Gov. Kim Reynolds signed into law a measure that would allow the state of Iowa more tax incentives for a steel mill project being considered in southeast Iowa after lawmakers passed the bill in a special session Oct. 2, 2026. The governor signed House File 2801 just hours after lawmakers approved the proposal during a special session Friday, convened for the sole purpose of considering the legislation.
The Iowa House approved the bill in a 75-17 vote, and the Senate approved the bill in a 28-19 vote. The proposal would modify the state’s Major Economic Growth Attraction (MEGA) program to include further incentives for businesses within rural areas, a targeted change to benefit the Mesabi Metallics project planned in Lee County.
At a news conference Monday, President Donald Trump announced the steel plant was a $15 billion project. When operational – with a goal of 2030 – the steel mill is estimated to create 1,750 permanent jobs paying an average of $48 per hour, alongside 6,000 temporary construction jobs as the facility is built, state and business officials said.
Rep. Matt Rinker, R-Burlington, said the project would be a major victory for southeast Iowa and was the culmination of years of work from local, state and federal officials alongside Mesabi Metallics. During his time at the Burlington City Council and as a state legislator, Rinker said he has thousands of conversations with members of his community about what was needed to bring success to the area. He told the House, “I’m proud to say that what everyone has been asking for has finally arrived.”
“Our vote today isn’t just about a change to something that already exists, or just about incentives for a steel plant, or just about bringing a new industry to Iowa,” Rinker said. “It’s about mortgage payments, grocery bills, dance lessons. It’s about infrastructure and public safety. It’s about opportunities for Iowans and growing our communities while also supporting them at the same time. It’s about thousands of new homes. It’s about the revitalization of a region of our state that has experienced its fair share of tough times.”
As she signed the measure into law, Reynolds thanked “everybody who helped pave the way for this moment,” including local southeast Iowa leaders, companies and workers who advocated for the business to locate in Iowa. “We don’t do this without you, so thanks for being bold and believing in this state and believing that in America we build things, and we are really going to build things right here in Iowa,” Reynolds said. “And then again, I just want to thank Mesabi Metallics for this opportunity. And we really truly look forward to a very long partnership with them and what this means for our state.”
Sen. Dan Dawson, R-Council Bluffs, who voted against the bill, called it the “largest corporate giveaway in the state of Iowa’s history.” He also warned the change to the tax incentive program for Mesabi Metallics would influence any future negotiations between the state and companies considering bringing their facilities to Iowa, “because the ceiling now becomes the floor.” “Incentives are supposed to make a good deal better, not a bad deal good,” Dawson said.
