Education Savings Accounts

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

The State Board of Education adopted administrative rules on May 4, 2023, that specify definitions for the program, eligibility requirements for participation, parameters for the application process, and program administration and accountability.

How It Works

Parents who choose to enroll their eligible children in an accredited nonpublic 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.

Who is Eligible

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

Year 1: School Year 2023-2024

• All entering kindergarten students
• All students enrolled in a public school
• A student enrolled in an accredited nonpublic 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 2024-2025

• All entering kindergarten students
• All students enrolled in a public school
• A student enrolled in an accredited nonpublic 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 2025-2026

• All K-12 students in Iowa regardless of income