North Dakota Education Funding Programs (2026): ESA Veto, Federal Tax Credit and North Dakota Home Education Rules
North Dakota has no ESA after the 2025 HB 1540 veto. What is coming in 2027, plus home education rules: statement of intent, 175 days, testing in grades 4, 6, 8 and 10. Updated Nov 1, 2026.

Last updated: November 1, 2026. We checked the North Dakota Legislature’s HB 1540 overview, NDCC chapter 15.1-23 (home education) and the Department of Public Instruction Home Education page. This is general information, not legal, tax or financial advice.
North Dakota lawmakers passed an education savings account bill in 2025, but the governor vetoed it and the veto stood. As of November 1, 2026, North Dakota has no voucher, ESA or tax-credit scholarship program for K-12 families.
This guide covers what happened in 2025, the federal tax credit North Dakota has joined for 2027 and the state’s home education rules.
This guide is part of our series on state education funding, which starts with the hub guide, State Education Funding Programs for Parents. If you are brand new to the idea, our step-by-step guide to starting homeschooling covers the basics that apply in every state.
Quick answer: North Dakota has no state program that pays private school or homeschool costs. HB 1540, which would have created education savings accounts for students not in public school or homeschool, was vetoed by Gov. Kelly Armstrong (the Legislature records the veto on April 24, 2025), and the House did not override it. North Dakota is on the IRS list of states taking part in the federal Scholarship Tax Credit starting January 1, 2027. To homeschool, file a Statement of Intent with your school district at least five days before you start and every year after, teach at least 4 hours a day for 175 days, and test in grades 4, 6, 8 and 10 unless you qualify for an exemption.

North Dakota’s Programs at a Glance
| Program | Status as of Nov. 1, 2026 | Source |
|---|---|---|
| HB 1540 (2025): education savings accounts | Failed: vetoed, veto not overridden | North Dakota Legislature |
| Federal Scholarship Tax Credit (Section 25F) | North Dakota is a participating state for 2027 | IRS participating states |
| Home education | Legal; no state funding | Department of Public Instruction |

The 2025 ESA Bill and the Veto
HB 1540 would have created an education savings account program “for students who are not enrolled in public school or a homeschool program,” with an appropriation. It passed the House and the Senate in spring 2025. The Legislature’s bill page lists it as vetoed by the governor on April 24, 2025, filed with the Secretary of State on April 29 and marked “Failed.”
The North Dakota Monitor reported on April 25, 2025 that a House vote to override the veto fell short of the two-thirds majority needed. Because the bill was limited to students outside public school and homeschool, homeschool families would not have received accounts under it anyway.

Recent Changes and Status (as of November 2026)
- No state program: as of November 1, 2026, North Dakota has no voucher, ESA or tax-credit scholarship program. The Legislature meets in regular session in odd-numbered years, so the next regular session is in 2027.
- Federal Scholarship Tax Credit: beginning January 1, 2027, the IRS says donors can claim up to $1,700 ($3,400 married filing jointly) for gifts to approved scholarship-granting organizations in participating states. North Dakota is on the IRS participating list dated October 22, 2026. Watch for North Dakota’s approved scholarship groups and their family eligibility rules in 2027.

Homeschooling in North Dakota: Home Education Rules
North Dakota calls homeschooling “home education.” The rules are in NDCC chapter 15.1-23, and the Department of Public Instruction has a parent guide and forms.
- File a Statement of Intent (SFN 16909) with your school district superintendent at least five days before you begin, or within 14 days of moving into a district, and every year after for each child age 7 or older. Include immunization records and proof of identity.
- The supervising parent needs a high school diploma or GED. A parent without one can still homeschool but must be monitored by a licensed teacher for the first two years.
- Teach the subjects required in public schools for at least 4 hours a day and 175 days a year, and keep an annual record of courses and progress.
- Test in grades 4, 6, 8 and 10. You can opt out by notifying the district of a philosophical, moral or religious objection, or if you are a licensed teacher, hold a bachelor’s degree or passed a national teacher exam.
- If a composite score falls below the 50th percentile, monitoring may be required until scores improve.
DPI notes that homeschool students can take public school courses and join extracurriculars, and can qualify for the North Dakota Scholarship for college. For other states, see our guide to homeschool laws by state.

Questions to Ask Before You Choose a School
- Does the private school offer its own tuition aid?
- Will it accept scholarships from a North Dakota scholarship-granting organization under the federal credit in 2027?
- If you homeschool, are you exempt from testing, and did you file that notice with your Statement of Intent?
- Which public school courses or activities does your district offer homeschool students?

Frequently Asked Questions
Does North Dakota have an ESA or vouchers?
No. HB 1540 would have created ESAs, but it was vetoed in April 2025 and the veto was not overridden.
Did North Dakota opt into the federal scholarship tax credit?
Yes. North Dakota is on the IRS list of participating states for 2027, dated October 22, 2026.
How do I start homeschooling in North Dakota?
File a Statement of Intent with your district at least five days before you start, then renew it every year.
Is testing required for North Dakota homeschoolers?
Yes, in grades 4, 6, 8 and 10, unless the parent qualifies for an exemption or files an objection with the Statement of Intent.
How many days and hours must I teach?
At least 4 hours a day for at least 175 days a year.

Sources
We checked each of these official pages on November 1, 2026. Rules and dates change, so confirm anything important with the agency before you rely on it.
- North Dakota Legislature: HB 1540 (2025) overview
- North Dakota Century Code chapter 15.1-23, Home Education
- North Dakota Department of Public Instruction: Home Education
- North Dakota Monitor: veto override votes fail (April 25, 2025)
- IRS: Federal Scholarship Tax Credit
- IRS: FSTC participating states for 2027
Looking for another state? Go back to the State Education Funding Programs for Parents hub for the full list of state guides.



