Updated on: October 3, 2026 / 8:29 AM EDT / CBS News
‘Stop the Steal’ Takes on New Meaning in Iowa
Protesters at the Iowa statehouse on Friday held signs with the phrase ‘No Steel Steal!’ as lawmakers hurried through a special session. The goal was to approve $1.36 billion in tax incentives for a new steel plant by Mesabi Metallics. Owned by the Indian conglomerate Essar Group, Mesabi will receive these incentives over ten years.
The proposal passed with 75-17 votes in the House and 28-19 in the Senate, followed by Governor Kim Reynolds signing it into law. The development follows President Trump’s announcement of the largest steel plant in U.S. history to be established in Iowa. Valued at $15 billion, the plant is expected to create 1,750 permanent jobs and approximately 6,000 construction jobs. Many lawmakers were surprised by this announcement, as full details were not shared with them until the session convened.
Opposition and Concerns
Though opponents of the incentives support the project, they demand more public benefits and safeguards. The financial incentives equate to around $777,000 per permanent job, a price viewed as substantial. Supporters note the figure excludes 6,000 temporary construction jobs.
For some, offering over a billion dollars in tax credits to a foreign company, during a tough time for Iowa farmers, is hard to justify.
President Trump at the Oval Office, September 28, 2026. Kevin Dietsch / Getty Images
Why Iowa?
Despite lacking a steel production history, Iowa’s location offers advantages. Mesabi Metallics cites proximity to the Mississippi River, contrasting with Minnesota’s lack of similar benefits. Politically, the plant’s location in Iowa’s first congressional district adds weight since it holds one of the tightest races in the country. Congresswoman Mariannette Miller-Meeks defends her seat here, with previous standings showing only a difference of 798 votes between her and Democrat Christina Bohannan.
Past Failures and Skepticism
Mesabi Metallics’ track record includes missed deadlines and unfulfilled job commitments. Its plans in Minnesota declared bankruptcy in 2016. The company’s links with Russian state-owned bank VTB increase skepticism.
Others compare the steel plant proposal to past failures like Foxconn’s Wisconsin project. Initially promised as a $10 billion project with 13,000 jobs, the plan was downsized significantly.
Dhiraj Singh / Bloomberg via Getty Images
Political Maneuvers
Senator Kevin Alons expressed concerns about the rushed decision-making but ultimately supported the bill. Senator Dave Sires opposed it due to procedural speed. The decision reflects political calculations as Republican senators balance economic gains with taxpayer interests.
Republican gubernatorial candidate Zach Lahn supports the project, describing it as an exception to typical corporate handouts. Democrats walk a tightrope, not opposing job creation while criticizing the rush before early voting on October 14.
Democrat Rob Sand approved in principle, expressing caution over giving away state resources. Iowa Senate Democratic Leader Janice Weiner emphasized the need for thorough due diligence.
Future Implications
Democratic State Representative Dave Jacoby voted yes, with hopes for real benefits, warning that the ‘ribbon-cutting’ moment is years away. Tax incentives activate only when the plant begins operations, not expected before 2030. As Iowans soon decide on their votes, the true test will be whether they believe in the project’s viability and if the $1.36 billion cost is justified.