Rainbow Post 2 is named after the 42nd Infantry Division in WWI which was nicknamed the Rainbow Division.

The establishment of an American Legion (TAL) post in Council Bluffs followed on the heels of the returning First World war veterans, many having served with the famed 42nd Infantry Division in Europe. This unit was nicknamed the ‘Rainbow Division’ based upon the various locales from which it’s many subordinate units originated. One Story has it that Major Douglas MacArthur, chief of staff of the 42nd Infantry during the First World War, upon witnessing the spectacle of a multitude of flags/guidons representing twenty-six states and the District of Columbia, quipped that the scene reminded him of a rainboe – thus the name stuck. Many of the these Council Bluffs veterans had been assigned to the 168th Infantry Regiment, which today makes up part of the local Army National Guard Organization. Returning Council Bluffs veterans wanted to organize an American Legion post while awaiting the return of those veterans who had not yet returned to Council Bluffs, Initially named the ‘Council Bluffs World War Veterans Post’, the post was later re-named ‘Rainbow Post’ to recognize those veterans who had been assigned to the 42nd Division. This caused some initial concern from parents of those Council Bluffs veterans who had been assigned to units other than the 42nd. As to the question of how Rainbow Post became the Department of Iowa’s second American Legion post – that’s an interesting story in itself. According to a couple of Rainbow Post’s founding members – John DeWitt (Council Bluffs Daily Nonpareil April 11, 1946) and Raymond Smith (Council Bluffs Daily Nonpareil July 6,1975), as well as Jacob A. Swisher – Historian and author of the book The American Legion in Iowa 1919-1929, Rainbow Post was designated as Department of Iowa ‘Post No. 2′ after it’s delegation was beaten to department Headquarters by the Spencer, Iowa delegates. Early on the morning of May 12, 191, the Council Bluffs delegates decided to deliver their application to Department Headquarters via the overnight train to Des Moines, while the Spencer delegates decided to personally deliver theirs via automobile (Model T Ford). The Spencer delegates arrived in Des Moines ahead of the overnight mail train thus ensuring that while Spencer received the no. 1 designation, Council Bluffs Legionnaires proudly accepted second place. Following the chartering of Rainbow Post November 29, 1920, Rainbow Legionnaires found themselves in need of a more permanent Legion hall from which to conduct legion business. During those early years, Rainbow Legionnaires had conducted their meetings various locales throughout the city. But in the weeks following the surprise Japanese attack at Pearl Harbor, Hawaii in 1941, Rainbow Legionnaires felt that a more permanent location was needed – especially considering the large numbers of prospective members expected to be recruited from the Second World War. The first Legion Hall was established in the former Binder Building located at 23-25 Pearl Street (now a parking lot) with it’s grand opening held in September 1947. The Legion Hall/Clubhouse served the needs of Rainbow Post’s Legionnaires for many years, but the aging second floor facilities (without elevator service), not to mention the declining health of the post’s aging members, dictated that a new Legion Hall was needed. With this in mind, Rainbow Post acquired the former Danish Hall Building at 716 S. 4th Street during the years 1995-1196. As mentioned previously, many changes occurred following the chartering of Rainbow Post. In addition to the need for a permanent Legion Hall /Clubhouse, there arose a need by various supporting groups to organize as well. This process began on January 23, 1923 when female supporters chartered Rainbow Post’s Auxiliary Unit 2 (ALA). This was followed on September 18, 1997 when supporting male offspring chartered Rainbow Post’s Sons of the American Legion Squadron 2 (SAL). This was again followed in early September 2006 when group of supporting motorcyclists chartered Rainbow Post’s American Legion Riders (ALR).