All Roll Calls
Yes: 221 • No: 188
North DakotaHB 15402025 Regular SessionHouseWALLET
AN ACT to create and enact a new chapter to title 15.1 of the North Dakota Century Code, relating to an education savings account program for students who are not enrolled in public school or a homeschool program; to provide an appropriation; and to provide an effective date.
Sponsored By: Ben Koppelman (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 1 costs, 4 mixed.
Education savings accounts for ND families
The law creates state-funded education savings accounts for K–12 students who live in North Dakota and can attend public school. Parents apply year-round, and siblings of current ESA students get priority. For 2026–27 the state deposits 40% of the base per‑student amount; starting in 2027–28 it deposits 80%. Money can pay for private-school tuition and fees, tutoring, curriculum, nonpublic online programs, test fees, approved computers/software (devices cannot be resold for one year), transportation to providers, and eligible college tuition and textbooks. ESA deposits are not taxable income; up to 25% can roll to next year if the child stays in the program, but if you withdraw mid‑year, remaining funds return to the state. To get funds, a parent must sign an agreement, teach basic subjects, and keep the child out of public school or supervised home school; the department does outreach and offers web and phone help. The 2025–27 budget provides $40 million to launch the program.
New rules for ESA schools and providers
Private schools that join must follow health and safety laws, hold required certifications and occupancy permits, follow nondiscrimination rules, and run employee background checks. Schools expecting $50,000 or more in ESA funds in a year must file a surety bond for that amount or show financial proof before the year starts. Schools and other providers may not refund or rebate ESA payments to families. The department can bar providers that repeatedly break rules or fail to deliver services; parents can appeal.
How ESA funding affects districts
The state treasurer sends ESA funds each year to the Bank of North Dakota for quarterly deposits into student accounts. ESA students are still counted in their home district’s enrollment, but the state subtracts the ESA grant from that district’s state aid and sends it to the Bank. The district receives 20% of the base amount for each ESA grant. These rules begin July 1, 2026.
School records and rides for students
Your home district must share your student’s records with a participating school, following privacy rules. The district may provide transportation to the participating school under the same rules used for other nonpublic schools. The district receives state transportation aid for each ESA student it transports.
Bank runs and audits ESA accounts
The Bank of North Dakota administers the ESA program. It selects account managers, makes quarterly payments, sets rules, and conducts audits, including random audits. The bank can bar a parent for substantial misuse and must refer suspected fraud to law enforcement. When a student graduates, the account closes and any leftover money goes to the state general fund.
Yearly tests for ESA students
Parents must ensure ESA students take state tests and a national math and reading test each year and submit results. The department collects results, protects privacy, and runs an annual parent satisfaction survey. After three years, it publishes grouped test, graduation, and college enrollment results.
Sponsors & Cosponsors
Sponsor
Ben Koppelman
Republican • House
Cosponsors
Dori Hauck
Republican • House
Jorin Johnson
Republican • House
Andrew Marschall
Republican • House
Desiree Morton
Republican • House
Karen M. Rohr
Republican • House
Vicky Steiner
Republican • House
Keith Boehm
Republican • Senate
David A. Clemens
Republican • Senate
Claire Cory
Republican • Senate
Justin Gerhardt
Republican • Senate
Mike Wobbema
Republican • Senate
Roll Call Votes
House vote • 4/25/2025
Veto sustained, yeas 45 nays 48
Yes: 45 • No: 48
House vote • 4/21/2025
Second reading, passed, yeas 49 nays 43
Yes: 49 • No: 43
Senate vote • 4/17/2025
Second reading, passed as amended, yeas 27 nays 20
Yes: 27 • No: 20
House vote • 2/25/2025
Second reading, passed, yeas 51 nays 39
Yes: 51 • No: 39
House vote • 2/13/2025
Second reading, passed, yeas 49 nays 38
Yes: 49 • No: 38
Actions Timeline
Filed with Secretary Of State 04/29
4/29/2025HouseVeto sustained, yeas 45 nays 48
4/25/2025HouseConsideration of Governor's veto
4/25/2025HouseVetoed by Governor 04/23
4/24/2025HouseSent to Governor
4/23/2025HouseSigned by Speaker
4/23/2025HouseSigned by President
4/23/2025SenateMotion to reconsider failed
4/22/2025HouseSecond reading, passed, yeas 49 nays 43
4/21/2025HouseConcurred
4/21/2025HouseReturned to House (12)
4/17/2025HouseSecond reading, passed as amended, yeas 27 nays 20
4/17/2025SenateAmendment failed
4/17/2025SenateAmendment proposed on floor
4/17/2025SenateAmendment adopted
4/17/2025SenateAmendment proposed on floor
4/17/2025SenateAmendment adopted, placed on calendar
4/17/2025SenateReported back amended, do pass, amendment placed on calendar 9 6 1
4/16/2025SenateRereferred to Appropriations
4/4/2025SenateAmendment adopted
4/4/2025SenateReported back amended, do pass, amendment placed on calendar 4 2 0
4/3/2025SenateCommittee Hearing 02:30
3/17/2025SenateIntroduced, first reading, referred Education Committee
3/7/2025SenateReceived from House
2/25/2025SenateSecond reading, passed, yeas 51 nays 39
2/25/2025House
Bill Text
Adopted by the House Education Committee
Adopted by the Senate Education Committee
Enrollment
FIRST ENGROSSMENT
INTRODUCED
Prepared by the Legislative Council staff for Representative Koppelman
Prepared by the Legislative Council staff for Senator Axtman
Prepared by the Legislative Council staff for Senator Schaible
SECOND ENGROSSMENT
SECOND ENGROSSMENT with Senate Amendments
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