Since being elected in 2022, by far the issue I hear most about from constituents is the burden of property taxes. According to research from the Common Sense Institute, from 1978 to 2024, consumer prices rose 350% in the Midwest while Iowa’s statewide property tax revenues rose by 550%. They tracked each other almost exactly from 1978 until the start of the new millennium. Since 2000, however, statewide property tax revenues have grown at more than twice the rate of inflation – 73% versus 170%. With property taxes consuming 3.25% of statewide personal income, Iowa had the 11th highest property tax burden in the nation in 2022.

In 2023, the House and Senate passed HF 718 with overwhelming bipartisan support which didn’t cut property taxes, but at least limited their annual rate of growth. Since then, local governments have indicated they can’t keep up with the cost of inflation, and taxpayers continue their cry for relief. Those sentiments track a recent ITR Foundation Poll, which indicated 66% of voters support capping property tax increases and restricting local governments from raising property tax collections by more than 2% per year. Only 14% indicated their opposition to this measure.

This year, both House and Senate Ways & Means Chairs have introduced a bill similar to this 2% revenue restriction concept, along with other reforms with a goal of simplifying a system that hasn’t seen significant reforms in over 50 years. As of now, an agreement has yet to be reached on this issue. However, I hope we reach some kind of agreement to begin reforming this process – even if it takes two years to move the needle.

This week House Republicans released their spending plans for Fiscal Year 2026 once again committing to move forward a responsible, conservative budget for Iowa. The plan spends $9.453 billion starting on July 1st. This represents an increase of $505 million over the current year.

The largest area of growth in the budget is Medicaid. Under the plan, the state increases its share of the program’s costs next year as the enhanced federal matching funds due to Covid are dwindling down. In addition to replacing those funds, the Medicaid budget includes rate increases for nursing homes, dentists, pharmacies, and other providers.

Funding for Iowa’s public schools was set earlier in April as a 2% increase in the state cost per pupil was agreed to. The increase is over $107 million and includes a $5 per student increase for per pupil equity, increased operational sharing funds for districts, and a higher contribution for school transportation costs. The House Republican budget also provides an $8 million increase for community colleges, and additional funds to the Regents Universities for specific initiatives rather than continued general fund increases.

House Republicans continue to keep their word to paraeducators and school support personnel by maintaining the $14 million of additional funding that was first enacted last year. These funds are being used by school districts to raise pay to those serving special education students and other needed services. Unfortunately, the joint Senate / Governor budget targets do not include maintaining the additional wages to these vital classroom assistants who provide a difficult and underappreciated service to younger Iowans with special needs.

The House Republican budget includes additional funds for other priorities, including meeting the state’s constitutional requirement to provide indigent defense services, helping victims of crime, supporting job training programs for students, and providing support for veterans services. Action on these priorities is moving quickly as they will be eligible for debate early next week.

In a newly released national report, Iowa maintains its top five ranking in preschool access for four-year-old children. The state’s national ranking in preschool access for three-year-old children also gained new ground, rising from 22nd to 21st place.

Each year, the National Institute for Early Education Research’s (NIEER) State of Preschool Yearbook provides a critical snapshot of preschool education in the United States. The 2023-24 school year set national records for state enrollment and funding for preschool programs, primarily serving four-year-old children. Nationally, enrollment reached 37% for four-year-old’s and 8% for three-year-old children. In comparison, 67% of Iowa’s four-year-old children and 6% of three-year-old’s were served in state-funded preschool programs.

“We are pleased to see Iowa recognized for our continued efforts to provide access to high-quality preschool programs for our youngest learners,” said Kimberly Villotti, chief for the Bureau of Early Childhood Education at the Iowa Department of Education. “Through our collaborative partnerships with preschool programs across the state and a statewide commitment to expanding access and inclusive programming, we continue to serve a large number of four-year-olds and look for additional enrollment opportunities for three-year-old children.”

For Iowa, the NIEER 2024 State of Preschool Yearbook noted the following results:

• Iowa’s two state-funded preschool programs showed an enrollment of 28,189.
• State spending totaled nearly $97,000,000, up 1% since last year.
• State spending per child equaled $3,735, up $49 from 2022-23.

Iowa’s Shared Visions Preschool Program and the Statewide Voluntary Preschool Program for Four-Year-Old Children support access to preschool programs for families across the state. Shared Visions programs provide quality child development programs for children at-risk in 29 Iowa counties. The preschool programs serve children ages three to five.

