2026 Government Relations Legislative Update - Week 11
By: Matthew H. McKinney & R.G. Schwarm
Capitol Update
This week was another abbreviated legislative week, with most lawmakers returning to their home districts by Wednesday and minimal activity at the Capitol on Thursday. Shortened schedules may become more common in the weeks ahead as leadership works to determine which policy priorities to advance and how to bring the session to a timely adjournment.
Prior to the 2026 session, Governor Kim Reynolds established the Iowa Nuclear Energy Task Force through an executive order, signaling increased attention on the role of nuclear power in meeting the state’s future energy needs. As artificial intelligence and other high-demand technologies continue to expand, state leaders are recognizing the need to modernize and strengthen Iowa’s energy infrastructure.
On this issue, legislation has been introduced in both chambers. In the House, HSB 767 would exempt new or recommissioned nuclear electric generation facilities in Iowa from state sales and use tax on most purchases. The redevelopment of the Duane Arnold Energy Center in Palo is ongoing, with NextEra Energy indicating plans to bring the facility back online by 2029. The project is projected to generate approximately $9 billion in economic benefits and create around 400 full-time jobs. However, some lawmakers have raised concerns about the fiscal impact of the proposed exemptions, requesting additional information on potential revenue losses and suggesting the bill include a sunset provision to limit the duration of the tax benefits.
In the Senate, SSB 3181 has also advanced. The bill’s floor manager, Senator Dan Dawson, argued the measure is necessary, asserting that nuclear energy development is likely to expand due to federal policy regardless of public sentiment. Unlike the House proposal, SSB 3181 extends sales and use tax exemptions beyond nuclear facilities to also include “web search portal” and data center businesses. It further requires that at least 5% of the resulting tax savings be directed to an Iowa university to support the development and sustainability of a nuclear engineering program. Both SSB 3181 and HSB 767 have now advanced to the Ways and Means Committees in their respective chambers.
The Herbert Hoover Uncommon Public Service Award, presented annually to one member of the Iowa House and one member of the Iowa Senate, was awarded to outgoing State Representative Jennifer Konfrst and State Senator Dave Rowley. Presented by the Hoover Presidential Foundation, the award recognizes individuals whose service reflects the humanitarian legacy of Iowa native and former President Herbert Hoover.
In other recognition, the Pioneer Lawmaker Class of 2026 was honored at the Capitol on Wednesday. The Pioneer Lawmakers’ Association of Iowa, established in 1886, includes former state officials who served at least twenty years prior to each biennial reunion. These gatherings are held every two years at the State Capitol, beginning on the second Wednesday in February, unless otherwise designated by the Association’s executive committee.
The 2026 class includes the following:
- Senate: Jeff Danielson, Dave Mulder, Tom Rielly, Brian Schoenjahn, Frank Wood, and Brad Zaun
- House: Richard T. Anderson, Jeff Kaufmann, Bob Kressig, Mike May, Rick Olson, Dawn Pettengill, Nathan Reichert, Thomas Schueller, Chuck Soderberg, Walter Tomenga, Beth Wessel-Kroeschell, and Raymond Zirkelbach
- Honorary Pioneer Lawmakers: Kelly Bronsink, Tom Cope, Mary Earnhardt, David Epley, Bridget Godes, Anna Hyatt, Debbie Kattenhorn, Jeff Mitchell, Keith Saunders, Russ Trimble, and Brad Trow
- Deceased Class Member: Tom Hancock
Scene on the Hill
March 24, 2026: A panel gathered on the Capitol rotunda to celebrate Iowa’s Outdoors Day and Gift to Iowa’s Future Day. Hosted annually by the Iowa Department of Natural Resources, the event recognizes landowners who donate property for permanent protection through the Iowa Natural Heritage Foundation, with the land ultimately transferred to the State of Iowa. This year, landowners were honored for donating more than 3,200 acres across 22 counties—valued at over $11 million—to support the long-term conservation of Iowa’s land, water, and wildlife.