WeVote
Log In

Bill

Bill

SF 2425

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.

2025-2026 Regular Session

Expands charter/nonpublic school funding, facilities financing, extracurricular access, and independent accreditation while reviewing teacher licensure for streamlined timelines.

Committee report approving bill, renumbered as SF 2501.
#appropriations #bonds #charterschools #children #contests(competitions) #education #educationdepartment #extracurricularactivities #finance #financeauthority #preschools #privateeducation #privateeducationstudentaccounts #publicemployees'retirementsystem #retirement #salariesandwages #schoolboards #schoolcalendars #schooldistricts #schoolfinance #schoolinfrastructure #schools #stateemployees #teachers
0
WeVote Research Nonpartisan
Bill Summary · SF 2425

Summary of SF 2425 (2025-2026) – Iowa

This bill, introduced by the Senate Education Committee, presents a broad set of education-related changes across several divisions. It targets charter schools, retirement system participation, financing for facilities, preschool programming, education savings accounts, independent accrediting, teacher training/licensure, and related appropriations. Provisions include retroactive elements and applicability to future budget years.

1) Main purpose and intent

  • Modernize and expand several aspects of Iowa’s education system, with special emphasis on charter schools, facility financing, and program administration.
  • Provide new funding mechanisms and options for charter schools and accredited nonpublic schools.
  • Enhance access to voluntary preschool and streamline teacher training/licensing considerations.
  • Establish governance and funding standards for education savings accounts and independent accrediting agencies.

2) Key provisions and changes

A. Charter School Funding (Division I)

  • Replaces current calculation to include not only the regular state cost per pupil in the charter school funding but also adds:
    • Teacher leadership supplement
    • Teacher salary supplement
    • Professional development supplement
    • Early intervention supplement
    • Plus any applicable non-English speaking weighting from the student’s resident district
  • If the pupil is eligible under section 261E.6, tuition reimbursement goes to eligible postsecondary institutions as per section 261E.7.
  • Applicability: Applies to school budget years beginning on or after July 1, 2026.

B. IPERS Participation for Charter Schools (Division II)

  • Charter school employees who meet federal requirements for IPERS participation will be treated as IPERS-eligible employees.
  • Charter schools satisfying federal requirements can be IPERS employers.
  • Charter school closure provisions: assets first satisfy IPERS liabilities, after payroll, then creditors, then the district, then the state general fund.

C. Extracurricular Participation (Division III)

  • Students residing in a district and enrolled in a charter or nonpublic school may participate in district-provided extracurricular activities if:
    • The activity hasn’t been offered by the charter/nonpublic school in the prior two years, and
    • The school hasn’t contracted with another district to provide that eligibility.
  • Districts can charge a participation fee, capped at the district’s own fee.
  • Participants must follow the same conduct rules and residence eligibility is recognized.

D. Local Education Agency Status (Division IV)

  • Charter school governing boards approved under code 256E.5 qualify as a local education agency for receiving federal funds across all attendance centers under their governance.

E. Charter/NONPUBLIC School Facilities (Division V)

  • Iowa Finance Authority (IFA) to assist with a charter school and accredited nonpublic school facilities bond program.
  • Creation of charter school facilities revolving loan program funds and accredited nonpublic school facilities revolving loan program funds.
  • IFA may issue bonds/notes to finance school buildings, with repayment secured as specified; bonds are tax-exempt, and state faith/credit is not pledged.
  • Additional liquidity/credit enhancement agreements permitted.
  • Retroactive applicability to January 1, 2026, for tax years beginning after that date.

F. SWVPP (Division VI)

  • Allows chapter 28E agreements with community-based providers to deliver high-quality instruction as part of the statewide voluntary preschool program.
  • Agreements cannot limit the number of eligible students nor authorize expanded state control over providers.
  • Providers receiving payments are not state agents; rules that unduly burden providers are invalid.

G. Education Savings Accounts (Division VII)

  • Adjustments to application windows and timing for ESAs.
  • Payments remain equal to the regular program state cost per pupil, with a reduced amount (50%) if the family submits certain late applications.
  • Individual ESA accounts established per pupil; funds become available for qualified expenses for the applicable school year.

H. Independent Accrediting Agencies (Division VIII)

  • Nonpublic schools can be accredited by approved independent agencies, with protections limiting state overreach.
  • Emphasis on maximum school autonomy consistent with law and avoiding undue regulatory burden.

I. Teacher Training and Licensure (Division IX)

  • Creates a task force to study and potentially reform the schedule of teacher training and license renewal requirements.
  • Task force must report by December 31, 2026, with concrete recommendations to simplify and manage training/licensure timelines.

3) Who/what is affected

  • Charter schools and their employees (IPERS participation; funding per pupil).
  • Nonpublic schools accredited by independent agencies (recognition, funding, and oversight considerations).
  • Students eligible for extracurriculars in public districts (charter/nonpublic enrollees).
  • Community-based preschool providers participating in SWVPP.
  • School districts, IFA, and bond issuers financing charter/nonpublic school facilities.
  • Education savings account participants (students in nonpublic schools).
  • Districts and providers under the new teacher training/licensure review process.

4) Procedural and timeline aspects

  • Divisions I, II, III, V, VI, VII, VIII, IX include new or revised policies effective for budget years or tax years as specified (notably July 1, 2026 for many charter-related funding changes; retroactive tax treatment for bonds effective Jan 1, 2026).
  • A task force on teacher training/licensure must report by December 31, 2026.
  • Code edits designate new sections and ensure proper cross-references; retroactivity provisions apply to certain tax-related sections.

Overall, SF 2425 represents a comprehensive reform package aimed at expanding charter/nonpublic school financing, expanding access to extracurriculars, accelerating facility financing, and streamlining teacher licensing processes, with strong emphasis on autonomy for independent accrediting bodies and community providers in early education.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.