Educational Savings Accounts (ESA's)
What are ESAs?
The Students First Act was signed into law on Jan. 24, 2023, and its purpose was to make state funding available to support the success of every K-12 Iowa student. The bill sets up a system and provides money for education savings accounts (ESAs). These accounts can be used by eligible families to help pay for things like tuition and fees at private schools in Iowa.
ESAs provide increased choice in education, access to faith filled curriculum, strong academic programs and smaller class sizes. The true benefit is savings on tuition costs.
How do ESAs work?
Parents who choose to enroll their eligible children in one of Iowa’s accredited nonpublic schools will receive an amount equal to the per pupil funding allocated to public school districts for the same budget school year. For the 2025-26 school year, the amount was $7,988. Funds are held in an education savings account (ESA) to be used for tuition, fees, and other eligible qualified education expenses.
The state contracted with Odyssey for ESA program administration, including applications, financial transactions, compliance, fraud prevention and customer service. Odyssey securely administers funds and provides families with direct customer service and support.