Iowa approves pricy foreign-owned steel plant project in swing district

In a special session held Friday, lawmakers in Iowa approved a $1.36 billion tax incentive package for a new steel plant owned by Indian conglomerate Essar Group. The Mesabi Metallics plant, which will be built in Lee County, is the largest steel plant in U.S. history and is expected to create 1,750 permanent jobs and 6,000 construction jobs.

Despite President Trump's announcement of the $15 billion plant earlier in the week, lawmakers had not yet received all the details and approved the tax incentives on a one-day special session. Opponents of the incentives argue that the tax credit of about $777,000 per permanent job over ten years is a steep price to pay, especially as many Iowa farmers are struggling.

The plant's location in Iowa, downriver on the Mississippi from Minnesota-based Mesabi Metallics, was seen as a strategic advantage, but concerns were raised about the company's history of missed deadlines and unfulfilled job promises. Republican lawmakers, who are defending vulnerable seats in the upcoming election, sought to balance job creation with their concerns over rushing nearly $1.4 billion in tax breaks before early voting begins.

Democrats also had to tread carefully, wanting to support job creation while pushing back against the rushed approval process.