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Iowa’s 2026 budget gap narrows to 8.9% despite ongoing fiscal challenges.
Iowa’s projected budget shortfall for fiscal year 2026 has narrowed slightly to 8.9% due to stronger-than-expected consumer spending and a federal $12 billion aid package for farmers, though a $1.3 billion gap remains.
Revenue estimates were raised by $18.4 million, with FY 2027 revenues projected at $8.5 billion.
Governor Kim Reynolds credited fiscal conservatism and tax cuts for long-term stability, citing a $1.9 billion surplus and $4 billion in reserve funds.
Despite improvements, challenges persist, including agricultural pressures, federal uncertainty, and rising costs.
Long-term structural issues—such as healthcare, infrastructure, and demographics—could strain the economy by $47 billion to $61 billion annually by 2050, prompting calls for a 25-year planning approach.
La brecha presupuestaria de Iowa para 2026 se reduce al 8,9%, a pesar de los desafíos fiscales en curso.