All Roll Calls
Yes: 136 • No: 85
IowaHF 275491st General Assembly (2025–2026)HouseWALLET
A bill for an act relating to education, including by modifying provisions related to charter school approval, contracts, funding, and operations, services provided to charter schools by area education agencies, charter school student participation in extracurricular activities provided by public schools, the Iowa public employees’ retirement system, education savings accounts, independent accreditation, teacher training and licensure, the statewide voluntary preschool program, the district-to-community college sharing or concurrent enrollment program, open enrollment, school tuition organizations, private instruction, and innovation zone schools; making appropriations; and including effective date and applicability provisions. (Formerly HF 2713, HSB 735.) Effective date: 05/12/2026. Applicability date: 07/01/2026.
Sponsored By: COMMITTEE ON APPROPRIATIONS
Signed by Governor
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Bill Overview
Analyzed Economic Effects
19 provisions identified: 9 benefits, 3 costs, 7 mixed.
More retirement protection for charter workers
Beginning May 12, 2026, eligible employees at Subchapter I charter schools can join Iowa’s public employee retirement system. Their school must meet all federal participation requirements. When a charter closes, its assets must first pay unpaid employee wages and retirement-system debts. Other creditors come next, followed by the local public school district and the state general fund.
Families gain broader private instruction options
Beginning July 1, 2026, required competent-private-instruction reports identify the instruction period and can list either a course outline or texts. An outline includes subjects, lesson plans, and time spent; the reporting change covers compulsory-age children outside accredited schools or school-based assistance programs. Independent private instruction loses the four-unrelated-student limit and ban on tuition, fees, or other pay. It must remain unaccredited, primarily private or religious, and teach math, reading and language arts, science, and social studies at all grades. The district superintendent or state education director can request student names in writing; students need not be related to the instructor.
Families gain half-year education account option
Beginning July 1, 2026, parents of eligible pupils can apply for one semester of education savings account payments. Applications run from October 15 through November 15 before the semester. The payment equals 50% of that school budget year’s regular program state cost per pupil. Approval covers one semester, and parents must apply again for later school years or semesters.
Charter students gain college course access
Beginning July 1, 2026, chapter 256E charter students can access the district-to-community college course-sharing program. They use the district where their charter school is located. Students whose charter delivers all instruction and course content online can instead use their district of residence.
Charter students gain public school activities
Beginning May 12, 2026, districts must admit eligible Subchapter I charter students to covered sports, theater, choir, band, and activities. A district-charter agreement is required, and students must live in the district or a neighboring district. The charter must not have offered the activity during the prior two school years; neighboring students’ home districts must also qualify. Students cannot already qualify for that activity through another section 280.13A agreement and must follow district rules, including conduct rules. Participation fees cannot exceed those charged to district students.
Families gain more state preschool providers
Beginning July 1, 2026, approved community providers can join Iowa’s statewide voluntary preschool program directly, without going through districts. State-funded children must be four years old by September 15 in the base year and attend the approved program. Younger or older children can attend when space and funding allow, but they do not count for state funding. The law does not guarantee a placement.
Private instruction diplomas gain legal recognition
Beginning July 1, 2026, completing qualifying competent or independent private secondary instruction counts as completing high school. The responsible parent, guardian, custodian, or instructor can issue a diploma, final transcript, or other completion record. State law requires acceptance like school-issued records, without a separate high school equivalency credential. Parents, guardians, and legal custodians can also sign required education-verification documents for compulsory-age children receiving either form of private instruction. Those documents can verify placement, full-time or part-time status, grades, and other required education information.
Private schools gain protections from regulation
Beginning July 1, 2026, this provision bars state and local control of nonpublic schools and required admissions or program changes. Rules unnecessary to carry out the provision are unauthorized. Rules placing an undue burden on a nonpublic school are invalid. Schools must still follow state and federal law.
Charter schools gain building financing options
Beginning May 12, 2026, a new revolving loan fund helps Subchapter I charters buy, develop, rebuild, remodel, or replace buildings. The Iowa Finance Authority must allocate available money annually, and repayments and earnings stay in the fund. Unused, uncommitted money carries forward rather than returning at year-end. The authority can also enter agreements providing liquidity or credit support for these building projects. No fund amount, loan size, or financing terms are stated.
Charter schools gain more funding support
Beginning May 12, 2026, governing boards of charters approved under section 256E.5 qualify as local education agencies for federal funding. That status covers all attendance centers they oversee, but does not guarantee an award. For school budget years starting July 1, 2026, Subchapter I charter funding also includes the teacher salary supplement per pupil. The supplied provisions state no dollar amounts.
Targeted startup help for qualifying preschools
Beginning July 1, 2026, a qualifying school tuition organization can fund a preschool’s first-year service costs, up to those costs. The preschool must have started in 2025 in a city with 39,001–39,999 residents in the 2020 census. That city must be in a county with 155,001–179,999 residents in the same census. The organization must represent schools in a county meeting that county population range. These payments do not count toward its annual revenue standards.
