All Roll Calls
Yes: 143 • No: 138
IowaSF 220191st General Assembly (2025–2026)Senate
A bill for an act relating to school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2026, modifying provisions relating to property tax replacement payments, transportation equity aid funding, funding for school district budget adjustments, and school district enrollment, establishing an education support personnel salary supplement, making appropriations, and including effective date and applicability provisions. (Formerly SSB 3100.) Effective date: 02/26/2026, 07/01/2026. Applicability date: 07/01/2026.
Sponsored By: COMMITTEE ON EDUCATION
Signed by Governor
appropriations
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 3 benefits, 1 costs, 4 mixed.
Iowa sets school funding growth at 2%
Iowa sets both regular and categorical school funding growth rates at 2% for the budget year beginning July 1, 2026. Categorical aid covers specific needs, such as teacher pay, training, early intervention, and transportation. These rates help calculate district funding; they do not guarantee every district receives 2% more money.
School support staff get pay funding
Iowa provides a one-time $7 million fund for school support staff compensation from July 1, 2026, through June 30, 2027. Covered staff are regular or part-time district employees who are not salaried. Each district gets $7 million multiplied by its share of statewide budget enrollment for the year beginning July 1, 2025. Districts must report staff counts and other required information by July 1, 2026. Payments follow the state foundation aid schedule and stay outside routine district cost calculations. The law does not set an individual employee's payment.
State money replaces school property taxes
For budget years beginning July 1, 2026, onward, Iowa funds property tax replacement payments from its general fund. Payments equal weighted enrollment times $153 plus the specified per-student state-cost difference from the year beginning July 1, 2021. Separately, for 2026–27, qualifying district budget adjustments are added to the base used to calculate school funding. Those adjustments must use state foundation aid, not district property taxes. The law does not specify any household's tax savings.
School transportation aid faces annual cap
Starting with budget years beginning July 1, 2026, transportation equity aid is capped at $1 million per qualifying district annually. Aid uses actual enrollment, excluding shared-time students, multiplied by the district's transportation cost-per-student difference. Districts whose calculated aid exceeds $1 million receive only the capped amount.
Facility education funding moves to quarters
Starting July 1, 2026, covered facility and institutional education budgets receive quarterly payments from July 15 through April 15. This replaces monthly payments from September through June. The rules cover children in specified facilities or state-run institutions who are not enrolled in their home district's education program. Payments go to area education agencies or the Department of Health and Human Services, depending on the program. Payment amounts reflect the state budget, available cash, and the timing of related laws; district-aid deductions also become quarterly. Area education agencies submit next-year program budgets by January 1, with state review and payment notice by February 1. They report actual costs by August 1 for state audit, with differences reconciled in the following year's October payment.
New student counts shape school budgets
New enrollment rules cover counts determined on or after July 1, 2026, and budgets beginning July 1, 2027, onward. Basic enrollment averages the base year's actual and adjusted counts. Districts certify October 1 actual counts by October 15 and January 15 adjusted counts by January 30. The January count moves to the following Monday when January 15 falls on a weekend. Education officials forward actual counts within 30 days and adjusted counts within 21 days after certification. Districts have five business days after notice to resolve disputes before the state's decision becomes final. Audit corrections change enrollment and the related state-aid and property-tax budget amounts in the second year after the audit year.
School aid shifts to quarterly payments
Starting July 1, 2026, Iowa generally pays school aid quarterly, around July 15, October 15, January 15, and April 15. State officials set installments based on available cash, the state budget, and the timing of school-funding laws. Property tax replacement and transportation equity and base funding follow that schedule and can be included in foundation aid. Starting July 1, 2027, required district-aid deductions fund quarterly area education agency payments for teacher salary supplements and shared operations. The state may also deduct district aid for agency media and education services for nonpublic students within agency boundaries.
School service reimbursements face quarterly deductions
Starting July 1, 2026, Iowa recovers covered education payments through quarterly, rather than monthly, deductions from district foundation aid. For nonpublic-school special education, districts report actual costs by August 1; state review occurs by September 1. Corrections affect the following fiscal year's September payment, and districts share deductions based on statewide budget enrollment. Another covered claim applies when counted students generate fewer funding days than their enrollment days; claims are due August 1. Related special education claims require an unknown home district, no district weighted-enrollment count, and no district payment under the covered rule. The law also covers recovery of specified state education department payments for district services. Enrollment claims and these special education and district-service payments are recovered in the following fiscal or school year.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON EDUCATION
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 2/23/2026
Passed Senate
Yes: 27 • No: 20
Senate vote • 2/19/2026
Amendment H-8010 to committee amendment H-8004
Yes: 30 • No: 63
House vote • 2/19/2026
Passed House
Yes: 58 • No: 35
Senate vote • 2/10/2026
Passed Senate
Yes: 28 • No: 20
Actions Timeline
Fiscal note.
5/22/2026legislatureSigned by Governor.
2/26/2026SenateReported correctly enrolled, signed by President and Speaker, and sent to Governor.
2/26/2026SenateMessage from Senate.
2/23/2026HouseImmediate message.
2/23/2026SenatePassed Senate, yeas 27, nays 20.
2/23/2026SenateSenate concurred with S-5018.
2/23/2026SenateFiscal note.
2/23/2026legislatureMessage from House, with amendment S-5018.
2/23/2026SenateImmediate message.
2/19/2026HouseExplanation of vote.
2/19/2026HousePassed House, yeas 58, nays 35.
2/19/2026HouseAmendment H-8004 adopted, as amended.
2/19/2026HouseAmendment H-8008 ruled out of order.
2/19/2026HouseAmendment H-8012 to committee amendment H-8004 filed, adopted.
2/19/2026HouseAmendment H-8010 to committee amendment H-8004, yeas 30, nays 63, lost.
2/19/2026HouseAmendment H-8010 filed.
2/19/2026HouseAmendment H-8008 filed.
2/18/2026HouseCommittee amendment H-8004 filed.
2/16/2026HousePlaced on Appropriations calendar.
2/16/2026HouseCommittee vote: Yeas, 15. Nays, 8. Excused, 2.
2/16/2026HouseCommittee report, recommending amendment and passage.
2/16/2026HouseSubcommittee recommends passage.
2/16/2026legislatureSubcommittee Meeting: 02/16/2026 11:30AM RM 103.
2/12/2026legislatureFiscal note.
2/12/2026legislature
Bill Text
As Introduced
Enrolled
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