The Students First Act is a victory for families across Iowa.
Last fall when ITR Foundation wondered aloud what might happen with education in 2023, we were optimistic that it could be something big. After all, Governor Kim Reynolds had just won re-election by nearly 20 points after making school choice the focal point of her campaign. The Senate had already proven themselves willing and able to pass school choice bills out of their chamber the previous two sessions. And Speaker of the House Pat Grassley had created an Education Reform Committee with the specific purpose of considering significant reforms to the state’s educational system.
Iowa’s lawmakers did in fact expand school choice in a big way this week, with both legislative chambers passing the Students First Act on Monday night that created universal Education Savings Accounts (ESAs) for Iowa students. The governor, who proposed the legislation herself, then signed that legislation into law on Tuesday morning.
The Students First Act creates an ESA that will be funded with the state’s share of funding per pupil, which is currently $7,598. Although the ESA is universal, meaning it applies to every student in Iowa regardless of income level or current public/private enrollment, it will be phased in over three years. Here is how the phase-in is structured:
YEAR 1 (2023-24)
• All kindergarten students
• All public school students
• Private school students at or below 300% FPL ($83,250 for a family of four)
YEAR 2 (2024-25)
• All kindergarten students
• All public school students
• Private school students at or below 400% FPL ($111,000 for a family of four)
YEAR 3 (2025-26)
• All K–12 students in Iowa regardless of income
In her Condition of the State address the governor stated that “our first priority in this legislative session—and what I will be focusing on over the next four years—is making sure that every child is provided with a quality education that fits their needs.” For the past few years Governor Reynolds and the legislature have been working to advance more school choice policies in Iowa. That work came to fruition as they have now delivered one of the most robust ESA programs in the country. ITR Foundation offers congratulations and a big “thank you” to Governor Reynolds and her team, legislators (past and present) who worked so unflinchingly to see this through, and to all of the other education stakeholders in this state who demanded a system that would fund students and not systems. The Students First Act is a victory for families across Iowa.
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