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🎓 Iowa School Choice, ESAs & Scholarships

Which Iowa education savings accounts, scholarships and tax credits a homeschool family can use, what they pay for, and where Iowa stands on school choice — from our Iowa guide.

Overseen byThe Iowa Department of Education sets the rules (Iowa Administrative Code 281—chapter 31) and publishes the Private Instruction Handbook and Form A. The family's resident school district receives Form A and evaluation results from families who report, and runs dual enrollment and any homeschool assistance program (HSAP). Families who don't comply with the CPI or IPI law face truancy prosecution.
Legal optionsCPI Option 1, by or under a licensed teacher: a district's HSAP if offered, a teacher the family hires, or a licensed parent. CPI Option 2, by a parent without a current Iowa teaching license: with reporting (Form A plus an annual evaluation) or without it (the "Private Instruction Exemption"). IPI: no forms; a report only if the superintendent or the Department asks in writing.
Instruction requiredUnder IPI and CPI Option 2 without reporting: mathematics, reading and language arts, science and social studies. The Department describes CPI as daily instruction for at least 148 days a school year, at least 37 days each quarter. Families choose their own curriculum; the Department doesn't review, recommend or require one.
Reporting and evaluationsOnly for CPI families who report or dual enroll, and Option 1 families outside an HSAP: Form A to the resident district by September 1 (or within 14 calendar days of leaving a school). Option 2 families who report also need an annual evaluation by May 31 — a Department-approved standardized test (free from the district or AEA on request), a portfolio review by a licensed Iowa teacher, or an accredited correspondence school's report card — with results due by August 1.
DiplomasSince House File 2754 (signed May 12, 2026), the parent, guardian or instructor may issue a diploma, final transcript or other written documentation, and Iowa law must accept it like one from a school district or accredited nonpublic school (§ 299A.13). A student who completes a CPI or IPI secondary program isn't required to get a high school equivalency diploma. Iowa's HSED is earned with the HiSET through the community colleges.
Homeschool fundingThe Tuition and Textbook Credit (Iowa Code § 422.12): 25% of the first ,000 of qualifying expenses per dependent, so up to $500 per child, claimed on IA 1040 line 9 (tax year 2025 instructions). Purchases made with Students First ESA funds don't count. No state account or grant pays homeschool costs, and an HSAP may not give money to parents.
School choice statusAs of November 2026: Students First ESAs are open to every Iowa resident K–12 student who attends an accredited nonpublic school ($8,148 full-year for 2026–27) — not to homeschool students. STO scholarships are also for accredited nonpublic schools (0 million yearly credit cap). Public choices are open enrollment, charter schools and approved online schools. Iowa elected to take part in the federal scholarship tax credit for 2027; SGO applications are due December 11, 2026.

Diplomas, transcripts, the HSED and college

College aid — Last-Dollar Scholarship: the Department of Education lists the Last-Dollar Scholarship as open to Iowa residents who recently completed "an Iowa high school diploma, a homeschool program, or high school equivalency diploma," or students 20 and older, enrolling at least part-time in an eligible program at an Iowa community college or accredited private college. The FAFSA deadline for 2026–27 is June 30, 2027.

Read the full section in our Iowa guide

Where Iowa stands on school choice (November 2026)

Students First Education Savings Accounts: created by the Students First Act, signed January 24, 2023, and universal since 2025–26 — every Iowa resident K–12 student who enrolls in and attends an accredited nonpublic school is eligible regardless of income. For 2026–27 a full-year ESA is $8,148 and a half-year ESA is $4,074; the money pays tuition and fees first, and any remainder can be spent on eligible expenses in the program's marketplace. Odyssey runs applications and payments for the state.

2026–27 windows: the full-year application window ran April 16 to June 30, 2026. House File 2754 (2026) added a half-year window, which runs 8:00 a.m. October 15 to 11:59 p.m. November 15, 2026; half-year funds arrive December 1, and half-year families must pay tuition and fees through the ESA portal by January 14, 2027.

Homeschool students can't use the ESA: the student must be enrolled in and attend an accredited nonpublic school. The Department says a student homeschooled in 2025–26 can apply as long as the student enrolls full time at an Iowa accredited nonpublic school.

School Tuition Organizations (STOs): Iowa-based 501(c)(3) charities that give tuition grants to students at accredited nonpublic Iowa schools. Donors receive an Iowa tax credit of 75% of their contribution; the statewide credit cap is

0 million for each calendar year beginning on or after January 1, 2022. A student's household income can't exceed 400% of the federal poverty guidelines. STO grants don't pay homeschool costs.

Public options: open enrollment lets a family apply to move a child to another Iowa school district (the deadline for grades 1–12 is March 1 for the next school year, but it doesn't apply to applications to a district with a Department-approved online school). Charter schools are public schools run by independent boards under five-year agreements approved by the State Board or the University of Northern Iowa. Approved online schools are public or nonpublic schools. Enrolling in any of these makes your child a public school (or nonpublic school) student, not a homeschooler.

The federal scholarship tax credit: Governor Reynolds announced on January 5, 2026 that Iowa would opt into the new federal program, and the Department of Revenue says Iowa has elected to participate for 2027. Iowa was on the IRS list of participating states as of October 22, 2026. From January 1, 2027, a taxpayer may claim a federal credit of up to

,700 ($3,400 for joint filers) for cash gifts to an approved scholarship granting organization (SGO). Nonprofits must apply to Revenue by 11:59 p.m. December 11, 2026 to be on Iowa's 2027 SGO list, and the first eligible contributions can be made after Iowa sends its list to the IRS in early 2027.

Who the federal scholarships are for: the Department of Education and the Department of Revenue describe SGO scholarships for eligible students attending public schools or accredited nonpublic schools, and the Governor's office says eligible students must have a family income below 300% of their area median income. Neither state page lists home-schooled students, so don't count on these scholarships for homeschool costs unless Iowa's SGO rules or a specific SGO says otherwise.

What it means for homeschool families: the Tuition and Textbook Credit is the state program you can use. You can't use the Students First ESA or STO grants while homeschooling, and the federal scholarships, as Iowa describes them, are for public and accredited nonpublic school students. What the law gives home-schooled students is access — dual enrollment in district classes and activities for CPI families, Senior Year Plus college courses, special education through the district and AEA, driver education, recognized parent-issued diplomas and the Last-Dollar Scholarship. We make no prediction about 2027 legislation.

Read the full section in our Iowa guide

Official sources

Summarized from our Iowa guide (as of November 2026) and articles. Rules change — confirm on the official pages before you act.

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