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Legislative support for and opposition to universal school choice in Iowa (2023)

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The Iowa Legislature enacted the Students First Education Savings Account Program in 2023 as part of House File (HF) 68, to create an education savings account program, which provided state funding for families to help cover tuition and other education expenses at accredited nonpublic schools. The program was set to become available to all K-12 students starting in the 2025-2026 school year.[1]

HF68 passed the Iowa House of Representatives 55-45, with nine Republicans breaking from their party to oppose the bill on January 23, 2023. Republicans had a 64-36 majority at the time the bill was passed. All Democrats opposed the bill.[2][3]

HF68 passed the Iowa State Senate 31-18, with three Republicans breaking for their party to oppose the bill on January 23, 2023. Republicans had a 34-16 majority in the Senate at the time the bill passed. All Democrats opposed the bill and one was absent.[4][5]

The Students First Education Savings Account Program was signed into law by Iowa Governor Kim Reynolds (R) on January 24, 2023.[6]

The bill included a provision that expanded the Students First Education Savings Account Program to all students in the state as of July 1, 2025, making it a universal ESA program.

Timeline

  • January 24, 2023

    Governor Kim Reynolds (R) signed the Students First Act into law.

  • January 23, 2023

    HF68 passed the Iowa House of Representatives 55-45, with nine Republicans breaking from their party to oppose the bill on January 23, 2023. All Democrats opposed the bill.

  • January 23, 2023

    HF68 passed the Iowa State Senate 31-18, with three Republicans breaking for their party to oppose the bill. All Democrats opposed the bill.

  • January 18, 2023

    Governor Kim Reynolds (R) introduced the Students First Act to create a universal education savings account (ESA) program.

Background

See also: School choice in the United States, Impact of school choice on rural school districts

The Iowa Legislature passed the Students First Education Savings Account Program in 2023 as part of HR68 to create a limited education savings account (ESA) program. The bill provided that the ESA program would expand eligibility criteria every school year to include more students until July 1, 2025, when it was set to open to all students. In the 2023-2024 school year, kindergarteners, Iowa public school students, and private school students with a family income of 300% over the federal poverty line were eligible for the ESA program. ESAs were available to the following students in the 2024-2025 school year:[7]

  • A student who was approved for and used an ESA in the 2023-24 school year
  • A student entering kindergarten at an accredited nonpublic school
  • A student who attended an Iowa public school in the prior year
  • A student enrolled in an accredited nonpublic school with a household income at or below 400% of the 2024 Federal Poverty Guidelines, $124,800 for a family of four

The Students First ESA program provides families with a varying amount of money each year, dependent on state aid funding per pupil provided to county boards of education for public school students. The amount per family issued was $7,826 in the school year 2024-2025.[7]

The ESA program was set to open to all Iowa students on July 1, 2025.

Legislative history

HF68 passed the Iowa House of Representatives 55-45, with nine Republicans breaking from their party to oppose the bill on January 23, 2023. Republicans had a 64-36 majority at the time the bill was passed. All Democrats opposed the bill.[8][9]

HF68 passed the Iowa State Senate 31-18, with three Republicans breaking for their party to oppose the bill on January 23, 2023. Republicans had a 34-16 majority in the Senate at the time the bill passed. All Democrats opposed the bill and one was absent.[10][11]

The Students First Education Savings Account Program was signed into law by Iowa Governor Kim Reynolds (R) on January 24, 2023.[12]

Provisions

Eligibility for the program

This bill defines eligibility for the ESA program in the 2024-2025 school year as a student who is entering kindergarten, was enrolled in public school for a qualifying period, and has an income less than or equal to 400% of the federal poverty line. It expands eligibility to all students starting July 1, 2025. The text of the bill is as follows:[13]

“

(2) For the school budget year beginning July 1, 2024, the following pupils who attend a nonpublic school for that school budget year shall be eligible to receive an education savings account payment:

(a) A resident pupil who is eligible to enroll in kindergarten.
(b) A resident pupil who is eligible to enroll in grades one through twelve and was not enrolled in a nonpublic school for the school year immediately preceding the school year the education savings account payment is requested.
(c) A resident pupil who is eligible to enroll in grades one through twelve and was enrolled in a nonpublic school the school year immediately preceding the school year for education savings account payment is requested if the pupil's household has an annual income less than or equal to four hundred percent of the most recently revised poverty income guidelines published by the United States department of health and human services.
(d) A resident pupil who received an education savings account payment in the immediately preceding school budget year.

(3) For school budget years beginning on or after July 1, 2025, resident pupils through grade twelve who applicable school budget eligible to enroll in kindergarten and attend a nonpublic school for the year shall be eligible to receive an education savings account payment. ...[14]

”

Qualifying expenses

The bill includes a list of expenses the ESA funds can and cannot be used for. The list is as follows:[15]

“

b. ( 1) Qualified educational expenses - includes tuition and fees at a nonpublic school, textbooks, fees or payments for educational therapies, including tutoring or cognitive skills training, curriculum fees, software, and materials for a course of study for a specific subject matter or grade level, tuition or fees for nonpublic online education programs, tuition for vocational and life skills education approved by the department of education, education materials and services for pupils with disabilities from an accredited provider, including the cost of paraprofessionals and assistants who are trained in accordance with state law, standardized test fees, and advanced placement examinations or examinations related to postsecondary education admission or credentialing.

(2) Qualified educational expenses - shall be limited to the items described in subparagraph ( 1) and rules adopted by the department to implement this section and does not include transportation costs for the pupil, the cost of food or refreshments consumed by the pupil, the cost of clothing for the pupil, or the cost of disposable materials, including but not limited to paper, notebooks, pencils, pens, and art supplies. [14]

”

See also

Other school choice-related content:

Other education policy content


External links

Footnotes

  1. ↑ Iowa Department of Education, "Students First Education Savings Accounts," accessed February 19, 2025
  2. ↑ Iowa Legislature, "On the question “Shall the bill pass?” (H.F. 68)," accessed February 19, 2025
  3. ↑ Wikipedia, "List of members of the 90th Iowa Legislature," accessed February 19, 2025
  4. ↑ Iowa Legislature, "On the question “Shall the bill pass?” (H.F. 68)," accessed February 19, 2025
  5. ↑ Wikipedia, "List of members of the 90th session of the Iowa Senate," accessed February 19, 2025
  6. ↑ Iowa Legislature, "Bill History for House File 68 - Status: Signed by Governor," accessed February 19,2025
  7. ↑ 7.0 7.1 Iowa Department of Education, "Students First Education Savings Accounts," accessed February 24, 2025
  8. ↑ Iowa Legislature, "On the question “Shall the bill pass?” (H.F. 68)," accessed February 19, 2025
  9. ↑ Wikipedia, "List of members of the 90th Iowa Legislature," accessed February 19, 2025
  10. ↑ Iowa Legislature, "On the question “Shall the bill pass?” (H.F. 68)," accessed February 19, 2025
  11. ↑ Wikipedia, "List of members of the 90th session of the Iowa Senate," accessed February 19, 2025
  12. ↑ Iowa Legislature, "Bill History for House File 68 - Status: Signed by Governor," accessed February 19,2025
  13. ↑ Iowa Legislature, "Students First Act," accessed February 19, 2025
  14. ↑ 14.0 14.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  15. ↑ Iowa Legislature, "HF68 Governor Letter," accessed February 24, 2025
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