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Capitol Update
The 100th day of the 2026 legislative session falls this Tuesday, April 21. However, the legislature is unlikely to meet that target adjournment date as lawmakers continue working through the budget and several outstanding policy bills. While adjournment within the next week remains possible, it is more likely that the session will extend beyond that timeframe.
Another Property Tax Amendment
House Republicans have introduced a new proposal in ongoing property tax negotiations, as legislative leaders work toward a compromise with the Senate and Governor Reynolds. The amendment (H-8374) to House File 2745 builds on a prior version and retains several key provisions, including a 2% hard cap on property tax growth, an accelerated transfer from the SAVE Fund, and a conversion of the state’s homestead tax credit into an expanded exemption, tripling its value. The proposal also includes additional limitations on Tax Increment Financing (TIF) districts, among other changes.
Significant differences remain between the House amendment and the Senate proposal that passed the chamber last week. Still, Speaker Pat Grassley characterized the measure as a meaningful step toward compromise. “I think if you look at what the House is willing to propose here, and including these changes, this is a serious step forward in the right direction,” Grassley said. “And this is something that should be taken very seriously as a potential compromise.”
Election Law Changes
An election bill has been sent to Governor Reynolds for signature. The legislation would eliminate Iowa voters’ ability to register on Election Day using a friend, family member, or neighbor to verify their identity. Supporters argue the practice raises election security concerns and note that only one other state, West Virginia, permits it. Opponents counter that the option is rarely used and primarily benefits elderly voters who may lack accessible identification. Under current law, individuals who verify a voter’s identity must sign an affidavit and are subject to penalties for false claims.
The bill also shifts responsibility for managing candidate petitions in city and school board elections to county auditors, following issues with missed petition signature deadlines in some districts.
AI Chatbot Restrictions
Iowa lawmakers have approved new safeguards governing artificial intelligence chatbot interactions with minors. The legislation requires chatbots to clearly disclose that they are not human when engaging with underage users. The proposal follows reported instances nationwide in which chatbot interactions, particularly those involving mental health discussions, have been linked to harm involving minors.
Under the bill, chatbots must also direct minors to a suicide prevention hotline if mental health concerns are raised. In addition, the measure prohibits chatbots from representing themselves as providers of behavioral health or psychological services. Violations would be subject to civil penalties of $1,000 per occurrence, with a maximum aggregate penalty of $500,000. The bill passed both chambers unanimously and now awaits the Governor’s signature.
Recreational Water Expansion
A bill providing sales tax exemptions on construction materials used in developing Iowa’s water trails system has advanced out of the House Ways and Means Committee on a unanimous 24–0 vote. The measure is intended to expand recreational water use by reducing costs associated with building boat ramps and access points, with nonprofit organizations expected to benefit most from the exemption.
Iowa currently has more than 1,500 miles of designated water trails. Lawmakers say the proposal (House Study Bill 774) could further strengthen outdoor recreation while supporting local economic growth by attracting additional visitors to communities across the state.
Scene on the Hill
April 16, 2026: Stakeholders gather for a subcommittee meeting on battery EPR legislation, as Iowa lawmakers consider policies to establish a statewide framework for the safe collection and recycling of lithium-ion batteries in response to a growing number of fire incidents nationwide.
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