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SF 2425IOWASession 2025-2026State BillSigned into law
Enacted

Iowa Overhauls Education Laws to Expand Charter School Funding, Retirement Access, and Facility Bond Programs

Original title: A bill for an act relating to education, including by modifying provisions related to charter schools, the Iowa public employees’ retirement system, financing programs for charter schools and nonpublic schools administered by the Iowa finance authority, the statewide voluntary preschool program for four-year-old children, education savings accounts, independent accrediting agencies, teacher training and licensure, and making appropriations, and including applicability and retroactive applicability provisions.(Formerly SF 2175 ; See SF 2501 .)

Last action · May 26, 2026: Fiscal note.

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
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What This Bill Does

Iowa law now alters school funding formulas to include teacher salary supplements for charter schools, permits charter school employees and employers to participate in the state retirement system, and creates revolving loan and bond programs for charter and nonpublic school facilities through the Iowa Finance Authority.

Why it matters

Charter schools and accredited nonpublic schools gain new access to state-backed financing bonds, revolving loan funds, and public retirement systems, while school districts must allow charter and nonpublic students to participate in certain district athletic competitions.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

charter schools

Charter schools receive expanded funding formulas, gain local education agency status for federal funds, become eligible for IPERS participation, and gain access to Iowa Finance Authority bond and loan programs.

Directly affected

accredited nonpublic schools

Accredited nonpublic schools gain access to the Iowa Finance Authority facilities bond program and newly created revolving loan funds.

Directly affected

school districts

School districts must accommodate resident charter and nonpublic school students in extracurricular athletic competitions under specific criteria and enter into Chapter 28E preschool agreements upon request.

Directly affected

teachers

Charter school teachers become eligible for IPERS retirement coverage, and all teachers are impacted by the newly established task force reviewing mandatory training and licensure renewal schedules.

Key Facts

  • Charter school funding calculations are expanded to include the teacher salary supplement state cost per pupil starting in school budget years beginning on or after July 1, 2026.
  • Charter school employees and employers meeting federal requirements are explicitly made eligible to participate in the Iowa Public Employees’ Retirement System (IPERS).
  • In the event of a charter school closure, remaining assets must first satisfy outstanding employee payroll and IPERS liabilities before other creditors.
  • School districts must allow resident students enrolled in nonpublic or charter schools to participate in district-provided athletic competitions if the sport has not been offered by their school for the preceding two years.
Show all 10 facts
  • Approved charter school governing boards are designated as local education agencies to receive federal funds for attendance centers under their jurisdiction.
  • The Iowa Finance Authority is authorized to issue bonds and establish revolving loan program funds for charter schools and accredited nonpublic schools to acquire or remodel school buildings.
  • Interest earned on bonds or notes issued under the charter school and nonpublic school facilities bond program is exempt from state personal and corporate income tax.
  • School districts are required, upon request, to enter into Chapter 28E agreements with community-based providers to offer instruction under the statewide voluntary preschool program without limiting eligible student counts.
  • Parents or guardians may submit applications for education savings account payments between October 15 and November 15 preceding the requested semester, with payments set at 50 percent of the regular program state cost per pupil.
  • The Department of Education must convene a task force to study required teacher training programs and licensure renewal requirements, submitting recommendations by December 31, 2026.

Frequently Asked Questions

How does this bill change funding for charter schools?
Starting with the 2026 school budget year, charter school funding formulas will include the teacher salary supplement state cost per pupil in addition to existing per-pupil allocations.
Can charter school teachers participate in the state retirement system?
Yes. Employees of charter schools that satisfy applicable federal participation requirements are now included as members and employers under the Iowa Public Employees' Retirement System (IPERS).
What new options are available for charter and nonpublic school facility financing?
The Iowa Finance Authority is authorized to issue tax-exempt bonds and operate revolving loan program funds to help charter schools and accredited nonpublic schools purchase, construct, or remodel school buildings.
What is the timeline for the teacher training and licensure task force?
The Department of Education must convene a task force to study teacher training and licensure renewal requirements, and the task force must submit its findings and recommendations to the general assembly on or before December 31, 2026.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Signed into law.

