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Capitol Notebook: Iowa leads 18-state coalition challenging IRS donor disclosure rule
Also in the Notebook, IPERS funded ratio climbs above 92 percent as board updates investment allocations
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Iowa Attorney General Brenna Bird is leading a coalition of 18 states in urging a federal appeals court to block an Internal Revenue Service (IRS) rule requiring nonprofits to report their major donors annually — arguing the rule violates First Amendment protections and exposes donors to unnecessary privacy risks.
In a news release Friday, Bird, a Republican, said the IRS has required all federally recognized charities to disclose major donors each year, but those lists “have been hacked and leaked more than a dozen times” between 2010 and 2022, creating risks for individuals who give to churches, nonprofits and other charities.
“Iowans should have the ability to donate to and associate with organizations of their choice without fear of having their privacy exploited or their First Amendment protections undermined,” Bird said. “We're asking the Court to stop this overreach and rule in favor of The Buckeye Institute.”
The Buckeye Institute, an Ohio-based think tank, sued the IRS in 2022 under Democratic former President Joe Biden’s administration. Iowa and the other states filed an amicus brief supporting the institute’s challenge, arguing the IRS’ “blanket regulation oversteps and puts Iowans’ First Amendment rights at risk.”
The coalition’s brief supports the right of nonprofits to keep donor lists confidential unless there is suspicion of wrongdoing and to preserve the states’ role of primary oversight. The brief notes that all 50 states — including Iowa — and the District of Columbia can and do seek donor information when investigating suspected charitable fraud, but do not require charities to preemptively disclose donor lists.
The Iowa-led brief argues the federal mandate is not narrowly tailored to legitimate enforcement interests, creates real risks of public disclosure of sensitive information, and undermines states’ ability to protect residents’ First Amendment right of free association. It highlights that the IRS “acknowledges at least fourteen unauthorized disclosures of Form 990 information since 2010,” underscoring the potential for donor identities to be exposed.
The attorneys general of Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Kentucky, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas and West Virginia joined Iowa in filing the brief.
IPERS funded ratio tops 92 percent as board adjusts investments
The Iowa Public Employees’ Retirement System reported continued financial strength Friday, announcing its funded ratio rose to 92.17 percent at the end of the 2025 fiscal year — up from 90.75 percent the previous year — driven by strong investment returns.
IPERS posted a 9.87 percent return for FY2025, outperforming its 7 percent assumed rate of return and generating about $4.3 billion in investment income. The trust fund ended the fiscal year valued at $46.68 billion, its highest level ever.
“I’m proud that IPERS continues to deliver strong investment performances that ensure the fund’s long-term fiscal sustainability for the thousands of Iowans who rely on IPERS benefits,” IPERS CEO Greg Samorajski said in a statement.
The IPERS Investment Board also approved changes to its asset allocation plan aimed at reducing volatility and strengthening resilience during market downturns.
Complete meeting materials are available on the IPERS website at https://bit.ly/4pwoNv9. The board’s next meeting is set for March 27, 2026.
DNR seeks public comment on lake restoration report, plan
The Iowa Department of Natural Resources is taking public comments on its draft 2026 Lake Restoration Report and 2025 Plan, outlining recent and upcoming projects to improve water quality and recreation at publicly owned lakes.
The draft report is available at www.iowadnr.gov/Lake-Restoration. It highlights restoration work completed across the state during the fiscal year that ended June 30 and details planned projects for the coming year.
Since the Lake Restoration Program began in 2006, the Iowa Legislature has invested more than $176 million in lake restoration, supporting projects at 72 lakes in 55 counties, according to the Iowa DNR. In fiscal year 2025, project partners — including local, federal and other state sources — provided an average 37 percent cost share to match state funds, according to the DNR.
The department notes lakes generate an estimated $1.32 billion in annual spending, with more than 13.7 million visits statewide in 2024. More than 60 percent of Iowans visit a lake at least once a year, and visitors spend about $36 on average for a single day trip.
