A bill for an act modifying provisions related to area education agency funding, and including effective date and applicability provisions.

This bill modifies how Iowa calculates and distributes funding to area education agencies and school districts, primarily adjusting the foundation base percentages used to determine regular program and special education support services funding. It establishes new formulas for calculating professional development supplements starting in 2026 and requires that at least 90% of special education support services funds received by districts after 2025 be used for services contracted from area education agencies. The legislation also ensures that certain teacher and professional development supplements are paid in full even if the governor orders budget reductions, protecting these specific funding categories from cuts. Additionally, the bill clarifies rounding rules for most funding computations and includes a legislative intent statement linking school funding quality to student education quality.