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HF2358 • 2026

A bill for an act authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children.(Formerly HSB 604 .)

A bill for an act authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children.(Formerly HSB 604 .)

Children Education
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
COMMITTEE ON EDUCATION
Last action
2026-03-04
Official status
Fiscal note .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children.(Formerly HSB 604 .)

A bill for an act authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children.(Formerly HSB 604 .)

What This Bill Does

  • A bill for an act authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children.(Formerly HSB 604 .)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-04 Iowa Legislature

    Fiscal note .

  2. 2026-02-09 Iowa Legislature

    Introduced, placed on calendar. H.J. 234 .

Official Summary Text

A bill for an act authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children.(Formerly HSB 604 .)

Current Bill Text

Read the full stored bill text
House

File

2358

-

Introduced

HOUSE

FILE

2358

BY

COMMITTEE

ON

EDUCATION

(SUCCESSOR

TO

HSB

604)

A

BILL

FOR

An

Act

authorizing

community-based

providers

to

directly

1

participate

in

the

statewide

preschool

program

for

2

four-year-old

children.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

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2358

Section

1.

Section

256C.1,

subsection

1,

Code

2026,

is

1

amended

to

read

as

follows:

2

1.

“Approved

local

program”

means

a

school

district’s

3

program

or

community-based

provider’s

program

for

four-year-old

4

children

approved

by

the

department

of

education

to

provide

5

high

quality

high-quality

preschool

instruction.

6

Sec.

2.

Section

256C.1,

Code

2026,

is

amended

by

adding

the

7

following

new

subsection:

8

NEW

SUBSECTION

.

1A.

“

Community-based

provider

approved

9

to

directly

participate

in

the

preschool

program”

means

a

10

community-based

provider

that

meets

the

community-based

11

provider

requirements

under

section

256C.3

and

has

been

12

approved

by

the

department

to

directly

participate

in

the

13

preschool

program.

“Community-based

provider

approved

to

14

directly

participate

in

the

preschool

program”

does

not

mean

a

15

community-based

provider

that

partners

with

a

school

district’s

16

approved

local

program.

17

Sec.

3.

Section

256C.3,

subsection

1,

paragraph

b,

Code

18

2026,

is

amended

to

read

as

follows:

19

b.

If

space

and

funding

are

available,

including

funding

20

from

another

school

district

account

or

fund

from

which

21

preschool

program

expenditures

are

authorized

by

law,

a

school

22

district

approved

to

participate

in

the

preschool

program

or

23

community-based

provider

approved

to

directly

participate

in

24

the

preschool

program

may

enroll

and

pay

the

cost

of

attendance

25

for

a

younger

or

older

child

in

the

preschool

program;

however,

26

the

child

shall

not

be

counted

for

state

funding

purposes.

27

Sec.

4.

Section

256C.3,

subsection

2,

paragraph

a,

28

subparagraph

(1),

Code

2026,

is

amended

to

read

as

follows:

29

(1)

The

individual

is

either

employed

by

or

under

contract

30

with

the

school

district

,

or

with

the

community-based

provider

31

approved

to

directly

participate

in

the

preschool

program,

that

32

is

implementing

the

program.

33

Sec.

5.

Section

256C.3,

subsection

3,

unnumbered

paragraph

34

1,

Code

2026,

is

amended

to

read

as

follows:

35

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The

state

board

shall

adopt

rules

to

further

define

the

1

following

preschool

program

requirements

which

shall

be

used

2

to

determine

whether

or

not

a

local

program

implemented

by

a

3

school

district

approved

to

implement

the

preschool

program

or

4

a

community-based

provider

directly

approved

to

implement

the

5

preschool

program

qualifies

as

an

approved

local

program:

6

Sec.

6.

Section

256C.3,

subsection

3,

paragraph

h,

Code

7

2026,

is

amended

to

read

as

follows:

8

h.

Provision

for

ensuring

that

children

receiving

care

from

9

other

child

care

arrangements

can

participate

in

the

preschool

10

program

with

minimal

disruption

due

to

transportation

and

11

movement

from

one

site

to

another.

The

children

participating

12

in

the

preschool

program

may

be

transported

by

the

school

13

district

or

community

provider

to

activities

associated

with

14

the

program

along

with

other

children.

15

Sec.

7.

Section

256C.3,

Code

2026,

is

amended

by

adding

the

16

following

new

subsection:

17

NEW

SUBSECTION

.

4A.

Community-based

provider

18

requirements.

