IA
Iowa Senate Bill SF453

Iowa 2025-2026 Regular Session

Iowa Senate Bill SF453

Introduced
2/26/25  

Caption

A bill for an act relating to school district and area education agency funding and education savings accounts, and including applicability provisions.

Impact

Moreover, SF453 has implications for the funding structure of shared-time students, stating that any increase in state aid that a district receives by counting these students will not reduce district tuition charges if these students are enrolled in nonpublic schools that accept ESA payments. The bill also proposes the repeal of tax credits associated with contributions made to student tuition organizations (STOs) for schools accepting ESA funds. It further modifies the existing tuition and textbook tax credit, making distinctions based on the type of institution receiving ESA payments.

Summary

Senate File 453 (SF453) addresses public school funding and education savings accounts in Iowa. The bill proposes several significant changes that impact how public funds are allocated to nonpublic schools and how educational services are delivered to students enrolled in those institutions. This legislation includes provisions to limit transportation reimbursement for nonpublic school students whose parents utilize education savings accounts (ESAs) for tuition payments, effectively reducing the financial responsibilities of school districts when it comes to providing transport to nonpublic institutions. This change is set to take effect from July 1, 2025.

Contention

The legislation has sparked notable debate regarding its impact on educational equity and the funding of nonpublic education. Proponents argue that the bill will streamline funding and ensure a more consistent application of resources. However, critics express concern that such measures could undermine the availability of public funding for nonpublic students and create barriers for families who rely on district support for transportation. Additionally, the exclusion of certain tax credits for schools utilizing ESAs draws criticism, as it could limit the financial assistance available to families choosing private education options.

Latest IA SF453 Activity

View All Events: IA 2025-2026 Regular Session SF453

Companion Bills

No companion bills found.

Previously Filed As

IA HSB1

A bill for an act relating to education programs and funding by establishing an education savings account program, modifying certain school district categorical funding supplements, making appropriations, providing penalties, and including effective date and retroactive applicability provisions.(See HF 68.)

IA SSB1022

A bill for an act relating to education programs and funding by establishing an education savings account program, modifying certain school district categorical funding supplements, making appropriations, providing penalties, and including effective date and retroactive applicability provisions.(See SF 94.)

IA SF94

A bill for an act relating to education programs and funding by establishing an education savings account program, modifying certain school district categorical funding supplements, making appropriations, providing penalties, and including effective date and retroactive applicability provisions.(Formerly SSB 1022.)

IA HF68

A bill for an act relating to education programs and funding by establishing an education savings account program, modifying certain school district categorical funding supplements and supplementary weighting, making appropriations, providing penalties, and including effective date and retroactive applicability provisions. (Formerly HSB 1.) Effective date: 01/24/2023, 07/01/2023. Applicability date: 01/01/2023.

IA SF412

A bill for an act relating to eligibility for education savings accounts and including effective date and retroactive applicability provisions.

IA SSB1208

A bill for an act relating to certain education programs and tax credits and including effective date, applicability, and retroactive applicability provisions.(See SF 572.)

IA SF572

A bill for an act relating to certain education programs and tax credits and including effective date, applicability, and retroactive applicability provisions.(Formerly SSB 1208.)

IA HF233

A bill for an act relating to determination of school district enrollments and education savings account participation and including effective date and applicability provisions.

IA SF322

A bill for an act relating to information collected from applicants for education savings accounts and information reported by the department of education, and including effective date provisions.

IA HSB713

A bill for an act relating to area education agencies, including modifying provisions related to the duties and powers of area education agencies, oversight by the department of education, funding, shared operational functions, and establishing a task force related to area education agency property and operations, and including effective date and applicability provisions.(See HF 2612.)

Similar Bills

MS HB1433

The "Flexible and Rightful Education Enrollment (FREE) Act;" establish for students in "D" and "F" schools and districts.

IA HF2496

A bill for an act modifying provisions related to the responsibilities of nonpublic schools.

IA SF659

A bill for an act relating to state government and finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers; authorizing expenditure of unappropriated moneys in special funds; providing for properly related matters including crystalline polymorph psilocybin, medical residency and fellowship positions, state membership in the Iowa individual health benefit reinsurance association, student abuse by school employees, modified supplemental amounts for school budgets, wagering taxes, a state fire marshal study, certain legislative interim studies, and 911 emergency communications services; making corrections; and including effective date, applicability, and retroactive applicability provisions. (Formerly SSB 1241.) Effective date: 06/11/2025, 07/01/2025. Applicability date: 01/01/2020, 04/30/2025, 07/01/2025.

IA SSB1241

A bill for an act relating to state government and finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers, authorizing expenditure of unappropriated moneys in special funds, providing for properly related matters including crystalline polymorph psilocybin and medical residency and fellowship positions, making corrections, and including effective date and retroactive applicability provisions.(See SF 659.)

CA AB19

Education expenses: Education Choice and Parental Empowerment Act of 2025.

CA SB292

Education expenses: Education Savings Account Act of 2024.

MS HB1629

"Mississippi Regional Early/Middle College High School Act of 2025"; create to increase high school and college completion rate.

IA HF2704

A bill for an act relating to and making appropriations to the education system, including the funding and operation of the department for the blind, department of education, and state board of regents; modifying provisions related to compulsory education, open enrollment, the state board of regents presidential search committee, the Iowa tuition grants program, and the Iowa dyslexia board; establishing restrictions related to diversity, equity, and inclusion efforts of institutions of higher education governed by the state board of regents; providing penalties; and including effective date and applicability provisions.