Iowa Expands K-12 Educational Options for Families

This week, the Iowa legislature passed a bill which increases the cap of the Student Tuition Organization tax credit scholarship program to meet the demand from lower-income families for more and better educational options.

Statement from John Schilling, President of the American Federation of Children:

We are pleased that during this time of crisis for all K-12 families, Iowa legislators are continuing to focus on giving educational opportunities to lower-income families. More than 10,000 families with average incomes of $43,000 are accessing scholarships thanks to the Student Tuition Organizations across Iowa, saving taxpayers more than $12 million per year according to the Department of Revenue. In the coming year, this new law will allow scholarships to expand while keeping pace with the demand from families and generous donors. This popular and bipartisan policy enacted by former Governor Vilsack continues to help families have the freedom to choose the best K-12 education option for their children, and we are excited to see Governor Reynolds sign this expansion into law within the next 30 days. On behalf of the families of Iowa, we would especially like to thank Representative Chris Hagenow and Senator Jake Chapman for their support and for leading the legislative effort.

Details:

  • If the Student Tuition Organizations (STOs) receive contributions totaling 90% or more of the $15 million cap in 2022, there will be automatic 10% increases in the contribution cap the following year.
  • Previously, corporations could only contribute a maximum of 25% of the total cap, but now both corporations and individuals can contribute without restrictions up until the total cap is hit.