MN SF3435

Establishes Education Savings Accounts (ESAs) allowing eligible Minnesota students to receive funding equal to the state's adjusted per pupil formula allowance to pay for qualifying education expenses outside traditional public schools.

Eligibility limited to students residing in Minnesota whose household income does not exceed four times the reduced-price meal threshold; program capped at 5% of prior year public school average daily membership in year one, increasing 3% annually thereafter.

Allows funds for tuition at nonpublic schools, tutoring, curriculum, educational therapies, online courses, standardized testing, postsecondary institutions, and up to $400 annually in school supplies; excludes parent reimbursement for homeschool instruction time.

Requires Department of Revenue oversight including application processing, monthly electronic payments via ESA cards beginning 2025-2026, fraud prevention mechanisms, and establishment of a Parent Review and Advisory Panel by fall 2027-2028.

Protects nonpublic schools' autonomy by restricting state regulatory expansion beyond ESA program requirements and prohibiting mandates to change admission criteria, employment practices, pedagogy, or curriculum as a condition of participation.