Nebraska opts in to federal private school choice program

Nebraska has become the first state opting in to a new federal tax credit program designed to expand school choice scholarships for K-12 students.

Gov. Jim Pillen announced the news during a Sept. 27 visit to St. Teresa Catholic School in Lincoln, calling the move a step forward for families seeking more education options.

“As I’ve said forever, we’re never, ever going to give up on a kid anywhere. And we have to have great public schools,” Pillen said. “This Big, Beautiful Bill has the potential to help in all circumstances – certainly going to help our private schools immensely, but it can in our public schools as well.”

Congress included the credit in this year’s One Big Beautiful Bill legislation. It allows taxpayers to donate up to $1,700 to qualifying scholarship-granting organizations and receive a dollar-for-dollar credit on their taxes.

The program begins in 2027. Families earning up to 300% of the area median income qualify. In Nebraska, where the median household income is about $76,000, households earning up to about $228,000 could benefit.

Scholarships can be applied toward tuition, books, tutoring and other approved educational expenses at public or private schools.

Pillen argued opting in ensures Nebraska gets its fair share of federal resources.

“I’ve said forever, since I’ve been your governor, we’ve got to get more than our fair share of federal dollars home,” Pillen said. “We got a billion to our healthcare, and we’re getting others for roads and so forth. This is gigantic for education.”

Not everyone welcomed the announcement. Stand For Schools, a group opposed to private school choice, said it goes against the will of Nebraska voters.

“Last year, Nebraskans made their voices heard loud and clear by rejecting private school vouchers at the ballot box,” executive director Dunixi Guereca said. “This decision ignores the will of Nebraska voters and the decades of research showing how to actually move the needle to improve outcomes in schools.”

Still, supporters, including Opportunity Scholarships of Nebraska and the American Federation for Children, praised the move.

“This scholarship program will give hope to countless kids across the state of Nebraska,” OSN said.

Rep. Adrian Smith, R-Nebraska, who sponsored the federal provision, said the goal is to empower families.

“Parents and families can be empowered, especially those in impoverished communities,” Smith said.