What Iowa’s $11.5 Billion in School Funding Reveals in a Post-SCOTUS Landscape

Each year, the Iowa legislature revisits the question of how much funding to allocate toward K–12 public education. At the same time, property taxpayers review proposed spending requests from their local school districts. And not to be left out, the federal government invests in K-12 education in Iowa, too.  Now, with the U.S. Supreme Court’s recent ruling curbing the power of federal agencies—and renewed discussion about dismantling the U.S. Department of Education—questions about control and funding have taken on new urgency. With so many funding sources and moving parts, one key question remains: How much money do Iowa’s public schools actually receive—and where does it come from?

Revenue

Based on the most recent Certified Annual Reports from each school district (FY2024), Iowa’s K–12 public schools received a total of $11.5 billion in revenue.

Local Funding: The Largest Source

Local sources are the biggest financial contributors to Iowa’s public schools. Property taxes account for the majority of this, but schools also receive income from other local revenue streams such as income surtaxes and various student fees and charges. Altogether, local revenue totaled $4.63 billion in FY2024.

State Funding: A Close Second

The State of Iowa allocated $4.61 billion to K–12 education during the same fiscal year, making it the second-largest source of revenue.  The largest piece of State funding is State Foundation Aid but also includes other formula-driven allocations and the statewide SAVE sales tax.

Federal Funding: The Smallest Share

The federal government contributed $863.4 million to Iowa’s public schools, primarily in the form of indirect grants.

Other revenue streams beyond local, state, and federal sources include the issuance of bonds and various smaller items, which help round out the full funding picture.

Looking Ahead

Although federal dollars account for the smallest share of K–12 education funding in Iowa, they often come with strings attached—grant requirements, compliance rules, and agency oversight that influence local decision-making. With recent judicial and political momentum questioning the reach of federal agencies, including calls to scale back or eliminate the U.S. Department of Education, states like Iowa may soon carry even greater responsibility for both funding and governance.

This shift presents both an opportunity and a challenge: How can we ensure that every dollar—whether local, state, or federal—is spent wisely and transparently to improve outcomes for Iowa students? Use the menu at the top of this page to see how your local district is funded and how much federal money it receives.