State lawmakers are gathering at the Iowa Capitol on Monday for the first day of Iowa’s 2026 legislative session, where they will spend the next few months debating and passing new laws and deciding how to spend Iowans’ tax dollars.
The new session will feature three new faces among the state’s legislative leaders: the House of Representatives and Senate have new majority leaders, and there’s a new minority leader in the House. It’s also Gov. Kim Reynolds’ final legislative session because she’s not seeking reelection.
Republicans will continue to set the lawmaking agenda because they hold large majorities. The House has 67 Republicans and 33 Democrats, a GOP supermajority. The Senate has 33 Republicans and 17 Democrats, which is one seat short of a GOP supermajority.
House Speaker Pat Grassley, R-New Hartford, and new Senate Majority Leader Mike Klimesh, R-Spillville, said property tax relief will be their top priority for the second year in a row. Last year, key GOP lawmakers proposed several versions of a property tax system overhaul, but that never came up for a floor vote in either chamber.
Klimesh said he favors changes to the property tax system as a whole, rather than changes for specific groups of taxpayers.
“Looking at it from a holistic approach, realizing we have a 40-year-old system that we slap Band-Aids on, and now it’s probably time to take it down to its chassis and rebuild it,” he said.
Grassley said he wants a property tax bill that is easy to explain to Iowans.
“It’s not an easy solution, but it’s really an easy picture that I think has been painted for us, which is – are you going to be picking certainty for the taxpayer or certainty for the taxing entity?” he said. “I think that’s where you have to come at this from.”
Reynolds also plans to propose property tax changes as part of her agenda for her final legislative session as governor.
House Democrats have called for a $1,000 property tax rebate for homeowners and a $500 rebate for renters. The rebates would last two years, and the money would come from the state’s Taxpayer Relief Fund. After that, annual property tax increases would be limited to 4%, the homestead tax credit would be tripled, and seniors’ property taxes would be frozen.
“We have a plan that has immediate relief for families, significant relief for families, and also that protects first responders and schools,” said House Minority Leader Brian Meyer, D-Des Moines.
Lawmakers face challenges with eminent domain and state budget
Lawmakers are expecting to once again consider legislation related to the use of eminent domain for carbon capture pipelines. Reynolds vetoed a bill last year that would have made it harder to use eminent domain.
House Republican leaders said they will continue their efforts to limit the use of eminent domain for carbon pipelines. And Klimesh, the top Republican in the Senate, said he is working on a bill that would give pipeline companies flexibility to find a path around landowners who are not willing to sign easements for pipeline construction.
Lawmakers will also decide how to manage the state budget following a decline in state revenue caused by tax cuts. The latest revenue estimate from December shows Iowa is expected to bring in $8.5 billion next fiscal year, which is far less than the $9.4 billion budgeted for state services in the current fiscal year.
Republican leaders have said this was their plan all along — to reduce what they called the “overcollection” of tax dollars and allow Iowans to keep more of their earnings. They also saved up nearly $6 billion to cover budget gaps. But Democrats have warned that using the state’s savings to cover ongoing expenses is irresponsible and could lead to cuts to services.
Democrats say they will focus on lowering costs
Top Democrats in the Iowa House and Senate said they will focus on affordability, though their status as the minority party means they typically don’t have the ability to advance their agenda.
Senate Democratic Leader Janice Weiner, D-Iowa City, said she heard voters’ concerns about high costs as she knocked doors and campaigned for special elections throughout the state.
“They can’t afford their housing. They can’t afford child care. Their grocery costs are up,” she said. “Health care costs are up. And probably for some, they’re going to go up astronomically. To us, that’s what we should be focusing on.”
The target end date for this legislative session is April 21, but it can go on for as long as it takes for lawmakers to approve the state budget.
