Senate Bill 2400 introduces tiered education savings accounts for North Dakota families

March 18, 2025 | Education, House of Representatives, Legislative, North Dakota


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Senate Bill 2400 introduces tiered education savings accounts for North Dakota families
A significant discussion during the North Dakota State Legislature's House Education meeting on March 18, 2025, centered around Senate Bill 2400, which proposes a tiered Education Savings Account (ESA) program aimed at enhancing educational opportunities for students across the state.

The bill outlines a structured approach to funding that varies based on the type of school a student attends and their family's income level. For public school students, the first tier offers $500 to be used for services from an online marketplace tailored to individual learning needs. This initiative recognizes that a one-size-fits-all approach to education does not meet the diverse needs of all students, allowing families to make decisions that best support their child's educational goals.

The second tier targets students enrolled in non-public participating schools, with funding based on family income. Families earning up to 300% of the federal poverty level would receive $3,500, while those earning between 300% and 500% would receive $2,000, and families above that threshold would receive $500. This means-based structure aims to provide families who may not afford tuition the opportunity to choose the best educational environment for their children.

Home-educated students fall under the third tier, receiving $500 to enhance their education through various approved services, such as online courses or specialized therapy. The ESA program will be facilitated through a digital marketplace, ensuring that all services offered are vetted and approved by the state, promoting accountability and quality.

Notably, Senate Bill 2400 would make North Dakota the first state to allow mental health services as an authorized expense within an ESA, marking a significant step in addressing the holistic needs of students. Additionally, school meals are included as an authorized expense, reflecting a comprehensive approach to student welfare.

The meeting underscored the importance of the marketplace in driving innovation and providing families with access to diverse educational services. As discussions continue, the implications of this bill could reshape educational choices for North Dakota families, emphasizing the need for tailored solutions that cater to individual student needs. The outcomes of this meeting will play a crucial role in determining the future of educational funding and support in the state.

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