IowaIowa caps transportation aid and funds support staff pay
Iowa sets school funding growth rates at 2% for 2026–2027, caps some transportation aid, and sets aside money for districts to supplement support staff pay.
What it does
The regular and categorical state growth rates for the budget year beginning July 1, 2026, are 2%.
Eligible districts receive transportation equity aid based on enrollment and transportation costs, up to $1 million per district.
The state sets aside $7 million for districts to supplement pay for non-salaried support staff. A district must report staff information by July 1, 2026, to receive its share.
Districts report adjusted student counts each year. The state uses adjusted and actual enrollment to calculate basic enrollment for school funding.
Argument forThe $7 million supplement could help districts pay non-salaried support staff, with each district’s share based on enrollment.
Argument againstThe $1 million cap could leave districts with higher transportation costs covering more of the gap themselves.
More detail
The state sets the regular and categorical state growth rates at 2%. The rates apply to school funding calculations for the budget year beginning July 1, 2026. The rates apply to the budget year beginning July 1, 2026.
The state caps transportation equity aid at $1 million per district. The cap applies to each eligible school district’s transportation equity aid. A district must meet the criteria for transportation equity aid. The cap applies to budget years beginning on or after July 1, 2026.
The state sets aside $7 million for districts to supplement education support staff pay. Support staff means regular or part-time school district employees who are not salaried. A district must report its number of support staff and any other information required by the Department of Education by July 1, 2026, to receive a supplement. Each district’s share is based on its portion of statewide budget enrollment for the year beginning July 1, 2025. The money is for the fiscal year beginning July 1, 2026, and ending June 30, 2027, and is paid with foundation aid.
The state determines adjusted enrollment counts each year and uses them with actual counts in basic enrollment calculations. These rules apply to Iowa school districts’ enrollment counts used for school budgets. If the Department of Education disputes a reported count, the district has five business days after notice to resolve the issue before the department makes a final determination. Adjusted enrollment is determined in January, and districts must report it by January 30. These rules apply to enrollment determinations on or after July 1, 2026, used for budget years beginning on or after July 1, 2027.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 22Fiscal note.Latest
- Feb 26Signed by Governor Kim Reynolds.Became Law
- Feb 26Reported correctly enrolled, signed by President and Speaker, and sent to Governor.To Governor
- Feb 23Message from Senate.
- Vote recorded Shall the bill pass? Result: pass.Upper
- Feb 23Immediate message.
- Feb 23Passed Senate, yeas 27, nays 20.Major
- Feb 23Senate concurred with S-5018.
- Feb 23Fiscal note.
- Feb 23Message from House, with amendment S-5018.
- Feb 19Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Lower
- Vote recorded Shall amendment H-8010, to the committee amendment H-8004, be adopted? Result: fail.Lower
- Feb 19Explanation of vote.
- Feb 19Passed House, yeas 58, nays 35.Passed 2nd Chamber
- Feb 19Amendment H-8004 adopted, as amended.Major
- Feb 19Amendment H-8008 ruled out of order.
- Feb 19Amendment H-8012 to committee amendment H-8004 filed, adopted.Major
- Feb 19Amendment H-8010 to committee amendment H-8004, yeas 30, nays 63, lost.
- Feb 19Amendment H-8010 filed.Minor
- Feb 18Amendment H-8008 filed.Minor
- Feb 16Committee amendment H-8004 filed.Minor
- Feb 16Placed on Appropriations calendar.
- Feb 16Committee vote: Yeas, 15. Nays, 8. Excused, 2.
- Feb 16Committee report, recommending amendment and passage.Minor
- Feb 16Subcommittee recommends passage.Minor
- Feb 12Subcommittee Meeting: 02/16/2026 11:30AM RM 103.
- Feb 12Fiscal note.
- Feb 11Subcommittee: Gehlbach, Matson and Stone.
- Feb 11Read first time, referred to Appropriations.Minor
- Feb 11Message from Senate.
- Feb 10Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Upper
- Feb 10Passed Senate, yeas 28, nays 20.Passed 1st Chamber
- Feb 10Amendment S-5007 filed, adopted.Major
- Feb 9Fiscal note.
- Feb 5Committee report, approving bill.Minor
- Feb 5Introduced, placed on calendar.Introduced
EducationTaxes & BudgetTransportation