Fast Facts:

Law enacted: 2002

Most recently amended: 2025

Number of charter schools: 17

Number of charter students: 800

Cap on the number of schools allowed: No.

Virtual charters allowed: Yes

Charter Law Analysis:

AUTHORIZERS: Iowa's original charter school law required school districts to first approve applicants, then go to the state board of education for approval. In 2021, the state changed the law, which now allows charter school applicants to bypass school districts and go directly to the state board of education for approvals. Applicants still have the option to follow the previous procedure of going through local school districts first, if they choose. Further, the law allows the state board to approve charter schools established by independent founding groups.

GROWTH: A law passed in 2022 expanded the number of charter schools permitted in the state and increased the funding cap for existing ones. As a result, the number of charter schools grew by 160% between the first and second year after the law took effect - and the charter landscape continues to grow today.

OPERATIONS: While there is no blanket waiver for charter schools from state statutes and regulations, those applying for authorization are allowed to request a waiver. There is no freedom from district educator contracts, however. On a positive note, changes in 2022 allowed schools to freely contract with private education service providers (or even open a virtual school) without restrictions.

EQUITY: The charter schools receive an amount equal to the state cost for the same student in the district from the previous year. The state education department pays the required state share directly to charter schools while a corresponding reduction in the state aid payment is made to the school district of residence. This avoids districts limiting funds to charters. In addition, charter students with special needs are paid in full by the district of residence. Like most states, no local funding follows students.

Fast Facts:

Number of programs: 3

Statewide participation: 39,100

Types of programs: Education savings account, tax-credit scholarship, voucher

Choice Laws & Analysis:

Education Savings Account
Students First Education Savings Account Program
Law Enacted: 2023
Most Recently Amended: N/A
Iowa’s Students First Education Savings Account provides families with state-funded accounts for private school tuition, fees, and other qualified educational expenses. Initially limited to households earning up to 300% of the federal poverty level (FPL) in its first year, the program expanded to families earning up to 400% of the FPL for the 2024-25 school year. By the 2025-26 school year, all Iowa K-12 students attending an accredited nonpublic school will be eligible, regardless of income. The program is fully operational and growing, with 27,866 students enrolled in 2024-25, up from approximately 17,000 the previous year. Each participating student currently receives $7,826, with projections indicating the amount will exceed $7,800 for 2025-26. Accounts are funded at 100% of the state’s regular program cost per-pupil funding, absent administrative expenses. Funding for Iowa’s ESAs flows through the state's regular school funding formula, similar to funding for all public school students, rather than a separate appropriation to the Department of Education. While the program aims to be universal statewide, the funding capacity to support all eligible students remains an important consideration. Iowa’s ESA program is one of the best in the nation, demonstrating leadership's commitment to expanding educational choices for families.

Tax-Credit Scholarship
School Tuition Organization Tax Credit
Law Enacted: 2006
Most Recently Amended: 2023
In 2022, Iowa increased funding for its School Tuition Organization (STO) tax-credit scholarship program, originally enacted in 2006, from $15 million to $20 million and raised the tax credit for donations from 65% to 75%. The program primarily supports low-income and working-class families, benefiting approximately 11,000 students in the 2021-22 school year with an average scholarship of $1,614. However, with the expansion of Education Savings Accounts, many parents may find them a more flexible and appealing option to cover educational expenses.

Individual Tax Credit/Deduction
Tuition and Textbook Tax Credit
Law Enacted: 1987
Most Recently Amended: 2021
Parents receive a very limited tax credit for qualified educational expenses including textbooks, materials for extracurricular activities and music rentals, uniforms, tuitions, and more, helping approximately 116,000 participating tax-payers. While the most recent law (HF 847) doubles the tax credit amount students receive from $250 to $500 and makes homeschool families eligible for the program, it's still negligible and makes little impact on a parent who needs to pay for their kids' own education.

USE OF STUDENT DATA IN EVALUATING TEACHER PREP

"Iowa does not currently use student achievement or growth data to hold teacher preparation programs accountable."

This is just one indicator from The National Council on Teacher Quality, which collects and analyzes states on how well their policies and practices lead to well-prepared teachers. They collect data on state laws and regulations concerning the preparation of teachers, the policies that govern their oversight and the contracts that guide their employment. Learn more about your state here.