URGENT UPDATE: Transparency issues are escalating as Iowa’s Education Savings Account (ESA) program, costing taxpayers over $314 million for the 2025-26 school year, faces scrutiny over its oversight and spending disclosures. Created by House File 68 in 2023, the ESA allows families to utilize state funds for private school tuition and other educational expenses. However, growing concerns about accountability and access to financial information are raising alarms among lawmakers and the public.
The ESA program has expanded rapidly, with participation rising significantly. State Auditor Rob Sand revealed that his office was recently denied access to crucial records during a routine audit. “The denial was unprecedented,” Sand stated, emphasizing that it undermines the necessary oversight of a program projected to cost Iowa taxpayers nearly $675 million by the end of this school year.
“Without proper oversight, it creates an environment that invites fraud,” Sand warned, highlighting the potential risks of mismanaged funds. Currently, no agency has been established to replace the auditor’s oversight, raising further concerns about potential waste and misuse of taxpayer dollars.
In a controversial defense, Gov. Kim Reynolds asserted that Sand’s office needed to file an engagement letter to obtain the requested documents, suggesting that the auditor’s motives were politically motivated. “He wants the political fodder back and forth to really boost his political career,” Reynolds claimed in a 2025 interview with KCCI.
The Iowa Department of Education (IDOE) provides basic information about the ESA program, such as eligibility and application processes, but lacks transparency regarding oversight and fund distribution. ESA recipients receive an average of $7,988 to cover educational costs, yet critics argue the lack of transparency is alarming.
Prominent lawmakers, including State Sen. Sarah Trone Garriott, voiced their concerns about the program’s lack of accountability. “One of my biggest concerns is the insufficient information about recipients’ enrollment in public or private schools,” she stated, referencing a study indicating that nearly two-thirds of ESA recipients already attended private schools or could afford tuition without state assistance.
Trone Garriott further criticized the system, noting that private institutions can expel students after receiving ESA funds, effectively allowing schools to keep the money without ensuring educational continuity. “It’s hard to know what’s happening with that money,” she said.
Previous efforts to enhance transparency, including a proposed bill by Trone Garriott requiring annual reports on student demographics and educational status, failed to advance in the overwhelmingly Republican-controlled Iowa legislature. The ESA program, framed by its supporters as a matter of “school choice,” passed with a narrow majority, but dissenting voices are growing louder.
Critics argue that public schools, which are obligated to serve all students, should be prioritized over private institutions that can selectively admit and expel students. “Our responsibility is to provide education for the children of Iowa, and we do that through the public schools,” Trone Garriott emphasized.
As the debate intensifies, the future of the ESA program hangs in the balance. With calls for greater transparency and oversight continuing to mount, the ongoing discussions will likely keep this contentious issue at the forefront of Iowa politics.
Stay tuned for updates as this situation develops. The implications for Iowa’s education system are significant, impacting thousands of families and the management of public funds.
