Nearly 19K OK’d for Iowa's school savings accounts

DES MOINES — The Iowa Department of Education announced Thursday that nearly 19,000 education savings accounts have been approved under a new program that lets families use public funds to pay for private school tuition.

But the number of students who used the accounts to attend private school this year, as well as the number of students using the accounts to transfer out of public school to attend private school, will not be made public until certified enrollment data is released in December, department officials said.

The state approved 18,893 applications for the program for this school year, according to a news release from the state Department of Education.

The Students First program, signed into law by Republican Gov. Kim Reynolds in January, allows students to receive their full public per-pupil allocation, about $7,600, to pay for a private school tuition and related costs. The approval period for this year's program closed Sept. 30.

“These numbers reflect that Iowans were hungry for educational freedom," Reynolds said Thursday in a statement. "Empowering parents wasn’t just a campaign slogan or empty rhetoric. It was a promise, and I am excited to say we are delivering.”

The number reflects students who applied and were approved for the state assistance, not the actual number of students who used those accounts to attend a private school. Because of space limitations at private schools, not all of those approved may have attended private school. If an approved student does not attend a private school, the money is returned to the state.

The department already has begun sending payments to private schools for the tuition for students who attend using the accounts.

The number far exceeds legislative predictions for the program's first year. The nonpartisan Legislative Services Agency predicted about 14,000 applications would be approved in the first year, for a total cost of $106.9 million.

If each of the approved students attends a private school, the cost would increase by more than $35 million.

How many applied, and who was denied?

The total number of applications submitted for the program was 29,612, which is over 500 more than what was reported when the application window ended in July. The additional applications were from people who had already applied but had to restart the application, the Department of Education said.

Of the applications, 5,927 were denied because the family did not meet the residency or income requirements, the department said. Another 4,792 were duplicates or were closed voluntarily by the applicant.

Students coming from public school not announced

For its first year, the program was open to public school students and incoming kindergartners at any income level, as well as private school students in families that have an income below 300 percent of the federal poverty line. By the 2025-26 school year, the accounts will be available to all students, regardless of income.

Department of Education officials said Thursday they would not be able to provide the percentage of approved students who already attend a private school and those who attended a public school until certified enrollment data is released. In an August state Board of Education meeting, officials said they expected this year’s portion of approved applicants to be about 60 percent private school students and 40 percent public school students.

Which counties had the most applications approved?

The state's most populous counties had the most approved applications. The top 10 counties are:

Democrats: Millions for ‘special interests’

Legislative Democrats, who hold a minority in both the House and Senate, staunchly opposed the program. They argued it would pull money away from struggling public schools and give it to unaccountable private entities.

In a statement Thursday, House Democratic leader Jennifer Konfrst of Windsor Heights said Iowans are opposed to the program and want to see public money being used in public schools.

"The $139 million Reynolds is handing over to the special interests and private schools should be going to the kids in Iowa’s public schools," Konfrst said. "Iowans want us to focus on the real issues facing our students today. That means strengthening public schools, addressing Iowa’s teacher shortage, getting students the one-on-one attention they deserve, and expanding school-based mental health services to support students."