With the Electronic Savings Account Bill having been passed a few weeks ago, there are still questions about it.

Iowa House Representative for District 23 Ray Sorensen says that one question he and a few other legislators have heard is, “How is it being funded?” He tells Raccoon Valley Radio that it will be done with a 3rd party contractor, and that the legislature is still trying to see how things will end up happening.

“It’s hard to know exactly how the process will work, because we have to put out an RFP to find the vendor. But we imagine it looks something like a 5-29 where the money will be in an account for parents. And the money can only be withdrawn if being spent on qualified expenses such as tuition, textbooks, etc.”

Sorensen adds that any unused funds that are put into the ESA’s will rollover to the next year, until the child graduates. Once a child graduates though, any money left in the account will go back to the general fund.