Senator Donahue’s July 25 Newsletter

From the Desk of Senator Donahue

Well, here we are halfway through the summer season and just a short month away from school starting back up.

It has been a busy time in the district with events, constituent meetings, town halls, as well as having family and friend time to enjoy the summer fun.

The state fair is also just around the corner, so I hope you’re making your plans for what events you will go to and what new fried food you might eat.

Stay tuned to my Facebook page for Coffee and Conversation times and dates as well as upcoming events and town halls.

And, in case anybody has missed the news the past few weeks, there’s also a special election coming up in August — so there will be a lot of activities coming up.

Here are some of the upcoming events around the area:

National Night Out: Tuesday, Aug. 5

Thomas Park in Marion
Kenwood Park in Northeast Cedar Rapids
Check your local listings for other planned events.

Here are the next months’ worth of BIG birthdays!

If you know any of these folks, make sure to wish them a happy birthday month, because it’s a big one for them.

Duane	Dee	Michael	Burgin	Franklin	Fields
Gary	Darrow	Destery	Hildenbrand	Monica	Morley
Robert	Naujoks	Jennifer	Beaty	Nancy	Richards
Mary	Suess	Mark	Smith	Anne	Pelc
Terry	Bright	Kim	Ward	Jane	Beresford
Lenora	Gehrls	Jerry	Steggall	Dean	Bennett
Kent	Hamlett	Emma	Molyneux	Brian	Mahon
Linda	Meis	Charles	Van Hoeck	Kathryn	Gritton
Nikole	Russell	Luther	Batte	Jenny	Hemmes
Douglas	Henderson	Gary	Reid	Rose	Bergstad
Edward	Chalstrom	Lucas	Villhauer	Jean	Means
Pamela	Miller	Corey	Starry	Dixie	Casady
Thomas	Cook	Mark	Supple	Radka	Sherman
Kimberly	Woods	Todd	Clay	Gayla	Dvorak
Dona	Amudjeff	Travis	Lange	Joshua	Ironside
Linda	Vance	Mary	Spangler	Marylin	Kasak
Debra	Nollen	Patrick	Soyer	David	Goertzen
Sondra	Knapp	Cari	Redondo	Marlyn	Davidson
Deborah	Seitz	Troy	Essmann	Juanita	Eiben
Ronald	Rathjen	Kevin	Hagemann	Jeffrey	Fillmore
James	Grant	Jan	Bingham	Susan	Northrup
William	Brandt	Tami	Behel	Robert	Webber
Linda	Weeks	Cheryl	Mayfield	Glenda	John
Shirley	Redmond	Kristina	Eells	Kimberly	Murdoch
Linda	Ayoki	Bettye	Bolden	Marjory	Godsey
Gary	Coutentos	Daniel	Wilson	David	Andrews
Beverly	Hotle	Mark	Kuckler	Mary	Giovanazzi
Hiram	Cooley	James	Benesh	Marilyn	Sippy
Joseph	Jellison	Sarah	Bennett	Sheryl	Zinkula
Heidi	Dejong	Laura	Nordine	Loraine	Bennett
Dina	Lingo-Aguilar	David	Stolley	Keelyn	Kanz
Nicholas	Bloom

Iowa’s Shrinking, Sliding Economy

During 2025, I’ve tried to focus much of the content in this newsletter on Iowans’ growing economic concerns. Understanding the everyday pocketbook issues that weigh on families in the district and how the Iowa Legislature can ease those burdens is a crucial part of my work.

I’ve heard concerns from my constituents about a wide range of economic issues. For some, rising grocery prices cause the most grief. For others, it’s the cost of childcare. There are high housing costs, stagnant wage growth, a depleted unemployment system, and gutted collective bargaining rights. Iowans, especially the younger cohort we need to build a skilled workforce, are fleeing the state in droves.

For years now, there have been warning signs that Iowa’s economy was weakening, and Iowans were paying the price. For the sake of our future generations and in the hope of creating a more prosperous Iowa for us all, we have to stop our state’s economic slide.

