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HB 1163

A BILL for an Act to create and enact a new section to chapter 15.1-36 of the North Dakota Century Code, relating to a legacy fund school construction assistance loan fund; to amend and reenact section 21-10-11, relating to the legacy and budget stabilization fund advisory board; and to provide a continuing appropriation.

69th Legislative Assembly (2025-26) Introduced by Jim Jonas and 5 co-sponsors

HB 1163 would establish a school construction loan fund from North Dakota's legacy fund to help K-12 districts finance infrastructure, but failed passage 5-84 on second reading.

Second reading, failed to pass, yeas 5 nays 84
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Bill Summary · HB 1163

Legislative bill overview

HB 1163 would create a new school construction assistance loan fund sourced from North Dakota's legacy fund and modify the advisory board overseeing the legacy and budget stabilization fund. The bill would establish a mechanism to use legacy fund revenues for K-12 school infrastructure projects through a loan program rather than outright grants.

Why is this important

North Dakota's legacy fund is a constitutionally-protected savings account with restrictions on how money can be spent. This bill represents an attempt to unlock those funds for school construction—a significant infrastructure need across rural and urban districts. The outcome signals whether the state will prioritize education infrastructure funding and how it will balance fiscal conservatism with immediate infrastructure demands.

Potential points of contention

  • Constitutional constraints: The legacy fund has strict spending limitations; creating a loan fund may or may not comply with existing constitutional restrictions, which could invite legal challenges
  • Loan burden on schools: Requiring schools to repay loans (rather than receiving grants) means districts must service debt, potentially straining already tight education budgets in rural areas
  • Advisory board changes: Modifications to the legacy fund advisory board composition could shift decision-making power in ways some stakeholders view as politicizing a protected fund

Compiled from official sources — confirm details with the bill’s official record.

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