Established in 2007, the Statewide Voluntary Preschool Program for Four-Year-Old Children, aims to give every young child in Iowa an opportunity to build a strong foundation for learning. Children who are four-years-old on or before September 15 can enroll and attend quality preschool programs at no cost.

For more information on Iowa’s preschool programs, visit the Department’s early childhood education webpages.

This week the United States Environmental Protection Agency (EPA) issued a press release announcing that this federal agency was issuing an emergency fuel waiver allowing the sale of E15 gasoline — gasoline blended with 15% ethanol — nationwide during the summer driving season. By doing so, EPA will keep E15 on the market giving consumers more options across the nation. This is consistent with President Trump’s Executive Order Declaring a National Energy Emergency, directing the EPA to consider issuing emergency waivers to allow for year-round E15 sales. EPA Director Lee Zeldin noted – “President Trump’s commitment to farmers and the Renewable Fuels Standard has been a cornerstone to his leadership. In my confirmation hearing, I pledged to establish certainty when it came to the sale of E15 year-round. Promises made, promises kept.”

U.S. Agriculture Secretary Brooke Rollins added – “President Trump is committed to lowering energy prices by unleashing American energy production, and it all starts with U.S. farmers. This move to allow the summer sale of E-15 will provide immediate relief to consumers, provide more choices at the pump, and drive demand for corn grown, processed, and used right here in America. Our nation’s great corn growers are critical to helping the U.S. achieve energy independence which is essential to national security. I thank Administrator Zeldin for moving quickly to implement this emergency fuel waiver and his continued commitment to U.S. famers and the U.S. biofuels industry. At USDA we look forward to our continued partnership with EPA and are working diligently to increase our energy dominance in the U.S. and abroad by expanding market access for American biofuels on the world stage.”

This week, the House and Senate both released FY2026 Health and Human Services Budgets. The House budget appropriates $2.47 billion of state general fund to the Department of Veterans Affairs and the Department of Health and Human Services. This is a $253 million increase in general fund compared to FY2025. In total with federal matching funds, the House budget appropriates over $6 billion towards Medicaid, childcare, child welfare, public health, aging and veteran services in Iowa.

1. Fully Funding Medicaid – This budget appropriates an additional $20 million on top of the March Medicaid estimate for FY26. House Republicans are dedicated to fully funding Medicaid and have always provided that commitment to vulnerable Iowans while being in the majority. Allegations that Medicaid is not being funded is inaccurate and is federal fear mongering for political purposes.
2. Provider rate adjustments – This budget provides necessary increases to the following Medicaid providers:
   1. Nursing Homes – The House has fully funded Iowa’s nursing homes at the rate developed through cost reporting. This $25 million of state funding amounts to almost $70 million increase to Iowa’s nursing homes to care for Iowa’s elderly.
   2. Home and Community-Based Services – The House budget provides a $3 million increase to care for Iowa’s disabled population in their communities, which amounts to $8.5 million in total funding increase.
   3. Maternal Health – Increases rates for prenatal, delivery and postnatal care
   4. Dentists – Provides $3.1 million to increase dental rates to the 85% Medicare benchmark
   5. Pharmacy – Provides a $1 million increase to the Medicaid dispensing fee
   6. Prosthetics – Increases prosthetic and orthotic provider rates by $295,000
3. Mental Health –
   1. Autism Coverage – fully funds adding autism coverage to the hawk-i program ensuring over 600 youth have access to autism care
   2. Commitment Discharge – adds in the majority of House File 385 that requires responsible discharge planning for individuals committed for substance abuse or mental health.
   3. Commitment Hearing Testimony – adds in House File 313 that allows Pas and ARNPs 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.
4. Adoption and Foster care – This bill increases foster care and adoption subsidy rates by 5%
5. Emergency Medical Services – Funds House File 977 to expand federal support for Iowa’s EMS providers. This bill will enable additional tens of millions of dollars to come to the state to support rural EMS.
6. Personal Needs Allowance – increases the monthly allotment for Medicaid individuals in nursing facilities to retain $65 per month to pay towards personal needs.
7. SNAP – Double Up Food Bucks – Fully funds the $1 million in House File 970. This bill importantly provides a $1 million appropriation to the Double Up Food Bucks Program if Iowa receives federal approval to include healthy food based on necessary nutrition for the Supplemental Nutrition Assistance Program.
8. Veterans – Fully funds House File 1000, which appropriates $250,000 to the veterans service organization grant program to provide matching funds for employing new staff to assist veterans with federal claims.
9. Dementia Coordinator – Requires DHHS to hire a state dementia coordinator to help Iowans and their family members with accessing dementia care.
10. Radon testing kits – creates a $20,000 standing appropriation to DHHS to be used to make radon test kits available, free of charge, to homeowners and renters in Iowa.
11. Health Equity Bureau – Eliminates the Health Equity Bureau within DHHS to focus the department on the health needs of all Iowans.
12. TANF – Maintains FY25 TANF distribution of funds
13.  Juvenile Detention – Increases the allotment of funds to Iowa’s juvenile detention centers by $25,000