In 2024, Iowa was one of just two states where the statewide economy shrank. Our state ranked 49th in total economic growth and 48th in personal income growth for the year, lagging behind not only our Midwestern neighbors, but the rest of the country as well.

This year has started even worse. Iowa’s economy shrank 6.1% in the first quarter of 2025 – a number that ties us with Nebraska for the worst in the nation and is significantly worse than national numbers. And these aren’t just blips.

According to data from the Bureau of Economic Analysis, Iowa’s economy has lagged behind the country for years. In fact, you can trace the start of our state’s economic woes back to 2017, when Republicans took over the trifecta at the Capitol.

Reversing this trend won’t be easy, but it is possible. The state needs to re-prioritize its workforce, putting workers ahead of corporations. We need to embrace policy that expands access to affordable childcare, housing, and healthcare so Iowans can work without worrying about growing bills and burdens. We have to restore Iowa’s unemployment benefits to ensure the safety net is there for those who need it. And we have to reject the culture war nonsense that pushes people away and does nothing to fix our economic worries.

The first step to solving a problem is acknowledging there is one. It’s time to right this ship and rebuild our economy so it works for Iowans once again.

Privatized Healthcare in Iowa’s Correctional Facilities?

You may have seen reports recently about the Iowa Department of Corrections (IDOC) exploring a change that would, in effect, privatize healthcare services in Iowa’s correctional facilities. While nothing has been finalized as of yet, this is a proposal that could have serious downstream effects for workers and taxpayers alike.

The healthcare professionals currently working in Iowa’s correctional facilities have put their health and safety on the line for years to keep our aging correctional health system afloat, despite inadequate institutional support from the Republican-led Legislature or the governor’s office. These workers are highly trained and highly capable, but they are operating in a system that is in need of upgrade and repair. They’ve asked repeatedly for better tools and technology to more effectively do their jobs, but they’ve been denied.

Now, instead of investing in those workers, IDOC is exploring an alternative system where their employment would be threatened, and they would be stripped of their retirement benefits. Reports have shown, over and over again, when management and oversight is outsourced to out-of-state corporations, taxpayers are on the hook for higher costs, weakened care, and diminished services.

I believe privatizing healthcare services in Iowa’s correctional facilities would be detrimental for both workers and patients, while raising the burden for Iowa’s taxpayers. I would urge IDOC to instead provide the technological and material support necessary to reinforce the system without raising costs, risking worker retention, or sacrificing standard of care.

I will continue to update you throughout this process.

