During the October 14 gubernatorial debate in Sioux City, Zach Lahn described Education Savings Accounts (ESAs) as “a foundational freedom.”
“I don’t think it’s a welfare program. I actually think it’s an opportunity fund for Iowa’s kids,” he said during the KTIV debate.
That distinction reflects a principle Iowa ACE has long supported: parents should have greater freedom to choose where their children attend school, regardless of household income.
Educational Choice Belongs to Parents
Parents choose schools for reasons that go beyond academics alone. Some seek a particular instructional approach; others want an environment aligned with their family’s priorities or a school better suited to their child’s needs.
Before ESAs, a family seeking nonpublic education generally had to cover tuition on its own or qualify for scholarship assistance. The ability to act on a school preference often depended on the family’s financial resources.
ESAs have changed that equation. State education funding can now help parents choose an accredited nonpublic school rather than limiting their practical options to what they can personally afford.
Support for ESAs does not mean opposition to public schools. Iowa families benefit when they have a meaningful say in which school best serves their children.
Why Universal Eligibility Makes a Difference
Iowa began phasing in Students First ESAs in 2023–24. Initially, income limits applied to some families with children already attending nonpublic schools. Beginning in 2025–26, those income limits ended.
Under Iowa law, Iowa resident K–12 students may qualify for an ESA to attend an accredited nonpublic school, subject to application and other program requirements. Household income no longer determines eligibility.
This distinction is central to Lahn’s description of ESAs as an “opportunity fund.” An income-tested program asks whether a family qualifies for assistance based on its earnings. Universal ESA eligibility instead recognizes that families at every income level have reasons to choose a different school.
A household with several children can face substantial tuition costs even when its income exceeds a typical assistance threshold. Universal eligibility lets those parents pursue the school they believe fits each child without first passing an income test.
ESAs Fund Education, Not Personal Spending
For 2026–27, the full-year Students First ESA amount is $8,148 per eligible student. Odyssey administers the program’s accounts and transactions.
Parents do not receive unrestricted cash. ESA funds first cover tuition and fees at the accredited nonpublic school. Remaining funds may be used for other approved educational expenses, including eligible textbooks, tutoring, and educational materials.
These rules allow parents to direct public education dollars toward their children’s schooling while keeping those funds dedicated to educational purposes.
Opportunity, Not an Income Test
Universal eligibility begins with a straightforward principle: parents should have a greater role in choosing their children’s education whether their income is modest or substantial.
Lahn’s phrase “opportunity fund” captures that goal. Students First ESAs do not choose a school for a family. They give eligible parents more financial ability to make that decision themselves.