MontanaHB 57369th Legislature, Regular Session (2025)HouseWALLET

Revise transformational learning laws to create a phase II grant program

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Clear rules to run proficiency-based learning

Starting July 1, 2025, the law defines proficiency, proficiency‑based learning, and transformational learning in plain terms. To qualify for funding, school boards must file a board‑approved application that lists participating educator FTE, adopts a district proficiency definition in policy, and includes a strategic plan with measurable goals. The Board of Public Education sets application and report windows, qualifies districts until funds run out, and uses a third‑party lottery to order deferred applications or expansions. Districts must file yearly progress reports, and the Board reports program progress to the legislature.

Phase II grants to scale personalized learning

The law creates Phase II grants to help prior transformational learning grantees move to district‑wide, proficiency‑based learning and share guidance. The superintendent invites eligible districts to apply; by February 1, 2026, up to five are recommended, and by July 15, 2026, up to five receive grants. Ninety percent of the appropriation goes to grants based on district size and costs; 10% funds technical help, convenings, and expert support. If House Bill 2 and this act both pass, HB 2 funds for transformational learning go to this Phase II program. Districts must deposit awards in the flexibility fund and spend them by June 30, 2028. OPI and grantees must submit a joint progress and guidance report by September 1, 2028. The Phase II section ends December 31, 2028.

Short-term school aid and local property tax

Beginning July 1, 2025, the state pays transformational learning aid to qualified districts. The annual payment equals 50% of the prior year’s quality educator payment times the district’s participating educator FTE, and is deposited by October 1. A single statewide aid total is set using half the quality educator payment times 10% of statewide educator FTE. No district can receive more than 25% of the statewide aid. Districts may choose to add a permissive property tax up to the amount of state aid received from July 1, 2025 through June 30, 2026, after meeting state transparency rules. Districts may transfer money into the flexibility fund (not from debt service or retirement); unused transfers must go back after two full school fiscal years, and nonvoted levies may not be raised to replace transfers. Aid is included in the state’s present law funding base. The temporary incentives in this section end June 30, 2026, so support is time‑limited.

Sponsors & Cosponsors

Sponsor

David Bedey
Republican • House

Cosponsors

Curtis Schomer
Republican • House
Wendy McKamey
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 248 • No: 45

House vote • 4/15/2025

Do Concur

Yes: 30 • No: 20

House vote • 4/14/2025

Do Concur

Yes: 31 • No: 15

House vote • 3/7/2025

Do Pass

Yes: 92 • No: 7

House vote • 3/5/2025