A bill for an act permitting school districts to use certain categorical funds generated from pupils participating in the education savings account program for any school general fund purpose.

HF 2393 allows Iowa school districts to use specific categorical funds - generated from students enrolled in the state's education savings account program - for any general school budget purpose, rather than restricted uses. This change applies only to funds tied to students participating in the education savings account program under Section 257.11B. Previously, these funds had to cover teacher salary supplements, professional development, or leadership program costs, but the bill removes those restrictions starting July 1, 2026. The policy directly affects school districts receiving these funds and provides greater budget flexibility for general operations.