DES MOINES, Iowa – The Iowa Senate passed an amended version of Area Education Agencies (AEA) bill on Monday, by a 28 to 22 vote. Six Republicans joined Democrats opposing the bill.
The Senate amendment changes HF 2612 to allow schools to seek other providers for special education services. The Iowa House passed the bill on February 29.
By fiscal year 2026 (the 2025-2026 school year) school districts will receive 90 percent of the state special education funding, while AEAs will receive 10 percent. For the 2025-2026 school year, the bill directs 90 percent of the special education services funding to school districts who can pay for district-provided services, work with an AEA, or contract with a private provider. The remaining ten percent goes directly AEAs. In the transition year, 40 percent of the funding for general education and media services would go to school districts. The following year, AEAs would only receive funding for nonpublic school students using AEA services.
With the Iowa Senate amendment, the bill heads back to the Iowa House of Representatives for consideration. (Update: The Iowa Torch has learned that Iowa Senate and Iowa House leadership have reached a deal and a vote could happen as early as Thursday morning.)
The House and Senate versions differ in some critical details, including how contracting for special education services are handled, and the timeline for funding changes.
“I now look forward to working with the House and Senate to reach a compromise that will bring transparency, accountability, and consistency to the AEA system while most importantly improving outcomes for students with disabilities,” Iowa Gov. Kim Reynolds said after the Senate vote. “At the same time we must recognize the important role of teachers in the classroom by increasing minimum salaries for both starting and experienced teachers.”
Reynolds made AEA reform one of her top priorities during the 2024 legislative session during her Condition of the State address in January.
The bill would give oversight responsibility to the Iowa Department of Education’s Division of Special Education, something AEAs did internally before. The Senate bill also proposes a minimum starting salary of $46,251 for teachers, and increase of the Iowa House proposal, but less than the $50,000 Reynolds called for.
During the Senate debate, the bill drew heated comments from Democrats who said no one wanted the change. State Senator Molly Donahue, D-Cedar Rapids, proposed an amendment that would have created a task force to look at AEAs.
“They asked us to slow down,” she said. “Let’s give this a year with a task force to really look at the AEAs and to make a better decision about what’s needed if anything is needed.”
Donahue’s amendment failed 17-33.
State Senator Lynn Evans, R-Aurelia, who presented the bill, said it is about giving children with disabilities the best service and education.
“Iowa is the only state that requires school to pay into an education support agency and then mandates that the schools use it,” Evans said. “The schools deserve to have more transparency and accountability for how their special education funding is spent. This bill provides them with more local control to base their spending on the unique needs of students in their districts.”
Kim Jarrett of The Center Square contributed to this report.
