Capitol Letters: A close to the 2025 Legislative Session

State Rep. Megan Jones

On Friday, May 15, at 6:31 a.m., we adjourned the 2025 legislative session. We made a lot of great strides this session.

We did some amazing things.

Are there some broken-hearts over failed bills? Absolutely. But, we are only one year in to this General Assembly, so bills will still have another year to make progress.

Here is a list of some of the priority pieces of legislation that did make it through both chambers:

• Disaster assistance package: Extends tax exclusion to disaster assistance for housing developers who received new housing grants, adjusts insurance regulations to better protect consumers and homeowners, modifies emergency funds transfer authority and fully funds disaster aid programs established in response to 2024 storms. (SF 619)

• Unemployment insurance reform: Reduces the taxable wage base by half, lowers the maximum tax rate and simplifies the unemployment tax system, saving businesses $1B over the next five years. Encourages existing businesses to reinvest these savings into employee salary, benefits and seasonal unemployment. (SF 607)

• Rural healthcare: Attracts more physicians to the state and enhances access to healthcare in rural Iowa by raising investment in newly unbundled Medicaid maternal rates, incentivizing regional partnerships between rural hospitals, consolidating and increasing funding for state-funded student loan repayment programs and adds 460 residency slots in Iowa’s teaching hospitals. (HF 972)

• Cell phones in schools: Ends digital distractions in the classroom with legislation that requires schools to adopt personal electronic device free policies during instructional time. Policies are to include common sense exceptions for academic and health needs. (HF 782)

• Cancer research funding: $1M for a new partnership between Iowa HHS and the University of Iowa to establish a dedicated team of epidemiologists to research the behavioral, genetic and environmental factors that might be playing a role in cancer rates in Iowa. (SF 647)

• Math counts: Promotes early intervention and progress monitoring and provides resources for families to advance math development at home. (HF 784)

• Civics education: Improves vital knowledge of government processes and American history by requiring high school graduates pass the U.S. Citizenship and Immigration Services’ Naturalization Test. (SF 369)

• Education improvements: Reinstates TeachIowa as the online education job posting system, creates a risk pool to assist with out-of-state placements and provides flexibility to teacher prep programs, including alternative pathways for student teaching. (HF 787)    

• Families first: Establishes paid maternity and paternity leave for state employees, joining the federal government and at least 24 other states who all have some form of paid leave. (HF 889)

• Credits and incentives updates: Sunsets existing economic development incentive program and launches new business incentives for growth. Modernizes several business development tax credits to acknowledge Iowa’s new competitive tax environment, while sunsetting business tax credits with low/no utilization. (SF 657)

• Data center language: Modernizes Iowa’s data center statute to recognize newer business and investment models for constructing to lease and limits the sales tax exemption on energy for new, expanded data center construction to either a 10-year or 15-year benefit. (HF 976)

• Medicaid work requirements: Requires able-bodied adults on Medicaid expansion to work, with common sense exceptions including for disabled individuals, older individuals, caretakers with children under six and those medically unable to work. (SF 615)   

• Opioid settlement fund: Appropriates $29M from the Opioid Settlement Fund to combat the opioid crisis and provides ongoing funding for Iowa HHS and the Attorney General. (HF 1038)

As we transition into the legislative interim, I will continue to put out newsletters but likely with less regularity. It is the honor of a lifetime to serve under the golden dome and the weight of your trust is not lost on me. Thank you.

Contact Jones by email: megan.jones@legis.iowa.gov.