Iowa Lawmakers Struggle to Raise Tobacco Tax as Deadline Nears

Multiple proposals to increase the state's tobacco tax have faced challenges in the legislature.

Apr. 1, 2026 at 10:12pm

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Iowa lawmakers are less than three weeks away from their 100-day legislative deadline, and multiple proposals to raise the state's tobacco tax have struggled to gain traction. Governor Kim Reynolds proposed increasing the tax by 65 cents per pack earlier this year, but lawmakers never advanced that proposal. Republican Rep. Brett Barker also introduced a bill that would raise the tax by $1.50 per pack, but that has also faced difficulties moving forward.

Why it matters

Tobacco continues to drive preventable deaths in Iowa, costing the state about $1.28 billion in healthcare expenses annually. Raising the tobacco tax is seen as an effective way to discourage smoking and generate revenue for Medicaid funding, but the proposals have faced resistance from lawmakers concerned about the impact on everyday Iowans.

The details

Senate Republican leader Mark Costello told health advocates that it could still take years for a tobacco tax increase to win enough support in the Senate. House Speaker Pat Grassley said House Republicans want to ensure any revenue from a tax increase would only be used for Medicaid funding, and expressed skepticism about the likelihood of the proposal moving forward.

  • The Iowa legislature's 100-day deadline is less than three weeks away.
  • Governor Kim Reynolds proposed increasing the tobacco tax by 65 cents per pack earlier this year, but the proposal did not advance.
  • Republican Rep. Brett Barker introduced a bill to raise the tobacco tax by $1.50 per pack, but it has also struggled to gain traction.

The players

Kim Reynolds

The Governor of Iowa who proposed increasing the state's tobacco tax by 65 cents per pack earlier this year.

Brett Barker

A Republican state representative who introduced a bill to raise the Iowa tobacco tax by $1.50 per pack.

Mark Costello

A Republican state senator who told health advocates that it could take years for a tobacco tax increase to gain enough support in the Senate.

Pat Grassley

The Republican Speaker of the Iowa House of Representatives, who expressed skepticism about the likelihood of a tobacco tax increase moving forward.

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What they’re saying

“Sometimes it takes a long time to get things done here in the state. I think that the idea of having more revenue is helpful, but this is something we've got to be trying to work on an individual basis with individual senators and get this done if we need to.”

— Mark Costello, Republican State Senator

“We're just trying to be mindful of looking at what these tax increases mean to everyday Iowans as we make any decisions we would have when it comes to taxes. I would say from where I stand right now, it's probably less likely to move forward.”

— Pat Grassley, Republican Speaker of the Iowa House of Representatives

What’s next

Lawmakers could still attempt to attach a tobacco tax increase to one of the budget bills they need to pass before the legislative session ends.

The takeaway

The proposed tobacco tax increase in Iowa faces an uncertain future as lawmakers struggle to gain enough support for the measure before the legislative deadline. The debate highlights the ongoing challenges of balancing public health concerns, revenue generation, and the potential impact on everyday Iowans.