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MontanaSB 25369th Legislature, Regular Session (2025)SenateWALLET

Revise administrative and certification processes for student scholarship organizations

Sponsored By: Sue Vinton (Republican)

Became Law

Schools and EducationTaxation (Generally)

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Bill Overview

Analyzed Economic Effects

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

Stronger audits and public reporting

Starting October 1, 2025, scholarship groups must keep a formal application process and a public website that explains how they award aid, lists providers paid last year, and states families may use scholarships at any qualified provider. Each year, an independent CPA must review finances within 120 days and report three years of contributions, scholarships, provider totals, and the review cost. Groups must submit the review to the Department within 150 days after year‑end and send website links by December 31. If a review is missing, the Department sends a notice and the group has 30 days to file. The Department also posts a linked list of certified groups, their award policies, provider names, numbers and amounts given to non‑tutor providers, and links to each group’s site.

More donations go to student aid

Starting October 1, 2025, scholarship groups must give at least 90% of qualified donations to scholarships. They may subtract the required CPA review cost before computing the 90%. Donations subject to this rule must be awarded within three calendar years. Groups must keep scholarship and operating money in separate accounts. They may transfer funds to another certified group, but must give written notice to the Department first.

Who can get and use scholarships

Beginning October 1, 2025, an eligible student is a Montana resident who is at least 5 by September 10 and under 19. Parents can use scholarships at any qualified nonpublic provider they choose. A qualified provider may be accredited or not, but must meet private school health and safety rules, cannot be a home school, and must give written notice if not accredited. A student’s yearly scholarship cannot be more than the per‑student average public school spending set in law (20-9-570).

Certification rules for scholarship groups

Beginning October 1, 2025, only Montana 501(c)(3) charities certified by the Department of Revenue may accept donations that earn the state tax credit. Groups must apply before taking tax‑credit‑eligible donations; certification lasts for that tax year and the next year only. The Department must decide within 60 days, and a denied group has 30 days to fix issues before a final, non‑appealable denial. Uncertified groups cannot accept tax‑credit donations and must use any remaining scholarship funds as the law requires. Groups that break the rules may be terminated under the statute.

Start dates and state funding

The law takes effect July 1, 2025. Sections 1 through 4 start October 1, 2025. The state provides $206,000 from the general fund for the biennium beginning July 1, 2025 to help the Department of Revenue implement the law. This funding is one‑time‑only. If House Bill 2 also became law, this act’s appropriation overrides related contingency language in HB 2.

Sponsors & Cosponsors

Sponsor

  • Sue Vinton

    Republican • Senate

Cosponsors

  • Randyn Gregg

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 412 • No: 132

Senate vote • 4/29/2025

Do Pass

Yes: 49 • No: 1

Senate vote • 4/28/2025

Do Pass

Yes: 43 • No: 6

Senate vote • 4/24/2025

Do Concur

Yes: 57 • No: 43

Senate vote • 4/23/2025

Do Concur

Yes: 57 • No: 42

Senate vote • 4/15/2025

Do Concur

Yes: 75 • No: 22

Senate vote • 3/21/2025

Do Pass

Yes: 45 • No: 5

Senate vote • 3/20/2025

Do Pass

Yes: 44 • No: 6

Senate vote • 2/28/2025

Do Pass

Yes: 42 • No: 7

Actions Timeline

  1. Chapter Number Assigned

    5/16/2025Senate

  2. Signed by Governor

    5/13/2025Senate

  3. Transmitted to Governor

    5/5/2025Senate

  4. Signed by Speaker

    5/5/2025House

  5. Signed by President

    5/2/2025Senate

  6. Returned from Enrolling

    4/30/2025Senate

  7. Sent to Enrolling

    4/29/2025Senate

  8. 3rd Reading Passed as Amended by House

    4/29/2025Senate

  9. 2nd Reading House Amendments Concurred

    4/28/2025Senate

  10. Returned to Senate with Amendments

    4/24/2025House

  11. 3rd Reading Concurred

    4/24/2025House

  12. 2nd Reading Concurred

    4/23/2025House

  13. Revised Fiscal Note Printed

    4/22/2025Senate

  14. Fiscal Note Unsigned

    4/22/2025Senate

  15. Revised Fiscal Note Received

    4/22/2025Senate

  16. Committee Report--Bill Concurred as Amended

    4/18/2025House

  17. Committee Executive Action--Bill Concurred as Amended

    4/18/2025House

  18. Hearing

    4/15/2025House

  19. Rereferred to Committee

    4/15/2025House

  20. 2nd Reading Concurred

    4/15/2025House

  21. Committee Report--Bill Concurred

    4/9/2025House

  22. Committee Executive Action--Bill Concurred

    4/9/2025House

  23. Revised Fiscal Note Printed

    3/27/2025Senate

  24. Hearing

    3/27/2025House

  25. Fiscal Note Unsigned

    3/26/2025Senate

Bill Text

  • Enrolled

    4/29/2025

    PDF

  • As Amended (Version 3)

    4/18/2025

    PDF

  • As Amended (Version 2)

    3/19/2025

    PDF

  • Introduced

    1/31/2025

    PDF

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