The

state

board

shall

adopt

rules

to

further

19

define

the

following

requirements

of

community-based

providers

20

approved

to

directly

participate

in

the

preschool

program

in

21

implementing

the

preschool

program:

22

a.

Methods

of

demonstrating

readiness

to

implement

23

high-quality

instruction

in

the

local

program

shall

be

24

identified.

25

b.

A

community-based

provider

shall

participate

in

data

26

collection

and

performance

measurement

processes

and

reporting

27

as

defined

by

rule.

28

c.

Professional

development

for

community-based

provider

29

preschool

teachers

shall

be

addressed

in

the

community-based

30

provider’s

professional

development

plan.

31

Sec.

8.

Section

256C.3,

subsection

5,

paragraphs

a,

b,

and

32

d,

Code

2026,

are

amended

to

read

as

follows:

33

a.

The

department

shall

implement

an

application

and

34

selection

process

for

school

district

participation

and

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community-based

provider

participation

in

the

preschool

program

1

that

includes

but

is

not

limited

to

the

enrollment

requirements

2

provided

under

section

256C.4

.

3

b.

The

department

shall

track

the

progress

of

4

students

served

by

a

school

district

preschool

program

or

5

community-based

provider

preschool

program

and

the

students’

6

performance

in

elementary

and

secondary

education.

7

d.

The

state

board,

in

collaboration

with

the

department,

8

shall

ensure

that

the

administrative

rules

adopted

to

support

9

the

preschool

program

emphasize

that

children’s

access

to

10

the

program

is

voluntary,

that

the

preschool

foundation

aid

11

provided

to

a

school

district

or

a

community-based

provider

is

12

provided

based

upon

the

enrollment

of

eligible

students

in

the

13

school

district’s

or

community-based

provider’s

local

program

14

regardless

of

whether

an

eligible

student

is

a

resident

of

the

15

school

district,

and

that

agreements

entered

into

by

a

school

16

district

for

the

provision

of

programming

in

settings

other

17

than

the

school

district’s

facilities

are

between

the

school

18

district

and

the

private

provider.

19

Sec.

9.

Section

256C.4,

subsection

1,

Code

2026,

is

amended

20

to

read

as

follows:

21

1.

General

State

funding

for

school

district

approved

to

22

participate

in

the

preschool

program

.

23

a.

State

funding

provided

under

the

preschool

program

to

24

school

districts

shall

be

based

upon

the

enrollment

of

eligible

25

students

in

the

preschool

programming

provided

by

a

school

26

district

approved

to

participate

in

the

preschool

program.

27

b.

A

school

district

approved

to

participate

in

the

28

preschool

program

may

authorize

expenditures

for

the

district’s

29

preschool

programming

from

any

of

the

revenue

sources

available

30

to

the

district

from

the

sources

listed

in

chapter

298A

,

31

provided

the

expenditures

are

within

the

uses

permitted

for

the

32

revenue

source.

In

addition,

the

use

of

the

revenue

source

33

for

preschool

or

prekindergarten

programming

must

have

been

34

approved

prior

to

any

expenditure

from

the

revenue

source

for

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the

district’s

approved

local

program.

1

c.

Funding

provided

under

the

preschool

program

is

intended

2

to

supplement,

not

supplant,

existing

public

funding

for

3

preschool

programming.

4

d.

Preschool

foundation

aid

funding

shall

not

be

commingled

5

with

the

other

state

aid

payments

made

under

section

257.16

6

to

a

school

district

and

shall

be

accounted

for

by

the

local

7

school

district

separately

from

the

other

state

aid

payments.

8

Preschool

foundation

aid

payments

made

to

school

districts

are

9

miscellaneous

income

for

purposes

of

chapter

257

.

A

school

10

district

shall

maintain

a

separate

listing

within

its

budget

11

for

preschool

foundation

aid

payments

received

and

expenditures

12

made.

A

school

district

shall

certify

to

the

department

of

13

education

that

preschool

foundation

aid

funding

received

by

14

the

school

district

was

used

to

supplement,

not

supplant,

15

moneys

otherwise

received

and

used

by

the

school

district

for

16

preschool

programming.

17

e.

Preschool

foundation

aid

funding

shall

not

be

used

for

18

the

costs

of

constructing

a

facility

in

connection

with

an

19

approved

local

program.

