P {margin-top:0;margin-bottom:0;} *OFFICE OF THE GOVERNOR*    
*Governor Kim Reynolds* ★ *Lt. Governor Chris Cournoyer*      FOR IMMEDIATE RELEASE: Thursday, May 15, 2025
CONTACT: Mason Mauro, (515) 745-2840, [email protected]_  * *  *Gov. Reynolds statement on 2025 legislative session*      DES MOINES – Today, Gov. Reynolds released the following statement in response to the conclusion of the 2025 legislative session:      “I’m proud of the work we did this session to expand on the strong foundation we’ve built over the last several years in healthcare, education, and tax reform. We prioritized rural and maternal healthcare and created a new physician pipeline that will result in 460 new medical residents over the next four years. We invested in cancer research and, for the first time in Iowa history, established a parental leave program for state employees alongside 24 other states and the federal government. We took steps to improve math and civics proficiency among Iowa students and removed digital distractions from the classroom so they can focus on learning. We cut taxes for the sixth time—this time reducing unemployment insurance taxes by half—resulting in nearly $1 billion in savings over five years for businesses of all sizes.”  “To keep taxes low and ensure Iowans keep more of what they earn, we passed a responsible, balanced budget that puts taxpayers first and keeps Iowa on a strong, fiscally sustainable path. Some have claimed Iowa is facing a deficit. Let’s be clear: this isn’t a deficit—it’s the result of the state collecting more from taxpayers than it needed. Now we’re giving it back. That’s what the Taxpayer Relief Fund is for. With $3.75 billion set aside specifically to offset income tax reductions, the fund ensures that we can cut taxes today while maintaining essential services and long-term stability.” 
  “I look forward to continuing this work next session—especially when it comes to reducing Iowans’ property tax burden. And to make sure tax cuts remain sustainable, even as we continue to make smart investments, we’ll keep streamlining government. Our alignment efforts, so far, have already saved taxpayers more than $250 million, and we’re just getting started.”  Lt. Governor Chris Cournoyer released the following statement:       “Governor Reynolds has delivered on her promise to continue Iowa on an upward trajectory. She made hands-free driving a reality, making Iowa’s roads safer and saving the lives of those we love. She is investing in rural healthcare, making sure we have excellent care and more providers in all four corners of our state. And she continues to improve our education system by raising math and civics standards and removing digital distractions from instructional time so our students are free to achieve their greatest potential. And because of her fiscal leadership, Iowa is the best place for those students to find jobs and thrive. It’s been my honor to stand by her as she leads Iowa forward.”  * *  *Governor’s Key Legislative Priorities*   * *  *Unemployment Insurance Reform: *Reduces the taxable wage base by half, lowers the maximum tax rate, and simplifies the unemployment tax system, saving businesses $1B over the next five years. Encourages existing businesses to reinvest these savings into employee salary, benefits, and seasonal unemployment. (SF 607) [ [link removed] ]  * *  *Rural Healthcare*: Attracts more physicians to the state and enhances access to healthcare in rural Iowa by raising investment in newly unbundled Medicaid maternal rates, incentivizing regional partnerships between rural hospitals, consolidating and increasing funding for state-funded student loan repayment programs, and adds 460 residency slots in Iowa’s teaching hospitals. (HF 972) [ [link removed] ]   * *  *Disaster Assistance Package*: Extends tax exclusion to disaster assistance for housing developers who received new housing grants, adjusts insurance regulations to better protect consumers and homeowners, modifies emergency funds transfer authority, and fully funds disaster aid programs established in response to 2024 storms. (SF 619) [ [link removed] ]* *  * *  *Cell Phones in Schools*: Ends digital distractions in the classroom with legislation that requires schools to adopt personal electronic device free policies during instructional time. Policies are to include common sense exceptions for academic and health needs. (HF 782) [ [link removed] ]     *Cancer Research Funding*: $1M for a new partnership between Iowa HHS and the University of Iowa to establish a dedicated team of epidemiologists to research the behavioral, genetic, and environmental factors that might be playing a role in cancer rates in Iowa. (SF 647) [ [link removed] ]  *  *  *Math Counts*: Promotes early intervention and progress monitoring and provides resources for families to advance math development at home. (HF 784) [ [link removed] ]   * *  *Civics Education*: Improves vital knowledge of government processes and American history by requiring high school graduates pass the U.S. Citizenship and Immigration Services’ Naturalization Test. (SF 369) [ [link removed] ]       *Education Improvements*: Reinstates TeachIowa as the online education job posting system, creates a risk pool to assist with out-of-state placements and provides flexibility to teacher prep programs, including alternative pathways for student teaching. (HF 787) [ [link removed] ]* *       *Families First: *Establishes paid maternity and paternity leave for state employees, joining the federal government and at least 24 other states who all have some form of paid leave. (HF 889) [ [link removed] ]       *Hands Free*: Promotes safe roads by prohibiting the use of cell phones and other electronic devices while driving unless the devices are used in hands-free mode. (SF 22) [ [link removed] ]* *  * *  *Credits and Incentives Updates*: Sunsets existing economic development incentive program and launches new business incentives for growth. Modernizes several business development tax credits to acknowledge Iowa’s new competitive tax environment, while sunsetting business tax credits with low/no utilization.  (SF 657) [ [link removed] ]     *Data Center Language*: Modernizes Iowa’s data center statute to recognize newer business and investment models for constructing to lease and limits the sales tax exemption on energy for new, expanded data center construction to either a 10-year or 15-year benefit. (HF 976) [ [link removed] ]    *Medicaid Work Requirements:* Requires able-bodied adults on Medicaid expansion to work, with common sense exceptions including for disabled individuals, older individuals, caretakers with children under 6 and those medically unable to work. (SF 615) [ [link removed] ]      *Opioid Settlement Fund:* Appropriates $29M from the Opioid Settlement Fund to combat the opioid crisis and provides ongoing funding for Iowa HHS and the Attorney General. (HF 1038) [ [link removed] ]     ###

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