Public Policy Update: Casino Moratorium Bill Advances
January 31, 2025 | Public Policy
State Policy Update
This week, legislators continued holding subcommittee and committee meetings on proposed bills. The first funnel deadline, requiring bills to pass out of committee in the originating chamber to remain eligible, is set for March 7.
Legislation intended to stop casino efforts in Cedar Rapids was approved by the House on a 68-31 vote. The Economic Alliance opposed the legislation and appreciates our area Representatives for their vote. Thank you to Rep. Jeff Cooling, Rep. Tracy Ehlert, Rep. Eric Gjerde, Rep. Cindy Golding, Rep. Sami Scheetz, Rep. Wichtendahl, and Rep. Wilson for supporting Linn County. The Senate Local Government Committee also passed the bill on Thursday, making it eligible for consideration by the full Senate. If the bill passes the Senate, it will be sent to the Governor to consider signing into law. If it becomes law, it will establish at least a five-year moratorium on new gaming licenses in the state, retroactive to Jan. 1, 2025. The state Racing & Gaming Commission is set to decide whether to approve a new casino in Cedar Rapids at its February 6th meeting.
Some additional recently introduced bills the Economic Alliance is tracking that align with our policy priorities include:
- Improving Workforce Development Initiates: This bill aims to enhance the efficiency and effectiveness of workforce development initiatives in Iowa to create a more skilled workforce. It includes clarifying the functions of the workforce development department, board, and local boards and establishes the Iowa Student Internship Program to connect students with employers, particularly in the STEM fields.
- Iowa Skilled Trades Education and Internship Enhancement Act seeks to improve student engagement and job readiness in skilled trades by modifying existing programs to include skilled trades such as welding, carpentry, and plumbing in educational curricula across school districts. It establishes internship programs to assist students studying these trades in securing positions with Iowa employers, providing financial assistance to employers who hire interns.
- Iowa New Resident and Graduate Tax Credit Act introduces two tax credits: one for new residents who have recently taken full-time employment in Iowa and another for recent graduates from Iowa-based educational institutions. Each credit allows eligible individuals to reduce their income tax liability by 100% for up to four consecutive tax years.
- Career Education Enhancement Act aims to connect students with local career opportunities and enhance their readiness for the workforce. It mandates the Iowa Department of Education to create a list of industry-recognized credentials for high school students, which will be aligned with career and technical education service areas. It requires school districts to report students who attain these credentials and recognize them by affixing a seal to their transcripts or providing a certificate. Additionally, the bill modifies the curriculum for grades five through eight to include career planning and pathways, ensuring students are prepared for their future careers.
- Increasing Attainable Housing: This bill would raise the cap on the workforce housing tax incentive program from $35 million to $50 million. Additionally, it increases the reserved allocation for qualified housing projects in small cities from $17.5 million to $25 million.
Governor Reynolds announced details of her unemployment insurance reform bill she referenced in her Condition of the State address at the beginning of the legislative session. Her proposal would lower the maximum benefit tax rate to 5.4%, the lowest allowed by federal law, and cut the taxable wage base by half. She also proposed reducing the number of tax tables.
Federal Policy Update
Executive Order Rescinded: The White House Office of Management & Budget (OMB) rescinded the early memo they sent federal agencies and departments that would have temporarily halted some federal funding. While the memo was rescinded, the White House noted that President Trump’s executive orders for federal funding reviews remain in place.
Tracking Executive Orders: Use this Executive Order Tracking tool to track the various executive orders being signed by President Trump since he took office. Cabinet Secretary Status: Use this tool to get the latest Status of Trump’s Cabinet Secretaries.