Title: Iowa Rushes Through $1.36 Billion in Subsidies in One Day: Indian Conglomerate's Steel Mill Lands Ahead of Midterms
The Iowa Legislature convened a rare one-day special session on Friday, October 2, and rammed through the largest tax incentive award in state history: up to $1.36 billion in tax credits for Mesabi Metallics to build a $15 billion steel plant in Lee County, in the state's southeast corner. Gov. Kim Reynolds signed it into law before 9 p.m. The plant, planned by a company wholly owned by India-based Essar Group, was announced by President Donald Trump in the Oval Office on September 28 as the "largest steel plant in U.S. history."
75–17 in the House, 28–19 in the Senate The House passed House File 2801 by 75–17 on Friday afternoon, with the Senate following in the evening at 28–19. Both parties saw defections: two House Republicans voted no while 16 Democrats voted yes; six Senate Republicans opposed while two Democrats supported it. The bill expands Iowa's Major Economic Growth Attraction (MEGA) tax credit program. The nonpartisan Legislative Services Agency projects the credits could total $1.36 billion by 2041. Notably, the MEGA investment tax credit is refundable — if the credit exceeds the company's tax bill, the state writes a check for the difference.
"$777,000 Per Permanent Job" Most opponents don't oppose the plant itself but wanted more safeguards. At $1.36 billion for 1,750 permanent jobs, the credits work out to roughly $777,000 per permanent job over ten years — a figure critics call a corporate giveaway. Supporters counter with the 6,000 construction jobs. Outside the statehouse, protesters carried signs reading "No Steel Steal!" Reynolds called the project "the most consequential economic development project" in state history and a "once in a lifetime opportunity"; Rep. Carter Nordman said that with this plant alone, Iowa would become the second-largest steel-producing state in the nation.
Indian Conglomerate's Checkered Past: Bankruptcies, Broken Contracts, Russian Loan Mesabi Metallics is a Minnesota company wholly owned by Mumbai-based Essar Group. Chairman Rewant Ruia and CEO Joe Broking appeared with Trump and Energy Secretary Chris Wright at the White House on Monday. But the company's past is troubled: multiple bankruptcy filings, accusations of broken contracts, missed deadlines, and stiffed contractors. The Ruia family also received a large loan from a Russian state-owned financial institution. Company spokesperson Jesse Harris said Essar Group has invested about $2 billion and is "well positioned to fund and develop" the Iowa plant.
The Political Math, Five Weeks Before the Midterms The Associated Press notes that with five weeks to go before the midterm elections, Republicans are seizing on the promise of high-paying jobs and a central role for the heartland in the push for American steel. Iowa has been hit hard by tariffs and sky-high diesel prices driven by the Iran war, and farmers are struggling — making a billion-plus in tax credits for an India-based conglomerate a hard sell in rural areas. Commerce Secretary Howard Lutnick declared "the deal is done" at the White House on Monday, when state lawmakers hadn't even seen the bill text — it was released publicly only on Friday, the day of the vote.
What to watch next: the plant is slated to begin steelmaking in 2030, producing 7.5 to 10 million tons a year. Whether $1.36 billion buys the promised jobs will be answered by a decade of audits.