Education (School Choice)

HF 199 repeals Iowa's education savings account program, which provided state funds to cover tuition and related expenses for students attending nonpublic schools (including tutoring, materials, and therapy). The bill removes Section 257.11B of the Iowa Code, ending eligibility for this funding starting July 1, 2025. It also updates related funding formulas in Sections 257.10 and 422.7 to exclude students using these accounts. The repeal directly affects nonpublic school students and families previously enrolled in the program. The bill makes no new funding changes beyond eliminating this specific program.

SF 199 repeals Iowa's education savings account program, which provided state funds for eligible students to cover tuition and related expenses at nonpublic schools. The bill removes this funding source and adjusts related calculations in school finance formulas that previously accounted for students using these accounts. It directly affects students who would have qualified for the program (enrolled in kindergarten through grade 12) for school years beginning July 1, 2025. The repeal takes effect immediately upon enactment, ending the program's availability for future school years.

HF 810 modifies Iowa's funding formula for school districts with high open enrollment (over 45% of students enrolled through open enrollment). It removes the "teacher salary supplement" from the calculation for supplemental aid, expands eligibility beyond the 2024 budget year, and requires school boards to hold public hearings before requesting aid. The bill also limits property tax increases for districts receiving aid after 2025, capping the next year's tax rate at the level of the aid year. It applies to school budget years starting July 1, 2025.

HF 811 repeals Iowa's school tuition organization (STO) tax credit, which allowed taxpayers to reduce their individual or corporate income tax by 75% of donations to STOs. The bill ends this credit for contributions made on or after July 1, 2025, and reduces the 2025 credit cap from $20 million to $10 million. It fully repeals the tax credit provision on July 1, 2031, removing all future eligibility and references to the credit in tax law. This directly affects individuals, corporations, and STOs that previously used or issued these tax credits.