2026 Legislative Session Wraps Up: Key Takeaways for Iowa’s Tourism Industry

The 2026 legislative session officially concluded on May 3 after lawmakers worked 12 days beyond the 100-day per diem period. Throughout the session, iTIP, alongside Cornerstone Government Affairs, monitored legislation and advocated on issues impacting Iowa’s tourism industry, including tourism funding, sports tourism, school start dates, Tourism Improvement Districts (TIDs), and hotel/motel tax policy.

Below are some of the key tourism-related outcomes from the 2026 legislative session. Members can access the Full Cornerstone Report 2026 End of Session Report through the Advocacy section of the iTIP member portal. You may also read the May 29, 2026 newsletter (Week 16: Session Review).

Tourism Funding Remains Stable

The FY27 state budget maintained key tourism investments, including funding for tourism marketing, the Iowa Tourism Office, Destination Iowa, the Community Attraction and Tourism (CAT) Fund, state park infrastructure improvements, trails, and other quality-of-life projects that support Iowa’s visitor economy.

Despite a tight budget year, tourism-related investments remained largely intact. The FY27 state budget maintained key tourism investments, including:

• $1.4 million for Tourism Marketing$1.05 million for the Iowa Tourism Office strategic tourism efforts
• Continued flexibility allowing unused tourism dollars to carry forward into the next fiscal year
• $10 million for the Community Attraction and Tourism (CAT) Fund
• $10 million for Destination Iowa
• $5 million for State Park infrastructure improvements
• $2.5 million for recreational trails
• $1.5 million for water trails and low-head dam safety grants
• $250,000 for the National Junior Olympics
• Funding for airport infrastructure improvements and Iowa State Fair infrastructure upgrades

RSAD Program Receives Funding and Updates

One of the most significant wins for Iowa’s sports tourism industry was continued support for the Regional Sports Authority Districts (RSAD) program with a $1 million allocation. This bill is found within the RIIF budget (SF 2484).

The legislation also modernizes the program in several important ways, including but not limited to:

• Eligibility expands beyond CVBs
  Previously, only CVBs could apply for certification. The updated language now allows broader nonprofit entities focused on economic development and tourism to apply.
• Applications will continue to be competitive
  IEDA will evaluate applications based on statewide economic impact, geographic diversity, and the uniqueness and innovation of proposed activities. The program is no longer limited to only 10 certified districts.
• Greater emphasis on measurable outcomes
  The legislation adds language directing IEDA to consider the number of unique and innovative activities supported by the district. Districts receiving funding will now be required to submit detailed reporting twice a year on return on investment, first-time visitors to Iowa, and hotel room usage.

These changes create new opportunities for communities and organizations looking to grow sports tourism efforts across the state. Partners interested in sports tourism opportunities should pay close attention to future guidance from IEDA.

School Start Date Legislation Does Not Advance

iTIP remained actively engaged throughout the session on legislation related to school start dates, an issue that continues to be important for Iowa’s tourism industry. SF 205, which proposed modifying the earliest possible school start date, did not advance past the first legislative funnel and ultimately died for the year. Later in the legislative session, iTIP also successfully helped remove school start date language from a larger education omnibus bill.

A key factor in these efforts was the strong engagement from tourism partners across the state who reached out to their elected officials and shared how changes to school start dates would impact their businesses, employees, and local economies. Those conversations continue to make a meaningful difference at the Capitol.

Protecting Iowa’s traditional summer tourism season remains a priority for the association and many tourism-related businesses across the state.

Additional Highlights

• Tourism Improvement Districts (TIDs): Legislation authorizing self-supported TIDs did not advance this year. However, interest in destination-driven funding tools continues to grow, and discussions are expected to continue in future legislative sessions.
• Social Districts: Legislation (HF 2780) allowing cities to establish social districts was ultimately signed into law, providing communities with another tool to support downtown activation, events, and visitor experiences.
• Hotel/Motel Tax Legislation: SF 2441 proposed changes to Iowa’s hotel/motel tax law but did not advance. iTIP continues to support stakeholder-driven discussions that include cities, destination organizations, lodging partners, and other tourism industry stakeholders to help identify solutions that strengthen tourism while meeting the needs of local communities.

Advocacy doesn’t happen by accident. It requires relationships, persistence, and a constant presence at the Capitol. Behind every legislative update, committee meeting, and bill tracker is a team working diligently on behalf of Iowa’s tourism industry. iTIP extends its sincere appreciation to Cornerstone Government Affairs for their partnership throughout the legislative session and for helping ensure tourism remains informed, engaged, and represented in legislative discussions.

While the 2026 legislative session has concluded, advocacy is a year-round effort. The months between sessions provide valuable opportunities to build relationships with elected officials and help them better understand tourism’s impact in their communities. Consider inviting your legislators to join you for coffee, attend a local festival or event, tour an attraction, or speak with students about tourism, hospitality, and workforce opportunities. Those conversations help lay the groundwork for future legislative discussions and ensure tourism remains part of the conversation long before lawmakers return to the Capitol.