On Jan. 13, Governor Kim Reynolds issued her ninth and final Condition of the State Address, outlining her initiatives for the 2026 legislative session. 

Veterans compensation

Reynolds began her address by commemorating the service of Staff Sergeant Edgar Brian Torres-Tovar and Staff Sergeant William Nathaniel Howard, the Iowa National Guardsmen killed in Syria on Dec. 13. 

“We owe our service members a debt of gratitude. And that debt is best paid by ensuring our veterans get every benefit they’ve earned,” Reynolds said. 

177,000 veterans call Iowa home. The office of Reynolds reports that Iowa ranks 44th in the nation for veterans’ benefits, with only 29% of Iowa veterans receiving benefits. 

Currently, under Iowa Code 801, each of Iowa’s 99 counties receives $10,000 annually from the state to support veteran service officers (VSO). 

Under Reynolds’ proposed bill, counties ranking in the top third of VA compensation per capita would receive $15,000 in funding, compared with the bottom third of counties, which would receive $5,000 annually. The middle third will receive $10,000. 

The bill also enhances VSO training with support from the Iowa Department of Veterans Affairs, providing on-site training and technical assistance. If passed, the bill will require the use of a single statewide online claim system. 

Taxes

Reynolds announced Iowa launched a new State Property Tax Dashboard that provides information on population, expenditures and tax levies for cities and counties. 

“Property taxes are rising faster than inflation, faster than paychecks and faster than population growth,” Reynolds said. “In fact, over the last two years, they’ve gone up more than 10%. And that’s not acceptable.”

The primary recipients of property taxes in Iowa include: 

• K-12 Schools
• Cities
• Counties
• Hospitals
• Merged Area Schools
• Assessors
• Townships
• Agricultural Extension Districts

To combat rising property tax rates, Reynolds proposed moving property tax assessments from every two years to every three years, as well as freezing property tax rates for Iowans over age 65 living in homes valued at less than $350,000. 

Reynolds also proposed creating tax-deductible savings accounts for first-time home buyers. 

“Modeled on Iowa’s 529 program — so families can contribute years in advance, helping sons, daughters, even grandchildren be prepared for homeownership when the time comes,” Reynolds said. 

Iowa’s 529 program allows families to create educational savings accounts for their children to help pay for college. Contributions to the 529 account can be deducted from the account owner’s income taxes. 

The account owner opens and contributes to the account; the account beneficiary is the future student. Although uncommon, the account owner can also be the account beneficiary. 

Lastly, Reynolds proposed expanding the beginning-farmer tax credit. 

“Expanding its size, making it refundable and extending it to land sales as well as leases,” Reynolds said.  “That will also strengthen our multi-generational farm families, as the credit applies to sales and leases to relatives.” 

Partnership with Amazon and Google

Reynolds outlined her plan to implement modern technology systems in Iowa. 

“We’re partnering with Amazon Web Services to consolidate more than 50 state call centers into a single, smarter system that will use AI to get Iowans the help they need — faster, simpler and at a lower cost,” Reynolds said. 

This decision comes two months after Amazon announced a $50 billion investment in AI Infrastructure in the U.S. government. 

“And through a new partnership with Google Public Sector, we’re building a modern, intuitive and fully compliant Comprehensive Child Welfare system,” Reynolds said. 

Illinois launched a similar program through Google Public Sector, BEACON, in 2025. BEACON streamlined the process for families seeking behavioral health support by helping them navigate six different agencies through a single resource. 

Cancer

Each year, 20,000 Iowans battle cancer. Iowa has the second-highest cancer incidence rate in the United States. Only six states face rising cancer rates, and cancer incidences in Iowa continue to rise at the fastest rate. 

“Last year I directed Iowa HHS to partner with the University of Iowa College of Public Health to begin the most comprehensive study of cancer ever undertaken in our state,” Reynolds said. 

Iowa’s Healthy Hometowns initiative received a $209 million award for year one of the federal Rural Health Transformation Program. This year alone, more than $50 million will be invested into cancer prevention, screening and treatment, with the expectation of $183 million in funding for this initiative over the next four years. 

“We’re making early detection the norm, not the exception,” Reynolds said. “Replacing fear with hope and making sure that if families hear the word ‘cancer,’ they also hear: ‘We caught it early, and we can treat it.’” 

SNAP, EBT and school lunches

In the United States, 40% of school-aged children suffer from at least one chronic health condition. 

The United States Department of Agriculture (USDA) approved Iowa’s waiver on Jan. 1 to ban the use of SNAP benefits to purchase vitamins and minerals, chewing gum and some in-store-prepared foods. 

“With USDA’s approval, SNAP and summer EBT in Iowa will help families purchase fresh produce, grains, meat and dairy,” Reynolds said. “But candy, sweets and soft drinks are no longer covered. The days of government programs that enable chronic illness are over.”

Lastly, Reynolds proposed a bill prohibiting artificial dyes in school lunches. 

Education

In the 2023 legislative session, the 90th General Assembly passed HF 68, creating educational savings accounts for K-12 education. Educational savings accounts give families tax dollars to send their child to a non-public school, including a private school, charter school or homeschool. 

Reynolds announced an expansion of this program. 

“My proposal will ensure that public charter school students have access to concurrent enrollment classes and extracurricular activities, just like students in traditional public schools,” Reynolds said. “Every student deserves access to college credit and activities. Not because of where they attend school, but because they are an Iowa kid.”

A transcript and video recording of Reynolds’ 2026 Condition of the State can be located on the Iowa PBS Webpage.