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Iowa Gov. Reynolds, in final policy push, proposes property tax overhaul
The governor, who is not seeking re-election, laid out her plans for cancer funding, E-Verify requirement and expanded charter school access in Tuesday speech
Jan. 13, 2026 6:56 pm, Updated: Jan. 13, 2026 7:33 pm
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DES MOINES — Gov. Kim Reynolds on Tuesday unveiled a legislative agenda focused on overhauling Iowa’s property tax system, tightening immigration and election enforcement, expanding health care access and continuing education reforms.
Reynolds delivered her ninth Condition of the State address to the Iowa General Assembly, laying out her legislative agenda and priorities for the year as she enters the final stretch of her governorship. Although she will return next year in the waning days of her final term to address lawmakers at the opening of the 2027 session — before a new governor is sworn in — Tuesday’s speech marked her last chance to press her policy agenda at the Capitol.
The Republican governor has used past addresses to champion income tax cuts, taxpayer-funded private-school savings accounts, state agency consolidation, charter school expansion and an overhaul of Area Education Agencies that provide special education services, themes that underscore how she has sought to leave a lasting imprint on state policy.
On Tuesday, Reynolds told lawmakers that despite billions of dollars in new investment and job growth, rising property taxes remain a pressure point for Iowans across income levels and communities.
“Property taxes are rising faster than inflation, faster than paychecks and faster than population growth,” she said according to prepared remarks. “And that’s not acceptable.”
Property tax overhaul
The governor introduced a property tax reform package her office estimates would save taxpayers more than $3 billion over the next six years. The proposal would cap total revenue growth for all taxing authorities at 2 percent plus new construction, with exceptions for debt service and school funding.
Reynolds also proposed moving property tax assessments from every two years to every three years, arguing that less frequent assessments would protect families from rapid valuation increases and provide more predictability for homeowners.
Other elements of the plan include freezing property tax bills for homeowners age 65 and older whose homes are valued at $350,000 or less; expanding tax-deductible savings accounts for first-time homebuyers modeled after Iowa’s 529 education savings program; tightening rules around tax increment financing, or TIF; and expanding a beginning-farmer tax credit, making it refundable and extending it to land sales as well as leases.
“For older Iowans living on fixed incomes, rising assessments don’t mean rising wealth — they mean rising anxiety,” Reynolds said. “Seniors who did everything right — who worked hard, paid their taxes and saved — are at risk of being taxed out of the very home they hoped to grow old in.”
Under Reynolds’ proposal, TIF districts would be limited to public purposes tied to infrastructure, redevelopment and economic development projects, with a maximum project length of 20 years. Her office argues some cities have used TIF too broadly and for too long, shifting the tax burden onto properties outside the districts.
The governor also called for eliminating election mandates for county treasurer, auditor and recorder positions, allowing county supervisors to appoint those officials. While acknowledging the tradition of local elections, Reynolds office said “appointing the positions could result in more efficient, professional and responsible government that works better for taxpayers.”
“But here’s the truth: Property taxes are driven locally, so they can’t be fixed by state government alone,” Reynolds said. “If Iowans want lower property taxes, we must also change how local government works — and who we elect to run it.”
She also urged local governments to expand shared services — such as fire, emergency medical services, public health and law enforcement — to reduce costs and pass savings on to residents.
“I know many in this chamber have other ideas; and I welcome them,” she said. “But this is how we begin to tackle the problem — and put families back in control.”
Addressing rising cancer rates
Addressing Iowa’s rising cancer rates was at the heart of Reynolds’ health care proposal, where she pointed to personal stories, including her own, as reasons to address the issue.
Reynolds’ husband, Kevin, was diagnosed with lung cancer in 2023. During last year’s address, Reynolds said his cancer remains in remission, “and he continues to do well.”
Reynolds announced the state would use recent federal funding to go toward cancer care, research and mitigation.
“Every year, more than 20,000 Iowans are diagnosed with this terrible disease. Everyone in this room has been affected by it in some way. Hearing the news that you, or someone you love, has cancer is devastating. I know it personally, with Kevin’s diagnosis two years ago,” Reynolds said.
At the end of December, the federal government awarded a $209 million grant to expand and support rural health care in Iowa. Of that money, Reynolds said $50 million per year, or $183 million over four years, will be allocated to establish cancer care hubs in rural areas, Centers of Excellence for cancer care, cancer screenings for the uninsured or underinsured, and funding radon mitigation tests.
Reynolds also zeroed in on nutrition, citing Iowa’s rank as 17th in the country for adult obesity as her main reasoning. She proposed codifying waivers aligning federal food programs, including Supplemental Nutrition Assistance Program and Summer EBT, with Iowa’s “Healthy SNAP” program, which went into effect Jan. 1 and bars benefit recipients from using the funds for certain grocery items, including soda and sweets.
She also proposed banning certain dyes in Iowa K-12 schools, including Red 40, Blue 1, Blue 2, and Yellow 5, and she floated allowing contraceptives and Ivermectin to be available as over the counter medications.
Public safety and immigration enforcement
Reynolds’ public safety proposals included codifying an executive order she signed last fall requiring state agencies to verify employment eligibility for new hires through the federal E-Verify system and to confirm immigration status or U.S. citizenship before granting professional licenses.
The proposal follows the fall arrest of former Des Moines Public Schools superintendent Ian Roberts by immigration officials, who say he used false documentation of his citizenship status to procure his position with school district. Reynolds said putting the requirements into law would ensure consistent enforcement across state government.
She also proposed establishing a rebuttable presumption of no bail for individuals charged with forcible felonies or non-simple misdemeanors who are in the country illegally, and requiring anyone registering to vote to swear they are a U.S. citizen. Election misconduct would be recategorized as a Class D felony.
Expanding charter school access
Reynolds also used the address to call for expanding what she described as “educational freedom,” pointing to steps taken in recent years to bolster public charter schools. A charter school is an independently-operated public school, authorized by the State Board of Education, that has more flexibility in curriculum and management in exchange for meeting specific performance goals outlined in its charter contract.
In 2024, Reynolds worked with lawmakers to close a per-pupil funding gap between traditional public schools and charter schools, establish a charter school startup grant program, and allow vacant or underutilized public school district buildings to be acquired by other educational entities — changes she said were designed to encourage innovation and growth.
Calling public charter schools an important and emerging educational model in Iowa, Reynolds proposed additional changes aimed at ensuring students have equal access to funding, coursework and activities regardless of where they attend school.
Her proposal would require state funding to follow students from their resident school district to the public charter school of their choice. Under current law, when a student enrolls in a public charter school, their resident district retains certain state funds intended to support that student’s education. As public charter school enrollment grows, Reynolds said, funding tied to instruction should move with the student.
She also proposed extending access to concurrent enrollment courses — which allow students to earn college credit while in high school — to charter school students, and creating a pathway for charter students to participate in extracurricular activities offered by their resident public school district.
“Every student deserves access to college credit and activities; not because of where they attend school — but because they are an Iowa kid,” Reynolds said in prepared remarks. “And that’s what education is about in the end: not programs, not politics, but students. Iowa will remain a state that puts students first — and we will never look back.”
Erin Murphy of The Gazette Des Moines Bureau contributed to this report.
Comments: (319) 398-8499; tom.barton@thegazette.com
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