Iowa has made major progress on tax reform, moving from 43rd to 17th in the Tax Foundation’s Tax Competitiveness Index after cutting income and corporate tax rates—but high property taxes remain a major weakness in the state’s tax structure. Property taxes have grown rapidly, increasing more than 107% over the past two decades and reaching over $6 billion annually, largely driven by local governme...
Iowa is the first state approved for a federal “Returning Education to the States” waiver, allowing it to consolidate several federal programs into a $9.5 million block grant and giving the state greater flexibility in how education funds are used. The move reflects a broader shift away from federal micromanagement toward state-led education policy, aligning with long-standing conservative argumen...
Some states are funding rising spending with wealth taxes and targeted levies instead of restraining government growth. This marks a shift away from broad, neutral tax policy. A growing divide is emerging between states expanding government and those prioritizing tax competitiveness. Policy choices today will shape migration, investment, and job growth tomorrow. Targeted taxes, including those on ...
Award-winning revitalization faces legal challenge. Even as Jefferson earns praise for downtown redevelopment, it is defending a lawsuit alleging it improperly moved about $800,000 from its water utility fund to economic development accounts. The dispute centers on process and safeguards. Plaintiffs argue the city failed to prove a lawful surplus, skipped required budget steps, and did not establi...
ITR Foundation continues to engage directly with Iowans across the state, participating in a Central Iowa President’s Day event where Policy Director John Hendrickson reflected on the life and principles of native Iowan President Herbert Hoover. Hoover’s Iowa roots shaped his lifelong belief in self-reliance and limited government, from his humanitarian leadership during World War I to his emphasi...
Iowa currently lacks a formal budget-continuation policy, meaning that if lawmakers fail to pass a General Fund budget by July 1, funding for many programs could technically lapse — creating uncertainty and potential separation-of-powers concerns. Senate File 2388, a proposed “no-shutdown rule,” would allow existing appropriations to automatically continue (excluding one-time spending) if a new bu...
Stronger Legislative Oversight: Major regulations would require public transparency, detailed economic analysis, and approval by the Legislature before taking effect — ensuring elected lawmakers have final authority over costly rules. Independent Judicial Review: Courts would apply de novo review to major rules, meaning judges interpret the law independently rather than deferring to agency interpr...
George Washington was the indispensable leader of the American founding, held the new Republic together—from commanding the Continental Army, to presiding over the Constitutional Convention, to serving as the nation’s first President and peacefully relinquishing power. His moral authority was essential to the Constitution’s adoption and early stability, as he quelled internal unrest, navigated fie...
Medicaid has become Iowa’s largest welfare program, enrolling nearly one in five residents and consuming about one-quarter of the state budget, with rapid growth since the 2014 expansion. Rising welfare costs are straining taxpayers and crowding out core priorities, while contributing to workforce challenges and long-term dependency. Federal reforms create an opportunity for Iowa to lead, by enfor...
Key takeaways: Download a PDF of the full report. Iowa’s welfare system is at a crossroads. What were once temporary safety-net programs designed to protect the truly vulnerable have steadily expanded into sprawling systems that now touch nearly every corner of state government—and consume an ever-growing share of taxpayer resources. Nowhere is this more evident than in Medicaid and food […...
On March 3, 2026, voters in 12 Iowa school districts will decide public measures affecting property taxes and long-term school spending, including nine PPEL increases or renewals and three Revenue Purpose Statements (RPS). If approved, these measures could represent more than $150 million in potential property tax collections over the next decade, while RPS proposals would allow districts to redir...
Sarah Curry of Iowans for Tax Relief Foundation says this is the time to voice your opinions to elected leaders. "April is when we have public hearings," Curry says. "Waiting until April is almost too late because they've done all of this legwork and they've gotten up to that point for taxpayers to then come in and say, 'That's too much,' or 'We're spending too much,' 'The tax rate's too high' or ...
Rising spending is driving rising property taxes. Lawmakers across the country are increasingly acknowledging that escalating local government spending — whether in schools, cities, or counties — is the root cause of higher property tax burdens. “Buying down” property taxes with state dollars has failed. Efforts in states like Vermont, Iowa, and Nebraska to offset property taxes with general fund ...
