Education (Student Financial Aid)

This bill prohibits institutions of higher education in Montana from considering race, color, ethnicity, or national origin when making decisions about admissions, hiring, scholarships, or financial aid. It requires universities to keep applicant demographic data confidential until final decisions are made and bans the use of aggregated demographic data in these processes. The legislation creates a private legal cause of action that allows individuals to sue universities for violations, with provisions for compensatory, punitive, and statutory damages, while also waiving the state's sovereign immunity. The law would take effect on October 1, 2026, applying to the Montana university system and eligible educational institutions.

HB 663 prohibits Montana public universities and eligible educational institutions from considering race, color, ethnicity, or national origin in admissions, hiring, scholarships, financial aid, or program participation. The bill bans using applicant or student demographic data for decisions and requires institutions to withhold such information from admissions officers until decisions are final. It creates a private right to sue for violations, including a fixed $4,000 statutory penalty per violation, plus compensatory or punitive damages, and waives state immunity for such cases. The bill, which stalled in committee in May 2025, would have taken effect October 1, 2026, if enacted.