A district court judge has halted Montana’s education savings account (ESA) program for students with disabilities. The decision favored two nonprofits, asserting that lawmakers failed to fund the initiative properly. The blocked program, under House Bill 393, aimed to allow parents to redirect state funds for private schooling and other educational needs.
House Bill 393, passed in 2023, was to establish Montana’s first ESA program for students with disabilities, enabling parents to redirect their child’s school funds into an account for private education expenses. Families were required to release the local district from its legal duty to provide free education, with the district returning state funds to the Office of Public Instruction. Parents could use these funds for private schooling, tutoring, or specialized therapies.
Judge Mike Menahan declared the funding method unconstitutional, citing the absence of a valid statutory appropriation, which violates the Montana Constitution. The ruling grants the plaintiffs’ motion to block the program based on this claim.
The legal challenge was brought by Montana Quality Education Coalition and Disability Rights Montana. They argued that the bill forced families to waive crucial educational rights for insufficient funding. Doug Reisig, MQEC Executive Director, criticized the program as unconstitutional, saying it misallocated public school funds.
Tal Goldin of Disability Rights Montana stated that “HB 393 was a lose-lose for students with disabilities.” Attorney Rylee Sommers-Flanagan emphasized the ruling’s reinforcement of constitutional public school funding requirements.
The ruling upheld state authority over education funding distribution despite another claim, which the judge dismissed. This ruling favored the bill’s sponsor, Sen. Sue Vinton, R-Billings. Concerns remain about potential funding inequities for rural districts, which could lead to further legal proceedings.
Vinton voiced disappointment, noting the program’s importance to many students. The ESA initiative will remain inactive unless lawmakers address funding or a higher court reverses the ruling. State Superintendent Susie Helden acknowledged the decision’s impact, indicating OPI’s intent to review next steps.
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