DES MOINES— Iowa Governor Kim Reynolds and Senate Republicans have announced a compromise for an overall budget of $9.417 billion for Fiscal Year 2026. The targets include the education funding agreement from earlier in session. In a press release, Reynolds said “We cut taxes to ensure Iowans could keep more of their hard-earned money, and we must maintain spending discipline to ensure it stays that way. Iowa remains on a strong fiscally sustainable path, and we should continue our focus on putting taxpayers first.”

Senator Tim Kraayenbrink, Chair of the Senate Appropriations Committee, said “Senate Republicans pride ourselves on conservative, responsible budgets, and this agreement is just that. This budget continues to focus on priorities and putting Iowa taxpayers first. An overall budget of $9.417 billion continues our commitment to conservative budgeting and ensuring the long-term sustainability of the historic tax relief measures passed over the last several years.”

Senate Majority Leader Jack Whitver said “A budget agreement with Governor Reynolds moves this legislative session one step closer to adjourning for the year. As we continue to work on important issues in the legislature and find agreement among legislators, this agreement marks an important step forward. We look forward to more conversations with the House of Representatives on how we can pass a sustainable budget for the upcoming fiscal year.”

The joint target between the Senate and Governor Reynolds is allocated to the following budget subcommittees:

Senate Republicans plan to move the budget bills through Appropriations subcommittees and Committee this week.