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Iowa House and Senate Republicans reach budget agreement

  • In early May 2025, Iowa House and Senate Republicans finalized a budget deal that allocates $9.425 billion for the state’s spending in fiscal year 2026.
  • The deal came after visible disagreements between Republican legislative leadership and Governor Kim Reynolds regarding certain budget items, notably the $14 million originally designated in the 2024 legislation for paraeducator salaries.
  • The budget plan relies on an $8.5 billion general fund projection and $40 million from the Sports Wagering Fund, with lawmakers planning to use reserve funds one-time without risking future fiscal stability.
  • Governor Kim Reynolds emphasized that her main focus with the budget is to exercise careful financial management while prioritizing the interests of Iowa taxpayers, whereas Democrats voiced dissatisfaction with the negotiated compromises and favored the original House spending plan.
  • The agreement allocates funding for paraeducator salaries and certain GOP priorities, but it may encounter resistance from a group of 12 Republican senators who have vowed to block budget legislation until eminent domain issues are addressed in debate.
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Iowa House and Senate Republicans reach budget agreement

Majority-party lawmakers in the Legislature have reached a budget agreement, House Republicans announced Thursday, signaling the 2025 legislative session is nearing an end.

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KGAN broke the news in on Thursday, May 8, 2025.
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