What is often labeled “de-banking” is largely the result of an outdated and rigid federal regulatory framework rooted in the 1970s Bank Secrecy Act that incentivizes banks to over-comply to avoid severe penalties. Political signaling by regulators, combined with strict confidentiality rules around Suspicious Activity Reports, leaves banks cautious and opaque, fueling public frustration and percept...
A lawsuit challenges Jefferson’s use of taxpayer dollars after the city transferred $800,000 from its Water Plant Construction Fund into economic development and TIF-related accounts. Plaintiffs argue the transfer violated Iowa law and public process, claiming the city neither demonstrated a lawful surplus nor created a binding repayment obligation, and failed to follow required budget amendment p...
ITR Foundation is taking the property tax conversation directly to Iowans, engaging grassroots audiences alongside elected officials and candidates to address the real-world impact of rising property taxes. The data show a clear problem: Iowa property taxes have grown by more than 100 percent over the past two decades, far outpacing population growth and inflation, driven primarily by sustained gr...
Tax reform without structural limits is temporary, as spending pressures and special interests will eventually overwhelm even well-designed tax cuts unless constitutional guardrails are put in place. Two key constitutional protections—a supermajority requirement for tax increases and protection of the flat tax—work together to restrain spending, reduce special-interest influence, and preserve econ...
Tax debates are fundamentally imbalanced, treating government spending as virtuous while portraying taxpayers as selfish for wanting to keep more of what they earn. Spending pressures, not taxpayer capacity, drive tax increases, with policymakers and special interests too often defaulting to higher taxes rather than spending restraint. Tax reform alone is insufficient without structural limits, as...
Iowa’s Certificate of Need law has failed its original purpose, acting as a barrier to access, competition, and innovation by allowing existing providers to block new services and facilities—often to the detriment of patients. Two Senate bills this session represent the most meaningful CON reform in years, easing restrictions on mental health facility expansion and sharply narrowing when CON revie...
All three property tax reform plans share a core idea: a 2% annual cap on property tax revenue growth for cities and counties, aimed at slowing rising property tax bills for Iowa homeowners. Local government critics claim a 2% cap is unworkable, arguing it would undermine public safety, infrastructure, and basic services, but those claims ignore what’s already happening on the ground. Dozens of Io...
Tax revolts are a recurring feature of American history, from the founding era through Proposition 13 in the 1970s, and the Tea Party movement, each reshaping tax policy and political priorities in its time. Today, property taxes are again reaching a breaking point, with taxpayers nationwide demanding relief and states pursuing widely different strategies—from caps and assessment limits to outrigh...
Governor Reynolds has proposed a $9.6 billion FY27 budget that modestly increases spending while education and health services, driven primarily by K-12 funding and Medicaid, continue to dominate state expenditures, consuming roughly 84 percent of the General Fund. Although Iowa is projecting a $1.2 billion revenue shortfall due to the fully phased-in 3.8 percent flat tax, this reflects a planned ...
States are choosing two very different paths. High-tax, high-spending states are running growing deficits, while reform-oriented states are cutting income taxes, controlling spending, and becoming more competitive. The push to eliminate income taxes is accelerating. States like Missouri, Louisiana, West Virginia, and especially South Carolina are using revenue triggers and disciplined budgeting to...
Rollback limits how fast taxable values grow—not how much governments tax. Iowa’s rollback prevents rapid increases in assessed property values from automatically turning into equally rapid increases in taxable value, providing predictability for taxpayers, but it does not cap local government spending or levy rates. The 3% cap is statewide and interacts with agriculture through the “Ag Tie.” Resi...
Iowa ranks 4th nationally for education freedom, earning top marks in the 2026 Index of State Education Freedom for expanding educational options and reducing barriers for families. Governor Kim Reynolds’ student-first reforms are driving the results, including universal Education Savings Accounts, expanded charter schools, and easier open enrollment—giving parents more control regardless of incom...