(IOWA CAPITAL DISPATCH) –  Gov. Kim Reynolds signed into law Thursday the bill establishing a 2% State Supplemental Aid rate, providing per-pupil funding for Iowa’s K-12 schools in the upcoming school year. Republican lawmakers said Senate File 2201 results in roughly a $160 increase from the previous fiscal year in state spending per student, up to a total cost of $8,148 per pupil.

Reynolds said in a statement the 2% SSA measure results in “more than $4 billion for Iowa’s public schools” from state funds, and that when considering state, local, and federal funding streams, Iowa schools are estimated to receive more than $9.1 billion in total education funding during the 2026-2027 school year. Reynolds also pointed to other education measures she signed into law in recent years, such as increasing minimum salaries for teachers, making changes to improve Iowa’s reading and literacy education and expanding STEM and work-based learning options in K-12 schools.

But in a news conference Thursday, House Minority Leader Brian Meyer said Democrats opposed the school funding package because the approved SSA rate does not allow schools to “even keep up with inflation.”

The Iowa Senate sent the measure to the governor’s desk Monday in a 27-20 vote. The measure was a compromise reached between Senate and House Republicans, as well as the governor’s office. Senate Republicans initially proposed a 1.75% SSA rate while the House called for a 2.25% rate. Republicans’ initial proposals — as well as the compromise reached — fall far below the 5% minimum SSA rate called for by public education organizers like the Iowa State Education Association, the rate which was introduced but failed as an amendment from House Democrats.

The law also includes provisions to put an estimated $42.2 million state funding for schools on the budget guarantee, and extends property tax relief payments by a year. Additionally, it provides an additional $7 million for para-educator and support personnel pay — half of the $14 million called for by House Republicans. House Speaker Pat Grassley said the House GOP will pursue the additional $7 million in funding during later budget discussions.