Montana Families Face Uncertainty After Judge Blocks ESA Program

A Montana judge has issued a preliminary injunction blocking the state’s Education Savings Account (ESA) program, leaving families who planned to use the funds in limbo as they navigate their children’s education for the remainder of the school year.

District Court Judge Mike Menahan’s decision, issued on December 13, halts the program until a final ruling is made on June 30, 2026. The injunction prevents the Montana Office of Public Instruction (OPI) from distributing ESA funds and prohibits families from spending money already allocated to their accounts.

The ESA program, passed by the Montana Legislature in 2023, allows families to use public funds for private school tuition, homeschooling expenses, and other educational costs. Families can receive up to $6,000 per student annually.

Menahan’s ruling came in response to a lawsuit filed by the Montana Quality Education Coalition and the Montana Federation of Public Employees, which argued the program violates the state constitution’s requirement that the legislature provide a “basic system of free quality public elementary and secondary schools.”

The plaintiffs contend that diverting public funds to private schools undermines Montana’s public education system.

“This preliminary injunction protects Montana’s constitutional commitment to public education while the court considers the full merits of this case,” said Rylee Sommers-Flanagan, senior staff attorney with the Upper Seven Law Firm, which represents the plaintiffs.

The decision affects approximately 2,400 families who were approved for ESAs in the 2024-25 school year. Many of these families had already committed to educational expenses based on the expectation they would receive ESA funds.

Bridget Gutmann, mother of four children enrolled in private school in Missoula, said the injunction has created significant financial strain for her family.

“We made decisions based on the program being available,” Gutmann said. “Now we’re stuck trying to figure out how to pay for the rest of the school year.”

Gutmann and her husband, a small business owner, had planned to use ESA funds to help cover tuition costs at their children’s school. Without those funds, they’re considering difficult choices, including potentially withdrawing their children mid-year.

“It feels like the rug has been pulled out from under us,” she said.

Advocates for the ESA program argue it provides educational choice for families, particularly those in rural areas with limited schooling options or families seeking alternatives to traditional public schools.

“Families should have the freedom to choose the educational environment that works best for their children,” said Mitch Arvidson, Montana state director for Americans for Prosperity, a conservative advocacy group that supported the ESA legislation.

Opponents, however, maintain that the program diverts resources from public schools, which serve the vast majority of Montana students.

“Every dollar that goes to private schools is a dollar that doesn’t go to improving our public schools,” said Amanda Curtis, president of the Montana Federation of Public Employees.

Montana’s public schools have faced budget challenges in recent years, with many districts struggling to retain teachers and maintain programs due to inadequate state funding.

The ESA program’s future now depends on the outcome of the lawsuit. If the court ultimately rules the program unconstitutional, families who received ESA funds may be required to repay the state.

That possibility adds another layer of uncertainty for families like the Gutmanns.

“We’re in this holding pattern where we don’t know what’s going to happen,” Gutmann said. “It’s incredibly stressful.”

The case is scheduled for a full trial in spring 2026, with Judge Menahan’s final decision expected by the end of June.