UPDATE: Transparency concerns are escalating over Iowa’s expanding $314 million Education Savings Account (ESA) program, as critical questions about oversight and public access to spending data remain unanswered. Launched in 2023 under House File 68, the ESA initiative allows eligible families to utilize state funds for private school tuition and various educational expenses.
The financial burden of the program has surged dramatically, costing taxpayers $314 million for the 2025-26 school year, up from $218 million just a year prior. With participation on the rise, concerns about how these funds are being monitored have reached alarming levels.
State Auditor Rob Sand recently revealed that his office was denied access to crucial records during a routine audit. “The State Auditor’s Office was denied access to information necessary to confirm that voucher recipients met income requirements and that adequate security measures were in place,” Sand stated. He emphasized that this unprecedented denial limits oversight, raising fears of potential fraud and misuse of taxpayer dollars.
The lack of transparency is further exacerbated by a recent shift in state law that has restricted the auditor’s power to access vital program information. “When any entity receives that level of funding and knows no one is watching how it’s being spent, it creates an environment that invites fraud,” Sand concluded.
Despite the urgency of these concerns, Gov. Kim Reynolds defended the denied records request, suggesting that proper protocols were not followed. “He wants the political fodder back and forth to really boast his political career,” Reynolds told KCCI. Yet, her office has remained silent in response to multiple inquiries regarding this critical issue.
The Iowa Department of Education (IDOE) has published limited information about the ESA program, primarily focusing on eligibility and application deadlines. ESA recipients received an average of $7,988 for the 2025-26 school year, mirroring the funding that Iowa public schools receive. However, detailed oversight information is notably absent, raising alarms among lawmakers.
Prominent state legislators, including State Sen. Sarah Trone Garriott, have voiced their concerns over the lack of accountability and oversight for ESA funds. “Private schools can take the money, enroll the student, and for whatever reason, they can expel them,” she warned, highlighting the potential for misuse of funds. A study from Princeton University indicates that nearly two-thirds of ESA recipients had already attended private schools, raising questions about the program’s intended beneficiaries.
Garriott previously proposed legislation aimed at increasing transparency within the ESA program, but her efforts were stalled in a legislature dominated by Republican support for the initiative. “If I could change one thing about the ESA program, I would end it completely,” she stated emphatically.
As Iowa grapples with these pressing issues, the future of the ESA program hangs in the balance. With debates over education policy intensifying, the lack of transparency and oversight will remain a focal point for both supporters and critics of the program. Observers are left wondering how much longer these unresolved issues can persist before significant reform is demanded.
The urgency for accountability in the ESA program is palpable, and as the 2025-26 school year continues, all eyes will be on Iowa’s leadership to address these critical transparency concerns. The implications for taxpayer dollars and the educational landscape in Iowa are profound, making this a developing story that merits immediate attention.
