid repeating the chaos leading up to the 2024 election when thousands of voters were flagged as possible noncitizens.
Currently, election workers can challenge voters on their age and residency, with the new law beginning July 1, voters can be challenged on the basis of their citizenship status.
The law also gives the Secretary of State’s Office the ability to contract with “state and federal government agencies and private entities” to check voters’ records. And it requires the Iowa Department of Transportation to send the Secretary of State’s Office a list of everyone 17 years old and older who has submitted documentation to the DOT saying they are not a citizen.