Preschool

foundation

aid

funding

may

20

be

used

by

approved

local

programs

and

community

providers

21

for

any

purpose

determined

by

the

board

of

directors

of

the

22

school

district

to

meet

standards

for

high-quality

preschool

23

instruction

and

for

purposes

that

directly

or

indirectly

24

benefit

students

enrolled

in

the

approved

local

program,

25

including

but

not

limited

to

professional

development

for

26

preschool

teachers,

instructional

equipment

and

supplies,

27

material

and

equipment

designed

to

develop

pupils’

large

and

28

small

motor

skills,

translation

services,

playground

equipment

29

and

repair

costs,

food

and

beverages

used

by

children

in

the

30

approved

local

program,

safety

equipment,

facility

rental

fees,

31

and

for

other

direct

costs

that

enhance

the

approved

local

32

program,

including

by

contracting

with

community

partners

for

33

any

such

services.

Preschool

foundation

aid

funding

may

be

34

used

by

approved

local

programs

for

the

costs

of

transportation

35

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involving

children

participating

in

the

preschool

program.

1

The

costs

of

transporting

other

children

associated

with

the

2

preschool

program

or

transported

as

provided

in

section

256C.3,

3

subsection

3

,

paragraph

“h”

,

may

be

prorated

by

the

school

4

district.

Preschool

foundation

aid

funding

received

by

an

5

approved

local

program

that

remains

unexpended

and

unobligated

6

at

the

end

of

a

fiscal

year

beginning

on

or

after

July

1,

2017,

7

shall

be

used

to

build

the

approved

local

program’s

preschool

8

program

capacity

in

the

next

succeeding

fiscal

year

excluding

9

that

portion

of

such

unexpended

and

unobligated

funding

that

10

the

school

district

authorizes

for

transfer

for

deposit

in

the

11

school

district’s

flexibility

account

established

under

section

12

298A.2,

subsection

2

,

if

the

statutory

requirements

for

the

use

13

of

such

funding

are

met.

For

purposes

of

determining

whether

a

14

school

district

has

authority

to

transfer

preschool

foundation

15

aid

funding

for

deposit

in

the

school

district’s

flexibility

16

account

established

under

section

298A.2,

subsection

2

,

the

17

school

district

must

have

provided

preschool

programming

18

during

the

fiscal

year

for

which

funding

remains

unexpended

19

and

unobligated

to

all

eligible

students

for

whom

a

timely

20

application

for

enrollment

was

submitted.

21

f.

The

receipt

of

funding

by

a

school

district

for

the

22

purposes

of

this

chapter

,

the

need

for

additional

funding

23

for

the

purposes

of

this

chapter

,

or

the

enrollment

count

of

24

eligible

students

under

this

chapter

shall

not

be

considered

25

to

be

unusual

circumstances,

create

an

unusual

need

for

26

additional

funds,

or

qualify

under

any

other

circumstances

that

27

may

be

used

by

the

school

budget

review

committee

to

grant

28

supplemental

aid

to

or

establish

a

modified

supplemental

amount

29

for

a

school

district

under

section

257.31

.

30

g.

For

the

fiscal

year

beginning

July

1,

2015,

and

each

31

succeeding

fiscal

year,

of

the

amount

of

preschool

foundation

32

aid

received

by

a

school

district

for

a

fiscal

year

in

33

accordance

with

section

257.16

,

not

more

than

five

percent

may

34

be

used

by

the

school

district

for

administering

the

district’s

35

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approved

local

program.

Outreach

activities

and

rent

for

1

facilities

not

owned

by

the

school

district

are

permissive

uses

2

of

the

administrative

funds.

3

h.

For

the

fiscal

year

beginning

July

1,

2015,

and

each

4

succeeding

fiscal

year,

of

the

amount

of

preschool

foundation

5

aid

received

by

a

school

district

for

a

fiscal

year

in

6

accordance

with

section

257.16

,

not

less

than

ninety-five

7

percent

of

the

per

pupil

amount

shall

be

passed

through

to

8

a

community-based

provider

for

each

pupil

enrolled

in

the

9

district’s

approved

local

program.

For

the

fiscal

year

10

beginning

July

1,

2015,

and

each

succeeding

fiscal

year,

not

11

more

than

ten

percent

of

the

amount

of

preschool

foundation

aid

12

passed

through

to

a

community-based

provider

may

be

used

by

the

13

community-based

provider

for

administrative

costs.

The

costs

14

of

outreach

activities

and

rent

for

facilities

not

owned

by

15

the

school

district

are

permissive

administrative

costs.

