Public Policy Update: Legislature Moves into Overtime; Much Work Remains

Public Policy Update: Legislature Moves into Overtime; Much Work Remains

April 28, 2026 | Public Policy

State Update

The legislature was scheduled to adjourn on April 21, but lawmakers remain at the Capitol working through final budget details and unresolved policy issues. Leadership in both chambers has indicated the session is likely to continue for at least another week or two.

Budget Update

House and Senate leaders have reached a broad agreement on overall budget targets for FY2027, with the Senate slightly higher than the House. While top-line numbers are largely aligned, work continues to finalize the details within individual budget bills before adjournment.

Property Tax Reform Update

Property tax reform remains one of the biggest outstanding issues. The House and Senate have each passed different versions, and significant differences still need to be resolved. Key areas of disagreement include:

• How to structure property tax limits (strict cap vs. inflation-based approach)
• Treatment of different property types, including multi-unit housing
• The role and flexibility of urban renewal and TIF
• How broadly levy restrictions should apply
• Potential revenue changes, including gas tax indexing

A final negotiated package will need to reconcile these differences, and discussions are ongoing. Review a full comparison of the bills here.

Federal Policy Update

Workforce & Immigration Coalition Effort

The Economic Alliance has joined the American Alliance for Workforce and Border Security and signed onto a national coalition letter urging Congress to act this year to address workforce shortages and modernize the U.S. immigration system.

This effort reflects a core priority for the Economic Alliance: immigration reform that supports a strong, competitive, and reliable workforce pipeline. As employers across industries continue to experience persistent labor shortages, it is increasingly clear that today's immigration system is not aligned with the realities of the modern economy, constraining business growth, investment, and long-term regional competitiveness, while reinforcing the need for continued investment in homegrown talent alongside meaningful updates to legal immigration pathways to better meet workforce demand. The Economic Alliance is proud to stand with national partners in calling on Congress to advance sensible, forward-looking immigration reform that strengthens the U.S. economy and supports employers in Iowa.

Tariff Refund Update

The tariff refund portal is open, and qualifying businesses should apply now. Click here to access the Tariff Refunds Guide and FAQ

Upcoming Event: Civics Bee on May 19

The Economic Alliance Foundation will host the Cedar Rapids Regional Civics Bee on May 19, an engaging community event designed to strengthen civic knowledge and participation among local students. This program brings together students, educators, and community leaders to celebrate civic learning and encourage informed engagement in public life. We look forward to a strong showing and continued community support for civic education efforts in our region. Register to join us!