Authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children

Sponsored by the House Education Committee

Topics:State budget K–12 education

Same legislation: HSB 604

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Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedJanuary 22, 2026
Done: SubcommitteeJanuary 22, 2026
Done: House committeeFebruary 4, 2026
Stopped: Passes the HouseDied when the General Assembly ended
Next: Senate committeeFunnel: by March 20, 2026
Next: Passes the Senate
Next: To the Governor
Next: Signed into law

Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

AI summary Community-based providers would be allowed to run preschool programs for four-year-olds directly instead of only working through school districts. If approved by the state, these providers could receive preschool funding from the government just like a school district does. The state board of education will create the specific rules that these providers must follow to participate.¹

Read the official explanation

This bill authorizes community-based providers to directly participate in the statewide preschool program for four-year-old children. Under current law, only school districts that meet certain requirements established by the state board of education are able to participate in the statewide preschool program for four-year-old children established pursuant to Code chapter 256C, although school districts may contract with community-based providers. The bill authorizes community-based providers to directly participate in the statewide preschool program for four-year-old children established pursuant to Code chapter 256C by applying with the department of education to implement a preschool program. The state board is required to adopt rules to further define the requirements of community-based providers implementing the preschool program. Under current law, state funding provided under the statewide preschool program for four-year-old children is provided to school districts based upon the number of eligible students enrolled in the preschool programming provided by the school district. Also under current law, if the school district contracts with a community-based provider, state funding passes from the school district to the community-based provider. The bill allows a community-based provider approved to directly participate in the preschool program to be paid preschool foundation aid directly in the same manner as a school district. The bill establishes the amount of preschool foundation aid that is payable to such a community-based provider for the initial school year for which the community-based provider is approved to directly participate in the preschool program, and for subsequent school years. The bill makes conforming changes.

Why it matters. Community-based providers could apply to the Department of Education to run preschool programs for four-year-olds and receive state funding directly instead of through a school district. Each additional student participating in these programs would cost the General Fund $4,074.²

Full bill text³

House subcommittee

Named January 22, 2026 (as HSB 604). On January 28, 2026 it recommended passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

1 written public comment to its subcommittee: January 28, 2026 (1) · on the Legislature’s site

Fiscal note

Cost: up to $4,074 Compare with other bills

AI summary This bill allows community-based providers to apply to participate directly in the Statewide Voluntary Preschool Program. The fiscal impact cannot be determined because it is unknown if more students will participate in these programs. Each additional student would cost the General Fund $4,074, and the Department of Education may face additional administrative costs for oversight and technical assistance.⁴

Read the fiscal note

Description

House File 2358 allows community-based providers, as defined in the Bill, to directly participate in the Statewide Voluntary Preschool Program (SWVPP) for four-year-old preschoolers upon application with the Department of Education (DE). The Bill also authorizes the State Board of Education to adopt emergency administrative rules to implement the provisions of the Bill.

Background

The SWVPP, established in Iowa Code chapter 256C, provides funding to school districts for eligible preschool-age children and programs. Under current law, only school districts that meet certain requirements established by the State Board of Education can participate in the SWVPP. School districts are currently allowed to contract with community-based providers for SWVPP services. State funding provided for the SWVPP is provided to school districts based on the number of eligible students enrolled in the preschool program. If the school district contracts with a community-based provider, any State funding passes from the school district to the community-based provider.

Over the last three years, the following number of school district and community-based partnerships have been in place:

2023-2024 academic year — 323 school district programs with 238 community partner locations.
2024-2025 academic year — 324 school district programs with 231 community partner locations.
2025-2026 academic year — 325 school district programs with 228 community partner locations.

The DE currently dedicates 3.0 full-time equivalent (FTE) positions to provide State oversight and technical assistance, including professional development, coaching services, and program monitoring. Professional development is also provided through the Area Education Agencies (AEAs) as a fee-for-service option.

The Bill proposes a funding model similar to what is currently used for funding charter schools by providing for State aid payments in the year of enrollment versus in arears as is the practice for State aid payments made to school districts.

Assumptions

Community-based providers will adhere to the same programmatic requirements and administrative tasks as those currently assumed by school districts, including annual program assurances, State data reporting, assessment requirements, and meeting preschool program standards as established by the State Board of Education.
Licensing requirements for SWVPP personnel will be maintained.
With a potential increase in community-based providers, the DE may require additional FTE positions to support State oversight and technical assistance services.
The current State school aid for SWVPP is $4,074 per pupil.
Each new community-based provider will be supporting classrooms with a maximum of 20 pupils at a State school aid cost of $81,000.
The cost to the DE for salary and benefits for an Education Program Consultant is $160,000 per FTE position and for a Data Analyst is $149,000 per FTE position.

Fiscal Impact

The fiscal impact of House File 2358 cannot be determined because it is unknown whether there will be an increase in SWVPP participation due to additional pupils participating in preschool programs provided by community-based providers. For each additional pupil participating in SWVPP, there will be an additional cost to the General Fund of $4,074 based on the current State cost per pupil. In addition, the DE may incur additional administrative costs due to the increase of oversight and providing technical assistance to community-based providers. Depending on the number of community-based providers, this may require the DE to hire additional FTE positions.

Source

Department of Education

Preschool Program Providers · March 4, 2026 · $4,074

Reading a fiscal note⁵

Iowa Code it changes

Amends§256C.1 §256C.3 §256C.4 §256C.5

How the Code works⁶

Lobbying

6 for · 1 against · 13 undecided · Who →

Family tree

Study bill

HSB 604Renumbered

91st General Assembly

HF 2358Cleared committeefrom HSB 604

Similar bills

HSB 680 Relating to education funding by authorizing community-based providers to directly partici…
91st General Assembly · Subcommittee recommends passage
Very similar

Matched by wording or an identical title.

Notes

The summary is written by an AI model from the official explanation. It can miss details; the explanation and the bill are what count. ↩
Written by an AI model from the official explanation and fiscal note only, for bills that passed a chamber, drew heavy lobbying or carry a large cost. It doesn’t weigh whether the bill is a good idea. ↩
The explanation is printed with the bill as introduced and written by the Legislative Services Agency, the Legislature’s nonpartisan staff. Amendments adopted later aren’t reflected in it. ↩
Written by an AI model from the newest fiscal note. It can miss details; the note itself is what counts. ↩
Fiscal notes are nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is listed first. ↩
Code sections are read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. ↩