Reynolds Calls Iowa ‘Strong’ in 2026 Condition of the State, Proposes Property Tax Caps, Veteran Reforms

DES MOINES — Gov. Kim Reynolds declared Iowa “strong” Tuesday night as she delivered her 2026 Condition of the State address, outlining proposals aimed at property tax relief, veteran services, health care access, and education while honoring fallen Iowans and marking her final legislative session as governor.

Speaking before a joint session of the Iowa Legislature, Reynolds opened the address by honoring former lawmakers Rep. Martin Graber, Sen. Rocky DeWitt, Sen. Clare Celsi, and former Rep. Janet Metcalf, all of whom died in the past year. She also paid tribute to two Iowa National Guard soldiers killed and three wounded in a December 2025 attack in Syria.

Staff Sgt. William Nathaniel Howard of Marshalltown and Staff Sgt. Edgar Torres-Tovar of Des Moines were among those killed in the attack. Reynolds said both men exemplified service and sacrifice, noting that Iowa Guard members escorted their fallen comrades home and cared for the wounded. She announced that the two seriously injured soldiers have been released from the hospital and are continuing outpatient recovery.

Reynolds said Iowa currently has about 1,800 Guard members deployed overseas and emphasized her administration’s commitment to veterans. She proposed legislation to modernize Iowa’s veterans benefits system, citing data showing only one-third of Iowa veterans receive earned VA compensation, ranking the state 44th nationally. Her plan includes a performance-based grant system to incentivize counties to increase veteran benefit access.

Turning to taxes, Reynolds highlighted reductions enacted during her administration, including a flat 3.8% income tax, corporate tax reform, elimination of taxes on retirement income and inheritance, and reduced unemployment insurance taxes. She said Iowa has cut taxes more than any other state and pledged to align state tax policy with recent federal tax changes, including eliminating taxes on tips, overtime, and Social Security income.

Property taxes, however, were a central focus of the address. Reynolds said property taxes have risen more than 10% over the past two years and are outpacing income growth. She proposed capping overall revenue growth for local governments, moving property tax assessments to a three-year cycle, and shifting the burden of justifying large assessment increases from homeowners to assessors.

She also proposed freezing property tax bills for homeowners age 65 and older with homes valued at $350,000 or less, creating a tax-deductible savings account for first-time homebuyers, and expanding the beginning-farmer tax credit to include land sales and make it refundable.

Reynolds addressed health care and cancer prevention, announcing major investments through the state’s Healthy Hometowns initiative. Iowa recently secured $209 million in federal funding for rural health care transformation, with more than $50 million earmarked this year for cancer screening, prevention, and treatment. The program will support early detection efforts, expand rural cancer care hubs, and increase access to telehealth and screening services.

She also outlined public health initiatives aimed at reducing chronic disease, including maintaining nutrition-focused SNAP and Summer EBT programs, requiring nutrition education for physicians, and removing artificial food dyes from school lunches.

In education, Reynolds highlighted gains in literacy, math, science proficiency, and attendance, noting Iowa is one of only three states where students outperform pre-pandemic levels. She celebrated the statewide expansion of Education Savings Accounts and proposed legislation to ensure per-pupil funding follows students across all public schools, including charter schools, while expanding access to extracurricular activities and concurrent enrollment.

Reynolds said Iowa recently became the first state to gain expanded control over federal education funding, an initiative announced alongside U.S. Secretary of Education Linda McMahon in Denison.

As she enters her final legislative session, Reynolds called on lawmakers to focus on practical solutions rather than politics.

“The condition of our state is strong,” Reynolds said. “And with the work we do here—together—its future will be even stronger.”