IA HF2393

School districts may use categorical funds attributable to resident pupils participating in the Education Savings Account (ESA) program under section 257.11B for any general fund purpose, effective for budget years beginning July 1, 2026.

Amends Section 257.10 subsections 9, 10, and 12 of Iowa Code 2026 to allow this flexible use of funds that would otherwise be restricted to specific categorical purposes like teacher salary supplements and professional development.

Funds calculated under the teacher salary supplement provisions (subsection 9) that are tied to ESA-participating students can be redirected from the requirement to distribute them to teachers pursuant to section 284.3A.

Professional development funds (subsection 10) attributable to ESA participants may be used for general purposes instead of complying with Chapter 284 professional development requirements.

Teacher leadership supplement funds (subsection 12) generated by ESA-participating pupils may similarly be used for any general fund purpose rather than being restricted to teacher leadership roles and career pathways costs.