Iowa’s federal Representatives cut a deal to keep biofuel tax credit alive
Iowa’s congressional delegation negotiated with Republican party leaders in the U.S. House of Representatives to add biofuel tax credit funding to the debt ceiling bill.
April 26, 2023
Editor’s Note: This article has been updated to reflect a vote on the U.S. House floor late Wednesday afternoon.
Iowa’s U.S. House Members stood their ground against congressional leadership on Wednesday as they worked to add funding for the biofuel tax credit to the debt ceiling omnibus bill. The bill is getting negotiated as the final days of “extraordinary measures” pass and the deadline to prevent the U.S. from defaulting on its debt draws near.
The U.S. House passed House Resolution 2811 — a combined appropriations bill and a bill that raises the debt ceiling — 217-215
The deal would raise the debt ceiling for the U.S. treasury by $1.5 trillion to avoid defaulting but also includes massive cuts to federal spending by Republicans to pair down the U.S.’s debt, according to reports from the Associated Press.
Iowa’s congressional all-Republican Representatives, including Rep. Zach Nunn, Rep. Ashley Hinson, Rep. Randy Feenstra, and Rep. Marianette Miller-Meeks, released a joint statement following their showdown with congressional leadership to include the ethanol tax credits.
The tax credits incentivize biofuel production which contributes almost $6 billion a year to Iowa’s economy and accounts for almost 60 percent of Iowa’s corn consumption.
“Iowa farmers and producers feed and fuel the world, and we will always have their backs,” they wrote. “Now, it is past time for President Joe Biden to stop playing politics with our nation’s fiscal health, which means working with us to cut wasteful spending and prevent a catastrophic default.”
Iowa Gov. Kim Reynolds released a statement congratulating the quartet for their victory for Iowa farmers.
“I commend the members of Iowa’s Congressional Delegation for their steadfast efforts to stand up for biofuels throughout the negotiations on the House debt limit package,” Reynolds said in a news release. “I want to thank Speaker McCarthy for working with the delegation to find a compromise that continues the conversation while recognizing the importance of biofuels to our country.”
