(IOWA CAPITAL DISPATCH) – Iowa Gov. Kim Reynolds said a measure she signed into law Tuesday on charter school funding and homeschool rules are “yet another step to put students first” in the state as part of Republicans’ “school choice” agenda.
As she signed the bill, the governor was joined by students, families and administrators at Des Moines Prep, a charter school that opened in August 2025, as well as some of the lawmakers who supported the legislation this session. Reynolds said five years ago, Iowa only had two charter schools in operation. As of Tuesday (May 12th) she said, there are 10 charter schools operating across the state, and another eight authorized to open.
“And demand continues to grow, all thanks to Iowa’s adoption and expansion of school choice,” Reynolds said. “Our ‘students first’ approach has been focused on giving options to families — the option to decide what works best for their kids, and to have their tax dollars follow them to the school of their choice, whether that’s a public school in their school district of residence, or another local district, a public charter school, a private school, or homeschool.” Reynolds said the bill she signed “further strengthens that commitment.”
House File 2754 makes changes to how education funding flows to charter schools versus public school districts. It moves funding from the state’s Teacher Salary Supplement cost per pupil to go the charter school where a student is enrolled. It also adds charter school teachers to the Iowa Public Employee Retirement System (IPERS). Previously, the funding stayed with the public school district where a student resides. The shift would direct roughly $1.3 million to charter schools, according to a Legislative Services Agency estimate.
The measure also provides low-interest loans for charter school companies to buy facilities in the state through a revolving loan program fund, operated by the Iowa Finance Authority. While the funding is shifted, it adds requirements for public schools to take on charter school students for extracurricular activities, including sports and music programs, if these activities are not offered by the charter school. During debate on the proposal earlier this year, Democratic lawmakers said the bill will add new costs to Iowa public schools while diverting funding to charter schools.
The House also amended the measure to include several components related to homeschooling. Previously, Iowa law had a restriction in place that only four unrelated students could be taught at the same time by an independent private instructor, as well as a ban on charging tuition, fees or other compensation for providing homeschooling services. These limits are removed by the proposal.
