The bill is the culmination of a 3-year effort and notches an early victory in the governor’s top legislative priorities of the session.

All public school students and thousands of private school students now are eligible to receive a $7,600 education savings account to pay for tuition and other expenses at a private school. The program is expected to cost $107 million in the first year. By fiscal year 2027, the money will be open to all students in public and private schools, regardless of income, and is expected to cost $345 million.

“For the first time, we’re funding students instead of a system,” Reynolds said. “We’re rejecting the idea that the answer to improving education is simply throwing more money into the same system.”

Opponents of the law say it will siphon money out of public schools, fund non-accountable private institutions, and argue private schools could turn away students with disabilities or families whose values don’t align with theirs.

Reynolds said the program is not at odds with public schools. She acknowledged the vast majority of students are expected to remain in public schools and said the bill will allow school districts more freedom to use their state funds.

Trish Wilger, the executive director of Iowa Alliance for Choice in Education, said she was excited to see the bill signed into law. Wilger’s organization was advocating for a universal education savings account system before the legislative session began.

“We worked on it so long and so hard that it doesn’t seem quite real yet, but I’m just thrilled for the opportunities it’s going to bring to Iowa families,” she said.

In a press release following the signing of the bill, the Iowa Farmers Union voiced its opposition for the school choice program.

“More than ever, strong public schools are essential to growing Iowa’s rural communities,” they said. ”The Iowa Farmers Union urges legislators to oppose legislation to give vouchers to private schools. This will not help build strong rural communities. In fact, it will be a detriment to the bold investments policymakers have made to grow rural Iowa.”

They said the bill will siphon away vital state support and hurt Iowa’s public schools and rural communities. They also note nearly 75% of Iowa public schools are in rural areas with little to no access to private schools meaning rural families will not have the resources to participate in a voucher program because private schools don’t exist in their area.

Additional reporting by Iowa Farmer Today’s Aaron Viner.