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Governor’s child care and energy proposals stall as budget talks break down

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May 6th, 2025 by Ric Hanson

(Radio Iowa) – Governor Kim Reynolds says she’s O-K with a one-year delay in her proposed state grant program for state-funded preschools and licensed child care centers that partner to provide all-day care for four-year-olds. Reynolds first discussed the plan in January, with a July 1st start date.

Another one of the governor’s policy bills that’s stalled in the legislature addresses energy policy. It would give the state’s major utilities, like MidAmerican and Alliant, the first chance to decide whether to build new energy projects before other companies could compete for the work. The Trump Administration has called the policy anti-competitive. Reynolds says requiring competitive bidding means a year or more delay before projects could start.

Reynolds says natural gas supplies are limited in north central and southwest Iowa as well and her bill will ensure energy projects of all kinds get off the ground as quickly as possible.

The governor’s second try at cutting the business tax used to pay unemployment benefits is also pending in the legislature. House Speaker Pat Grassley doesn’t rule out action on the governor’s unresolved policy priorities, but Grassley says finding common ground among Republicans on state spending is the focus right now.

Members of the Iowa legislature are just “on call” for votes if Republican Governor Kim Reynolds and G-O-P legislative leaders strike deals on budget bills. Another complication is that a dozen Senate Republicans have launched a budget boycott, refusing to support spending bills until the senate votes on restrictions for the proposed carbon pipeline route through Iowa.