House Bill 1540, recently passed by the North Dakota House and now in the Senate, would create a new Education Savings Account (ESA) Program set to begin in the 2026–27 school year.
The program allows eligible families to receive funds to use toward private education expenses. Each student enrolled in the program would receive 50% of the average per-student state funding annually, deposited into an ESA managed by the Bank of North Dakota.
Parents can use the funds for private school tuition, textbooks, online courses, tutoring, testing fees, and other approved educational expenses. Students must be North Dakota residents eligible for public school, and once enrolled, remain eligible until high school graduation or age 21.
The bill includes accountability measures such as annual student testing and reporting. Participating schools must meet health, safety, and financial standards but retain control over their educational programs.
The state has allocated $40 million to fund the program for its first two years. It would take effect on July 1, 2026.
You can review the bill and latest actions here: https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1540.html?bill_year=2025&bill_number=1540
