Iowa's 2024 legislative session is over, here are the major changes passed

DES MOINES — The 2024 Iowa legislative session ended Saturday when House lawmakers passed their final bills and adjourned for the year after a session marked by education policy, tax cuts and other policies from the leading conservative majorities.

As the session came to a close, Republicans praised the "bold ideas" and "transformation" undertaken during the session. Democrats argued the leading party failed to meet the needs of Iowans and instead served "special interests."

Here is a look at six major policies passed this session and what effect they will have on Iowans. Some of these bills have already been signed into law, while others are likely to become law in the coming weeks.

AEA funding, oversight changes

Iowa Gov. Kim Reynolds, a Republican, came into the session with an ambitious plan to reshape the 50-year-old area education agency system that provides special education and other support services to school districts in Iowa.

It was one of the first bills Reynolds proposed in January, and it remained her top priority for more than three months until a version far different from her first proposal was signed into law.

Reynolds’ bill was met with skepticism by House Republicans, who declined to advance it out of a subcommittee, even after she offered an amendment to soften some of the changes.

The final bill will keep AEAs as the primary provider of special education in the state. When it is fully implemented, schools will be required to spend 90 percent of their special education funding with the AEAs, while 10 percent will remain with the school district and can be spent elsewhere.

“I’m happy with what the bill ended up. Really, it was a phenomenal place to start,” Reynolds told reporters in April.

For media and other education services provided by the AEAs, Iowa schools will eventually get all of the funding currently going to the agencies, and they can choose whether to contract with the AEA, receive services elsewhere, or use the money for other general fund purposes.

The bill, House File 2612, also brings the oversight and administration of the AEAs under the Department of Education.

Democrats opposed the bill at every stage of the process, saying there was no need for fundamental changes to the AEAs. House Minority Leader Jennifer Konfrst, D-Windsor Heights, said she believes there will be lasting consequences from the law.

“Imagine what will happen next year,” she said. “So many unintended consequences here, and will really continue to hurt our rural communities especially … In rural Iowa, when you’ve got small districts, the AEAs provide those services that can’t otherwise be afforded because you’ve got one child who needs them.”

Iowa House Speaker Pat Grassley, R-New Hartford, said House Republicans worked to protect special education funding in what eventually became the final bill. He said lawmakers would continue to monitor to ensure the law is working as intended.

“There's a lot of things in the bill, as well, that schools are excited to have some opportunities to have some flexibility with some of those funds,” he said. “So look forward to seeing how that plays out, and I think the bill that we were able to put together will continue to deliver on those special ed services.”

The bill also increased the minimum pay for public school teachers in the state, requiring schools to pay teachers at least $50,000 by the 2025-2026 school year. Teachers with at least 12 years of experience will be paid at least $62,000.

Tax cuts and tax amendments

Iowa Republicans have rarely gone through a recent session without passing legislation to lower taxes, and this session was no different. House and Senate lawmakers passed a bill that will accelerate Iowa’s movement toward imposing a flat income tax, representing around $1 billion in additional tax cuts.

The bill, Senate File 2442, will lower Iowa’s income tax to a flat 3.8 percent in 2025 for all taxpayers, rather than a progressive tax system that imposes a higher rate on higher earners. The bill also tweaks last year’s property tax overhaul that limits revenue growth for cities and counties, and allows county supervisors to decide whether to keep or disband county compensation boards.

Reynolds signaled support for the bill in a statement, and touted Republicans’ efforts to lower taxes over the last six years.

“Iowa families live within their means every day, and there’s no reason government can’t do the same. Thanks to conservative budgeting and fiscal responsibility, Iowa is in a strong position to cut taxes and continue to invest in key priorities like housing, child care, broadband, and more.”

While Democratic leaders opposed the bill, several Democrats in both chambers voted with Republicans to pass it. Democrats who opposed it said it gave a disproportionate windfall to Iowa’s most wealthy while giving low- and middle-income families only minor relief.