The

16

costs

of

transportation

involving

children

participating

in

the

17

preschool

program

and

other

children

may

be

prorated.

18

Sec.

10.

Section

256C.4,

Code

2026,

is

amended

by

adding

the

19

following

new

subsection:

20

NEW

SUBSECTION

.

1A.

State

preschool

funding

for

21

community-based

providers

approved

to

directly

participate

in

the

22

preschool

program.

23

a.

State

preschool

funding

shall

not

be

used

for

the

costs

24

of

constructing

a

facility

in

connection

with

an

approved

25

local

program.

Preschool

foundation

aid

funding

may

be

used

26

by

community-based

providers

for

any

purpose

determined

by

the

27

community-based

provider

to

meet

standards

for

high-quality

28

preschool

instruction

and

for

purposes

that

directly

or

29

indirectly

benefit

students

enrolled

in

the

approved

local

30

program,

including

but

not

limited

to

professional

development

31

for

preschool

teachers,

instructional

equipment

and

supplies,

32

material

and

equipment

designed

to

develop

pupils’

large

and

33

small

motor

skills,

translation

services,

playground

equipment

34

and

repair

costs,

food

and

beverages

used

by

children

in

the

35

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approved

local

program,

safety

equipment,

facility

rental

fees,

1

and

for

other

direct

costs

that

enhance

the

approved

local

2

program,

including

by

contracting

with

other

community

partners

3

for

any

such

services.

State

preschool

funding

may

be

used

4

by

approved

local

programs

for

the

costs

of

transportation

5

involving

children

participating

in

the

preschool

program.

6

Preschool

foundation

aid

funding

received

by

a

community-based

7

provider

approved

to

directly

participate

in

the

preschool

8

program

that

remains

unexpended

and

unobligated

at

the

end

9

of

a

fiscal

year

shall

be

used

to

build

the

community-based

10

provider’s

capacity

in

the

next

succeeding

fiscal

year.

11

b.

For

the

fiscal

year

beginning

July

1,

2026,

and

each

12

succeeding

fiscal

year,

of

the

amount

of

state

preschool

13

funding

received

by

a

community-based

provider

approved

14

to

directly

participate

in

the

preschool

program

for

a

15

fiscal

year,

not

more

than

five

percent

may

be

used

by

the

16

community-based

provider

for

administering

the

approved

local

17

program.

Outreach

activities

and

rent

for

facilities

not

owned

18

by

the

community-based

provider

are

permissive

uses

of

the

19

administrative

funds.

20

Sec.

11.

Section

256C.4,

subsection

2,

paragraph

a,

Code

21

2026,

is

amended

to

read

as

follows:

22

a.

To

be

included

as

an

eligible

student

in

the

enrollment

23

count

of

the

preschool

programming

provided

by

a

school

24

district

approved

to

participate

in

the

preschool

program

or

25

a

community-based

provider

approved

to

directly

participate

26

in

the

preschool

program

,

a

child

must

be

four

years

of

age

27

by

September

15

in

the

base

year

and

attending

the

school

28

district’s

or

community-based

provider’s

approved

local

29

program.

30

Sec.

12.

Section

256C.5,

subsection

1,

paragraphs

c

and

d,

31

Code

2026,

are

amended

to

read

as

follows:

32

c.

“Preschool

budget

enrollment”

means

the

figure

that

is

33

equal

to

fifty

percent

of

the

actual

enrollment

of

eligible

34

students

in

the

preschool

programming

provided

by

a

school

35

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district

approved

to

participate

in

the

preschool

program

or

a

1

community-based

provider

approved

to

directly

participate

in

2

the

preschool

program

on

October

1

of

the

base

year,

or

the

3

first

Monday

in

October

if

October

1

falls

on

a

Saturday

or

4

Sunday.

5

d.

“Preschool

foundation

aid”

means

the

product

of

the

6

regular

program

state

cost

per

pupil

for

the

budget

year

7

multiplied

by

the

school

district’s

preschool

budget

enrollment

8

or

the

community-based

provider’s

preschool

budget

enrollment

.

9

Sec.

13.

Section

256C.5,

Code

2026,

is

amended

by

adding

the

10

following

new

subsection:

11

NEW

SUBSECTION

.

2A.

Preschool

foundation

aid

community-based

12

provider

amount.

