Issues to watch in 2026

DES MOINES, Iowa (Iowa State Capital Bureau) — Iowa legislators prepare for the calendar to change from December to January, they are determining their priorities for the next legislative session with the knowledge that the 2026 election year could put greater focus on what they do and do not choose to do.

Over the next several weeks, the Gray Media Iowa State Capital Bureau team will be conducting interviews with numerous Republican and Democratic legislative leaders, key industry leaders, and the Iowans who want policy changes in the year ahead.

Key Factors:

–The 2026 legislative session begins January 12, 2026.

–This will be the final session for Kim Reynolds, who plans to retire as governor when her term ends in January 2027. She has pledged to be more active with legislative leaders with property tax reform legislation.

–Governor Reynolds angered some members of her own party when she vetoed legislation earlier this year that could have made it more difficult for private companies to use eminent domain to force access on someone’s land.

Will there be any carryover from that, or will everyone involved “forgive and forget” and move on to 2026’s legislative business?

–Republicans will largely determine what gets debated since they hold nearly two out of three seats in the legislature.

–Republicans will have two new leaders: Representative Bobby Kaufmann of Wilton takes over as Iowa House Majority Leader, and Mike Klimesh of Spillville has become the new Iowa Senate Majority Leader.

Democrats will have one, as well: Representative Brian Meyer of Des Moines is the new Iowa House Minority Leader.

There are always more issues than time, ideas, priorities, or political willpower for lawmakers to address each year.

Issues to watch in 2026:

Iowa’s Finances — State leaders expect to take in around $1 billion less in revenues than expected expenses in the year ahead. That could make any new spending initiatives very difficult to achieve.

State’s Economy — Agriculture, in particular, has been struggling for the past few years. That is likely to continue in 2026. That not only makes it difficult for farm families, but it also could cause financial strain for restaurants, local governments, retail shops, equipment suppliers, and auto dealers in rural communities.

Property Tax Reform — Lawmakers could not agree on significant property tax reform legislation in 2025, but they have pledged again to take on the issue. Local leaders have warned them that if state legislators confine them too much, they will not be able to deliver services like their residents expect.

How much, if any, will lawmakers further limit the ability of local leaders to determine their property taxes in the efforts to reduce proprty tax burdens on homeowners? What additional policies could lawmakers use to incent communities to share services to reduce future demand on expenses?

Eminent Domain Restrictions — Legislation to limit the use of eminent domain by private companies may have stressed the legislature in 2025 more than any other.

Lawmakers may not be able to agree in 2026 on legislation that retroactively bans the use of eminent domain for carbon sequestration pipelines (Reminder: The Iowa Utilities Commission already granted Ames-based Summit Carbon Solutions the authority to use eminent domain when landowners in the proposed pipeline’s path don’t voluntarily reach a financial agreement with the company for access).

But could lawmakers agree to give a company more flexibility in changing the pipeline’s path to go around someone’s property who doesn’t want to grant access to someone else who does? Discussions have already been underway for weeks in preparation for January’s start to the session.

Cancer Rates — Revelations that Iowa is one of the worst states in the country for new confirmed cancer diagnoses and the fastest rate of increase in cases have alarmed many people. In 2025, legislators approved $1 million for cancer research and $20,000 for radon kits (Iowa is among the worst states in the country for radon exposure).

But health officials want more focus on what is causing Iowans to get sick with cancer. What can be done to limit new cases? And are many of these new cases the result of exposure from decades ago?

Water Quality — Iowa has a decades-long struggle with balancing efforts to make its water supply as clean as possible with the prevalance of fertilizers, pesticides, and animal waste in agriculture. Will future policy rely on voluntary measures, or will lawmakers mandate change to try to prevent some of this, especially nitrates, from entering lakes, rivers, and ponds?

Education — Republicans have used their legislative majorities to remove books from classrooms and school libraries that deal with topics like gender and sexual orientation that they deemed objectionable for children.

They have limited diversity, equity, and inclusion efforts. They have also committed hundreds of millions in tax dollars to support families who want their children to attend private school.

They have significantly raised pay for many teachers. And they have changed policy to make sure that only biological girls can play girls’ sports.

Are there more changes related to funding, curriculum, or shared services that they will pursue in 2026?

Workforce — Iowa’s population has not produced the number of workers with the skills that some companies demand. Reducing immigrants who live in the state — those with or without legal status — could further stress staffing.

Can lawmakers do something to convince more potential workers to move to the state, more residents to acquire the skills that jobs demand, and more people who are not in the workforce to join it?

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