When Iowa’s Education Savings Account (ESA) law became effective in 2023, the immediate aim was to give families more financial flexibility. But within just a couple of years, the deeper effects are becoming clear: choice is expanding, private school supply is growing, and existing schools are scaling to match demand
Surge in ESA Applicants
The first and most visible ripple is in sheer numbers.
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For the 2025–26 school year, Iowa received 45,328 ESA applications.
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In contrast, in 2023–24, 16,757 students used ESAs to attend accredited private schools.
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In 2024–25, that number rose to 27,866 students.
That’s nearly a tripling of ESA-funded private school enrollment over two years. What began as a modest program is now moving at scale — tens of thousands of families are choosing new paths for their children’s education.
New Private Schools Responding to Demand
One of the most tangible ways that the ESA program is reshaping education in Iowa is in the birth of new private schools — for many, these would not have existed otherwise.
Here are just three examples:
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Waverly Christian School (Waverly, IA) — Opening for the 2025–26 school year, starting with K–5 and planning to add higher grades in coming years/
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Tama-Toledo Christian School (Tama County, IA) — Launched in 2025 (K–8), built around community demand for a private Christian option in a region with no prior nonpublic schools.
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Iowa Conservatory (ICON) (Iowa City, IA) — Founded in 2023 and achieved accreditation in 2025 to become ESA-eligible, with a specialized arts mission.
These schools illustrate different models and geographies — from small beginnings in rural areas to niche arts education in more urban centers — all responding to families now empowered by ESA access
Expansion in Established Private Schools
The ripple effect continues in how established private schools are scaling to meet rising demand. This expansion is not passive — many schools are actively transforming in response to new pressures and opportunities.
Here’s how:
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Grade-level extension: Some private schools that stopped at middle school are expanding into high school grades so families won’t have to leave their preferred school at critical transitions.
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Facility growth: Schools are adding classrooms, building new wings, or renovating antique buildings to increase capacity. In diocesan and independent Christian school networks in cities like Cedar Rapids, Davenport, and Sioux City, new construction and remodeling efforts are underway.
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Staff scaling: Many schools report hiring surges, increasing faculty by 10–20% or more in a single year, especially to maintain small class sizes despite growth.
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Specialized offerings: Schools are differentiating — launching STEM tracks, arts intensives, career-technical blends, advanced college-prep courses, or enhanced special education resources.
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Accreditation upgrades: Some schools that formerly operated without full accreditation have sought it to become ESA-eligible — effectively transforming their status to serve new demand.
In many cases, schools that had plateaued in enrollment are now projecting future growth, redrawing strategic plans, and actively competing to attract ESA-funded families
What It All Means
Taken together, these trends show a state in motion:
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Parents are exercising choice en masse.
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New schools are forming to fill gaps created by the expansion of eligibility.
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Access and capacity are rising as existing schools stretch themselves.
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Students gain more tailored options — in location, pedagogy, curriculum, or faith alignment.
Iowa’s ESA program is no longer experimental — it’s catalyzing real change. With new private schools, and expansions across established schools, the educational landscape is stretching outward.