Montana Homeschool Funding & ESA Guide (2026)

Montana's school choice story took a sharp turn in late 2025. The state's Special Needs Equal Opportunity ESA, which provided funding for students with disabilities, was struck down by a court ruling in December 2025^[1]. The program is currently blocked while an appeal works through the courts.

If you're a Montana homeschooler wondering about state funding, here's the current reality: the special needs ESA isn't accepting new applications, and even when it was operational, it only served students with qualifying disabilities. For most Montana families, federal alternatives remain the primary path to education funding support.

What Happened to Montana ESA?

Montana's Special Needs Equal Opportunity ESA launched with the goal of helping families with children with disabilities access educational options outside the public school system. The program provided approximately $5,000-$8,000 annually based on the state's Average Number Belonging (ANB) funding formula.

In December 2025, a court ruled the program unconstitutional^[1]. The state has appealed, and the program remains in legal limbo. Students who were already participating may continue using their funds through June 30, 2026, but no new participants can join while the legal challenge proceeds.

This isn't the first time Montana school choice has faced constitutional challenges—the state's Blaine Amendment and related provisions have complicated various education funding proposals over the years.

Who Was Eligible (When the Program Was Active)?

Even when operational, Montana's ESA wasn't available to all homeschoolers. The program was strictly limited to students with disabilities who had an IEP (Individualized Education Program) under IDEA. This included:

- Students with documented learning disabilities - Students with autism spectrum disorders - Students requiring speech, occupational, or physical therapy - Students with other qualifying conditions under federal special education law

General homeschool families—those without children with documented disabilities—were never eligible for this program. Montana has no universal school choice option.

What This Means for Current Participants

If your family was enrolled in the Montana Special Needs ESA before the court ruling, you may continue accessing your funds through the end of the current school year (June 30, 2026). Keep documentation of all expenses in case the program is reinstated or for tax purposes.

Monitor the appeal process through the Montana Office of Public Instruction. If the appeals court reverses the lower court ruling, the program could resume. If the ruling stands, families will need to transition to alternative funding sources.

Alternative Funding Options for Montana Homeschoolers

With state funding currently unavailable, Montana families have several federal and private options to help offset homeschool costs:

• Coverdell ESA — Save up to $2,000 per year per child in a tax-advantaged account. Contributions aren't deductible, but growth and qualified withdrawals are tax-free. Covers curriculum, tutoring, computers, and educational supplies.^[2]
• 529 Plan — Montana's ACHIEVE Montana 529 plan offers state tax deductions for contributions. While primarily for college, federal law allows up to $10,000 annually for K-12 private school tuition.
• Employer education benefits — Some employers offer dependent education assistance. Worth checking your benefits package.
• Local homeschool co-ops — Montana has active homeschool communities that share costs for group classes and activities.
• Curriculum scholarships — Many publishers offer need-based scholarships for homeschool curriculum.

Montana Homeschool Funding Options

Looking Ahead: What Could Change?

The future of Montana school choice depends on several factors:

If the appeal succeeds: The special needs ESA could resume operations, potentially with modifications to address constitutional concerns.

If the appeal fails: The legislature might attempt a new program designed to satisfy constitutional requirements, though this would take time and isn't guaranteed.

Universal school choice: Montana has discussed broader school choice legislation, but constitutional challenges make implementation difficult. Any expansion would likely face immediate legal scrutiny.

For now, the best approach is to plan around federal options while staying informed about legal developments. Organizations like HSLDA and the Montana Coalition of Home Educators track legislative and legal changes that affect homeschool families.

The Bottom Line

Montana's school choice landscape is currently in flux. The special needs ESA that once provided $5,000-$8,000 annually for students with disabilities is blocked by a December 2025 court ruling, with appeals ongoing.

For most Montana homeschoolers, federal options like Coverdell ESAs offer the clearest path to tax-advantaged education savings. Montana's low-regulation homeschool environment provides significant freedom even without state funding—and that freedom can be more valuable than the oversight that often accompanies government money.

Keep an eye on legal developments, but don't wait to start homeschooling. The resources you need are available, and Montana's supportive homeschool community can help fill gaps.