Judge Blocks Montana Education Savings Account Program, Cites Funding Violations

Helena District Court Judge Mike Menahan issued a ruling on December 11 that enjoins Montana's Education Savings Account program for qualifying students with disabilities, concluding the program was being funded in a manner that violated required legislative and administrative procedures. The court found the Legislature had effectively taken public funds from school districts and redirected them to nonpublic education expenses without following proper legal steps. The decision halts state payments under the ESA while the legal challenges continue.

The plaintiffs in the case included Disability Rights Montana and the Montana Quality Education Coalition. Their attorneys argued the ESA operated like a voucher scheme that diverted public education dollars away from public schools and provided no statutory guarantees about educational quality or appropriate services for participating students. The program had allowed qualifying families to access up to eight thousand dollars per year to pay for private school tuition, tutoring, homeschool materials and other nonpublic education expenses. Dozens of families across the state had enrolled and received funds since the program began operation.

State education officials responded with disappointment, and the ruling raises immediate practical questions for families who relied on ESA funds to obtain services outside of public school systems. Local school administrators in Lewis and Clark County will need to review district budgets and special education planning to account for the temporary suspension of the program, and some families may face short term disruptions in planned services or tuition commitments. The decision also affects providers that have been serving students under ESA support and could influence enrollment choices for the next school term.

The ruling will play a central role in shaping how Montana crafts alternatives to public school programming for students with disabilities. As appeals and related legal actions proceed, the state legislature and education agencies will confront legal and policy constraints on redirecting public education money. For Lewis and Clark County residents, the case underscores the intersection of special education policy, fiscal procedure and accountability in public funding decisions, and it signals that any new pathways for funding nonpublic services must align with constitutional and statutory procedures before they can be sustained.