Reynolds Highlights Property Tax Relief, Education Changes in Final Legislative Session

DES MOINES, Iowa — Governor Kim Reynolds is touting sweeping tax cuts, education changes, and health initiatives following the conclusion of the 2026 legislative session, calling it a capstone to her time in office.

In a statement released after lawmakers adjourned, Reynolds said the session delivered “big” results for Iowans while keeping state spending growth to just 1.4%.

“This year’s work reflects our commitment to responsible budgeting and meaningful reform,” Reynolds said, noting the session marked her final legislative cycle as governor.

Property Tax Relief at the Forefront

A centerpiece of the session was a broad property tax overhaul projected to save taxpayers nearly $4 billion over six years.

The plan includes a cap on local government revenue growth at 2%, along with expanded tax relief for homeowners. Lawmakers also approved a measure to quadruple the homestead tax exemption to $20,000, shielding more home value from taxation.

Reynolds said the changes will “bring certainty and discipline” to a system long criticized for rising costs.

The legislation also shifts more of the responsibility for school funding to the state, reducing reliance on property taxes while maintaining current funding levels for districts.

In addition, the state created “First Home Iowa” savings accounts, allowing residents to set aside tax-deductible funds for future home purchases.

Education and School Choice Expansion

Lawmakers also advanced a wide-ranging education package focused on school choice and early learning.

The new law directs per-pupil funding to follow students who enroll in public charter schools and expands access to extracurricular activities for those students.

The University of Northern Iowa was approved as a new charter school authorizer, and access to the state’s voluntary preschool program will expand to reduce waitlists for families.

Health and Family Initiatives

Reynolds highlighted several public health efforts, including restrictions on certain food dyes and additives in school meals and expanded nutrition education requirements for medical professionals.

The legislation also aims to improve access to care by allowing out-of-state psychologists to practice in Iowa.

For families, lawmakers made permanent a pilot program providing child care assistance for child care workers and reformed foster parent training requirements to increase the number of available homes for children in need.

Other Key Measures

Additional highlights from the session include:

• A $319 million, 12-year investment in water quality improvements
• $3 million for pediatric cancer research
• Economic development programs designed to attract corporate growth and high-paying jobs
• A reduction in state regulations, eliminating hundreds of chapters from Iowa’s administrative code

Looking Ahead

Lt. Gov. Chris Cournoyer praised Reynolds’ leadership, saying the session’s policies will improve affordability, expand education options, and strengthen communities across Iowa.

Reynolds said the legislative accomplishments reflect nearly a decade of conservative policymaking focused on “low taxes, a strong economy, and vibrant communities.”

“As I enter my final months in office, I remain committed to serving Iowans with the same purpose I’ve had since day one,” she said.