Learn More About the Education Savings Accounts (ESA) in Iowa

What is the ESA?

The Students First Act, introduced by Governor Reynolds and signed into law on January 24, 2023, supports the success of every K-12 student in Iowa by makes state funding available. The bill establishes a framework and funding for education savings accounts, which may be used by eligible families to cover tuition, fees, and other qualified education expenses at accredited private schools in Iowa.

How does ESA work?

Parents who choose to enroll their eligible children in an accredited private school will receive an amount equal to the per pupil funding allocated to public school districts for the same budget school year. Funds will be deposited into an education savings account (ESA) to be used for tuition, fees, and other qualified education expenses as specified in the legislation.

The state has signed a contract with Odyssey to manage program administration for Students First Education Savings Accounts, including applications, financial transactions, compliance, fraud prevention and customer service. Odyssey was selected through a competitive bid process based on its ability to securely administer funds, provide families with direct customer service and support and offer the state real-time insight into the program’s effectiveness.

The Office of the Governor, Department of Education, Department of Management, and Office of the Chief Information Officer are working with Odyssey to implement the technology platform. The state plans to begin taking applications during the month of May, but a specific date has not yet been announced. Details regarding the application process will be provided later this month to help families prepare to apply. Applications will be due on June 30, 2023, for the 2023-2024 school year.

Who is eligible?

Students First ESAs will be available based on the following eligibility:

Year 1: School Year 2023-24 

• All entering kindergarten students
• All students enrolled in a public school
• A student enrolled in a private school with a household income at or below 300% of the 2023 Federal Poverty Guidelines, $90,000 for a family of four

Year 2: School Year 2024-25

• All entering kindergarten students
• All students enrolled in a public school
• A student enrolled in a private school with a household income at or below 400% of the 2024 Federal Poverty Guidelines that will be updated January 2024

Year 3: School Year 2025-26

• All K-12 students in Iowa regardless of income

Find more details, here.