DES MOINES – Today (May 15th), Governor 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,” Reynolds said. “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,” Reynolds continued. “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,” Reynolds relayed. “Our alignment efforts, so far, have already saved taxpayers more than $250 million, and we’re just getting started.”
To see Lieutenant Governor Chris Cournoyer’s statements along with links to the Governor’s Key Legislative Priorities, visit the State of Iowa website.
