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Montana Judge Blocks Education Savings Account Program for Students with Disabilities

12/11/2025, 1:33:56 AM

Court Ruling on Funding Legality

A district court judge in Montana has blocked the state's education savings account (ESA) program for students with disabilities, citing a lack of proper funding as the primary reason. The ruling came in response to a lawsuit filed by two nonprofit organizations, the Montana Quality Education Coalition and Disability Rights Montana, which argued that House Bill 393, known as the Students with Special Needs Equal Opportunity Act, was unconstitutional due to inadequate funding provisions. The ESA program, established in 2023, was designed to allow parents to redirect their child's per-pupil funding—estimated between $5,000 and $8,000 annually—into accounts managed by the Office of Public Instruction (OPI). These funds could be used for various educational expenses, including private schooling and specialized therapies.

Legal Arguments and Court Findings

Judge Mike Menahan of the Lewis and Clark County District Court ruled that the funding structure of HB 393 did not meet the statutory requirements for appropriation as mandated by the Montana Constitution. The court found that the program's creation lacked a valid statutory appropriation, leading to the decision to block its implementation. The plaintiffs contended that the bill required families to forfeit essential educational rights in exchange for funding that would not adequately cover their needs. Doug Reisig, Executive Director of the Montana Quality Education Coalition, emphasized that the program's funding mechanism was unconstitutional, stating, “taking money from public schools for vouchers without clear limits on how much and where that money will be spent is unconstitutional, pure and simple.”

Responses from Key Figures

Rylee Sommers-Flanagan, attorney for the plaintiffs and founder of Upper Seven Law, remarked that the ruling reinforces the constitutional requirements surrounding public school funding in Montana. She stated, “Siphoning public school money to unaccountable individual accounts is unconstitutional.” Conversely, the bill's sponsor, now-Senator Sue Vinton, expressed disappointment with the ruling, arguing that it negatively impacts students who rely on ESAs. Vinton noted, “I am disappointed that he didn’t rule in favor of all the kids that are utilizing ESAs, and there is a large number of them that this is critical for.”

Unresolved Issues and Next Steps

While the court dismissed one of the plaintiffs' claims regarding local school board authority, it left another claim unresolved. The plaintiffs raised concerns about potential inequities in funding, particularly affecting smaller rural districts. The judge acknowledged conflicting expert testimony on this matter, indicating that further examination may be necessary in a future trial. For the ESA program to proceed, lawmakers must address the appropriation issue or await a potential appeal that could reverse the ruling.

Verbatim Quotes

  • “taking money from public schools for vouchers without clear limits on how much and where that money will be spent is unconstitutional, pure and simple.” — Doug Reisig, Executive Director, Montana Quality Education Coalition
  • “Siphoning public school money to unaccountable individual accounts is unconstitutional,” — Rylee Sommers-Flanagan, Attorney, Upper Seven Law
  • “I am disappointed that he didn’t rule in favor of all the kids that are utilizing ESAs, and there is a large number of them that this is critical for,” — Sue Vinton, R-Billings, Bill's Sponsor