Major projects completed in 2025 include a $3.52 million investment at Three Mile Lake in Union County; $2.92 million at Casey Lake in Black Hawk County; a $987,000 effort at the Iowa Great Lakes to assess 2024 flood-related shoreline damage; and $1.8 million in phosphorus inactivation treatments at Prairie Rose Lake in Shelby County and Green Valley Lake in Union County.
Planned 2026 work includes finishing projects at Lake Keomah in Mahaska County and McKinley Lake in Union County; shoreline stabilization at the Iowa Great Lakes to address flood damage; and beach restoration at Brushy Creek Lake in Webster County, Big Creek Lake in Polk County and Hickory Grove Lake in Story County to reduce bacteria levels. Large shallow lake and wetland projects are also underway at East Twin Lake in Hancock County and Little Storm Lake in Buena Vista County.
Public comments will be accepted from Dec. 5 through Dec. 17. Comments can be emailed to michelle.balmer@dnr.iowa.gov or mailed to Michelle Balmer, Iowa Department of Natural Resources, 6200 Park Ave., Suite 200, Des Moines, IA 50321.
USDA announces crop insurance overhaul
The U.S. Department of Agriculture on Friday unveiled updates to federal crop insurance policies, a move officials say will expand access to risk protection, reduce regulatory burdens and modernize long-standing rules beginning with the 2026 crop year.
The Expanding Access to Risk Protection (EARP) final rule streamlines reporting requirements, adjusts prevented-planting standards, expands options for specialty crop producers and implements several provisions from the One Big Beautiful Bill Act. U.S. Secretary of Agriculture Brooke Rollins, in a news release, said the updates reflect extensive producer feedback and deliver “real, meaningful relief” for farmers and ranchers navigating a changing agricultural economy.
“President Trump is cutting burdensome regulations and strengthening the farm safety net to ensure the future viability of American agriculture,” Rollins said in the announcement. “ … With this new rule, we are delivering real, meaningful relief by modernizing the system, expanding access to crop insurance, and making it easier, not harder, for farmers and ranchers to protect their operations and keep doing the work that keeps America fueled and fed.”
Key provisions include eliminating the requirement that land must have been previously insured to qualify for prevented-planting payments under the “1 in 4” rule. Producers must still show the land was planted and harvested, or adjusted for an insurable cause of loss, in one of the previous four years. The changes also allow farmers switching insurance providers to submit production reports directly to the new insurer, and expand direct-marketing coverage for fresh-market tomatoes and peppers, beginning in 2027. The rule also removes several regulatory deadlines from federal code — such as cancellation and end-of-insurance dates — allowing more flexible, county-level updates.
The rule incorporates OBBBA changes that extend beginning farmer and rancher status from five to 10 crop years and update premium subsidy rates. It also clarifies revenue protection procedures in cases where insufficient price data is available and outlines reimbursements for affected policyholders.
Several crop-specific changes were also announced.
The final rule took effect Nov. 30 for crops with contract change dates on or after that day for the 2026 crop year and for the 2027 crop year as specified. The USDA is accepting public comments through Jan. 27, 2026.
Reynolds orders flags lowered for Pearl Harbor Remembrance Day
Gov. Kim Reynolds has ordered all flags in Iowa to be lowered to half-staff from sunrise to sunset on Sunday, Dec. 7, in honor of National Pearl Harbor Remembrance Day.
The observance marks 84 years since the 1941 attack that killed 2,403 U.S. service members and civilians and prompted the United States’ entry into World War II.
“On Pearl Harbor Remembrance Day, we honor the thousands of service members and civilians who were killed and wounded in this horrific attack on our country,” Reynolds said in a statement. “This day is a solemn reminder that our freedom isn’t free, and we are grateful for every American who serves in uniform.”
Flags will be lowered at the State Capitol, on the Capitol Complex and at all public buildings and grounds across Iowa. Residents, businesses, schools and local governments are encouraged to do the same as a show of respect.
Gazette-Lee Des Moines Bureau
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