Last week, the energy changed under the golden dome as legislators gave the first indications they are moving towards ending this year’s legislative session. While ultimately not taken up by either chamber this week, Pharmacy Benefit Manager (PBM) Reform sat on the debate calendar in both the House and the Senate.
The Senate spread out their work and passed 40 bills over four days, sending 26 to Governor Reynolds and 14 to the House. Meanwhile, the House passed 25 bills, sending 12 to the Governor and 13 to the Senate. The House did not debate any bills on Wednesday, instead spending the day meeting about outstanding bills in their party-only caucuses. Bills seeing action this week include:
There are still several large outstanding issues the legislature is still considering, such as property taxes and tax credits. However, the only legislation the chambers are required to pass is the annual budget bills. Because this is the first year of a general assembly, the legislature could decide to wait to address outstanding policy topics until next year. While the scheduled last day of session is May 2, the legislature can continue to work beyond that day at their discretion. Leadership in both chambers is working with their members to determine what can be passed this year and how to prioritize the time they have left this session.
Budget Update
Governor Kim Reynolds introduced several budget bills adjusted to reflect the reduction in the March Revenue Estimating Conference (REC) numbers. The budget process in Iowa is split into several different budget bills that are sorted by topic area. As anticipated, the Governor has issued a mostly status quo budget. The legislature does not need to adopt the Governor’s budget bills; rather, they will likely develop their own budget language based on internal budget targets, or the estimated amount the majority caucus plans to spend. There has been discussion about these bills as the chambers work to set their own budget targets, assessing the impact of federal tariffs and taxation at the federal level. Each chamber is likely to release its budget targets, at least internally, and begin to negotiate toward an ultimate state budget for this fiscal year.
Governor Reynolds Submits Waiver for Medicaid Work Requirements
Early in the week, Governor Kim Reynolds released a statement directing Iowa Health and Human Services (HHS) to submit a federal waiver request to the Centers for Medicare & Medicaid Services (CMS) to establish work requirements for select Medicaid recipients. This waiver reflects the directive of SF 615 currently making its way through the Iowa legislature. In the release, Governor Reynolds stated:
“It has always been a priority of mine to make sure our government programs reflect a culture of work. It is common sense and good policy. If you are an able-bodied adult who can work, you should work. We need to return Medicaid back to its core purpose—to provide coverage to the people who truly need it.”
While several exemptions exist, the expressed goal of the waiver request is to encourage Iowans to take an active role in their health and to preserve services for needier individuals. If granted, Iowans who do not meet the new requirements to receive benefits with the waiver will have a grace period to become eligible or their coverage will cease. Iowa HHS will launch a 30-day comment period and two public hearings to gather input.
Soil Temperature Update
According to Iowa State University Soil Monitoring, the current soil temperatures around the state range from the mid-40s to above 60 degrees, with temperatures continuing to rise in most counties from last week. Iowa is now starting crop planting season, reflected by the fact that corn and soybeans planted today are eligible for insurance coverage.
What’s next?
Legislators will likely spend the majority of time focusing on the remaining outstanding issues, including tax credit reform, property taxes, energy, and budgets. With the number of days dwindling until the 110th day of session, both chambers and the Governor’s office must agree on a final budget bill to be signed within 30 days of adjournment. The full 2025 Session Timetable can be found here.
