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Des Moines, Iowa — Iowa House Democrats introduced a legislative policy package to lower costs for Iowans today at the State Capitol as a part of the People Over Politics agenda. It’s the first package in a series of bills that lawmakers will be introducing this year.

“Iowans are frustrated and tired of politics. Our job as lawmakers is to listen to Iowans and work together to finally get something done that will improve their lives. It’s people over politics,” said Iowa House Democratic Leader Jennifer Konfrst (D-Windsor Heights). “The common sense bills we announced today will lower costs, raise wages, and leave Iowans with more money in their pockets. The special interests and corporations in Des Moines have gotten their way for far too long, it’s time to get to work for Iowans.”

Here is the legislative package introduced by House Democrats today that will put more money in the pockets of Iowans:

• Raise Iowa’s minimum wage to $15 an hour by 2026
• Clear the list of Iowans with disabilities waiting for services
• Expand and extend Iowa’s tax-free holiday in August
• Affordable childcare for childcare providers with their own kids

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Lowering Costs & Raising Wages: Background Information 

Raising Iowa’s Minimum Wage 

For too many families, Iowa wages have not kept up with the rising cost of living. Today, there are 231,000 Iowans who make less than $15 an hour. Iowa is also losing workers to bordering states because they all have higher minimum wages than Iowa, except for one. Last raised in 2007, it is time for Iowa to raise the minimum wage to attract workers and stay competitive.

What does the bill do?

Raise Iowa’s minimum wage to $15 an hour over the next three years

• $10.85 on July 1, 2024
• $13 on July 1, 2025
• $15 on July 1, 2026

Expand Iowa’s tax-free holiday to two weeks 

Since 500,0000 Iowans received no benefit from recent income tax changes, expanding Iowa’s tax-free holiday will put more money in the pockets of Iowans to purchase necessities like school supplies, clothing, work boots, and uniforms. Iowa’s sales tax-free holiday currently only runs for two days in August.

What does the bill do? 

• Extend Iowa’s tax-free holiday to two full weeks at the beginning of August
• Add school supplies, art supplies, instructional materials, and musical instruments to the list of tax-free exemptions
• Raise the tax-free cap on clothing items from $100 to $250 so Iowans can purchase uniforms, work boots, and other items that currently don’t qualify

Clear the waiting lists for Iowans with disabilities 

Some children with severe mental health needs and Iowans with intellectual disabilities, health disabilities, or brain injuries have to wait five years or longer to get services like personal care, preparing food, home repairs, and modifications to stay in their homes. While these Iowans are waiting, they may be forced to go without care, pay for services out of their own pockets, end up in the emergency room, or stay in a more expensive institutional setting.  Today, there are 20,468 Iowans with disabilities waiting for services, and about 1,000 more are added every year.

What does the bill do?

• Eliminate all the Home and Community-Based Services (HCBS) waiver waitlists. The waivers with current waitlists are below:
  • Health & Disability Waiver – 8,147
  • Intellectual Disability Waiver – 6,494
  • Brain Injury Waiver – 3,082
  • Physical Disability Waiver – 1,828
  • Children’s Mental Health (CMH) Waiver – 917
  • AIDS/HIV Waiver – 0
  • Elderly Waiver – 0
• State Cost: $69 million to completely clear all waitlists

Affordable childcare for childcare workers  

Many Iowans cannot afford to work in a childcare setting while also having to pay for childcare for their own children. Given Iowa’s severe childcare worker shortage, the state should partner with childcare providers to make childcare affordable for workers in this essential industry.

What does the bill do? 

• Make Iowa’s current pilot program permanent and expand statewide
• Provide a subsidy for childcare workers who need childcare for their own kids so they can afford to stay on the job
• DHHS pays the subsidy directly to the provider through the Childcare Assistance Program (CCA)