Policy Topics Addressed
Affordability
Governor Reynolds emphasized Iowa's tax cutting record, noting the state has "cut taxes more than any other state in the country" with a 3.8% flat income tax, eliminated inheritance and retirement income taxes, and halved unemployment insurance taxes. She proposed property tax reform including a cap on revenue growth for local governments, a property tax freeze for seniors 65+ on homes valued under $350,000, and a tax-deductible savings account for first-time homebuyers. She framed property taxes as the top remaining affordability concern.
Agriculture
Governor Reynolds announced that SNAP and Summer EBT in Iowa will help families purchase nutritious foods but will no longer cover candy, sweets, and soft drinks. She proposed modernizing the beginning-farmer tax credit to be refundable and extend to land sales, and announced legislation to remove artificial food dyes from school lunch programs.
Economy & Jobs
Governor Reynolds highlighted over $20 billion in new capital investment since 2024, with Iowa's flat 3.8% income tax and conformity with Trump tax cuts eliminating taxes on tips, overtime, and Social Security. She emphasized Iowa's sixth-highest quarterly GDP growth rate nationally and announced a first-in-the-nation initiative granting Iowa greater control over federal education funding. She proposed property tax reforms including caps on local government revenue growth.
Education
Governor Reynolds celebrated Iowa as one of only three states outperforming pre-COVID levels in reading and math, with 3rd and 4th grade reading proficiency up 11%, chronic absenteeism down 10%, and teacher vacancies cut by 30%. She announced a first-in-the-nation initiative granting Iowa greater control over federal education funding, championed universal ESA availability, and proposed legislation ensuring per-pupil funding follows the student and charter school students access concurrent enrollment and extracurriculars.
Environment & Energy
Governor Reynolds did not make energy or environment a major focus of her address, concentrating instead on property taxes, education, veterans, and healthcare.
Government Reform
Governor Reynolds announced partnerships with Amazon Web Services to consolidate more than 50 state call centers into a single AI-powered system, and with Google Public Sector to build a modern child welfare system at less than half the typical cost. She also promoted a new online transparency tool allowing Iowans to see how their city or county spends tax dollars, and called for property tax reform including a cap on overall revenue growth for local governments.
Healthcare
Governor Reynolds announced Iowa's 'Healthy Hometowns' plan was awarded $209 million for year one of the federal Rural Health Transformation Program, with over $50 million specifically for cancer prevention, screening, and treatment. She described an ambitious hub-and-spoke cancer care model, expanded telehealth, and new community care teams. She also announced reforms to SNAP and Summer EBT to focus on nutritious foods and proposed removing artificial food dyes from school lunch programs.
Housing
Governor Reynolds proposed creating a tax-deductible savings account for first-time homebuyers modeled on Iowa's 529 program, allowing families to contribute years in advance to help children and grandchildren prepare for homeownership.
Infrastructure
Governor Reynolds highlighted partnerships with Amazon Web Services to consolidate state call centers and with Google Public Sector to build a modern child welfare system. She emphasized the state's Healthy Hometowns initiative receiving $209 million in first-year federal rural health transformation funding, which would fund cancer care hubs and satellite clinics, and modernize healthcare infrastructure in rural communities.
Public Safety
Governor Reynolds highlighted the tragic deaths of two Iowa National Guard soldiers in Syria, Staff Sergeant William Nathaniel Howard and Staff Sergeant Edgar Torres-Tovar, killed by an ISIS gunman. She also discussed the fentanyl crisis and proposed legislation to modernize the veterans' benefits system. Her public safety focus was primarily on military service and honoring fallen soldiers rather than domestic crime policy.
Social Services
Governor Reynolds highlighted Iowa's Healthy Hometowns initiative, which received $209 million in federal Rural Health Transformation funding, with over $50 million specifically for cancer prevention and screening. She announced Iowa was among the first states to refocus SNAP and Summer EBT on nutritious foods, removing candy, sweets, and soft drinks from covered items. She proposed legislation to maintain this nutrition-first focus and remove artificial food dyes from school lunch programs.
Tax & Budget
Governor Reynolds highlighted cutting taxes more than any other state, including a 3.8% flat income tax, elimination of inheritance tax and retirement income taxes, and halving the unemployment insurance tax. She announced that Iowa will match all federal tax cuts from the Trump administration at the state level, including eliminating taxes on tips, overtime, and Social Security. Her major new initiative is comprehensive property tax reform including caps on local government revenue growth, freezing property taxes for seniors 65+, and creating homebuyer savings accounts.
Technology
Governor Reynolds announced partnerships with Amazon Web Services to consolidate 50+ state call centers into a single AI-powered system, and with Google Public Sector to build a modern child welfare system at less than half the typical cost. She also endorsed Senator Raatz's bill to limit cellphone use in schools and give parents veto power over their kids' social media access, framing it as a parental rights issue against Big Tech.
Veterans & Military
Governor Reynolds delivered an extensive tribute to Iowa's fallen soldiers — Staff Sergeant William Nathaniel Howard and Staff Sergeant Edgar Torres-Tovar — killed in a December 2025 ISIS attack in Syria. She recognized 1,800 Iowa National Guard soldiers deployed overseas and their families. She proposed modernizing the veterans' benefits system, noting Iowa ranks 44th nationally for VA compensation, and introduced a performance-based county grant program to ensure more benefits reach more veterans.