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)
Vetoed
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Funding and oversight for education accounts
The state provides $40 million from the general fund to the Bank of North Dakota for July 1, 2025–June 30, 2027 to launch the 2026–27 program. Starting July 1, 2026, the state treasurer transfers needed funds each year to the Bank, and the Bank makes quarterly deposits into each account. The Bank runs the program, hires qualified account managers, and conducts audits, including annual random audits. It can disqualify parents for substantial misuse, refer fraud to law enforcement, and must close accounts at high school graduation and return any remaining money to the state general fund.
How much money goes into education accounts
For the 2026–27 school year, each account gets 40% of the statutory per‑student amount. Beginning in 2027–28, each account gets 80% of that amount each year. You may carry forward up to 25% of the year’s deposit if the child stays in the program. If you remove the child before the school year ends, leftover funds from that year must be returned to the state. A student who transfers to another nonpublic school or to homeschool may keep ESA funds, consistent with program rules.
New education savings accounts for families
Starting July 1, 2026, North Dakota offers education savings accounts for resident K–12 students who are not in public school or supervised homeschool. Eligible students include those who can attend public school, or prior ESA students until high school graduation or age 21. Parents must sign an agreement to teach core subjects, use funds only for allowed costs, and tell the state if the child leaves the program. Money can pay for private school tuition and fees, required textbooks, tutoring, curriculum, approved online programs, test fees, approved computers or software (not resold within one year), reasonable transportation, and eligible college tuition and textbooks. Each year the student must take a state test or a national test and report results; the state pays if you pick the state test. Providers cannot refund or share grant money with families, and the program administrator gives parents written guidance on allowed uses and responsibilities.
Safety and financial rules for schools
Private schools in the program must meet health and safety laws, hold required permits and approvals, follow nondiscrimination rules, and run criminal background checks on staff. If a school expects $50,000 or more in ESA payments in a year, it must post a surety bond for that amount or provide financial records before the year starts. Schools must give parents receipts for qualifying expenses. These rules start July 1, 2026.
Education account money is not taxed
Starting July 1, 2026, deposits into an education savings account are not taxable income to the parent or the student.
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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