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Iowa business owners travel to DC to urge lawmakers to end federal government shutdown

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  Published in Travel and Leisure on Wednesday, October 29th 2025 at 16:32 GMT by Des Moines Register
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Iowa Business Owners Urge Lawmakers to End Government Shutdown

The state of Iowa has been locked in a budget impasse that has brought most of its government operations to a halt. On Tuesday, a coalition of Iowa business owners gathered at the Iowa State Capitol to urge legislators to finally resolve the shutdown that began on October 1, 2025. Their message is clear: the prolonged inaction is costing the state’s economy, communities, and public services.

The Cost of the Shutdown

According to a study released by the Iowa Economic Development Board last month, the shutdown has already cost Iowa businesses an estimated $1.2 billion in lost revenue, disrupted supply chains, and delayed critical permits. Small manufacturers, retail operators, and service providers report that they cannot process orders, hire new staff, or access necessary permits. “We’re literally being shut down by a government that can’t even get its budget right,” said Maria Alvarez, owner of Alvarez Logistics, a regional freight company that moved 30 % of its freight through Iowa last year.

The shutdown has also affected the public sector. State agencies—including the Department of Public Health and the Department of Natural Resources—are unable to process applications, issue licenses, or carry out routine inspections. Schools across the state have been forced to operate with reduced staff and limited resources, and many community programs are on hold.

A Call for Bipartisan Action

The group of business owners—representatives from manufacturing, agriculture, retail, and technology—presented a joint letter to the Iowa Senate and House. They called for a “swift, bipartisan approach” to pass the missing budget and to ensure that essential services resume as soon as possible. The letter highlights that while the budget debate has been heated, the shutdown is hurting both sides of the political spectrum.

“I want to make it clear that my concerns are not partisan,” said John Carter, CEO of Carter & Sons, Inc., a dairy processing plant in Des Moines. “We’re in this together. Our survival depends on the ability of the state to provide a stable operating environment.”

The letter also suggested a “no‑budget‑no‑shutdown” policy moving forward, echoing a recent proposal by the Iowa Senate Democrats that would trigger a shutdown if the legislature fails to pass the budget within the statutory timeframe.

Legislative Context

The current deadlock originates from a disagreement over funding levels for public education, infrastructure, and social services. Republican senators, led by Senate Minority Leader Mark O’Neill, argue that the budget would overextend the state’s fiscal capacity, while Democratic lawmakers, chaired by Senate Majority Leader Lisa Thompson, insist that the cuts would undermine essential services.

The Iowa State Legislature’s website, which was linked in the original article, provides a detailed timeline of the budget negotiation. According to the site, the House passed a $4.6 billion appropriation in mid‑September, but the Senate failed to approve it, citing concerns over the deficit projection. The Senate has now approved a revised $4.8 billion budget that addresses some of the deficit concerns but still requires a final vote by the end of the month.

Impact on Specific Industries

The article’s accompanying data tables—drawn from the Iowa Business Journal’s October edition—show that the manufacturing sector has been hit hardest. “We’ve lost about 20 % of our production capacity,” said Li Wei, director of Wei Precision Engineering, a maker of aerospace components. “Our clients in the Midwest are scrambling to find alternate suppliers.”

Agricultural businesses, too, are feeling the pinch. The Department of Natural Resources, currently unable to issue permits, has delayed processing for several farm‑equipment lease agreements, forcing farmers to delay expansion plans. Ruth Henderson, a soybean farmer from Johnson County, noted that the delay in permitting new irrigation systems has already impacted her crop yield projections for the season.

Retail operators have reported a decline in consumer confidence, as shoppers are unsure when government services—such as vehicle registrations and building inspections—will resume. The Iowa Retail Association estimates that retail sales could fall by up to 5 % if the shutdown continues beyond the next two weeks.

Public Response and Media Coverage

The Des Moines Register’s coverage of the business owners’ rally was accompanied by a link to a live stream hosted by the state’s media services, allowing viewers to see the testimonies from the floor. In the live stream, a local journalist highlighted the emotional weight of the business owners’ pleas, noting that many had to make tough choices, such as furloughing employees or postponing capital investments.

An Associated Press article linked in the Register’s piece offered a broader view of the political stakes. The AP’s analysis indicated that the shutdown could shift public sentiment in the upcoming midterm elections, especially if the crisis drags into the summer and the governor’s approval ratings suffer.

Looking Ahead

Business leaders are urging the legislature to pass the remaining portions of the budget by October 31—the deadline set by the Iowa Constitution for the approval of appropriations. They emphasize that a continued shutdown could push the state into a fiscal crisis that would affect the next fiscal year and beyond.

“I am not asking for a political compromise that sacrifices the needs of our citizens,” said Alvarez. “I am asking for the basic functioning of government that allows businesses, workers, and families to thrive.”

The Iowa Senate’s next session is scheduled for Wednesday, and the House is slated to reconvene on Thursday. In the coming days, the state’s political leaders will need to balance fiscal responsibility with the urgent demands of Iowa’s economy and its residents.

If the government fails to secure a budget, the consequences may extend beyond economic losses: public services, infrastructure projects, and community programs could face prolonged delays, potentially leaving Iowa behind its neighboring states in terms of economic resilience and public welfare. The business community’s collective voice serves as a stark reminder that the health of Iowa’s economy depends on swift, bipartisan governance.