Iowa Legislature completes first funnel, narrowing 2026 proposed bills

Iowa’s first legislative funnel deadline on February 20 marked a significant narrowing of the bills proposed in 2026. Under funnel rules, any bill that did not advance from a policy committee in its chamber of origin is no longer eligible for consideration this session, unless it falls within the scope of appropriations or tax legislation. Despite this, the session remains exceptionally active, with more than 2,500 bills introduced, far outpacing prior years. Here are a few updates on key issues affecting the Quad Cities region:

Property Tax Reform

Property tax reform remains one of the most consequential debates at the Statehouse this year. Multiple proposals are still alive, with uncertainty about which version will become the primary vehicle moving forward. The QC Chamber supports efforts to reduce costs for businesses and residents, but a significant concern statewide is the restriction on Tax Increment Financing in the Governor’s proposal. If passed, this would effectively eliminate TIF as an economic development tool, which would be devastating for urban areas across the State, including the Iowa Quad Cities, which would lose an essential tool for driving reinvestment.

Mental Health Facilities

Reforms to expand mental health facility capacity and reduce barriers to treatment have gained traction, surviving the first funnel in both chambers. These proposals would remove existing limitations that can prevent individuals in our communities with extreme and long-term mental health needs from receiving appropriate care. Improved mental health infrastructure is important for workforce stability and community well‑being across the region.

Workforce Training

Discussions around modifying the long‑standing 260E Training Incentive Program (introduced by IEDA) remain alive. While chances of repealing the 260E provision this session are unclear, state officials say the program will need reevaluation soon, given Iowa’s recent income tax reductions. The Chamber will continue to monitor this issue closely and will work with our industrial and community college partners to advocate for workforce recruitment tools.

Affordable Housing Task Force

HF 2312 survived the funnel and would establish an Affordable Housing Task Force to review state and local policies in regard to housing costs. The Task Force would include State officials, developers, local governments and legislators. Given the Chamber’s advocacy for housing at all price points, we are encouraged by State efforts to implement a more data-driven approach to housing policy.

While there is still a long way to go in this session, the Quad Cities Chamber will continue engaging our legislators to ensure that economic competitiveness, workforce, mental health and community vitality remain top priorities throughout the remainder of the 2026 session. Read our Iowa legislative priorities.