2026 Iowa Legislative Session gavelled in

DES MOINES, Iowa (Gray Media Iowa Capitol Bureau) - The Iowa legislature began its 2026 session Monday with House leaders outlining plans to reduce property taxes and return money to residents over the next four months.

Republican and Democratic lawmakers have proposed separate approaches to property tax reform, building on progress made during the previous session.

“Last session we made good progress and got great feedback from Iowans and stakeholders in this issue,” said House Speaker Pat Grassley. “But rather than rush just to say we got something done, we decided to return to the table this session.”

House Democrats proposed freezing property taxes for homeowners over 65 before the session began. State Senate Republicans announced Monday they want to reduce property tax rates when inflation exceeds two percent.

“There’s two approaches here. You can nibble around the edges or you can tear a system that we’ve slapped bandages on for 40 years and take it down to the chassis and rebuild it,” said Senate Majority Leader Sen. Dan Klimesh. “Iowans expect us to take it down to the chassis and rebuild it and that’s what Senate Republicans have done.”

Republican House members have not yet shared their property tax proposal.

House Minority Leader Brian Meyer said Democrats will oppose Republican legislation if it does not address the needs of vulnerable Iowans.

“If the majority party continues to punch down on Iowa’s most vulnerable, we will continue to oppose you at every turn,” Meyer said. “We will make their voices our voices here at the Capitol.”

Lawmakers face budget constraints as Iowa’s Revenue Estimating Conference predicts a billion-dollar drop in tax revenue compared to last year. The decrease stems from Republican tax cuts implemented in previous years.

Republicans plan to use leftover tax relief funds to address the shortfalls, while Democrats warn of long-term fiscal problems.

“They believe the government bureaucracy knows better what to do with your hard earned money than you do,” Grassley said. “Republicans on the other hand know that this is your money and that you deserve to have your money back.”

Meyer questioned the sustainability of the approach, asking “What will happen when the money inevitably runs out?”

Governor Kim Reynolds will outline her legislative priorities during her final condition of the state address Tuesday.