When a person turns eighteen, they can legally get married, sign a contract, join the military, work full time, and buy a place to live, but until recently they didn’t have the right to protect themselves or their loved ones with a firearm. HF 924 changes that by allowing adults, eighteen and over, to acquire and carry a firearm and exercise their constitutional right to keep and bear arms.

Under the previous law, a person had to be twenty-one years old to possess or use a handgun unless they were under direct adult supervision of someone twenty-one or older. This meant that a person old enough to join the military and defend our country could not legally defend themselves or their loved ones at home. Imagine being a husband, with a new wife, a baby, and no ability to protect them from a violent intruder.

Allowing an eighteen-year-old to acquire and carry a firearm is not unique policy. Most states allow legal adults to possess a handgun. Federal Courts have ruled that eighteen-year-old adults have the same rights as those twenty-one and over. HF 924 brings Iowa in line with other states and federal court rulings.

House File 924 does not change where firearms are allowed, and only ensures that adults are treated equally under the law. Firearms are still prohibited on school grounds, most federal grounds and other designated places. This means an eighteen-year-old high school student cannot keep their firearm in their vehicle while at school, carry it in the building, or carry at school sanctioned events.

This new law treats adults equal under the law and ensures a person has the right to protect themselves and their family and are not hindered by out-of-date policy.

Iowa announced new grant awards for Registered Apprenticeship (RA) sponsors whose programs are building the workforce pipeline across the state. A total of $3.4 million in grants are being distributed to both existing RA programs and programs created in new occupations that are based in high-demand fields.

Grant funds awarded to RA sponsors will be managed through the Iowa Office of Apprenticeship (IOA). The IOA, housed within Iowa Workforce Development, is responsible for administering and supporting all RA programs in the state. In 2024, Iowa officially became a State Apprenticeship Agency (SAA), granting IOA the formal oversight and authority to better support existing programs and establish innovative ways to expand their development across the state.

“I applaud the program sponsors receiving grant funds today who are committed to preparing the workers of tomorrow using the Registered Apprenticeship model,” said Governor Reynolds. “Registered Apprenticeship programs play a critical role in our overall workforce strategy. As we demonstrated in the Teacher-Paraeducator Registered Apprenticeship program, using a tried and true model in a nontraditional field is a win-win for Iowans and employers, and I am pleased to see a number of our schools receive funding under this program.”

Today’s grant awards involve two different funding streams, which together will help support the success of thousands of apprentices participating in the sponsors’ programs:

• The Iowa Apprenticeship Act (84E), which provides funding for training or ongoing costs within any active RA program in the state.
  • (Awardee Sheet): $2.94 million in grants to 59 sponsors who are supporting 5,133 participating apprentices.
• The Iowa Registered Apprenticeship Development Program (84F), which specifically provides funding for new programs formed in a high-demand occupation.
  • (Awardee Sheet): $427,800 in grants to 17 sponsors who have created programs in 19 new occupations.

“Iowa made an investment to provide financial support to grow Registered Apprenticeship programs when these programs were created over 10 years ago,” said Beth Townsend, Executive Director of Iowa Workforce Development.

“Today, we continue to see the return on that investment with increases in the number of apprentices and programs across the state as well as the expansion of this training model into nontraditional fields.”

For more information about the programs featured in today’s awards, visit the pages below:

• Iowa Apprenticeship Act (84E).
• Iowa Registered Apprenticeship Development Program (84F).

This week the Senate passed Senate File 423 as amended by the House by a 47-2 vote. SF 423 requires that youth deer hunting licenses be available for purchase during the same timeframe as general deer hunting licenses, encompassing all established deer hunting seasons. It allows holders of a youth deer hunting license to utilize their license and tag during the season for which it was issued or in any subsequent established deer hunting season, provided they follow the authorized method of take for that season. However, if the tag is filled in one season, the license will not be valid for subsequent seasons. This change enhances accessibility and flexibility for youth hunters in Iowa. The House amendment, which I added to bill after hearing from concerns from farmers, obliges the DNR to issue deer depredation permits to any landowner who incurs crop, horticulture product, tree or nursery damage of one thousand dollars or more due to wild animals.