Quick Updates

End of the Fiscal Year and Iowa Revenues Are Down: June 30 marked the end of Fiscal Year 2025 (FY25), and July 1 marks the beginning of the new Fiscal Year 2026 (FY26). Back in March, the three-person Revenue Estimating Conference (REC) panel met and estimated that FY25 would end $582 million (-6.1%) less than the previous fiscal year (FY24); this amount excludes transfer revenue. Current receipts show that FY25 ended up slightly below the REC, with $593 million (-6.2%) less than FY24 revenues, which excludes transfer revenue. These numbers are not final yet due to outstanding bills and other accounting measures. The books will officially close on FY25 near the end of September. Over the past two years, Iowa has seen a $1.2 billion drop in revenues.
Bracing for Fallout from the Big, Bad Budget Bill: In yet another giveaway to the extraordinarily wealthy, Republicans in Congress recently passed their budget reconciliation bill and now Iowans are bracing for the economic consequences. This bill will have long-term effects on Iowa’s rural healthcare and nursing homes, raise Iowans’ household energy bills, impact food assistance for hungry kids, threaten health insurance for over 113,000 Iowans, and make college more unaffordable. In addition, the bill adds trillions to our national debt. Hurting middle class Iowans in service of helping the wealthy is just bad governance.
Warning About Fake Medicare Accounts: The Centers for Medicare and Medicaid Services (CMS) are distributing letters warning Iowans of potentially harmful fraudulent activity. According to CMS, 103,000 Medicare beneficiaries nationwide had a fake Medicare.gov account created with their personal information. Those affected should receive a letter from CMS with next steps and further information. If you are a Medicare beneficiary and have questions or concerns about your account, the Iowa Insurance Division encourages you to read through this step-by-step guide or to call 1-800-351-4664 to report suspicious activity.
Making a Difference in Mental Health: The Iowa School Mental Health Hero of the Month program celebrates individuals who have made significant contributions to cultivating a positive mental health culture within an Iowa PreK-12 school, district, or AEA. Nominations are open now and accepted year-round! Recipients will be featured monthly from September 2025 to May 2026.
Cedar Rapids School District Receives State Therapeutic Classroom Grant: The Iowa Department of Education announced $2 million in competitive grants to eight school districts – including Cedar Rapids CSD – to establish therapeutic classrooms for learners whose emotional or behavioral needs impact their ability to be successful in their learning environment. The Therapeutic Classroom Incentive Grant was established through state legislation in 2020 and is part of a statewide effort to increase mental health supports for children, youth and families. More information about Therapeutic Classroom Incentive Grants is available on the Iowa Department of Education’s website.
Your Iowa Driver’s License or ID – Now in Google Wallet: The Iowa Department of Transportation (DOT) is pleased to announce the Agency’s latest mobile ID milestone: you can now add your Iowa driver’s license or state ID to Google Wallet. You’ll be able to seamlessly and securely present it at 200+ TSA security checkpoints and at participating businesses. For additional information and FAQs, visit the Iowa Mobile ID in Google Wallet landing page or Google Help Center
Nominate Someone for Veteran of the Month: Veteran Services is recognizing one Linn County veteran per month as part of its new Veteran of the Month Award Program. The purpose of this program is to honor local veterans who served honorably in the United States Armed Forces and continue to show a strong commitment to their communities through ongoing service and leadership. Anyone can nominate a veteran for this recognition. The veteran must be a Linn County resident. Nominations are due by the first day of each month. Nomination form can be found here.
New Firefighter Training Tower Opens: Located at Camp Dodge, this new facility is set to become a vital resource for firefighter training across the state. The Iowa Army National Guard provided the land for this project, contributing to a collaborative effort that promises to enhance public safety services statewide. The training tower itself is a four-story structure, featuring a two-story residential/commercial unit and a one-story annex. More information can be found here.
Report Wild Turkey Sightings: The Iowa Department of Natural Resources (DNR) is looking for help with the annual wild turkey production survey. During the months of July and August wild turkey sightings are recorded to estimate this year’s nesting rates and nest success. Participation is easy – just note the date and county in which the turkey was seen, if it was an adult female or adult male (males have beards on their breast) and if and how many poults (baby turkeys) were present. The survey is available online at www.iowadnr.gov/turkey.
Food Hubs Sell over $4 Million of Local Food in 2024: A new report highlights the critical role food hubs are filling in Iowa’s local food system. The “2024 Food Hub Impact Report,” prepared for the Iowa Food Hub Managers Working Group by Iowa State University Extension and Outreach, noted that food hubs worked with over 450 farms and food businesses in 2024. Food hubs served customers in 68 of Iowa’s 99 counties. Food hubs also supported over 120 food access organizations, such as food banks, food pantries and hunger organizations, by connecting them to local farms and delivering fresh foods to their locations. The Iowa Local Food Purchasing Assistance program contributed much of the funding for these efforts. The outlook for 2025 appears less promising with the USDA’s decision to cancel upcoming rounds funding. Access the full report to see other wide-reaching positive impacts of this program.
Tax-Free Weekend is August 1-2! Observed annually on the first Friday and Saturday of August, Iowa’s statewide sales-tax holiday allows shoppers to purchase qualifying items without being charged sales tax. The exemption begins at 12:01 a.m. on Friday, August 1, and lasts until midnight the following day. The exemption includes items like clothing, shoes, athletic gear, and more, provided that no individual item costs more than $100. Click here for a full list of eligible items and here for more information about Iowa’s tax-free holiday.

Iowa Senate Democrats