North Dakota's New Education Savings Account Legislation

The American Federation for Children is celebrating North Dakota’s House and Rep. Ben Koppelman upon passing HB 1540 in a 51-39 vote in Bismarck Tuesday evening.

The bill would establish education savings accounts (ESAs) for private students.

In his State of the State speech in January, Governor Kelly Armstrong noted, "Our budget will support education savings accounts—funding set aside for each student to direct toward services or tuition across our public, nonpublic, or homeschool settings." "The money follows the student, not the school, ensuring every student has the tools they need to prepare for college, a career, or the military," he said.

Rep. Koppelman's HB 1540 tackles the Governor's proposals. The measure offers $40 million to launch an ESG program starting in the 2026–2027 academic year.

Should legislation be passed, HB 1540 would grant around $4,101 to qualified participants. This level is determined at half of the statewide public school per-student funding average.

Ryan Cantrell, Vice President of Government Affairs for the American Federation for Children, said

"AFC honors the North Dakota House, Majority Leader Mike Lefor, and Representative Ben Koppelman on the passing of HB 1540. This legislation lets North Dakota residents choose the greatest learning environments for their kids. Now that both chambers of the legislature have enacted laws creating education savings accounts, we hope they can agree on a measure they can present to Governor Armstrong for signature.

Details:

The House’s $40 million ESA program would begin in the 2026-2027 school year

Private school students would be eligible for about $4,100 per student