Iowa Gov. Kim Reynolds has called for special legislative session to take place Friday, Oct. 2, to amend the state’s Major Economic Growth Attraction (MEGA) program and provide incentives for a steel mill project in Lee County.
Tuesday’s announcement comes one day after Reynolds and other Iowa Republican leaders joined President Donald Trump in the Oval Office as he announced plans for the company Mesabi Metallics to build a $15 billion steel mill in Iowa.
The facility will be the largest steel plant in the United States, according to Trump, and will create 1,750 permanent jobs paying $49 per hour as well as 6,000 temporary construction jobs.
The facility is set to be operational by 2030, according to the White House, producing 7.5 million tons of steel per year in its first phase by processing iron ore from a Minnesota mine also owned by Mesabi Metallics.
While U.S. Secretary of Commerce Howard Lutnick said Monday that “I think this deal is done,” the governor’s office said in a statement, “the state of Iowa and Mesabi Metallics have executed a memorandum of understanding outlining the terms of the partnership” which will necessitate some action by the Iowa Legislature.
According to a news release from the governor’s office, the special session will make changes to the state’s Major Economic Growth Attraction program, the state’s incentive program focused on attracting large-scale development projects representing more than $1 billion in capital investment to the state. With the Mesabi Metallics project set to be a $15 billion investment, the news release said, “adjustments are needed to the MEGA program.”
“On Friday, the legislature will return to the Iowa State Capitol to advance the most consequential economic development opportunity ever for our state,” Reynolds said in a statement. “With reasonable and limited updates to an already-existing economic development program, we will accelerate major capital investment into our state, strengthen our economic trajectory, and shape the future of our state and region for generations.”
Lawmakers will convene to discuss legislation amending the MEGA program on Friday, Oct. 2, at 8:30 a.m., according to the news release. Details have not been shared about specific changes being made to the program.
Republicans hold a trifecta of control at the Iowa statehouse. Democratic legislative leaders say they want more information about the proposal — and about the steel mill project — but support bringing new employment opportunities and business to the state.
“Almost 10,000 Iowans have been laid off since the beginning of 2025, so today’s announcement of a special session to bring a new steel plant to Iowa is a welcomed step toward creating good-paying jobs and strengthening our economy,” House Minority Leader Brian Meyer said in a statement. “Iowa House Democrats are committed to making sure this is a good deal for Iowa taxpayers and working Iowans.”
Senate Minority Leader Janice Weiner said Senate Democrats “are ready to go to work for Iowans.”
“Ultimately, our goal Friday will be to ensure that any final deal is in taxpayers’ best interests,” Weiner said. “We still have a number of outstanding questions regarding this project, and I am hopeful that a deliberative process will deliver the answers Iowans need.”
