
If you’ve ever wondered why state leaders sometimes say their hands are tied when it comes to getting things done, here’s a big reason: Washington, D.C.
Over the years, the federal government has grown into a giant. What used to be state and local decisions—like how we run schools or fund healthcare—are now tied up with rules and restrictions coming from unelected bureaucrats in far-off agencies. Why? Because when states take federal money, they often have to play by federal rules. And Iowa takes a lot of it.
In 2023, Iowa received nearly $12 billion in federal funds, and that number’s not expected to decrease in the years to come. That’s more than the entire state budget. The problem? Federal money comes with strings attached, and those strings can choke state flexibility, limit local control, and expand the reach of Washington into every corner of our lives.
Governor Kim Reynolds has taken some important steps to change this. She’s pushing back against federal overreach, particularly in education, and asking for block grants that would give Iowa more say in how funds are used. That’s the right approach—not just because it’s smarter policy, but because it’s how things were meant to work.
You don’t need to be a constitutional scholar to understand that the Founding Fathers never intended for one central government to control everything. They believed in dividing power between the federal government and the states. It’s called federalism, and it’s a principle that kept government small and local—until it started being ignored.
Presidents like Theodore Roosevelt and Franklin D. Roosevelt expanded the size of the federal government under the idea that the Constitution should “adapt with the times.” Over the last century, that’s created a massive federal bureaucracy that touches almost every area of public life. Iowa, like other states, has become too reliant on federal money and too bound by federal rules.
Here’s the real danger: the federal government is broke. The national debt is now over $37 trillion, and at some point, that bill will come due. If Washington starts seriously cutting spending—beyond the recent DOGE efforts—states like Iowa could be left scrambling. That’s why it’s important we start preparing now.
Some states, like Utah, are already getting ahead of the curve. Utah has created a plan to figure out what would happen if the federal dollars stopped flowing. They’re identifying which programs are most dependent on federal funds and making backup plans. Iowa should do the same.
If we want real control over our future, we can’t keep relying on Washington. The more Iowa can fund its own priorities, the more freedom we have to make decisions that reflect our values—not the values of bureaucrats in D.C.
This is about more than just budgeting. It’s about who gets to decide what kind of future Iowa has. If we want strong schools, thriving communities, and a state government that works for Iowans—not Washington—we need to start loosening the grip of federal dollars and restoring control where it belongs: right here at home.
It’s not flashy. It’s not loud. But it’s the Iowa style of leadership that lives within its means and prepares for the future. That’s the kind of government Iowans believe in—and it’s the kind we should fight to protect.
Let’s be honest, big government is big bureaucracy, and common sense tells us big bureaucracy is ineffective. That’s why ITR Foundation works to:
By applying the principles of limited government, free enterprise, and the rule of law to public policy, we can ensure all Iowans will have the opportunity to succeed.
ITR Foundation set the policy groundwork for many recent taxpayer victories in Iowa: