North Dakota Senate passes Education Savings Accounts for private school students
Sen. Michelle Axtman, R-Bismarck, speaks on the Senate floor on April 17, 2025. (Michael Achterling/North Dakota Monitor)
The North Dakota Senate approved a bill Thursday establishing Education Savings Accounts for private school students, but details are likely to be worked out by a conference committee.
The Senate voted 27-20 in favor of an amended version of House Bill 1540, which would provide vouchers for families to use for private school tuition or other qualifying education expenses. The accounts would not be available to public school or homeschooled students.
The amount each family could receive varies based on household income. Students from families in the lowest income category could receive about $4,000 per year, while students from the highest income category could receive a little over $1,000 per year.
Families with high incomes would qualify for vouchers in the version of the bill senators advanced. A previous version of the bill limited the vouchers to families who fall within 400% of the federal poverty level, which is an annual income of $128,600 for a family of four.
The Education Saving Accounts would be available for students for the 2026-27 school year.
Sen. Michelle Axtman, R-Bismarck, who introduced the amendment, estimated the program would cost about $20 million per school year. The exact cost to the state would depend on how many students use the accounts.
Bills look to expand North Dakota student opportunities through savings accounts
Sen. Mike Wobbema, R-Valley City, was among those who spoke in favor of Education Savings Accounts.
'We need to recognize that taxpayer funds need to be prioritized for use in educating taxpayers' children,' Wobbema said.
He argued that Education Savings Accounts could save the state money over time, if public school students switch to private schools, reducing how much the state spends on per-pupil payments to public schools.
Sen. Janne Myrdal, R-Edinburg, voted against the bill. She said there are no private schools in her district, so the bill wouldn't be used by her constituents.
'If we're going to do school choice, it's got to be for all kids,' Myrdal said. 'I can't in true conscience stand here today to vote for a vehicle that doesn't give any power to the parents in my district.'
Axtman is the chief sponsor of a competing Education Savings Account bill, Senate Bill 2400, which is still under consideration by the House Education Committee. The key difference in that bill is dollars could be used for educational expenses for public school or homeschooled students in addition to private school students.
Axtman voted in favor of the Senate version, but said she's still hopeful for a more universal policy.
'My goal is still a very comprehensive ESA that affects, truly, all students in North Dakota,' she said.
North Dakota United, a union representing educators and public sector employees, is among those who oppose the Education Savings Account bills.
'This bill, 1540, is all about private schools, just public money given right to the private schools,' said Nick Archuleta, president of North Dakota United.
The bill is expected to head to a conference committee made up of three lawmakers from each legislative chamber.
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