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Iowa is rightly known for corn, college wrestling, and Caitlin Clark – but our economy is also powered by a thriving innovation sector. From aviation electronics and renewable fuels to bio-based chemicals and agricultural exports, Iowa businesses shipped $17 billion in goods overseas last year. That supports more than 100,000 jobs across the state – from Sioux City to Burlington.
A key piece of that success is a program called duty drawback, which has existed since the days of Alexander Hamilton. It allows American companies to get a refund on import duties if the materials are used to make goods that are later exported. That’s just common sense – if it never stays in the U.S., we shouldn’t be taxing it.
Unfortunately, a quiet provision tucked inside the massive “One Big Beautiful Bill” in Congress would gut duty drawback for certain agricultural sectors. That may sound minor, but the ripple effects here in Iowa would be severe. Once Congress shows it’s willing to strip this protection from one group, other industries – from heavy machinery to ag processors – could be next.
Losing duty drawback means Iowa manufacturers and farmers would face higher costs, fewer exports, and slower job growth. Our rural communities, small businesses, and research hubs at Iowa State and the University of Iowa could all feel the squeeze.
Thankfully, Senator Grassley and the Senate Finance Committee removed this repeal for now. But we must stay vigilant. This is a fight for Iowa jobs, competitiveness, and rural prosperity.
Washington shouldn’t be quietly dismantling programs that keep our products moving and our people employed. I’m calling on Iowa’s congressional delegation – and all Iowans who care about our economy – to stand up and make sure the duty drawback stays intact.
