Iowa 2025-2026 Regular Session

Iowa Senate Bill SF199

Introduced
2/4/25  

Caption

A bill for an act repealing the education savings account program.

Summary

Senate File 199 repeals Iowa’s education savings account (ESA) program. The bill strikes the statutory provisions that created the program and removes related references in the school funding formula and tax code. Under the bill, the state would no longer provide ESA funds for eligible K-12 students attending nonpublic schools to pay for qualified educational expenses such as tuition, tutoring, therapy, software, and course materials. In addition to repealing the program itself, the bill makes conforming changes to several education finance provisions so school district cost calculations no longer account for pupils who received ESA payments under the repealed section. It also removes a tax-related subsection tied to the program. The practical effect is to eliminate the legal framework for new ESA awards beginning with the affected school years and to adjust state law so education funding formulas no longer reference the program.

Impact

The bill would amend Iowa Code sections governing school finance and tax law, and it would repeal Iowa Code section 257.11B in full. It also strikes a subsection in section 256.9 and removes a subsection in section 422.7, while revising multiple section 257.10 formulas to delete ESA-related enrollment adjustments. The affected parties include students and families using or eligible for ESAs, nonpublic schools, and school districts whose funding calculations currently incorporate ESA participation.

Sentiment

The available context suggests the bill is straightforward and policy-driven, with no recorded committee debate or vote history in the provided materials. The caption and text indicate a clear intent to end the ESA program and clean up related statutes, implying support from the sponsor for reversing the existing program structure. Because no transcripts or votes are included, there is no documented public sentiment in the record beyond the bill’s repeal-focused purpose.

Contention

The main point of contention is the education savings account program itself: supporters of repeal would likely view ESAs as an inappropriate use of public funds for private education, while opponents would likely argue that the program expands school choice and helps families cover educational costs. The bill does not include any compromise provisions, phase-out language, or replacement program, so the dispute is over whether the ESA program should exist at all and how state education dollars should be allocated.

Companion Bills

No companion bills found.

Previously Filed As

IA HF199

A bill for an act repealing the education savings account program.

IA SF2321

A bill for an act repealing the education savings account program.

IA SF2228

A bill for an act relating to school district funding provisions, including reducing the foundation property tax and repealing the education savings account program, and including effective date and applicability provisions.

IA HF2737

A bill for an act relating to the education savings account program, including modifying eligibility provisions, providing a future repeal date, and including effective date and applicability provisions.

IA HF2684

A bill for an act permitting school districts to use certain categorical funds generated from pupils participating in the education savings account program for any school general fund purpose.(Formerly HF 2393.)

IA HF2393

A bill for an act permitting school districts to use certain categorical funds generated from pupils participating in the education savings account program for any school general fund purpose.(See HF 2684.)

IA HF445

A bill for an act modifying provisions related to application periods for the education savings account program.

IA HF2186

A bill for an act modifying provisions related to application periods for the education savings account program.

IA SF453

A bill for an act relating to school district and area education agency funding and education savings accounts, and including applicability provisions.

IA SF2229

A bill for an act relating to education funding, including the amounts for the statewide preschool program and eligibility for payments under the education savings account program, and including applicability provisions.

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