Private Schools Using Taxpayer Funds Are Held Accountable
Debunking the claim that Iowa’s private schools lack oversight under the state’s Education Savings Account program.
One of the most persistent criticisms of school choice programs—like Iowa’s Education Savings Accounts (ESAs)—is the idea that private schools receiving public funds aren’t held accountable. Opponents often argue that because these schools aren’t governed by public school districts or required to follow every state mandate, they’re operating without oversight.
This claim doesn’t hold water. While private schools operate under a different structure than public schools, they’re still subject to a network of academic, financial, and legal accountability mechanisms—and in some ways, they face even greater scrutiny, especially from the people who matter most: parents.
Let’s take a closer look at how accountability works in Iowa’s ESA program—and beyond.
1. ✅ Accreditation = Legal and Academic Oversight
Private schools in Iowa cannot take part in the ESA program unless they are accredited. That’s not a suggestion—it’s the law. Under Iowa Code § 256.11, nonpublic schools must be accredited either by the Iowa Department of Education or another accrediting agency approved by the Iowa Department of Education to qualify.
What does accreditation mean in practice?
It means the school must:
Provide instruction in core subjects
Employ qualified teachers
Maintain safety and operational standards
Be reviewed and monitored on a regular basis
The Iowa Department of Education states this clearly that only accredited non-public schools are eligible to receive students with ESA funds in its ESA guidance. Also, they must follow all applicable health and safety laws, just like public schools.
On the financial side, Iowa contracts with a third-party vendor (currently Odyssey) to manage ESA accounts. This system enforces strict spending controls, allows for audit and compliance checks, and ensures funds are only used for eligible educational expenses like tuition, textbooks, and technology. That’s not a blank check—it’s structured oversight.
2. 👨👩👧👦 Parental Choice = Real-Time Accountability
Unlike public schools, private schools must earn the trust and satisfaction of families every year. If parents feel their child isn’t being served well—academically, socially, or spiritually—they can leave. That’s an accountability mechanism public schools often lack.
And parents are paying attention.
According to the 2024 EdChoice “Schooling in America” survey, a full 72 percent of private school parents would give their child’s school an A or B grade—compared to just 46 percent of parents in public district schools. Families choosing private schools are engaged, informed, and hold their schools to high standards.
The result? Private schools in ESA programs must consistently perform—or lose students and funding. That’s accountability with teeth.
3. 📊 Oversight Through Assessments
The Iowa Code or Iowa Administrative Code doesn’t require accredited nonpublic schools to deliver standardized assessments, but most accredited nonpublic schools have voluntarily administered them.
However, now Iowa ESA law states that all students receiving an education savings account are required to take the Iowa Statewide Assessment of Student Progress (ISASP).
Those assessment results are delivered to the parents and reported to the Iowa Department of Education.
🎯 Bottom Line: Accountability Looks Different—But It’s Real
The notion that private schools using public funds are unaccountable is a myth—one that doesn’t survive contact with the facts. In Iowa and elsewhere, participating schools face:
Legal and academic oversight through accreditation
Financial controls and audit mechanisms via ESA program rules
Ongoing performance pressure from families who can walk away
This isn’t about giving private schools a free ride. It’s about trusting families, enforcing meaningful guardrails, and giving students access to the education that best meets their needs.