1.1 A bill for an act
1.2 relating to education finance; creating an education empowerment account program;
1.3 requiring a report; appropriating money; proposing coding for new law in Minnesota
1.4 Statutes, chapter 124D.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [124D.0905] EDUCATION EMPOWERMENT ACCOUNTS FOR
1.7STUDENTS.
1.8 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
1.9the meanings given.
1.10 (b) "Available federal funds" means federal elementary and secondary aid paid to the
1.11state through a block grant or otherwise not required by federal law to be used for a specific
1.12purpose.
1.13 (c) "Eligible education expenses" include:
1.14 (1) tuition and fees;
1.15 (2) textbooks, curricular materials, and other instructional materials and supplies;
1.16 (3) registration fees for nationally standardized achievement tests, advanced placement
1.17and international baccalaureate tests, and any other examination related to postsecondary
1.18admission;
1.19 (4) educational therapies, including individualized observation and instruction to students
1.20who may be struggling in a specific academic subject area;
1Section 1.
REVISOR CR/LJ 25-0408003/03/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2895
NINETY-FOURTH SESSION
Authored by Dippel03/27/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1 (5) pupil transportation services to and from school, unless transportation is provided
2.2under sections 123B.84 to 123B.87; and
2.3 (6) computer hardware, software, and connectivity devices and expenses necessary for
2.4a student to participate in an educational program.
2.5 (d) "Eligible student" means any student who resides in Minnesota and is eligible to
2.6enroll in a public school for prekindergarten through grade 12 programming.
2.7 (e) "Individual education empowerment account" means an education empowerment
2.8account established on behalf of an eligible student according to subdivision 4.
2.9 (f) "Participating student" means an eligible student who has enrolled in the education
2.10empowerment account program.
2.11 (g) "Postsecondary institution" means an eligible institution under section 124D.09,
2.12subdivision 3, paragraph (a).
2.13 (h) "Student education empowerment amount" means the statewide average general
2.14education revenue per pupil unit under section 126C.10.
2.15 Subd. 2. Education empowerment account program created.(a) An education
2.16empowerment account program is created.
2.17 (b) A student qualifies to participate in the program if the student is an eligible student
2.18under subdivision 1, paragraph (d).
2.19 (c) A parent must only use the money deposited in a participating student's education
2.20empowerment account for tuition and fees.
2.21 (d) Upon a participating student's graduation from high school, any money remaining
2.22in a participating student's individual education empowerment account may be applied to
2.23tuition and fees charged for courses taken from a postsecondary institution in the school
2.24year immediately following the year of graduation.
2.25 (e) If, at any time after the creation of a student's individual education empowerment
2.26account, the participating student re-enrolls in a Minnesota school district or charter school,
2.27the student's individual education empowerment account must be closed, and any remaining
2.28money in the student's individual education empowerment account must be returned to the
2.29state general fund.
2.30 Subd. 3.Individual education empowerment account funding.(a) The commissioner
2.31must create an individual education empowerment account for each participating student
2.32upon request of the student's parent.
2Section 1.
REVISOR CR/LJ 25-0408003/03/25 3.1 (b) Each student's education empowerment amount equals the student education
3.2empowerment amount for that school year times grade-level weighting under section 126C.05
3.3for the eligible student's grade.
3.4 (c) On July 30 of each year, the amount determined under paragraph (b) is appropriated
3.5from the general fund to the commissioner for placement into each participating student's
3.6education empowerment account. The amount transferred to each account equals the product
3.7of the pupil's grade-level weighting for that year and the basic formula allowance for that
3.8year.
3.9 Subd. 4.Application information.(a) The commissioner must create an application
3.10form, ensure that the application is readily available to interested students and families, and
3.11post the form to the Department of Education's website. The commissioner must provide
3.12information to participating students and families explaining (1) the obligation of the parent
3.13to document the appropriate expenditure of account funds, and (2) the duties of the
3.14commissioner to oversee the spending of the funds. The information must also be made
3.15available on the department's website.
3.16 (b) By October 1 of each year, the commissioner shall annually notify all students who
3.17are eligible to participate in the education empowerment account program of the existence
3.18of the program.
3.19 Subd. 5.Special revenue fund; education empowerment account.(a) An account is
3.20established in the special revenue fund known as the "education empowerment account."
3.21 (b) Available federal funds must be deposited into the education empowerment account.
3.22If the commissioner estimates that the available federal funds are in excess of the amount
3.23necessary to fund the educational empowerment accounts, the remaining available funds
3.24may be used as otherwise provided by law.
3.25 (c) State funds appropriated for the education empowerment account must be transferred
3.26to the education empowerment account in the special revenue fund.
3.27 (d) Money in the account is annually appropriated to the commissioner for transfer into
3.28participating students' individual education empowerment accounts.
3.29 Subd. 6.Effect on nonpublic schools.Nothing in this section authorizes the Department
3.30of Education or any school district in this state to exercise any additional control or
3.31supervision, other than that set forth in this section, or to impose any additional requirements
3.32or restrictions, other than those set forth in this section, over any nonpublic school, nonpublic
3.33school student, or parent of any nonpublic school student.
3Section 1.
REVISOR CR/LJ 25-0408003/03/25 4.1 EFFECTIVE DATE.This section is effective the day following final enactment and
4.2applies to eligible students enrolling in an eligible school for the 2026-2027 school year
4.3and later.
4.4 Sec. 2. APPROPRIATIONS; EDUCATION EMPOWERMENT ACCOUNTS.
4.5 Subdivision 1.Department of Education.The sums indicated in this section are
4.6appropriated from the general fund to the Department of Education for the fiscal years
4.7designated.
4.8 Subd. 2.Development of education empowerment accounts.For development of
4.9education empowerment accounts under Minnesota Statutes, section 124D.0905:
2026............4.10 $
4.11 Subd. 3.Education empowerment accounts.(a) For transfer to the education
4.12empowerment account in the special revenue fund under Minnesota Statutes, section
4.13124D.0905, subdivision 5:
2027............4.14 $
4.15 (b) By March 15 of each year, the commissioner must annually estimate and report to
4.16the chairs and ranking minority members of the legislative committees with jurisdiction
4.17over education the state aid, when added to the available federal funds, necessary to fully
4.18fund the education empowerment account for the following school year.
4Sec. 2.
REVISOR CR/LJ 25-0408003/03/25