What Is an ESA?
Iowa's Education Savings Account explained in plain language
The Simple Version
Iowa's Education Savings Account (ESA) is money the state gives families to spend on private education.
For 2025-26, that's $7,988 per student.
You don't have to be low-income. You don't have to prove financial need. Every Iowa family qualifies.
How It Works
| Step | What Happens |
|---|---|
| State of Iowa | Allocates $7,988 per student |
| ↓ | |
| Odyssey Platform | Holds the funds in your ESA account |
| ↓ | You approve the payment |
| Your Child's School | Receives payment directly |
- State allocates funds — $7,988 per student
- Funds held in Odyssey — A platform that manages ESA accounts
- You approve payments — To your chosen school or vendor
- School receives payment — Directly from your ESA
You never write a check. The money flows from the state to your school.
Who Qualifies?
| Requirement | Details |
|---|---|
| Residency | Must be an Iowa resident |
| Age | K-12 students |
| Income | No limit — all families qualify |
| Previous school | Can come from public, private, or homeschool |
As of 2025, the program is universal. Income limits from earlier years have been phased out.
What Can ESA Pay For?
| Eligible | Not Eligible |
|---|---|
| ✅ Tuition & school fees | ❌ Athletic training |
| ✅ Textbooks & curriculum | ❌ Club/travel team fees |
| ✅ Educational software | ❌ Sports equipment |
| ✅ Tutoring (licensed providers) | ❌ Uniforms & clothing |
| ✅ Standardized tests (ACT, SAT, AP) | ❌ Food & meals |
| ✅ Educational therapy | ❌ Transportation |
Important: Tuition must be paid first. If your tuition equals or exceeds your ESA (like with ISP), your full ESA goes to tuition.
The Numbers
| Metric | 2023-24 | 2024-25 | 2025-26 |
|---|---|---|---|
| Per-student amount | ~$7,600 | ~$7,800 | $7,988 |
| Students using ESA | 16,757 | 27,866 | ~45,000 (projected) |
| Growth | — | +66% | +62% |
The program is growing rapidly. More families are using ESAs every year.
Common Questions
Q: Is this a voucher?
A: Technically, Iowa calls it an "Education Savings Account," but yes — it's similar to school voucher programs in other states. The key difference: ESA funds can be used for more than just tuition (textbooks, testing, tutoring, etc.).
Q: Do I have to pay it back?
A: No. ESA funds are yours to use for eligible education expenses. They're not a loan.
Q: Can I use it for multiple kids?
A: Yes. Each child gets their own ESA allocation.
Q: What if I don't use it all?
A: Unused funds can roll over to the next year, up to certain limits.
Q: Can religious schools receive ESA funds?
A: Yes. Both secular and religious private schools can receive ESA payments.
The Legal Foundation
ESAs were created by House File 68 (Students First Act), signed into law in January 2023 by Governor Kim Reynolds.
| Attribute | Details |
|---|---|
| Bill | HF 68 — Students First Act |
| Signed | January 2023 |
| Sunset clause | None — program is permanent by statute |
| Amount tied to | State Cost Per Pupil (adjusts annually) |
Why This Matters
Before ESAs, Iowa families had limited options:
- Public school (free, but you get what your district offers)
- Private school (quality, but expensive)
- Homeschool (flexible, but you're on your own)
ESAs changed the equation. Now families can access private education without the private school price tag.
For families considering ISP, our goal is to match tuition to the ESA amount—so families pay nothing out of pocket once we're an approved ESA provider.
Next Steps
- Check the timeline — When to apply, when funds arrive
- See what's covered — Detailed list of eligible expenses
- Learn about Odyssey — The platform where you manage your ESA