House Bill 845, introduced in the Montana Legislature on March 28, 2025, aims to enhance the financial landscape for families saving for education. The bill proposes an increase in the income tax deduction for contributions made to Family Education Savings Accounts (FESAs), a move that supporters argue will make higher education more accessible for Montana families.

The key provision of House Bill 845 is the adjustment of the income tax deduction limit for FESAs, which allows families to save for educational expenses while receiving tax benefits. Additionally, the bill includes provisions for inflationary increases to ensure that the deduction remains relevant and beneficial over time. This adjustment is seen as a necessary step to keep pace with rising education costs, which have become a significant burden for many families.

Supporters of the bill, including its sponsors Representatives J. Darling, M. Nikolakakos, and E. Tilleman, argue that increasing the deduction will encourage more families to save for their children's education, ultimately leading to a better-educated workforce in Montana. They emphasize that this initiative aligns with broader community goals of promoting educational attainment and economic growth.

However, the bill has faced some opposition. Critics express concerns about the potential impact on state revenue, arguing that increasing tax deductions could lead to budget shortfalls that affect funding for essential public services. Some lawmakers have called for a more comprehensive approach to education funding that does not rely solely on tax incentives.

The implications of House Bill 845 extend beyond individual families. By making education savings more attractive, the bill could stimulate local economies as families invest in higher education, potentially leading to a more skilled workforce. However, the balance between supporting education and maintaining state revenue will be a critical point of discussion as the bill moves through the legislative process.

As House Bill 845 progresses, its outcomes will be closely watched by educators, families, and policymakers alike. The bill's potential to reshape educational savings in Montana could have lasting effects on the state's economic landscape and the future of its students.