A tight race is playing out in northeast Iowa for the open 2nd Congressional District seat. The Republican and Democratic candidates are offering different approaches to a familiar problem: the high cost-of-living.
Speaking to voters at the Waterloo Public Library in August, Democrat Lindsay James, a chaplain and state lawmaker from Dubuque, centered her pitch to potential constituents on affordability.
“I've been crisscrossing this district and talking to people every single day who are making impossible choices because of their financial realities,” James said. “Gasoline, healthcare, prescription medication — you name it — it's all going up.”
Affordability has polled as a top issue for voters since the pandemic, and inflation continues to exceed the Federal Reserve’s 2% target. In the race for the 2nd District — which encompasses the state’s northeastern quadrant and includes the cities of Cedar Rapids, Waterloo, Dubuque and Mason City — cost-of-living is a central concern.
James is competing with Republican Joe Mitchell in the 2nd District, which political analysts say is one of the most competitive House races in the country this election cycle. Independent Dave Bushaw of Hawkeye and Libertarian Rick Stewart of Cedar Rapids are also running to represent the district.
Their ability to persuade voters on the affordability issue could be a decisive factor in determining which candidate captures the district’s open seat. Incumbent Republican U.S. Rep. Ashley Hinson is running for the U.S. Senate.
Mitchell, of Clear Lake, said he would call on his experience as a housing developer and state legislator to tackle the issue.
“[I know] how to cut regulation, get spending under control and make sure that again we're getting those taxes lower so we can give more of Iowans hard-earned money back to them,” he said on IPR’s River to River.
Voters fed up by high prices
Major industries in 2nd District cities like Waterloo and Cedar Rapids include manufacturing and education. Agriculture is also an economic driver in the district.
Dennis and Sue Burington, farmers from West Union, said their top concern going into the November midterms is high prices.
“Since I do all the shopping, I know what everything costs all the time, and when it's going up a dollar at a time, that's too much,” said Sue Burington.
At the National Cattle Congress Fair in Waterloo earlier this fall, Sue said Dennis discusses politics “24/7.” As harvest begins, they are eyeing diesel prices, which hit record highs this fall.
Gas prices are front of mind for other constituents in the district as well.
Swarnam Bista is a University of Northern Iowa student who commutes from Butler County, located northwest of the campus. He said prices have strained his budget as he travels to class.
“I have to drive 35 minutes every day, and fuel just went to $4.50 a gallon. Like, today I filled my car up and it was 80 bucks," Bista said. "And as a full-time student, I need to focus on studying, but I also have to work and I have to work so much to just afford to come to university."
Economist cautions against overpromising affordability solutions
Bryce Kanago, professor emeritus of economics at UNI, said today’s cost-of-living increases are concentrated in three main areas.
“The big one we all know about is gas prices,” said Kanago, who researched inflation during his nearly 50-year career. “The other two big ones are childcare and housing — both rent and the cost of owning a house.”
Together, the three take up a significant portion of budgets in many low- and middle-income families. When they increase, they hit those groups hardest, Kanago said.
While he recognized targeted investments in renewable energy and relaxing certain regulations and zoning laws could address parts of the current economy, he cautioned politicians from promising too much when it comes to solving voters’ affordability woes.
Two years ago, when Republicans flipped control of the Senate and White House, affordability was a defining issue. If Kanago had to guess, he said it could play a similar role in 2026.
“We're going to see this repeated. We're going to see this come back to harm the Republicans in that people haven't seen prices come down,” he said.
Candidates offer different solutions
While both candidates have said northeast Iowans face hard choices in today’s economy, they pin the issue to different causes and offer different approaches to bringing down Iowan’s daily expenses.
Mitchell pitches himself as a housing developer and businessman who will cut taxes and regulation to leave more money in Iowa households.
“I've built homes in Clear Lake, in Dyersville, in Grinnell,” Mitchell told a crowd during an Aug. 14 speech at the Des Moines Register Political Soapbox at the Iowa State Fair. “And what I know is there's too many regulations, too much compliance, too much red tape, to unleash the American dream.”
He also said he intends to tackle “waste, fraud and abuse in our federal government.”
During an Oct. 1 debate between the candidates, Mitchell claimed James’ voting record shows an opposition to tax cuts.
“She voted against income tax cuts that the Legislature passed," Mitchell said. "She voted against property tax cuts that the Legislature passed just this last year. And we need people that go to Washington and get government out of our way, not add more government.”
James did vote against income tax reforms in 2024. She missed a vote on property tax reforms earlier this year.
For her part, James ties today’s affordability difficulties to Trump administration policies. At the same debate, she pointed to tariffs, the war in Iran and escalating healthcare costs due to Medicaid cuts included in the One Big Beautiful Bill Act.
Countering Mitchell, James said she supports “tax relief for hardworking families.” But she said those families are getting a “raw deal” under President Donald Trump.
“Instead, what we see is the One Big Beautiful Bill added trillions of dollars of deficit to give tax relief to the ultra-wealthy and big corporations,” she said.
Closing her town hall in Waterloo, James said her opponent is out of touch with the real issues facing Iowa families.
“He's never had to worry about the cost of childcare, saving for a down payment on a house and making sure that his kids have food on the table. None of that,” she said.
Voters can cast their ballot during the early voting window, or vote on Election Day, Nov. 3.