Deaccredited private schools face three-year limits
Beginning July 1, 2026, a nonpublic school deaccredited by an approved independent agency faces a three-year restriction. During that period, it cannot seek accreditation from an agency on Iowa’s approved list. It can immediately seek accreditation through the separate state-law process in section 256.11(10).
Innovation zone schools lose legal framework
Beginning July 1, 2026, Iowa removes the innovation zone school approval framework and references in affected education provisions. The law does not require every existing school to close, and preserves legacy charters and the legacy approval ban dating to July 1, 2021. Beginning May 12, 2026, innovation zone schools also leave the listed recipients of state device-policy, math, and civics resources. They are also removed from the requirement to include exemption information in notices about required immunizations. Districts, accredited nonpublic schools, and charter schools remain covered by those resource and notice provisions.
District funding counts drop older references
Beginning July 1, 2026, district foundation-funding counts no longer include resident pupils enrolled under charter-school chapter 256F. Resident pupils enrolled under chapter 256E remain counted. The provision does not state how much district funding changes.
Charters must provide driver education access
Beginning May 12, 2026, every Subchapter I charter must offer or arrange approved driver education for its students. Public districts must also make approved courses available to resident students attending those charters, under district policies. The charter must pay all district costs for providing the course. These provisions do not set a student fee or promise free instruction.
Charter oversight expands with rule waivers
Beginning May 12, 2026, the University of Northern Iowa can audit charter finances, programs, and compliance. It can also waive required school days or hours during the application process. Beginning July 1, 2026, it oversees its approved charters and can renew, revoke, or decline to renew them. It can waive eligible education standards and the ban on paid service-provider employees voting on charter boards; some standards remain mandatory. It can reject expedited renewal only for exceptional circumstances or to seek material contract changes.
New approval paths for charter schools
Beginning May 12, 2026, only the State Board of Education and University of Northern Iowa authorize new Subchapter I charters. They must decide applications within 75 calendar days. Schools generally open two school years after signing; they can open after one with proven readiness or request more time. The initial contract lasts five school budget years from opening, and startup conditions can cover buildings, safety, health, and insurance. Charter purposes also cover learning loss during significant disruptions; a separate code-coverage change has no explained effect in the supplied text.
Charter services shift district aid payments
Beginning May 12, 2026, area education agencies must provide media services to Subchapter I charter schools. They must also provide specified educational services when charter students request them, at least matching the July 1, 1974 level. For school budget years starting July 1, 2026, Iowa may deduct attributable media and educational service costs from district aid. Those amounts go to the agencies monthly from September 15 through June 15.
Community preschools gain aid with limits
Beginning July 1, 2026, approved direct-participation community preschools can receive foundation aid from an existing state appropriation. First-year aid equals state cost per pupil × 50% × eligible enrollment; later years use the regular calculation. Monthly payments run from September 15 to about June 15, with administration capped at 5% and no facility construction allowed. Unspent, unobligated money must support capacity building in the next fiscal year. Funding after the first year requires department approval based on compliance and an on-site review.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON APPROPRIATIONS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/27/2026
Passed Senate
Yes: 29 • No: 17
House vote • 4/16/2026
Passed House
Yes: 53 • No: 34
legislature vote • 4/16/2026
Amendment H-8372 to amendment H-8371
Yes: 54 • No: 34
Actions Timeline
Fiscal note.
5/26/2026legislatureSigned by Governor.
5/12/2026HouseReported correctly enrolled, signed by Speaker and President, and sent to Governor.
5/6/2026HouseExplanation of vote.
5/2/2026HouseExplanation of vote.
5/2/2026HouseExplanation of vote.
5/2/2026HouseMessage from Senate.
4/28/2026HouseImmediate message.
4/27/2026SenatePassed Senate, yeas 29, nays 17.
4/27/2026SenateAmendment S-5224 filed, lost.
4/27/2026SenateAmendment S-5223 filed, lost.
4/27/2026SenateAmendment S-5222 filed, lost.
4/27/2026SenateAmendment S-5221 filed, lost.
4/27/2026SenateAmendment S-5220 filed, lost.
4/27/2026SenateAmendment S-5219 filed, lost.
4/27/2026SenateDeferred.
4/27/2026SenateSubstituted for SF 2501.
4/27/2026SenateFiscal note.
4/27/2026legislatureRead first time, attached to SF 2501.
4/16/2026SenateMessage from House.
4/16/2026SenateImmediate message.
4/16/2026HousePassed House, yeas 53, nays 34.
4/16/2026HouseAmendment H-8371 adopted, as amended.
4/16/2026HouseAmendment H-8372 to amendment H-8371, yeas 54, nays 34, filed, adopted.
4/16/2026HouseAmendment H-8373 to amendment H-8371, yeas 27, nays 60, filed, adopted.
4/16/2026House
Bill Text
As Introduced
Enrolled
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