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Iowa lawmakers are back at the Capitol in Des Moines for a one-day special session to rewrite the state's incentive program for Mesabi Metallics' planned $15 billion steel mill. The mill was announced at the White House on Sept. 28 with about 1,750 permanent jobs and no confirmed site.
This is the part of a deal that usually happens in a conference room. Today it's happening on the floor, and we're following it as it goes.
Where things stand
The Senate convened at 9:07 a.m., adopted the day's agenda by voice vote and recessed for Ways and Means, which was set to meet at 10:30.
The House was scheduled to start at 8:30 a.m. and as of 10 a.m. still hadn't gaveled in.
The bill is out. It would let one rural project claim tax credits worth up to 10% of its investment, but only after half the promised jobs exist. It also loosens the site certification rules.
The fight over the money started before the bill reached committee. The Senate's Democratic leader called it "a billion-dollar corporate tax giveaway."
What's on the table
The governor called the session to amend the Major Economic Growth Attraction program, known as MEGA, which offers tax credits to companies investing at least $1 billion in Iowa. Here's what the bill does, according to Local 5 in Des Moines:
Bigger credit for one rural project. One qualifying rural project could get a tax credit worth up to 10% of its investment over 10 years. The standard credit is 5%.
Jobs first. The credit can't be issued until at least half the promised jobs have been created, and those jobs have to pay at least 140% of the program's wage threshold.
Credits can be sold, with limits. The state has to approve any sale or transfer and screen buyers so the credits don't go to a foreign adversary. Deals made after Dec. 31, 2027, can't transfer them.
Clawback. A rural project sold, abandoned or made unusable within 10 years of receiving the credit would have to pay it back.
Looser site rules. A project could qualify on a certified site larger than 250 acres, or by showing it completed a site evaluation comparable to certification.
That last one matters most for the question we've been asking all week. Mesabi still hasn't named a site, and the bill gives a project a way to qualify without a certified one. The proclamation also rewrites how the law defines "rural" and "affiliate."
On a $15 billion project, a 10% credit would come to $1.5 billion over 10 years if the full investment qualified, and none of it would flow until half the jobs are on the payroll. Gov. Kim Reynolds and Mesabi have also signed a memorandum of understanding laying out the terms of the deal, the Associated Press reported. It hasn't been made public.
Updates
10:02 a.m. · House still hasn't gaveled in
The House was due to start at 8:30 a.m. The chief clerk told Local 5 everything was delayed, with no timeline. Rep. Adam Zabner, the House assistant minority leader, filed an amendment to the agenda resolution that would add an affordability bill to the special session. As adopted by the Senate, the resolution limits the session to the MEGA bill and any other resolutions either chamber adopts.
Senate recesses for Ways and Means
Senate Majority Leader Mike Klimesh, R-Spillville, asked for the Ways and Means Committee to meet at 10:30 a.m., and the Senate recessed until the committee finishes its work. Both parties went straight into caucus. The committee is where we expect to see the dollars, the conditions and any language about the site or infrastructure.
Democratic leader: "This resolution proves those claims false"
Senate Minority Leader Janice Weiner, D-Iowa City, was the only senator to speak on the agenda, and she went straight at the White House rollout.
"We were told on national television in the Oval Office, Madam President, that this was a done deal and would need no additional state tax credits," Weiner said. "Clearly, this resolution proves those claims false." At that Sept. 28 event, Commerce Secretary Howard Lutnick was asked whether the project depended on state tax breaks. "I think this deal is done," he said.
Weiner said the state went "from rumors to a special legislative session" in less than a week, and she asked why it was moving before Iowans could weigh in. She listed what the session doesn't touch: diesel prices at harvest, housing, prescription drugs, rural clinics, water quality and child care.
"This legislature has run back-to-back billion-dollar budget deficits, and now we're here to approve a billion-dollar corporate tax giveaway before we've appropriately vetted this company and its proposal, and before Iowans have had their say," she said.
No Republican answered her on the floor.
Senate sets the day's agenda
The Senate adopted Senate Concurrent Resolution 103, which sets the agenda for the session, on a voice vote. Klimesh moved it without comment.
9:07 a.m. · Senate convenes
The Senate organized for the extraordinary session under the same rules it used for the 2026 regular session and notified the governor and the House that it was ready for business.
What we're watching
The dollar figure and whether it's capped
Conditions on the money: jobs, wages, clawbacks and deadlines
Any language that points to a site, or to the gas, power, water and rail work the mill needs
The vote counts in both chambers, and whether the governor signs today
For the background on the site question and what a mill this size needs, read our Why Here? story on the Iowa steel project →