House Dems roll out affordability plan, take aim at Reynolds' priorities - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
January 24, 2026 Newswires
Share
Share
Post
Email

House Dems roll out affordability plan, take aim at Reynolds' priorities

TOM BARTON LeeGazette Des Moines BureauThe Daily Nonpareil

As rising costs for health care, housing and utilities strain household budgets, Iowa House Democrats are pitching a broad legislative agenda they say would lower everyday expenses and improve financial security for working families.

Democrats on Wednesday unveiled a package of proposals aimed at lowering living costs, boosting wages and protecting affordable health insurance — while sharply criticizing Republican leaders and Gov. Kim Reynolds for what they described as a lack of focus on affordability.

The plan, announced at a Statehouse news conference a day after Reynolds' Condition of the State address, includes raising Iowa's minimum wage, requiring paid family leave, freezing residential utility rates, expanding homebuyer assistance and redirecting funding from Iowa's taxpayer-funded non-public school Education Savings Accounts program to preserve expiring federal health insurance subsidies.

"We made it our goal to focus on three main things — making Iowa number one in education, lowering the cost of living and affordability, and making Iowa the best place to live and raise a family," said House Minority Leader Brian Meyer, D-Des Moines. "What we are presenting today is our plan to make life more affordable for the working person in the state of Iowa."

Criticism of governor's agenda

Democrats repeatedly contrasted their proposals with Reynolds' speech Tuesday night, arguing it did little to address the rising cost of housing, health care, groceries and utilities.

In her address, Reynolds unveiled a property tax proposal, an issue Republicans have labeled their top priority for the session. Her plan would cap revenue growth for cities and counties at 2 percent — excluding new construction and allowing exceptions for school funding and debt service — and freeze property taxes for Iowans age 65 and older whose homes are valued at $350,000 or less.

Reynolds' office has said the proposal would cut property taxes by $3 billion over six years. She also proposed creating tax-deductible savings accounts for first-time homebuyers, another idea Democrats criticized as out of touch with Iowans struggling to save for down payments.

State Rep. Larry McBurney, D-Urbandale, said the governor's speech offered little direct relief for families facing rising costs.

"First-time homebuyers are going to be offered a tax-free savings account, but most first-time homebuyers are struggling paycheck to paycheck, and saving for a down payment has become a pipe dream for most Iowans," McBurney said.

He also noted the governor highlighted $50 million to establish cancer care hubs in rural areas, Centers of Excellence for cancer care, cancer screenings for the uninsured or underinsured and funding radon mitigation tests without addressing how facilities would be staffed, and promoted initiatives such as removing artificial dyes from school lunches while failing to ensure every child in school receives a lunch.

What Democrats' plan includes

Democrats said most of the proposals are "cost neutral" to the state and would be introduced as bills or amendments during the 2026 legislative session.

Key elements of the House Democrats' plan include: „

• Housing: Increasing Iowa's first-time homebuyer closing-cost assistance grant from $2,500 to $10,000, which McBurney said is needed to keep pace with inflation.

•„ Paid leave: Requiring employers of all sizes to provide paid family and medical leave, with up to 12 weeks for family leave and 12 weeks for medical leave for both fulland part-time workers. Democratic leaders said employers — not the state — would cover the cost. Thirteen states and Washington, D.C. have laws requiring paid family and medical leave programs. Most are funded through employee-paid payroll taxes, and some are also partially funded by employer-paid payroll taxes. „

• Utilities: Freezing residential electric and natural gas rates through Dec. 31, 2030, to give households predictability in monthly bills.

•„ Health care: Repealing Iowa's Education Savings Account (ESA) program and redirecting funding to replace enhanced premium federal health care tax credits that expired late last year. Iowa's Education Savings Account participation surged, with 41,000 students using ESAs for the 2025-26 school year, a significant jump from nearly 28,000 in 2024-25 and nearly 17,000 in 2023-24. This was the first year all Iowa families with school aged children could apply for an Education Savings Account. The resulting cost was about $327.9 million. Democrats say their estimates show replacing expiring federal ACA tax credits would cost between $90 million and $130 million annually.

•„ Wages: Raising Iowa's minimum wage to $15 an hour by July 1, 2028, with increases to $10 in 2026 and $12.50 in 2027, followed by automatic annual adjustments tied to inflation.

•„ Retirement: Creating a state-run, portable retirement savings option for workers whose employers do not offer retirement plans.

State Rep. Dan Gosa, D-Davenport, said the agenda is focused on workers who have seen wages lag behind rising costs.

"Our plan is built on a simple belief: If you work hard in Iowa, you should be able to afford a good life," Gosa said. "For far too long, wages have fallen behind, workers' rights have been weakened, and families have been forced to choose between their health, their jobs and their financial security."

Democrats plan to force GOP votes

Asked how Democrats expect the proposals to advance in a Republican-controlled legislature, Meyer said Democrats are open to negotiations, but plan to offer them as bills and amendments — forcing House Republicans to take votes on the record during an election year where affordability is on the minds of many voters.

"We're open to having conversations about these," Meyer said. "This is our proposal. We will be offering them as bills and also as amendments, and we look forward to working with them."

He suggested paid family and medical leave could be the most likely area of bipartisan agreement, noting Republicans enacted a limited paid leave policy last year. Under legislation passed last year, new mothers or adoptive parents working for the state receive four weeks of paid leave, while non-birthing parents receive one week. Democrats' plan would require paid family leave across all employers, including state government.

Republican leaders and the governor's office did not immediately respond to requests for comment Wednesday.

Older

Municipal healthcare costs loom as officials look to fiscal 2027 budget

Newer

OPINION: Lawmakers should extend state assistance for health care costs

Advisor News

  • Ashley Hinson ‘death tax’ story collides with truth
  • How advisors can prepare clients for an uncertain retirement landscape
  • Investors aren’t waiting out uncertainty
  • Transamerica and Advo(k)ate Advisors launch pooled employer plan
  • ‘I wish I’d met him sooner:’ Karlan Tucker remembered for integrity, faith
More Advisor News

Annuity News

  • Jackson Financial CEO caps 40-year career with blockbuster Q2
  • Lumos Insurance introduces the Immediate Care Plan to help families fund long-term care
  • NAIC regulators begin consensus phase on annuity illustration overhaul
  • AM Best Revises Outlooks to Negative for Subsidiaries of Group 1001 Insurance Holdings, LLC
  • Market-value adjusted annuities: Key considerations for advisors
More Annuity News

Health/Employee Benefits News

  • California nearly achieved universal healthcare. Now, millions are losing coverage
  • New York state made $21.6M in improper Medicaid payments
  • Enough of the blame game
  • Why Hybrid Healthcare Is a Business Imperative for Employers in Colorado
  • Abbott seeks leaner, cheaper health plans
More Health/Employee Benefits News

Life Insurance News

  • Don't keep checks with clerical errors
  • The insurance distributor that builds its own software will win the next decade
  • iA Financial Group Reports Second Quarter Results
  • Supporting small businesses starts with smarter benefits conversations
  • Judge again tosses Penn Mutual whole life lawsuit alleging tax scam
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Royal Neighbors Unveils Its 2026 Scholarship Recipients 2026 Royal Neighbors Scholars Making a Difference Across the Country
  • Ibexis Announces Expanded Bank Relationships and New Index Options for FIA Plus® and WealthDefender® Series
  • Agent Review Launches Video AI Identity Verification to Help Protect Insurance Professionals, Consumers and Public Trust
  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet