Senator Baucher, sponsor of Senate Bill 23‑03, outlined a proposal to create education savings accounts that would move a portion of the state's per‑pupil payment to families who choose nonpublic or home schooling. "On July 15 of each year, the Bank of North Dakota will deposit 60% of the state's per pupil payment into the education savings account of each qualified student," Senator Baucher said on the floor, summarizing the bill's core mechanism.

The bill's sponsor and supporters said the measure would expand school choice by allowing state dollars to follow students to nonpublic schools and to participating homeschool families, and would require nonpublic schools and participating providers to meet certain accountability measures. Backers cited a fiscal note and an updated Department of Public Instruction estimate presented to the committee during debate.

Opponents said the legislation would drain funding from public districts and could destabilize rural schools. Senator Clemens, speaking for the committee that recommended amendments earlier, said the state’s public schools would lose the majority of per‑pupil revenue when students left, leaving districts to cover fixed costs with much less money. Other senators raised concerns about the program’s projected cost and uncertainty in participation rates.

Debate also focused on program details: which expenses would be eligible, whether participating nonpublic schools would have to demonstrate financial viability if they received large sums, what records and receipts would be required, and whether homeschool families would be required to participate. Senator Bauschay clarified that homeschool participation would be voluntary under the bill.

After floor debate, the Senate recorded a final tally of 20 ayes, 24 nays and 3 absent; the bill was defeated. The outcome leaves in place current K‑12 funding arrangements and returns any further action on school choice expansion to future sessions or to the appropriations process.