Senate narrowly approves education savings account program after heated debate

The North Dakota Senate approved Senate Bill 2,400, a measure establishing a statewide Education Savings Account (ESA) program, by a 25–22 vote following extended floor debate and a failed amendment that would have sharply narrowed eligibility.

Senator Axman, the bill carrier, described the program as a three‑tier structure administered by the Department of Public Instruction. Under the version passed by the Senate, the first tier would make a modest ESA available to all public school students (the amended figure on the floor reduced that amount to $500). The second tier provides larger, means‑tested allotments for students enrolled in nonpublic participating schools: with amounts keyed to household income bands (for families at 300% of the federal poverty level and below, the larger allotment; reduced amounts for higher income bands). The third tier creates a smaller ESA for home‑educated students (the floor amendment discussion lowered that to $500 under one amendment attempt).

Supporters, including Senators Axman, Bridal and others, said the program would expand access to services—such as dual credit courses, specialized therapies and coursework—not readily available in some rural districts. Senator Axman said the digital marketplace envisioned by the bill would vet and list approved educational services and allow families to use account funds to purchase them.

Opponents raised budgetary and policy concerns. Senator Dwyer and others argued that the bill—for which the fiscal note estimated roughly $58 million—would divert substantial state funds to individual student accounts, including for public school students, and risk layering new spending onto existing per‑pupil investment. Dwyer said the bill “is not a school choice bill” in practice but instead “a bill to provide additional educational services to all students at a cost of $58,000,000.”

Senator Matherne offered an amendment that would have replaced the three‑tier design with a narrower means‑tested account limited to lower‑income families and a $1,000 account size; that amendment failed on a verification vote (17 ayes, 30 nays). Floor debate also included technical questions about whether accounts would be limited to North Dakota students and how accounts could be used for school meals or other services. Sponsors said administration by the Department of Public Instruction and the marketplace approach would allow oversight and vendor vetting.

After debate and the failed amendment, the Senate recorded final passage: 25 ayes, 22 nays. Senators who voted with the majority emphasized rural access, choice of supplemental services, and support for students with special needs; those in the minority emphasized fiscal conservatism and potential federal strings attached if funding sources change.

The bill now moves to the House for further consideration. Sponsors and opponents both signaled that the program’s implementation details—particularly vendor vetting, eligibility rules for cross‑border students, and the final appropriation level—will be addressed during budget negotiations and in the other chamber.