(Des Moines) The Iowa Department of Education approved nearly 19 thousand Students First education savings accounts (ESAs). The department said around six thousand were denied for not meeting certain criteria. About another five thousand were rejected for duplicate applications or from users withdrawing. Department officials say students who didn’t submit before the September 30th deadline will get another opportunity next school year.
The program is part of Iowa Governor Kim Reynolds’ landmark Students First Act, signed into law in January. It promotes school choice by providing ESAs for eligible students attending accredited private schools in Iowa. The Universal eligibility will be phased in over three years.
All incoming Kindergarteners and all public school students are eligible in year one with the start of the 2023-2024 school year. Eligibility for families of children currently enrolled in accredited private schools will be income-based over the first two years. During the 2023-2024 school year, private school students with household incomes at or below 300% of the federal poverty level (FPL), currently $90,000 or less for a family of four, are eligible. The following year, income eligibility expanded to include household incomes up to 400% FPL, currently $120,000 or less for a family of four. Beginning in the 2025-2026 school year, all K-12 students in Iowa are eligible regardless of income.
This year, ESAs will be funded with $7,635—the same amount appropriated by the state to support the education of each public school student during the 2023-2024 academic year. The funds must first be used to pay tuition and fees; the remaining balances can then be used to cover other approved educational expenses or held for subsequent school years.
