BREAKING: Iowa’s controversial Education Savings Account (ESA) program, which has surged to a staggering $314 million for the 2025-26 school year, is under fire for severe transparency issues. Just announced by State Auditor Rob Sand, his office was denied access to critical spending records during a recent audit, raising urgent concerns about oversight.
The ESA program, created by House File 68 in 2023, allows families to use taxpayer funds for private school tuition and educational fees. With participation rates climbing dramatically, the cost to taxpayers has jumped from $218 million last year. Sand has highlighted that this lack of access could open the door to fraud and misuse of public funds.
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When any entity receives that level of funding and knows no one is watching how it’s being spent, it creates an environment that invites fraud,”
Sand stated, emphasizing the unprecedented nature of his office’s denial for records that were previously accessible.
The implications are dire. Sand warned that the absence of an oversight agency to replace the auditor’s role increases the risk of waste and abuse of taxpayers’ dollars. “The auditor’s office is the taxpayer’s watchdog. When you muzzle the watchdog, it can’t bark when something bad is happening,” he added.
Governor Kim Reynolds has defended the state’s decision, accusing Sand of using the situation for political gain. “He wants the political fodder back and forth to really boast his political career,” she stated in an interview with KCCI. However, her office has not responded to multiple inquiries from Iowa State Daily reporters over the past two months regarding transparency issues.
The Iowa Department of Education (IDOE) website provides limited information on the ESA program, primarily focusing on eligibility and application procedures. ESA recipients receive an average of $7,988 per student for the school year, yet details on oversight and fund distribution remain sparse. Recent public records requests for more transparency have been met with delays, with IDOE claiming the redaction process would take hundreds of hours.
Concerns are mounting among Iowa lawmakers. Senator Sarah Trone Garriott has voiced significant worries regarding the lack of tracking for ESA recipients’ educational statuses. Research from Princeton University indicates that nearly two-thirds of ESA participants were already enrolled in private schools or could afford tuition without government assistance. This raises questions about whether the program is effectively aiding those in need.
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It’s hard to know what’s happening with that money, and it sounds like the private school just gets to keep it,”
Trone Garriott remarked, criticizing the system’s lack of accountability. She previously proposed legislation to mandate annual reporting on student demographics and their educational outcomes, but the bill did not advance.
The ESA program has ignited fierce debates in Iowa, framed by supporters as a vital school choice initiative. However, critics argue it lacks necessary safeguards. With the Iowa Legislature currently dominated by Republicans, dissenting voices have faced political repercussions. Trone Garriott noted that all Republican legislators who opposed the ESA in their primaries lost, except for one.
As the 2025-26 school year progresses, the ramifications of these transparency failures could be profound. The lack of oversight and accountability over the ESA program continues to fuel public outcry, leaving many Iowans worried about the future of educational funding and integrity.
WHAT’S NEXT: Watch for further developments as more lawmakers and citizens demand greater transparency and accountability in Iowa’s ESA program. The political landscape surrounding education funding is shifting, and the implications for both taxpayers and students remain significant.
Stay connected for the latest updates on this urgent issue as it unfolds.