Republicans also gave first passage to two proposed constitutional amendments that would enshrine their tax-cutting agenda into the state constitution. One of the proposals would require Iowa maintain a flat individual income tax. The second would require a two-thirds majority vote of the Legislature to increase income taxes.

Both proposals must be passed by a future general assembly, which could be as early as next year, and must then be approved by a majority vote on a statewide ballot measure. If approved by voters, the amendments would be added to the state constitution.

Illegal immigration enforcement

While several bills were considered to penalize people in Iowa who are not in the U.S. legally, lawmakers settled on a bill that would make illegal immigration a state crime in Iowa, mimicking a Texas law that has faced a lengthy court battle.

In passing Senate File 2340, Republicans accused President Joe Biden of failing to secure the southern border and said states must act to address the record number of unlawful border crossings in recent years.

The bill criminalizes “illegal reentry,” allowing Iowa law enforcement to arrest a person who is not in the U.S. legally and has previously been deported or denied entry. A judge could then issue the person an order to return to their country of origin as an alternative to criminal sentencing.

The Iowa City-based immigrant rights group Escucha Mi Voz is planning demonstrations on May 1 and July 1 to protest the law. The group has vowed to fight it in court.

School security and gun permits for staff

The legislative session began just days after a school shooting rocked the town of Perry, Iowa, and led lawmakers to call for stronger school safety measures.

A 17-year-old student shot and killed 11-year-old Ahmir Jolliff and Perry High School Principal Dan Marburger, who died 10 days later from injuries sustained in the shooting. Six others were wounded, and the shooter died of a self-inflicted gunshot.

The governing Republican majority did not call for any new gun control measures. They proposed bills to create a permitting process for school staff to carry guns and require school resource officers at some schools and a separate bill to beef up safety infrastructure and allow schools to use professional development dollars to pay for firearms training for staff members.

State law already allows school staff to carry guns if approved, but insurance companies have been hesitant to provide coverage to schools who allow staff to be armed. Republicans, who said armed staff could cut down on response times in active shooter scenarios, hope the new permitting process will ease insurers’ concerns.

“Time and math do not lie. The first 30 seconds in these scenarios are extremely critical,” said Rep. Phil Thompson, R-Boone, during floor debate on the bill. “This bill does set a high standard for districts and staff that want to participate (in) this and go the extra mile to protect our kids.”

Democrats argued more guns on school campuses would not make schools safer, but would instead increase the risk of firearm injuries and deaths. They argued the training imposed by the bill was inadequate to prepare staff to respond to active shooters.

Religious Freedom Restoration Act

In strengthening legal protections for religious liberty, Iowa Republicans this year said they were safeguarding freedom from government intrusion. But Democrats warned the law could give people the right to discriminate under the cover of religious beliefs.

Iowa Gov. Kim Reynolds signed the Religious Freedom Restoration Act into law during a closed-door reception hosted by the Christian conservative group The Family Leader.

The bill, Senate File 2095, will apply the highest legal scrutiny to any government action that burdens religious belief, stating that an action that burdens religious liberty must further a compelling government interest and be the least restrictive means to further that interest.

The law is in effect at the federal level and in more than 20 states around the country. In a statement when she signed the bill, Reynolds said religious rights have been under attack.

Democrats raised concerns that the protections could be used to deny services to people based on their gender, marital status or race. Republicans argued that has not happened in other states where the law has been passed.

Medicaid extension covers fewer moms, but for longer

Iowa will begin providing Medicaid coverage to new moms who qualify for up to 12 months, but fewer moms will qualify under a bill Reynolds proposed and the Legislature passed this year.

Senate File 2251 lowers Iowa’s threshold for pregnant women to qualify for Medicaid from 375 percent to 215 percent, or around $44,000 for a single mom and $67,000 for a family of four. An estimated 1,700 women and infants will no longer qualify for the program each month.

But those who do qualify will receive a full year of postpartum care instead of 60 days, taking advantage of an option made available to states in the federal American Rescue Plan. Iowa is one of the last states that has not yet enacted the extension.