Procedural history

62 actions
  1. May 26, 2026Iowa Legislature
    Fiscal note.
  2. May 12, 2026HouseEnrolled
    Signed by Governor . H.J. 1168 .
  3. May 6, 2026House
    Reported correctly enrolled, signed by Speaker and President, and sent to Governor. H.J. 1164 .
  4. May 2, 2026House
    Explanation of vote. H.J. 1158 .
  5. May 2, 2026House
    Explanation of vote. H.J. 1158 .
  6. May 2, 2026House
    Explanation of vote. H.J. 1158 .
Show 56 earlier actions
  1. Apr 28, 2026House
    Message from Senate. H.J. 1014 .
  2. Apr 27, 2026Senate
    Withdrawn. S.J. 895 .
  3. Apr 27, 2026Senate
    HF 2754 substituted. S.J. 887 .
  4. Apr 27, 2026SenateFloor
    Amendment S-5212 filed, adopted. S.J. 887 .
  5. Apr 27, 2026Senate
    Immediate message. S.J. 895 .
  6. Apr 27, 2026SenateFloor
    Passed Senate , yeas 29, nays 17. S.J. 895 .
  7. Apr 27, 2026Senate
    Amendment S-5224 filed, lost. S.J. 894 .
  8. Apr 27, 2026Senate
    Amendment S-5223 filed, lost. S.J. 893 .
  9. Apr 27, 2026Senate
    Amendment S-5222 filed, lost. S.J. 893 .
  10. Apr 27, 2026Senate
    Amendment S-5221 filed, lost. S.J. 892 .
  11. Apr 27, 2026Senate
    Amendment S-5220 filed, lost. S.J. 891 .
  12. Apr 27, 2026Senate
    Amendment S-5219 filed, lost. S.J. 891 .
  13. Apr 27, 2026Senate
    Deferred. S.J. 887 .
  14. Apr 27, 2026Senate
    Substituted for SF 2501 . S.J. 887 .
  15. Apr 27, 2026Iowa Legislature
    Fiscal note.
  16. Apr 22, 2026Iowa Legislature
    Fiscal note.
  17. Apr 20, 2026House
    Withdrawn. H.J. 949 .
  18. Apr 16, 2026Senate
    Attached to HF 2754 . S.J. 825 .
  19. Apr 16, 2026Senate
    Committee report, approving bill. S.J. 826 .
  20. Apr 16, 2026SenateIntroduced
    Introduced, placed on Appropriations calendar. S.J. 826 .
  21. Apr 16, 2026SenateIntroduced
    Read first time, attached to SF 2501 . S.J. 825 .
  22. Apr 16, 2026House
    Message from House. S.J. 825 .
  23. Apr 16, 2026House
    Immediate message. H.J. 933 .
  24. Apr 16, 2026HouseFloor
    Passed House , yeas 53, nays 34. H.J. 929 .
  25. Apr 16, 2026HouseFloor
    Amendment H-8371 adopted, as amended. H.J. 929 .
  26. Apr 16, 2026HouseFloor
    Amendment H-8372 to amendment H-8371 , yeas 54, nays 34, filed, adopted. H.J. 927 .
  27. Apr 16, 2026HouseFloor
    Amendment H-8373 to amendment H-8371 , yeas 27, nays 60, filed, adopted. H.J. 926 .
  28. Apr 16, 2026Senate
    Committee report approving bill, renumbered as SF 2501 . S.J. 826 .
  29. Apr 15, 2026House
    Amendment H-8371 filed. H.J. 921 .
  30. Apr 9, 2026Iowa Legislature
    Fiscal note.
  31. Apr 6, 2026HouseIntroduced
    Introduced, placed on Appropriations calendar. H.J. 807 .
  32. Apr 6, 2026Iowa Legislature
    Committee report approving bill, renumbered as HF 2754 .
  33. Apr 1, 2026House
    Committee vote: Yeas, 17. Nays, 6. Excused, 2. H.J. 802 .
  34. Apr 1, 2026House
    Committee report, recommending amendment and passage. H.J. 802 .
  35. Mar 25, 2026Iowa Legislature
    Subcommittee recommends passage.
  36. Mar 24, 2026Iowa Legislature
    Subcommittee Meeting: 03/25/2026 2:30PM RM 103.
  37. Mar 24, 2026House
    Subcommittee: Gehlbach, Matson and Stone. H.J. 743 .
  38. Mar 12, 2026Iowa Legislature
    Subcommittee recommends amendment and passage.
  39. Mar 11, 2026Senate
    Subcommittee Meeting: 03/12/2026 10:00AM Senate Lounge.
  40. Mar 10, 2026Senate
    Subcommittee: Green, Gruenhagen, and Winckler. S.J. 549 .
  41. Mar 10, 2026SenateCommittee
    Referred to Appropriations. S.J. 527 .
  42. Feb 24, 2026HouseIntroduced
    Introduced, referred to Appropriations. H.J. 400 .
  43. Feb 24, 2026Iowa Legislature
    Committee report approving bill, renumbered as HF 2713 .
  44. Feb 23, 2026Senate
    Committee report approving bill, renumbered as SF 2425 . S.J. 366 .
  45. Feb 23, 2026Senate
    Committee report, approving bill. S.J. 366 .
  46. Feb 23, 2026SenateIntroduced
    Introduced, placed on calendar. S.J. 355 .
  47. Feb 18, 2026House
    Committee vote: Yeas, 14. Nays, 9. H.J. 361 .
  48. Feb 18, 2026House
    Committee report, recommending amendment and passage. H.J. 360 .
  49. Feb 17, 2026Iowa Legislature
    Subcommittee recommends passage.
  50. Feb 16, 2026Iowa Legislature
    Subcommittee Meeting: 02/17/2026 12:00PM RM 103.
  51. Feb 16, 2026Iowa Legislature
    Subcommittee recommends passage.
  52. Feb 13, 2026Iowa Legislature
    Subcommittee Meeting: 02/16/2026 10:00AM Room 315.
  53. Feb 13, 2026Iowa Legislature
    Subcommittee: Green, Quirmbach, and Rozenboom.
  54. Feb 12, 2026House
    Subcommittee: Wheeler, Ehlert and Stone. H.J. 279 .
  55. Feb 12, 2026HouseIntroduced
    Introduced, referred to Education. H.J. 276 .
  56. Feb 3, 2026SenateIntroduced
    Introduced, referred to Education. S.J. 185 .

Version history

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Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift99% confidence

Integration of Charter Schools into State Retirement and Financing

The legislation formally links charter schools and accredited nonpublic schools to state-backed bond programs through the Iowa Finance Authority and incorporates charter staff into IPERS.

Iowa Finance AuthorityIowa Public Employees’ Retirement System

Connected Entities

Department of Education, Iowa Finance Authority, Iowa Public Employees’ Retirement System
OrganizationDepartment of Education“Processes education savings account applications and convenes a teacher training”Map →
OrganizationIowa Finance Authority“Administers financing programs, revolving loan funds, and bond programs for char”Map →
OrganizationIowa Public Employees’ Retirement System“State retirement system expanded to include charter school employees and employe”Map →

Sources

Open source document

www.legis.iowa.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy65
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz50
    Current news / social attention level

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