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 2684 allows Iowa school districts to use specific state funds tied to students enrolled in the education savings account program for any general school purpose starting in 2026, rather than being restricted to teacher salaries, professional development, or leadership programs. These funds, currently designated for limited uses under sections 257.10(9), (10), and (12), would gain full flexibility for districts after July 1, 2026. The bill directly affects school districts receiving these categorical funds from savings account participants. It removes prior requirements for how these funds must be spent, enabling districts to allocate them toward general operational needs like facilities, technology, or other non-specific expenses. The change applies only to funds attributable to resident pupils in the savings account program.