North Dakota House advances 1 of 3 Education Savings Account bills 

A bill that earmarks state money for tuition at private schools passed the North Dakota House on Thursday, while two other similar bills failed. 

House Bill 1540, sponsored by Rep. Ben Koppelman, R-West Fargo, would use money from the state’s general fund to help families pay for private school or private classes. Students using the fund can’t be enrolled in a public school. The money would not come from the state’s K-12 public schools budget. 

Rep. Pat Heinert, R-Bismarck, urged House members to pass an Education Savings Account bill that he sponsored and the Koppelman bill to give lawmakers the opportunity to work on a compromise bill with similar proposals that emerge from the state Senate. 

Heinert said without a school choice bill, North Dakota may be forced to work with federal guidelines. 

He said the Trump administration is expected to supply funding to the states for school choice. 

“If we do not pass a bill … we will then have to adopt the federal government’s guidelines,”  Heinert said before the vote on his bill. “We know we don’t like their guidelines very much.” 

Koppelman’s bill, which passed 49-38, would deposit 80% of the per-pupil amount allocated to public school students, or more than $8,800, into an Education Savings Account. Another 20% would be transferred to the student’s home public school district. 

The Bank of North Dakota would administer the accounts. 

The estimated cost for the bill is $40 million for 2025-2027 and nearly $150 million for the following two years. The actual cost would depend on how many families use the accounts.

Heinert’s bill, House Bill 1590, would have created a pilot program for Education Savings Accounts using money both from parents and the state. For every $1 a parent put into the savings account — up to $2,000 — the state would match 50 cents. 

Critics said that put students from poor families at a disadvantage. 

The bill received 47 votes in favor to 40 against but the bill failed because a bill needs a majority of the House membership, not just those present. Seven members were absent for Thursday’s vote. 

It’s possible under House rules that there could be another vote on the bill. 

A third bill, House Bill 1607, that would have issued educational spending debit cards to parents of public, private and homeschooled students, failed. 

Before the votes on the school choice bills, Rep. Anna Novak, R-Hazen, spoke against school choice bills. 

She said the bills would benefit private schools, mostly in urban areas, while public schools in rural areas lack the resources to maintain their buildings and offer options like career and technical education. 

“Rural North Dakota is frustrated,” she said.

Bills look to expand North Dakota student opportunities through savings accounts

The Senate is considering two Education Savings Account bills.

Senate Bill 2400, sponsored by Sen. Michelle Axtman, R-Bismarck, would provide $1,000 annual Education Savings Accounts for all North Dakota students, including public school students. Those funds could be used for private school tuition, textbooks, tutoring, school fees, educational camps, school meals and mental health counseling, among other services. 

Private school students from families that meet income requirements could qualify for up to $4,000 per year. The bill is estimated to cost the state more than $105 million per year.

Senate Bill 2303, sponsored by Sen. Mike Wobbema, R-Valley City, would provide Education Savings Accounts for private and homeschool students. The bill would deposit 60% of the per-pupil payment, or about $6,600, to the student’s account with the student’s home school district receiving 10%, or about $1,100. The accounts could cover a range of services, including tuition and mental health counseling, among others. The bill does not provide accounts for public school students. The bill is estimated to cost the state $37.5 million for 2025-2027, though the fiscal note assumes the program would not start until the second semester of the first year.