Week nine of the 2026 Iowa Legislative Session featured a balance of floor debate, subcommittees, and committee meetings in both chambers. Because the second funnel deadline is this Friday, March 20, policy bills must move through committee in the opposite chamber to remain eligible for passage.
Several high-profile health care bills moved through the legislative process last week. HF 571 passed the House and would allow a medical professional or health care institution to refuse to perform non-emergent medical services for reasons of conscience. Also on the health care front, HF 2716 reforms public assistance programs under the Department of Health and Human Services (HHS). Two major provisions of the bill (1) revise Medicaid eligibility and increase the income threshold from 250% to 300% of the federal poverty level and (2) implement a 12-month residency requirement and verification for certain public assistance programs and restrict WIC participation to citizens and qualified aliens.
SF 2464 and HF 2739 change the current tax on health maintenance organizations (HMOs) premiums, replacing it with a tax on HMO taxable funds. The bill also enables a one-time transfer of $296,000,000 from the Taxpayer Relief Fund to the General Fund and provides a supplemental appropriation of $70,300,000 to HHS for Medicaid. Notably, the House scheduled a last-minute Ways and Means Committee meeting to discuss the bill on Thursday afternoon after floor debate. Movement on these bills coincides with the beginning of budget season and seeks to fund Medicaid amid increasing medical costs and a state budget shortfall.
Also of note, the Senate version of the property tax bill (SSB 3001) passed out of the Senate Ways and Means Committee with an amendment. Senator Dan Dawson, chair of the committee, expressed that this is not the final version of the bill, and continues the goal of completely reforming how property taxes in Iowa are calculated.
March Revenue Estimating Conference
The Revenue Estimating Conference (REC) met on Thursday, March 12, to report the state’s revenue for the FY26 budget year, to set revenue projections thresholds for FY27, and to set up the projections for FY28. The REC estimated a decrease of 9.3% in revenues, which was largely expected due to income tax cuts at the state and federal level. Iowa ended FY25 with an ending balance of $1.9 billion with $5.6 billion in cash on hand, full reserve funds, and $4 billion in the taxpayer relief fund. State revenues have decreased from $9.75 billion in FY24 to a projected $8.11 billion for FY26.
The conference reiterated the state’s strong financial position yet noted there are macroeconomic uncertainties impacting the estimates, including ongoing conflict in the Middle East, tariffs, and general affordability concerns. This being the case, the projections for FY27 and FY28 are cautiously optimistic, setting projections at 4.4% and 2.9% increases in state revenues, respectively. The REC members stated their projections balance the state’s economic growth with uncertainty at the national and international levels.
After the meeting adjourned, Senate Majority Leader Mike Klimesh issued a statement to express that “[t]today’s meeting regarding the fiscal outlook for our state shows Iowa is resilient against economic pressures…. Senate Republicans will continue focusing on responsible, sustainable budgeting and look forward to again compiling a conservative, sustainable budget in the upcoming weeks that puts the taxpayer first.”
Governor Reynolds echoed this sentiment in a release distributed shortly after the meeting adjourned, stating that “Iowa remains in a strong financial position as historic state and federal tax cuts have gone into effect… As we plan for Fiscal Year 2027, my administration will continue to work to keep spending in check and lower the property tax burden on Iowans.”
Because the budget shortfall is one of the defining issues of the 2026 legislative session, the March REC information will guide conversations about the FY27 budget. As such, more substantive conversations surrounding state budgets will happen behind the scenes, and each chamber will release their budgets in the coming weeks.
Bills Signed by Governor Reynolds
Governor Reynolds has signed two bills into law in 2026. The first, SF 2201 makes supplemental state aid (SSA) available for school districts ahead of putting together budgets for the next fiscal year. This legislation provides school districts with advance notice for budget preparation and certification and sets additional funding to account for annual inflationary increases and increases the SSA amount by 2% for FY27.
Last week, SF 579 was signed by Governor Reynolds, placing restrictions on localities’ ability to broaden civil rights protections beyond those laid out in the Iowa Civil Rights Act of 1965. This bill is a follow-up to SF 418 from last year, which stripped gender identity as a protected class. SF 579 was introduced in 2025 and was amended on the floor in the House to prohibit cities or local governments from enacting any ordinance or law with broader protections or different categories than those outlined in the Iowa Civil Rights Act. The amended bill passed the House 60-26, and the Senate concurred with the House amendment, passing the bill onto the Governor by a vote of 29-16. The bill took effect immediately upon enactment.
Additional Enrolled Bills
Enrolled bills have been passed by both chambers and are only awaiting the Governor’s signature to become law.
2026 Retirement and Movement Election Tracker
The deadline for filing for federal and state office was March 13, 2026 (5:00 p.m.), and several elected officials announced their intentions to retire to make way for a slate of new candidates. State offices up for election include the Governor and Lieutenant Governor, Secretary of State, Auditor of State, Treasurer of State, Secretary of Agriculture, Attorney General, State Senator (odd-numbered districts 1-49), and State Representative (districts 1-100).
The list below includes current elected officials who have issued announcements stating they will not seek re-election for their current position in 2026 and notes about individuals running for different elected offices.
*Running for a different elected position
What’s next?
This week, the chambers are expected to engage in minimal floor debate, if any at all. Attention will instead be on passing bills through subcommittee and committee to push them through the second funnel on March 20.
With the release of the March REC projections, there will be more conversations between leadership about setting budget targets and draft budgets, which should be released in the coming weeks.
