UPDATE: Transparency concerns are escalating over Iowa’s Education Savings Account (ESA) program, which has reached a staggering cost of $314 million for the 2025-26 school year. Just announced findings reveal significant gaps in oversight and public access to spending information, raising alarms among taxpayers and lawmakers alike.
The ESA program, established by House File 68 in 2023, allows families to utilize state funds for private school tuition and other educational expenses. However, as participation surges, questions about accountability and transparency remain unresolved. Costs have skyrocketed from $218 million last year, prompting urgent calls for clearer oversight.
State Auditor Rob Sand has highlighted alarming limitations on accessing ESA spending records. “The State Auditor’s Office was denied access to information necessary to confirm that voucher recipients met income requirements,” Sand stated, underscoring a lack of adequate oversight. He added that this unprecedented denial threatens to create an environment ripe for fraud. “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,” he warned.
Governance issues intensified following a recent law change that curtailed the auditor’s access to essential documents. Sand emphasized that his office had historically been able to conduct thorough audits without obstruction, stating, “We had never before been denied access to documents related to a new program that, by the end of this school year, will have cost Iowa taxpayers roughly $675 million.”
In response to these concerns, Gov. Kim Reynolds defended the decision to deny Sand’s public records request, suggesting procedural issues regarding the engagement letter needed for access. “He wants the political fodder back and forth to really boast his political career,” Reynolds remarked in a recent interview, indicating her stance on the controversy.
The Iowa Department of Education (IDOE) has provided limited information online, primarily focused on eligibility and application details. Recipients of ESA funds are set to receive $7,988 this year, mirroring the funding Iowa public schools receive. Yet, a comprehensive overview of oversight and fund distribution remains absent, leaving many questions unanswered.
Multiple public records requests submitted by the Iowa State Daily have gone unfulfilled due to the extensive time required for redaction of personally identifiable information. This lack of transparency is raising flags among prominent Iowa lawmakers, including State Sen. Sarah Trone Garriott, who expressed her concerns about the ramifications of inadequate oversight. “It’s hard to know what’s happening with that money,” she stated, emphasizing the potential for misuse.
Critics of the ESA program have pointed to a study by Princeton University, which found that nearly two-thirds of ESA recipients had previously attended private schools, questioning the program’s intended purpose. Trone Garriott has proposed legislation to enhance transparency, requiring annual reporting on students’ demographics and educational status, but her efforts have stalled in the Republican-majority Iowa Legislature.
Legislators who supported the ESA program tout it as a means of expanding school choice, passing the Students First Act with a vote of 55-45 in the House and 31-18 in the Senate. However, the lack of bipartisan support and the growing concerns over transparency are igniting heated debates within Iowa’s political landscape.
As the situation develops, the ESA program’s future remains uncertain. Advocates for public education, including Trone Garriott, are calling for significant reforms. “Our responsibility is to provide education for the children of Iowa, and we do that through the public schools,” she asserted, underscoring the importance of public accountability.
With transparency issues unresolved, the expansion of Iowa’s ESA program is likely to stay at the forefront of political discourse. As critics demand greater oversight, the state’s leadership faces mounting pressure to act decisively. Stay tuned for further updates on this critical issue affecting Iowa’s educational landscape.