For

the

initial

school

year

for

which

a

13

community-based

provider

approved

to

directly

participate

in

14

the

preschool

program

receives

that

approval

and

implements

15

the

preschool

program,

the

preschool

foundation

aid

payable

16

to

the

community-based

provider

is

the

product

of

the

regular

17

program

state

cost

per

pupil

for

the

school

year

multiplied

18

by

fifty

percent

of

the

community-based

provider’s

eligible

19

student

enrollment

on

the

date

in

the

school

year

determined

20

by

rule.

For

budget

years

subsequent

to

the

initial

year

21

for

which

a

community-based

provider

approved

to

directly

22

participate

in

the

preschool

program

receives

that

initial

23

approval

and

implements

the

preschool

program,

the

preschool

24

foundation

aid

is

the

same

as

calculated

pursuant

to

subsection

25

1.

The

funding

for

the

preschool

foundation

aid

payable

to

the

26

community-based

provider

shall

be

paid

from

the

appropriation

27

made

in

section

257.16.

Continuation

of

a

community-based

28

provider’s

participation

in

the

preschool

program

for

a

second

29

or

subsequent

budget

year

is

subject

to

the

approval

of

the

30

department

based

upon

the

community-based

provider’s

compliance

31

with

accountability

provisions

and

the

department’s

on-site

32

review

of

the

community-based

provider’s

implementation

of

the

33

preschool

program.

34

Sec.

14.

Section

256C.5,

subsection

3,

Code

2026,

is

amended

35

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to

read

as

follows:

1

3.

Aid

payments.

2

a.

Preschool

foundation

aid

shall

be

paid

as

part

of

the

3

state

aid

payments

made

to

school

districts

in

accordance

with

4

section

257.16

.

5

b.

Preschool

foundation

aid

paid

directly

to

community-based

6

providers

shall

be

paid

to

the

community-based

provider

in

7

monthly

installments

beginning

on

September

15

of

a

budget

year

8

and

ending

on

or

about

June

15

of

the

budget

year

as

determined

9

by

the

department

of

management,

taking

into

consideration

the

10

relative

budget

and

cash

position

of

the

state

resources.

11

Sec.

15.

EMERGENCY

RULES.

The

state

board

of

education

12

may

adopt

emergency

rules

under

section

17A.4,

subsection

3,

13

and

section

17A.5,

subsection

2,

paragraph

“b”,

to

implement

14

the

provisions

of

this

Act

and

the

rules

shall

be

effective

15

immediately

upon

filing

unless

a

later

date

is

specified

in

the

16

rules.

Any

rules

adopted

in

accordance

with

this

section

shall

17

also

be

published

as

a

notice

of

intended

action

as

provided

18

in

section

17A.4.

19

EXPLANATION

20

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

21

the

explanation’s

substance

by

the

members

of

the

general

assembly.

22

This

bill

authorizes

community-based

providers

to

23

directly

participate

in

the

statewide

preschool

program

for

24

four-year-old

children.

25

Under

current

law,

only

school

districts

that

meet

certain

26

requirements

established

by

the

state

board

of

education

27

are

able

to

participate

in

the

statewide

preschool

program

28

for

four-year-old

children

established

pursuant

to

Code

29

chapter

256C,

although

school

districts

may

contract

with

30

community-based

providers.

The

bill

authorizes

community-based

31

providers

to

directly

participate

in

the

statewide

preschool

32

program

for

four-year-old

children

established

pursuant

33

to

Code

chapter

256C

by

applying

with

the

department

of

34

education

to

implement

a

preschool

program.

The

state

board

is

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required

to

adopt

rules

to

further

define

the

requirements

of

1

community-based

providers

implementing

the

preschool

program.

2

Under

current

law,

state

funding

provided

under

the

3

statewide

preschool

program

for

four-year-old

children

is

4

provided

to

school

districts

based

upon

the

number

of

eligible

5

students

enrolled

in

the

preschool

programming

provided

by

6

the

school

district.

Also

under

current

law,

if

the

school

7

district

contracts

with

a

community-based

provider,

state

8

funding

passes

from

the

school

district

to

the

community-based

9

provider.

The

bill

allows

a

community-based

provider

approved

10

to

directly

participate

in

the

preschool

program

to

be

paid

11

preschool

foundation

aid

directly

in

the

same

manner

as

a

12

school

district.

The

bill

establishes

the

amount

of

preschool

13

foundation

aid

that

is

payable

to

such

a

community-based

14

provider

for

the

initial

school

year

for

which

the

15

community-based

provider

is

approved

to

directly

participate

in

16

the

preschool

program,

and

for

subsequent

school

years.

17

The

bill

makes

conforming

changes.

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