Last Friday Governor Reynolds signed several State Government Committee pieces of legislation into law. These bills range from some good governance changes to existing code, code cleanup following the reorganization of the government, and licensing bills.

Department of Revenue Alcohol Beverage Division Bill
HF 470 updates the definition of “canned cocktail” and “mixed drink cocktail” to include drinks made with a beer or wine base. Updates Iowa Code to require license applicants to use the USPS Verified Address for their licensed premise in their application to the Department. The new law additionally clarifies that the State of Iowa and agencies of the state are authorized to hold an alcohol license.

Eligibility requirements for financial institutions to hold public money
HF 844 repeals section of code requiring the Treasurer of State to establish a list of eligible financial institutions to accept state public funds. The Division of Banking and Division of Credit Unions under the Department of Insurance and Financial Services has the authority to determine the eligibility of financial institutions to accept state funds.

Enacting the Respiratory Care Licensure Interstate Compact
HF 547 enacts the interstate compact to support the mobility of licensed respiratory therapists. The compact allows qualified licensed respiratory therapists to apply and be approved for the compact privilege to practice in remote participating states.

Starting next Wednesday (May 7th) all travelers will need a REAL ID-compliant driver’s license or identification card or another acceptable document (like a passport) to board domestic commercial flights. A REAL ID will also be required to access certain federal buildings or enter nuclear facilities. If you need clarification about entry into federal facilities, we recommend contacting the specific federal facility directly before your visit.
You do NOT need a REAL ID to:

• Drive
• Vote
• Purchase alcohol or cigarettes
• Access hospitals
• Visit the post office
• Access federal courts
• Apply for or receive federal benefits such as social security or veterans’ benefits

When to get a REAL ID:
Iowans who fly commercially or visit certain federal buildings should obtain a REAL ID soon to avoid any issues or delays after the May 7, 2025 enforcement date. Appointments are highly encouraged and can be scheduled through the Iowa DOT Service Selector (or go to the Iowa Department of Transportation’s website at IowaDOT.gov and search appointments).

If you are not flying or visiting a federal facility that requires a REAL ID until later in the year, you can wait to get your REAL ID. We strongly recommend getting it two months in advance of when you need to use it.

How to Check If You Have a REAL ID:
Check the upper-right corner of your driver’s license or ID. If there is a gold star, you have a REAL ID. If the upper-right corner is blank or reads “NOT FOR REAL ID ACT PURPOSES,” then your ID is not REAL ID-compliant. For examples, visit the Iowa DOT REAL ID page (or go to the DOT’s website at IowaDOT.gov and search REAL ID).

Need a REAL ID? Here’s How to Get One:
To obtain a REAL ID-compliant credential, visit the Iowa DOT REAL ID website (or go to the DOT’s website at IowaDOT.gov and search REAL ID) for details on required documentation. This site will put together a checklist for you on the documents you need. To meet the federal requirements, just remember 1-1-2. You will need:

• 1 document that proves your identity and date of birth.
• 1 document that proves your social security number.
• 2 documents that prove Iowa residence and residential address.

*Name change documents (if applicable, marriage certificate/divorce decree, etc.)

This week, the House released the House Health and Human Services Budget, which fully funds House File 1000. This bill passed the House unanimously and appropriates $250,000 to the veterans service organization grant program to provide matching funds for employing staff to assist veterans with claims.

Iowa veterans first line of assistance to ensure they are receiving the benefits they have earned is their county veteran service officer. Oftentimes, if the claim is more complex or the veteran needs assistance appealing a determination, veteran service organizations provide that assistance free of charge. This bill will ensure expansion of that assistance for Iowa’s veterans. The bill is now to be considered by the Senate Appropriations Committee.

Tax Year 2025 has been a big one for Iowa. The income tax rate dropped to a flat 3.8% for all taxpayers. That change alone has made Iowa’s tax climate so much more competitive and kept more of Iowans’ money in their hands. But another big change happened this year as well – Iowa no longer has inheritance tax.

Senate File 619 passed back in 2021 phased out Iowa’s inheritance tax and rate of 20% each year until it was repealed totally for deaths occurring on or after January 1st of this year. Most property passing from a decedent was already exempt from the tax, but there were situations where tax was owed. Whether tax was owed depended on the relationship. Direct transfers (think up or down) to children, grandparents, parents were all exempt. However, transfers to nieces, aunts, uncles, etc. were taxable.

But in 2025 that is no longer the case – inheritance tax is gone, and income tax is flat.

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