Iowa lawmakers debate $1.36 billion in tax breaks for a steel plant

Iowa’s Republican governor, Kim Reynolds, has called lawmakers to Des Moines for a rare special legislative session starting this Friday, aiming to approve a tax-break package of up to $1.36 billion for Mesabi Metallics’ proposed $15 billion plant in Lee County, as Des Moines Register reports.

The session aims to focus on a specific package of fiscal incentives to secure the Mesabi Metallics plant’s location in southeastern Iowa. According to the White House, the project would create up to 6,000 construction jobs and 1,750 permanent jobs, although the state has not published the terms of any agreement.

The debate takes place ahead of the November 3 midterm elections, with early voting starting on October 14. Iowa is a key state, where the Senate and House races could change the balance of power in Congress, and Republicans hope the deal will give them an electoral boost. “This is a win for the state of Iowa,” Republican political consultant Luke Martz said, but added that “the devil is in the details.”

Some lawmakers have expressed reservations about the size of the package. Republican Senator Kevin Alons said the debate is “rushed” and that “the political extortion is staggering.” Senator Jeff Taylor announced he would vote against, stressing that $1.4 billion is “a lot of money,” while Senator Dave Sires said the tight deadline has left little time for public consultation and careful review of the bill.

Gubernatorial candidates have nuanced positions: Republican Zach Lahn calls the plant a “once-in-a-lifetime opportunity” and says the incentives for it are “the opposite” of those for data centers, while Democrat Rob Sand said the deal “looks great,” but requires staggered targets that must be met before public funds are given.

Skeptics recall President Trump’s 2017 announcement of a $10 billion Foxconn factory in Wisconsin with 13,000 jobs — a project that years later was reduced to a $672 million investment and about 1,400 jobs. Construction of the new plant is not expected to start before 2030.