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MontanaHB 57369th Legislature, Regular Session (2025)House

Revise transformational learning laws to create a phase II grant program

Sponsored By: David Bedey (Republican)

Signed by Governor

Education - K-12Education - School Finance

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

Property tax tied to program funds

Beginning July 1, 2025, if a district meets transparency rules, trustees may levy a property tax up to 100% of the state transformational aid the district gets. The levy money goes to the flexibility fund and must be spent on the approved plan. This can raise homeowner property taxes by an amount equal to the program distributions.

State aid for transformational learning districts

Beginning July 1, 2025, the state pays qualified school districts a yearly transformational learning aid. Each year equals 50% of the quality educator payment times the district’s participating educator FTE, for four straight years after qualification. A district can get only one 4‑year package in any 8 years and no more than 25% of total payments. If funds run out, the board defers applications and sets priority by a third‑party lottery. Districts must file yearly progress reports and report FTE changes. The state also counts this aid in the K‑12 funding base. The law defines transformational learning as pupil‑centered, proficiency‑based instruction. The program authority ends June 30, 2026, and the act ends June 30, 2026 except sections with later end dates.

How districts handle program funds

By October 1 each year, payments go into a district’s flexibility fund. Districts must spend this money only on the approved plan and within six years of the first funding year. Trustees may move state or local revenue into the flexibility fund, except from debt service or retirement funds. Any transferred money not spent within two full school fiscal years must go back to the original fund.

Phase II grants for top districts

Starting July 1, 2025, the Superintendent runs a Phase II grant program to help districts reach district‑wide transformational and proficiency‑based learning. Only districts that already received transformational grants are invited to apply, and they must show progress and a detailed costed plan. By Feb. 1, 2026, up to five districts are identified; by July 15, 2026, grants go to up to five districts if the legislature provides money. Ninety percent of any appropriation funds the grants, and 10% pays for technical help like convenings, training, and expert support. Districts must deposit grants in the flexibility fund and spend them by June 30, 2028 for approved uses. OPI and grantees must file a joint report by Sept. 1, 2028 with progress, guidance, and legislative ideas. If HB 2 funds transformational learning, that money is used for Phase II. This section ends Dec. 31, 2028.

Sponsors & Cosponsors

Sponsor

  • David Bedey

    Republican • House

Cosponsors

  • Curtis Schomer

    Republican • House

  • Wendy McKamey

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 251 • No: 46

Senate vote • 4/15/2025

Do Concur

Yes: 30 • No: 20

Senate vote • 4/14/2025

Do Concur

Yes: 33 • No: 16

House vote • 3/7/2025

Do Pass

Yes: 92 • No: 7

House vote • 3/5/2025

Do Pass

Yes: 96 • No: 3

Actions Timeline

  1. Chapter Number Assigned

    5/8/2025House

  2. Signed by Governor

    5/5/2025House

  3. Transmitted to Governor

    4/25/2025House

  4. Signed by President

    4/25/2025Senate

  5. Signed by Speaker

    4/24/2025House

  6. Returned from Enrolling

    4/17/2025House

  7. Sent to Enrolling

    4/15/2025House

  8. 3rd Reading

    4/15/2025Senate

  9. 2nd Reading

    4/14/2025Senate

  10. Committee Report

    3/28/2025Senate

  11. Committee Executive Action

    3/27/2025Senate

  12. Hearing

    3/19/2025Senate

  13. Referred to Committee

    3/14/2025Senate

  14. 1st Reading

    3/14/2025Senate

  15. Transmitted to Senate

    3/7/2025House

  16. 3rd Reading

    3/7/2025House

  17. 2nd Reading

    3/5/2025House

  18. Committee Report

    3/1/2025House

  19. Committee Executive Action

    2/28/2025House

  20. Fiscal Note Printed

    2/27/2025House

  21. Fiscal Note Signed

    2/26/2025House

  22. Fiscal Note Received

    2/26/2025House

  23. Hearing

    2/21/2025House

  24. 1st Reading

    2/19/2025House

  25. Referred to Committee

    2/19/2025House

Bill Text

  • Enrolled

    4/16/2025

    PDF

  • Introduced

    2/19/2025

    PDF

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