The Iowa Legislature ended its 2026 session Sunday evening after a marathon final weekend at the Capitol, with Senate Democrats criticizing the Republican-backed state budget while also highlighting several bipartisan accomplishments.
In a post-session statement, Democrats raised concerns about the $9.64 billion fiscal year 2027 budget, arguing Iowa could face back-to-back billion-dollar deficits and increased reliance on reserve funds and one-time money sources.
Democrats also criticized measures tied to Medicaid funding and court system fees, saying changes approved this session could raise costs for Iowa families, farmers and small businesses.
At the same time, Democrats pointed to some areas of agreement, including expanded water quality funding and a compromise property tax reform bill approved in the final days of the session.
Democrats said the property tax measure provides relief for homeowners while avoiding stricter limits on local governments included in earlier proposals.
Lawmakers also approved several bipartisan measures, including new radon mitigation requirements for residential construction, pediatric cancer research funding for University of Iowa Stead Family Children’s Hospital and tougher penalties for animal torture offenses.
Full release below
Sine Die: The 2026 Legislative Session is Over
Our stop and start week ended with a marathon, 35-hour-plus weekend at the Capitol as the chambers worked to finalize budget details, negotiate policy, and bring the curtain down. Nearly two weeks into overtime, the Senate convened at 9:00 a.m. on Saturday, May 2, and ran straight through until we finally adjourned for the year at 7:08 p.m. on Sunday, May 3.
For this end-of-session newsletter, we’re going to give a brief overview of where things ended up for some of the biggest issues of the year.
The Budget
Republican lawmakers passed a state budget for FY27 that spends just over $9.64 billion. Iowa will now run back-to-back billion-dollar budget deficits and Republican lawmakers will raid our reserves to cover their deficit spending with one-time funds.
In service of filling their massive budget shortfalls, the majority is implementing creative solutions that raise costs for Iowans. HF 2739, for example, is designed to begin filling their Medicaid shortfall by raising taxes on health insurance companies, who, in turn, will pass those tax hikes onto consumers. That means farmers, small business owners, and Iowa families whose healthcare costs are already on the rise will pay more for health insurance. Or take HF 2770, the budget for the justice system, which has a provision to nickel and dime Iowans with increased fees for court filings.
There are some positive pieces to be found in the budget – like expanded funding for water quality efforts – but they are far outweighed by negative elements. Most of the budget pieces that benefit Iowans have been given either status quo funding (no change, regardless of need) or have seen cuts.
Property Tax Reform
In one of the final acts of the 2026 session, the legislature passed SF 2472, a negotiated agreement between the House and Senate on property tax reform.
The bill is not perfect. But it brings real property tax relief for homeowners, avoids the hard cap on our local governments, and moves Iowa away from prioritizing commercial interests.
Our caucus’ guiding principles throughout this effort were that any solution would need to prioritize middle class homeowners and allow our communities to continue providing the essential services on which Iowans rely. That’s why, in the end, the bill saw strong bipartisan support in the Senate.
Eminent Domain
The legislative session concluded without a resolution on this issue.
More Restrictions on Abortion
On the last day of the session, the Senate passed HF 2788, which restricts Iowans’ access to medication abortion. The bill limits telehealth access for mifepristone and misoprostol, requiring patients to now visit a healthcare setting in person in order to receive a prescription. Iowa is already last in the country for OB-GYNs per capita and as healthcare access continues to shrink, especially in rural Iowa, this will severely impact Iowans’ ability to get the reproductive care they need.
Constitutional Handcuff to Go Before Voters
The Iowa House passed SJR 11 on the final day of the session. The joint resolution, which passed through both chambers during the previous General Assembly, and passed the Senate in 2025, would amend the Iowa Constitution to say that any attempt to increase income tax rates in the future – regardless of how dire our fiscal situation may be – will require a two-thirds majority of the general assembly. This is not a requirement for any other fiscal matters – private school vouchers did not require a two-thirds majority for approval, for example. It would also likely mean that in the event the legislature needed to raise revenues, the increase would happen to the state’s sales tax, which disproportionately affects everyday Iowans. The resolution will go before Iowa voters this November.
A Few Positives Worth Noting
While we won’t look back on the 2026 legislative session with fondness, there were a handful of good, bipartisan victories this year that are worth celebrating.
For one, the legislature took some small, positive steps on addressing Iowa’s ongoing cancer crisis. HF 2297 ensures that all new single- and multi-family residential construction includes passive radon mitigation systems. SF 2480 sends $3 million annually to the University of Iowa’s Stead Family Children’s Hospital for pediatric cancer research.
We also unanimously voted to elevate animal torture from a misdemeanor to a felony with HF 2348, and the Agriculture and Department of Natural Resources budget (HF 2771) includes some elements addressing Iowa’s water quality issues.
Stay tuned for more updates as we wait for the governor’s final action on bills approved by the legislature.
