Bismarck, ND – The North Dakota Senate moved forward with a significant education reform effort through the passage of Senate Bill 2400, which establishes a new Education Savings Account (ESA) Program aimed at expanding school choice for families across the state. With $3 million allocated for the program’s initial rollout, if passed in the house, the legislation is set to take effect beginning in the 2025-2027 biennium, with funds becoming available for students starting July 1, 2026.
Giving Parents More Options
Under the new law, eligible students will receive state-funded savings accounts to help cover a broad range of educational expenses beyond the traditional public school setting. These accounts can be used for tuition at nonpublic schools, textbooks, tutoring, therapy services, online education, dual-credit courses, and even mental health support and educational camps.
Funding Amounts Based on Income
The program’s funding levels vary based on a student’s educational setting and household income:
• $500 for students attending public school or participating in home education
• $3,500 for students attending a nonpublic school whose household income is ≤ 300% of the federal poverty line
• $2,000 for students in households ≤ 500% of the federal poverty line
• $500 for nonpublic school students above the income threshold
Administered by the Superintendent of Public Instruction
The North Dakota Department of Public Instruction will oversee the program. The superintendent is tasked with managing applications, marketing the program to eligible families, and ensuring compliance with state standards. The law also allows the department to contract with third-party vendors to help administer the accounts and prevent misuse of funds.
Additionally, participating nonpublic schools must meet health and safety requirements, conduct employee background checks, and provide receipts for qualifying expenses. Students enrolled in the program will be required to participate in state assessments, and parents will be asked to complete annual satisfaction surveys to help gauge program effectiveness.
Designed for Accountability and Transparency
Any unused funds in a student’s ESA will be returned to the program at the end of each fiscal year. To prevent fraud, the law prohibits any school or service provider from offering rebates or sharing ESA funds directly with parents or students.
The bill also clearly defines the ESA program as voluntary and maintains that participating schools and providers remain autonomous, not agents of the state.
The bill is currently in the House.
