Education groups and disability rights advocates are contesting Montana’s Office of Public Instruction’s (OPI) handling of publicly funded savings accounts for private education and student disability services throughout the school year. The legal debate follows a decision by a state district court judge in Helena, declaring the funding approach in the Republican-led 2023 law, House Bill 393, unconstitutional.
State attorneys are pursuing an appeal to the Montana Supreme Court. Meanwhile, both sides disagree on the fate of current Education Savings Accounts (ESAs). Over 60 students are utilizing such accounts for education and services, as per legal filings. Judge Mike Menahan recently stayed his ruling pending an appeal in response to a request from state attorneys and Sen. Sue Vinton, sponsor of the bill. OPI officials and Vinton welcomed this decision, stating it keeps the program operational until next summer.
In a statement, Montana Superintendent of Public Instruction Susie Hedalen’s office said, “Under the court’s order, the Office of Public Instruction (OPI) will continue administering the ESA program, including processing approved reimbursements and payments, through June 30, 2026.” The order, they added, ensures continuity for families, especially students with special education needs, without disruption.
However, attorneys for Disability Rights Montana and Montana Quality Education Coalition criticized the stay. They argued it was overly broad and premature, occurring before additional briefings could be heard. The plaintiffs noted a more focused approach had been agreed upon, involving the use of existing funds to settle reimbursement requests with specific families.
They argue, “Unlike a blanket stay, tailored relief serves the public interest by appropriately balancing the needs of schools and ESA participants. Defendants have failed to establish irreparable harm justifying a blanket stay.” The groups asked Judge Menahan to overturn his stay order and reject the motion from Vinton and OPI, urging a meeting to resolve pending ESA reimbursements.
The plaintiffs requested expedited briefing if the court does not deny the motion and asked for responses by December 31, 2025, and any replies by January 6, 2025. Judge Menahan had yet to respond to the latest motions as of Friday midday.
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